Manufacturing

MANUFACTURING & DISTRIBUTION

We help companies resolve asset classification and obsolescence issues in the technology, food, steel, chemical, and textile sectors.

Complex Property Tax Expertise: Obsolescence

By accurately quantifying the excess operating cost and production inefficiencies associated with a telecom equipment manufacturing plant we successfully secured a 50% obsolescence that produces annually compounding savings in excess of $250,000 per year.

In another recent case, we negotiated a 100% savings on a semiconductor manufacturing production line by re-classifying the equipment as non-taxable R&D equipment.

Our expertise covers a variety of high tech and industrial manufacturing sectors:

  • Semiconductors
  • Telecom equipment
  • Food processing
  • Paint and chemicals
  • Textiles
  • Steel service centers

Analysis CTA

Processing

Complex Property Tax Expertise: Business Inventory Tax

In states with business inventory tax (e.g. Texas), their property tax code provides a number of cost reduction incentives, including both local and statutory exemptions.

Unfortunately, many manufacturers and distributions (such as steel) fail to take full advantage of the available inventory tax savings opportunities, resulting in overpaid taxes that cannot be recovered once the current year tax roll is certified.

In Texas, the most overlooked inventory savings opportunity we see is failing to claim or maximize Freeport exemptions through indirect “pass through” or “piggyback” savings on shipments to Texas customers.

Steel pipe

Tax Exemptions

If you have inventory located in Texas on the lien date (January 1) and meets certain requirements, you may likely qualify for up to a 100% property tax exemption.

Additionally, there are multitude of special industry specific inventory exemptions such as laid up offshore drilling rigs are exempt in counties adjoining the Gulf of Mexico or a body of water adjoining the Gulf of Mexico. Barges under construction are also exempt.

In a situation where inventory values fluctuate (steel and other commodities) the market value may be less than cost. Additionally, some inventories may qualify for appraisal as of September 1 in accordance with the provisions of Texas Property Tax Code Section 23.12(f).

If you are missing these (or other) complex property tax savings opportunities, we can help.

Resulting in Millions of Dollars of Industrial Tax Savings

Success Stories

Atmel

Atmel

$488K
ANNUAL
SAVINGS
TAX SAVINGS OF 45%
Industry Association
MANUFACTURING
Industry Association
MANUFACTURING
  • 38.72% reduction of the assessed value for Atmel’s semiconductor manufacturing tools
  • 100% exemption on a non-operating production line

Fujitsu

Fuj Dark

$2M
ANNUAL
SAVINGS
TAX SAVINGS OF 50%
Industry Association
MANUFACTURING
Industry Association
MANUFACTURING
  • An IPTS client since 1998.
  • Savings earned through inventory exemptions, a non-taxable intangible asset study, and comprehensive economic obsolesence  analysis.

Expro

Expro

$160K
ANNUAL
SAVINGS
TAX SAVINGS OF 50%
Industry Association
ENERGY
Industry Association
ENERGY
  • 49.81% assessment reduction
  • Negotiated an accelerated depreciation schedule for their field rental tools

What Clients Say

Quotes

I have worked with John and the rest of the Industrial Property Tax Solutions team the last three years. They are highly capable tax professionals who possess a wonderful combination of tax technical skills and people skills, which are both necessary to navigate the pitfalls of state and local property taxes. With their assistance, we have lowered our annual property taxes.

- Scott Dant, Director of Tax -

American Commercial Barge Line LLC

What Clients Say

Quotes

I worked with IPTS' John Woolard, during my 17 year tender at Odfjell Houston. John had a sound understanding of our business which enabled him to apply innovative ideas, that were later used during our HCAD mediation process. As a direct result of his field work and experience, we were able to reduce our out-of-line HCAD property tax values from $60M to $38M culminating in major tax savings. John maintained strong working relationships with HCAD tax appraisers and he continuously sought ways to reduce our tax values. He gets results.

- Albert M. Noggle, Retired CFO and Interim President -

Odfjell Holdings US Inc

What Clients Say

Quotes

I’ve had the pleasure of working with John over the past 7 years. During this time he has shown me to be reliable, responsive and reasonable in his approach. Overall, he has served as a solid partner and has been instrumental in reducing our property taxes.

- Craig Wohlfort, Controller -

Austin American-Statesman

What Clients Say

Quotes

I have been worked with IPTS for three years. They are efficient and timely in the services that they provide for HID, and a great source of reference on Texas property tax issues. They keep us apprised of emerging tax related concerns in Austin.

- Teresa Wagner - Assistant Controller -

HID North America