Learn about the solutions available to owners of business personal property (BPP) to avoid gross over-assessment.
Business personal property is routinely valued at 150 to 200% of fair market value, with the exception of inventory and vehicles. Inaccurate appraisal district straight-line depreciation schedules and inclusion of intangible personal property (which is not taxable) are the primary causes of gross over-assessment.
Learn about the solutions available to owners of business personal property (BPP). These solutions will include rendering based on market value instead of rendering cost (as allowed by state law), excluding the value of the intangible personal property, and appealing excessive assessments using market value evidence.
Learning Objectives
- You will be able to define type of property.
- You will be able to discuss disadvantages of rendering cost/year of acquisition.
- You will be able to explain why rendering an opinion of value is best option.
- You will be able to review how to reduce BPP property taxes.
Agenda
Types of Property
- Real
- Personal Property
- Intangible Personal Property
Options to Render
- Cost/Year of Acquisition
- Opinion of Value
- No Rendition
How Assessors Value
- Prefer to Start With Cost and Year of Acquisition by Property Type
- Use Straight-Line Depreciation
- Don’t Consider Obsolescence
Problem With Assessor Valuation
- BPP Is Grossly Over-Valued by Straight-Line Depreciation
- Does Not Consider Market Value
- Does Not Consider Intangible Personal Property Embedded in Personal Property
- Often Values Ghost Property
- Overstates Value Throughout Ownership Period
Recommended Approach
- Render Opinion of Value If Possible
- Exclude the Value of Intangible Personal Property
- If Not Possible to Render Opinion of Value, Appeal If the Assessed Value Is Excessive
- Continue the Appeal After the Administrative Hearings If the Value Is Excessive
Speakers
Patrick O'Connor,
O'Connor Tax Reduction Experts- President/Owner
- O’Connor is among the largest property tax consulting firms in the United States, with areas of expertise including commercial and residential property tax, business personal property tax, cost segregation, as well as commercial and residential real estate appraisals
- Author of What You Need to Know about Personal Property Valuation
- MAI designated by the Appraisal Institute
- M.B.A. degree, Harvard University
- Can be contacted at patricko@poconnor.com or 713-375-4215
Who Should Attend
This live webinar is designed for accountants, tax managers, tax preparers, accounts payable professionals, CFOs, controllers, CEOs, operations managers, consultants, and attorneys.
