Background:

A chemical manufacturing and distribution operation headquartered on the West Coast engaged Sansone to perform a review of their personal property returns and processes for several of their key locations, beginning in the Southeast with two of their facilities. 

JCS Solution:

Sansone conducted a through review and analysis of this firm’s fixed asset records and interviewed key company staff.  During the review of fixed asset records and returns, Sansone discovered that real property was being reported as personal property resulting in double taxation.  Additionally, since the company blended chemicals at both of their facilities, they were entitled to file for a 100% exemption, available in the applicable county, of the taxable value of their inventory. 

Results:

These two items combined provided the locations with a 71% and 82% personal property tax savings, respectively.  Sansone’s tax and local filing expertise identified exemptions that this company was unaware of within the personal property tax field. 

Background:

An international plastic injection-molding operation enlisted Sansone to reduce their personal property taxable value.  The company, one of the largest taxpayers in the area, with other surrounding business, had recently lost a real estate appeal in the same county. 

JCS Solution:

JCS analyzed initial market data for the company’s equipment and determined that the personal property values, specifically for its manufacturing equipment, to be significantly over assessed.  Even though the company had already filed their personal property declaration for that year, Sansone still appealed the value on the company’s behalf.  An independent appraisal of equipment was performed which verified that the county’s value was too high.  While the County and Board of Equalization were both unwilling to reduce the taxable value, in light of their recent real estate victory, a state hearing was conducted and found that the appraisal value was the correct taxable value for personal property.

Results:

As a result of the state hearing board’s findings, the Joseph C. Sansone Company reduced this firm’s taxable value of its manufacturing equipment by over 66%.

Background:

A Midwestern television station enlisted Sansone to perform a review of their fixed assets for appropriate personal property tax filing purposes.  While in compliance with local reporting requirements, the station was unfamiliar with different depreciable lives applicable to their unique equipment, as well as pending legislation that could affect those values.

JCS Solution:

Sansone conducted a detailed review and analysis of the firm’s fixed asset records and interviewed key company staff to better understand the equipments usage and operation.  After reviewing the returns filed by the company, Sansone identified most of the equipment used in the studio operations as technical in nature, thereby allowing a reclassification of the assets into shorter depreciable lives.  In addition, with the industry switch to digital broadcasting, sweeping changes affecting the valuation of analog and digital broadcast equipment were pending in legislature.

Results:

Sansone was able to reduce the tax liability by more than 18% immediately through the initial reclassification.  Additionally, legislation was simultaneously being signed that provided for accelerated depreciation to analog broadcast equipment that was quickly becoming antiquated due to government mandates to move to digital by 2007.  Sansone filed an appeal on the personal property and was able to have the majority of the equipment valued utilizing the new tables one year before the law was to take effect.  This resulted in an additional 40% reduction in tax.

Background:

The largest pork processing facility in the United States contracted for a review of its real property assessment. The facility contained in excess of 1.5 million square feet of space. The facility, which had grown over a number of years, had recently completed a 100,000 square foot, state of the art addition, prior to the then current tax year. Based on the new addition and the appearance of total use of the facility, the assessing jurisdiction was proposing a substantial increase for the entire facility.

JCS Solution:

The JCS analyst conducted a site inspection of the facility. Interviews were conducted with facility engineers, maintenance personnel, operating engineers, line managers and the company President. It was determined that there were significant obsolescence issues that were negatively impacting the value of the property and that an appeal of the assessment valuation was warranted.

Results:

The obsolescence issues were quantified and an analysis was created and presented during discussions with the assessing jurisdiction’s appraisal staff.  Prior to a hearing the jurisdiction granted a 32% reduction in value and corresponding tax liability.

Background:

A large banking and financial services organization contracted for the review of its central business district headquarters office facility.  Based upon the overall market activity and economics, the assessing jurisdiction indicated that the valuation should be increased.

JCS Solution:

Joseph C. Sansone conducted a site inspection and extensive research on the facility, downtown market and its recent and future dynamics of the location.  Interviews were conducted with facilities engineers, architects, local property managers and appraisers. Unique obsolescence factors were identified that showed that the value of the facility would actually continue to decline.  The assessor’s argument of a strong market was reversed and used to justify the premise that the strong market supported a re-development of the site with a new office tower. 

Results:

Prior to hearing the assessing body agreed to a reduction that resulted in refunds of $100,000 and an annual tax savings of $50,000 per year going forward for the bank.

Background:

A major cement manufacturer contracted for a review of one of its older facilities. The facility was the largest of its generation of technology in the world.  The facility had been valued via the Cost Approach by the assessing jurisdiction for a number of years.  Of note, was that there had been a capital addition to the facility in the previous year that amounted to almost one half of then current assessment.  While being one of the older facilities in the system the plant also had the lowest operating cost per ton and it was felt by the plant manager to be in fine shape with regard to the real property assessment and the corresponding tax liability.

JCS Solution:

Extensive site inspections and industry analyses were conducted by the Joseph C. Sansone Company.  Plant and corporate personnel were interviewed in addition to the participants in the global cement industry.  Obsolescence issues were identified and quantified which counteracted not only the substantial capital addition but also the operating costs.

Results:

As the result of the presentation before the State valuation body the assessment and taxes were reduced by 90% for the four years that were then under appeal.  The savings to the client was in excess of $400,000 per year, with the valuation reduced to approximately one-third of the most recent capital expansion.