Business Personal Property Tax
Strategically located in the middle of the country, Property Valuation Services gives special attention toward understanding the client’s properties from an analytical and accounting perspective — something not offered by your local certified public accountant or general tax consulting firm.
PVS’s diverse team of accounting-based staff, CPAs and finance specialists routinely find savings when working behind or following other consulting and tax firms. Most of our services are performed on a pre-assessment basis to represent the client’s interests on a proactive basis while keeping a positive relationship with the assessor and community.
In 2021, PVS filed the business personal property tax rendition for a new client using their in-house tax savings methodologies for a hospital in Texas. The proposed values from the Appraisal District were appealed and resolved through negotiations. PVS prepared a personal property rendition that identified components of certain pieces of equipment as either intangible or non-taxable and thereby reduced the taxable base and moved a large portion of assets to a faster depreciation schedule, both of which resulted in lower taxes assessed.
In 2022, PVS appealed three accounts for a hospital client in Texas on the basis that the assets being assessed were being double taxed. The proposed values from the Appraisal District were appealed and presented to the Appraisal Review Board. PVS prevailed in securing large reductions on all three accounts.
In 2021, PVS filed the personal property tax return for an imaging center in Round Rock, Texas. Upon review of the assessment, PVS discovered that multiple high-dollar machines were double assessed and could be removed from the assessment. PVS appealed the assessment and made the case to the assessor that certain pieces of equipment were being assessed and taxed on two different accounts. Ultimately PVS convinced the assessor to remove those assets from the client’s account.
What Is Business Personal Property?
Have Your Business Personal Property Tax Reviewed by a PVS Property Tax Expert!
Throughout the United States, the process of challenging a property tax assessment is referred to in various manners, including property tax appeal, protest, abatement, petition, and more. Regardless of the name, the goal is the same: to reduce the property’s tax assessment, saving valuable tax dollars.
What is Business Personal Property Tax?
Business personal property tax is a self-reporting tax, meaning the taxpayer files a return that lists the tangible assets in their possession as of a certain date. Business Personal Property Tax renditions are required to be filed on an annual basis to the assessing jurisdictions. If these aren’t filed annually, assessors can place arbitrary assessments on the account. In most cases, the acquisition date and cost of the assets are used to place the assets on a set of depreciation tables to account for the loss in value as the assets get older. As assets depreciate differently, the set of tables typically includes several tables that account for the loss of value at different rates
Assets that fall into business personal property typically include:
- Furniture & Fixtures
- Machinery & Equipment
- Computer Equipment
- Office Equipment
Are you paying too much for your business personal property taxes?
Technology has caught up with nearly every industry. Most companies today either utilize or develop complex, high-tech equipment to bring the best products and/or services to their market. The use of this technology and the products it brings to bear has provided areas of opportunity for both the increase in assessments by the assessing jurisdictions, as well as, the reduction of assessments by firms who understand the technology and products.
Unlike any other firm, PVS has employed technology and product specialists along with seasoned business personal property tax professionals. This unique blend has helped us develop exclusive, cost-cutting methodologies, with which we have been able to find our clients substantial savings on their business personal property taxes.
Full business personal property tax representation services:
- Cost-Reduction Services
- Compliance Services
- Assessment and Tax Bill Approval
- Audit Defense
- Tax Budget Assistance
- Appraisal Services
- Depreciation Expense Calculation Services
- Property Tax Research Assistance
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Business Property Tax Reduction
PVS provides a thorough evaluation of each property to identify potential reductions:
- Evaluate past reporting methods
- Review asset detail for additions & deletions, as well as ghost, idle and obsolete assets
- Re-life assets
- Verify & remove non-taxable costs
- Articulate the justification of a value reduction to the taxing authorities
- Approve value
- Knowing the state and county statutes for taxation of business personal property
- Educating of the jurisdiction on the technology and the asset
- Effectively tracking and evaluating values through our customized tracking and filing system
- Placing entire assets into faster depreciation
- Stripping non-taxable components out of individual assets
- Componentizing individual assets for faster depreciation
Compliance is the most commonly used term for the general reporting of business personal property, to include
- Information Request and Review
- Analysis of Client’s Prior Year Filing
- Analysis of The Value as Accepted by County
- Data Analysis
- Filing Of Property Return(s)
- Assessment Tracking & Verification
- Assessment Appeals When Necessary
- Reviewing Tax Bills for Accuracy
- Submitting Standardized Approvals to Pay Tax Bills
- Semi-Annual Reports
- Tax Tracking
- Tax Planning
- Client Web Access