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 Benefits Of Using Valu Tec
- Experienced industry professionals.
- Better results are achieved when a professional job is completed in a timely and informal manner.
- You will be kept apprised of all filing deadlines.
- Pollution control asset expenditures will be reviewed and filed on a continual basis to achieve maximum benefit.
- Appropriate follow ups will be made to ensure compliance with all state and local requirements.
- Continual communications will occur to ensure a smooth transition from concept to recorded valuation.
- Valu Tec will be there to answer any questions that you or your staff may have.
- In many cases, the cost to implement the Valu Tec Asset Management Program is more than offset by the reductions in your company’s personal property taxes.
- Our staff is experienced in informal negotiations and the appeals process. Valu Tec feels that better results are achieved when a professional job is completed in a timely fashion. We are very diligent in completing valuation reports for the assessment officials in advance of appeal deadlines.
Personal Property Services
Valu Tec will visit, inspect, and review the personal property as inventoried on the Client’s fixed asset listing. The analysis will include verification of the assets continued productive use and that the assets are properly scheduled for ad valorem taxation. Valu Tec will prepare a list of recommendations, if any, for the correction or amendment of the Client’s tax filing and fixed asset listing for past, present and future filings.
Real Property Services
Valu Tec will visit, inspect and review the real property owned or leased by the client in order to perform a real estate appraisal of the subject property. The developed appraisal will be utilized in the analysis of the property for comparison to the ad valorem assessment of the subject property. An appraisal report will be issued to the client, and if appropriate, to the taxing authority, for informal or formal appeal of the tax assessment. Where appropriate, Valu Tec will file for refunds of overpaid real estate taxes and or request corrections to the assessor's property record cards. Real property tax assessments will be reviewed annually and updated on an as needed basis.
How does Valu Tec Look for Tax Reductions?
There are several common pitfalls that can contribute to overstated tax liability. When Valu Tec does a property tax review, here are just a few of the things we look for that could potentially cause over-reporting;
- Personal vs. Real - If a company owns the real estate where they conduct their business, we verify that there are no duplications on the Assessor's Property Record Card. Common problem areas vary from State to State, but include fixtures, refrigeration equipment, electrical fixtures, truck dock plates, and bases for heavy duty machinery or equipment. We verify that the item is listed in the real property or personal property record, but not both.
- Construction in Progress - If a company is constructing a new facility or undergoing other related projects, certain costs, usually charged to that project, do not add value to the assets under construction. Many Assessors like to use the Cost Approach To “Value”. After a thorough evaluation and review, it is often evident that COST does not equal VALUE.
- Intangible Assets - There are several items that are intangible in nature but reflect value for financial purposes. Typical examples include: Copyrights, Trademarks, Patents, Customer Lists, and Computer Software.
- Ghost Assets - These assets continue to be depreciated and over-inflate taxes, but no longer physically exist.
- Permanently Idled or Retired Assets - Changes in the specific industry a company is involved in or rapidly advancing technology may cause certain assets to no longer be utilized. Once an asset reaches this point, obsolescence in all forms can be analyzed to find potential tax reductions on this asset!
Abatements
True benefit from the abatement process can be optimized by a thorough analysis of project valuation. The abated assessment should reflect the increase in actual value, not gross expenditures. This review can very likely lower the tax basis, thus resulting in a substantially reduced tax liability.
The abatement plan will be reviewed from inception to assist in identifying non-assessable assets or assets subject to tax abatement from expenses that may not qualify for abatement. All required filings including the necessary forms for the establishment of an abatement zone (where applicable) will be completed. Valu Tec will attend all required meetings of the local taxing authority in presenting the abatements application and file all requisite filings or responses to questions relative to the requested abatement. Valu Tec will monitor and prepare the annual filings for continuation of the tax abatement.
Fixed Asset Inventory
Valu Tec shall perform a fixed asset inventory, which will include asset identification, tagging, and production of a reconstructed fixed asset listing for those assets owned, held or maintained by the client. Valu Tec will also undertake a review of the reconstructed fixed asset list to determine that the proper assets are identified and reported for the purpose of personal property ad valorem taxation.
Advantages to Having an Asset Inventory Completed
- An accurate, supportable and maintainable fixed asset listing
- Proper Maintenance of appropriate identification tags for the Client's use upon acquisition of new fixed assets
- Sound Basis for annual preparation of the Client's personal property returns with supporting documentation
- Sarbanes-Oxley compliance
- To assist in the tracking and transferring of fixed assets between sister facilities
- Estate Planning or Succession Planning for a closely held company
- To assist in bankruptcy or company reorganization
- Needed prior to obtaining bank loans or insurance quotations
- A prerequisite to purchasing or selling fixed assets
- And finally, Having the "peace of mind" from knowing if it is on your fixed asset listing; it is out there in the plant
Financial Benefits
- Savings in personal property taxes based on eliminating "ghost" assets and proper classification of idle and obsolete equipment from reporting
- Reduced fees for appraisals of machinery equipment used for bank loans and insurance quotations
- Sarbanes-Oxley Compliance
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