Slashing Assessed Values to Save Millions

One of the country’s largest well service companies, this client operates hundreds of workover rigs and maintains operations across all major onshore basins.

Challenge:

• The company was overpaying property tax for various reasons, including inflated assessed values on their assets.
• The company was formed through mergers, and one of their predecessor companies was delinquent on their taxes, which tax officials were seeking to collect from our client.

Merit Action Plan:

• Merit Advisors’ property tax team reviewed the company’s asset base and recognized that their tax liability was inflated.
• We took a strategic approach to rendering the client’s assets to reduce assessed values, and then successfully defended our work to the taxing authorities.
• Merit filed to absolve the company of the delinquent taxes they had not incurred.

Result:

• Merit reduced the average ad valorem assessment of the client’s rigs to roughly half their book value, and less than a quarter of their acquisition cost.
• Delinquent taxes from prior years were removed.

$2.5 Million

2024 Tax Savings

$6.9 Million

Four-Year Tax Savings