Reduce Personal Property Taxes…Increase Profitability

What should I know about Personal Property Tax?

Personal property tax is a tax imposed by the county on capital machinery, furniture, equipment and other tangible assets. Many companies incorrectly think of personal property tax as a fixed expense. Because it is not fixed, the burden of this tax can be significantly reduced–resulting in increased profitability. But, to realize the greatest benefit, you need advice from experts in the tax field.

Isn’t my Accountant the expert?

Usually not. Your accountant is the expert when it comes to preparation of your financial statements and/or corporation tax returns. The personal property tax return, however, is an entirely different matter.

The laws and guidelines that govern this highly specialized tax vary from state to state and even county to county. A misconception persists that the basis of reporting fixed assets for the personal property tax return must be the same as the basis for the accounting and/or corporate tax returns. In reality, there is a “third” basis of reporting, dictated by the state and county guidelines, which applies only to the tax on personal property.

At Property Tax Advisory Group, the focus is helping companies decrease their personal property tax bill and transfer the savings directly to their bottom line. Historically, PTAG has successfully found savings in more than 85 percent of the cases examined. And these savings are effective not only in year one, but over the assessable life of the asset.

Technical tax experts at Property Tax Advisory Group are part of a select group that has earned the Senior designation from the American Society of Appraisers (ASA) in the field of property taxation. Their expertise includes thorough understanding of tax codes as they vary from state to state and county to county.

The technical analysis used by Property Tax Advisory Group converts the accounting and fixed-asset records to the personal property tax basis in accordance with state property tax guidelines. The result may be a lower basis for tax assessment and, consequently, lower personal property tax. The long-term effect is total cost management of personal property tax expense.

What if my Accountant is currently preparing my personal property tax return?

You have nothing to lose by allowing us to do an analysis. At minimum, your current procedures will be validated. Alternatively, tax savings will be achieved and realized over future assessments.

How does the Service Work?

PTAG’s service is simple to use. To perform a complete analysis, all we require are:

  • prior year’s personal property tax return
  • asset listing
  • most recent tax bill

PTAG will complete the following:

  1. Review of assets that are reported as personal property. Frequent changes in property tax codes may validate exemptions or deletions from your personal property filings.
  2. Reclassification of assets to a shorter economic life, creating faster depreciation for property tax purposes. Opportunities to obtain more rapid asset depreciation are greater than ever, due to the escalating use of computer-driven equipment in the workplace.
  3. Analysis of the market value of major assets. Our experience has shown that the depreciation factors used in many taxing jurisdictions may not be reflective of true market value, resulting in over-assessment.

What is the Cost?

Property Tax Advisory Group’s compensation is based solely on a contingency fee. This means absolutely no risk to you. If you do not benefit, there is no charge for our analysis. When we do find savings, you will not receive an invoice until the assessor has accepted the return. In the unlikely event of an audit, PTAG is responsible for any costs associated with the defense of its methodology of filing. We also provide, at no charge, representation of and consultation with the client.