Rewards of Merit: Property Tax

Wiping Out Half of an OFS Company's Assessment


After emerging from bankruptcy, a publicly traded oilfield services company engaged Merit seeking cash tax savings opportunities.

Results for client


Annual Tax Savings


Reduction in Annual Assessed Values


  • Client saw its tax liability rising as the stock price fell.
  • Previous tax consultant lacked industry experience to accurately calculate equipment values.

Merit Action Plan:

  • Conducted thorough review of repeatable opportunities for reducing annual tax liability.

  • Discovered previous consultant was using inflated equipment values to negotiate tax assessments.

  • With deep oil and gas expertise, Merit applied a more appropriate valuation methodology:

    • Used market values instead of valuing equipment at cost.

    • Secured adjustments for obsolescence and decreased asset utilization.

    • Provided assessors with extensive supporting documentation.

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