Valuation

Valuation

Valuation is an essential step in our comprehensive, industrial complex property tax analysis. The key to a successful property tax assessment appeal is to incorporate a documented quantification of abnormal obsolescence via a comprehensive valuation analysis, presented in a format that tax assessors relate to.

Valuation Errors When Calculating Complex Industrial Property Taxes

The challenge for industrial companies is that tax assessors determine market value for complex industrial capital assets through the application of a prescribed “percent good” physical depreciation schedule to original cost that has been trended up to an inflation-adjusted reproduction cost.

Unfortunately, the application of these standard depreciation schedule and inflation factors do not capture market-supported abnormal depreciation, and as such, often overstate market value.

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Depreciation

Abnormal Depreciation

Abnormal depreciation, in the form of functional or economic obsolescence, can be determined through the application of several universally accepted appraisal techniques:

  • Replacement vs Reproduction cost (e.g. what would your industrial plants look like if you rebuilt today?)
  • Actual vs. Designed Asset Utilization
  • Quantification of Excess Operating Costs as Compared to “State of the Art”
  • Income Shortfall Analysis
  • Cost to Cure Analysis
Presses

Valuation Opportunities

Additionally, the market value of industrial complex capital assets can be supported through multiple sales and asking prices of comparable assets, which, depending on the circumstances, may be scrap or salvage value.

Find out how we can help your company identify valuation opportunities to support seeking a reduction of your complex industrial property taxes.

Resulting in Millions of Dollars of Industrial Tax Savings

Success Stories

Energy Fishing

Energy Fishing

$233K
ANNUAL
SAVINGS
TAX SAVINGS OF 51%
Industry Association
ENERGY
Industry Association
ENERGY
  • IPTS secured a property tax refund of 35% in Ector County, 69% in Gregg County, 56% in Wise County, and 62.5% in Hamis County based on a comprehensive fixed asset valuation analysis.

Ft. Worth Star Telegram

Ft. Worth Star Telegram

$355K
ANNUAL
SAVINGS
TAX SAVINGS OF 77%
Industry Association
MEDIA
Industry Association
MEDIA
  • Our tax reviews yielded a 77% reduction in taxable value based on our extensive database of newspaper equipment sales, supplemented by our comprehensive fixed asset valuation analysis incorporating replacement cost, functional obsolescence, and economic obsolescence.

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.

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