PERSONAL PROPERTY “COST” DOES NOT EQUAL “VALUE”
DMA was engaged to review the assessment of a brand new, state-of-the-art data center. This a situation where most assessors view “cost” as being equal to “value.”
For example, items that may have been built by this user, but would be super-adequate for the market in general, and to “the most probable buyer” or that the extraordinary percentage of construction cost devoted to HVAC, mechanical, and electrical components in these centers inherently reduced the economic life and should accelerate their “normal” depreciation schedules used in their assessing practices.
Along the same lines of economic life, there was an essential analysis of the evolution of data center design and construction for what has transpired over their history and what is anticipated in the future. The facility also contained excess capacity, resulting in arguments for an inutility penalty or obsolescence.
Through teamwork between DMA and the client and spending the necessary time and effort to credibly develop and present the arguments, we were able to successfully minimize the assessment to more accurately reflect fair market value. DMA’s review also focused on the company’s even larger personal property assessment for the current and prior years. This involved eliminating double taxation through the identification of assets already inherently included in the real estate valuation, preferential classification issues, and similar discoveries.
In this instance, the project resulted in tax savings to the client of approximately $200,000/year for their real property, and more than $500,000/year for their personal property.
Our property tax professionals focus on identifying opportunities for reducing both real and personal property tax assessments, which may result in opportunities for property tax overpayment recovery. We partner with you to review your entire portfolio of properties or individual properties of concern to you.
DMA works with local assessing authorities to implement our findings in a positive, proactive manner. If necessary, we work on your behalf to resolve any issues through hearings, tax boards, and tax court. You can be assured that DMA’s local expertise and relationships will foster a speedy resolution to erroneous assessments, and for properties, DMA deems fairly assessed, you can be confident knowing the taxes are appropriate.