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Business Tax Assessment

Background of Property Tax Subject Matter Expert

JM Tax Advocates is a diverse team of professionals providing tailored strategies to help clients achieve real property tax reductions and property tax compliance, while maintaining control over material annual property tax costs.

They built their foundation on three client-centered principles:

  •   honesty
  •   integrity
  •   fairness

Their team’s goal is to become [Company Name]’s long-term business partner.

For manufacturing companies, property taxes are likely [Company Name] first or second largest tax burden. Unfortunately, because these property types provide unique, complicated valuation challenges for many state and local property tax assessors, chances are, they are excessive and inaccurate.

Manufacturing companies often face significant property tax bills, which can impact their bottom line. These taxes can include real estate taxes on properties, machinery, equipment, and other assets. Effectively managing and reducing tax liabilities is essential for:

  • Cost Savings: Lowering property tax expenses directly increases your company’s profitability.
  • Competitive Advantage: Reduced tax burdens allow you to offer more competitive pricing.
  • Resource Allocation: Redirect resources towards business growth and innovation.
  • Compliance: Ensuring that your tax assessments align with local regulations and fair market values.

States and counties have differing requirements for protesting property tax assessments. However, if an appeal is not filed by the deadline, the opportunity to contest the new assessment will be missed!

Initial Company Research Findings

The JMTA team has taken the liberty of reviewing property tax records for [Company Name] that are available as a matter of public record.  The following summarizes their initial research and observations.

Identified address(es) of company operations:

2023 real property tax amount:  $20,870.00

2023 real property tax assessment and TTV/sq. ft 27,830

2023 personal property tax amount: $171,496.84

2023 total property tax amount: $192,366.84

Initial Observations:

Based upon [Company Name]’s total annual property tax spend and typical results for [Company Name] industry and property type, we believe that [Company Name] could benefit from a property tax review and initial economic incentive evaluation on any upcoming expansion opportunities on the horizon.

Additional factors to keep in mind that may also lead to substantial property tax assessment increases:

  1. Rising U.S. market value changes for industrial real estate will likely be reflected in this year’s assessment notices – we anticipate double-digit % increases.
  1. Inflationary impact on machinery and equipment acquisition and installation costs leading to noticeable increases in business personal property taxes as return values are closely tied to capitalized costs.

Recommendations

We suggest leveraging an experienced navigator like JM Tax Advocates to evaluate and pursue property tax relief and incentive strategies on new and historical construction to:

  1. Investigate if property is correctly reported, classified, and all available exemptions are being applied.
  2. Quantify market depreciation through common appraisal approaches.
  3. Negotiate incentives well ahead of the construction start timeline.

Proposed Work Plan and Fee Approach

JM Tax Advocates’ proven process includes the following steps:

  • Assess initial real and personal property tax and expansion incentive opportunities.
  • Compare assessment with market data analysis.
  • Identify and calendar statutory deadlines and incentive requirements.
  • Implement findings through appeals, amendments, or negotiation.
  • Validate secured savings through property tax statement review and ongoing incentive compliance certification.

We are pleased to be able to offer a no-risk, contingency fee approach to pursue property tax and incentive planning opportunities for your company through JM Tax Advocates. The way this works is simple –

no fee unless savings are achieved

Upcoming Deadlines

[Company Name] will want to keep the following key deadlines in mind relative to starting upcoming diligence:

  •   amended personal property tax filings are due May 15;
  •   Indiana real property tax appeals due June 15
  •   incentive planning should start at least 6-9 months prior to construction activities.

It’s easy to get started and our team requires very little information to begin a review.  Here’s a short list of initial information request items:

  1. Discuss and evaluate incentive planning through a short virtual meeting.
  2. Work with company leadership to execute our service agreements.
  3. Obtain most recent property tax return filings, preparer workpapers, and complete fixed asset downloads as of December 31, 2022, and 2023.
  4. Obtain signed and notarized tax representative authorization document from owner of record for real estate and business personal property.

We appreciate the opportunity to assist your company with this initial evaluation and look forward to exploring next steps and your requirements for becoming a long-term business partner to [Company Name].

Have a question or want to work with JM Tax Advocates? Send us a message!

JM Tax Advocates LLC

13300 Olio Road Suite 360
Fishers, IN 46037

Phone: 317.674.8390
Fax: 317.863.1089

Watch Now

View the recording of our recent Property Tax Burden webinar.

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