Reducing Inflated Assessments the Competition Overlooked

This petrochemical facility maintains a significant presence in the county.

Challenge:

Unhappy with their prior tax consultant, the company wanted a partner who could review the plant’s fixed assets—and the work performed previously—to identify opportunities to reduce their ad valorem assessments.

Merit Solution:

• Our property tax team reviewed the facility’s assets to determine the appropriate service life and physical depreciation for each one.
• Merit Advisors also identified the applicable forms of functional and economic obsolescence for both the plant and industry.
• Merit scoured the plant’s asset listings for underutilized, out-of-service and intangible assets while cataloging all non-value-added costs and maintenance spending.
• After discussing our findings with the plant controller and management, we prepared the required returns and negotiated with a taxing representative.

$400,000

Annual Tax Savings

10%

Reduction in Assessed Value Despite Inflation