Client
A large U.S. energy company operating liquefied natural gas (LNG) infrastructure was in the process of expanding operations at a major LNG facility. The organization was managing significant capital investment activity tied to a new processing line while also navigating complex property tax reporting and valuation considerations.
Challenge
During the installation and testing of a new LNG processing , the project experienced multiple complications, including construction delays, cost overruns, and equipment failures. As a result, the facility was not operating at its intended production capacity within the expected timeframe.
This created several complex property tax questions, including:
- Whether portions of the project should still be classified as construction in progress due to operational limitations
- How specific components should be treated for real versus personal property purposes
- How the personal property return should be structured and reported
- How to determine an appropriate taxable value for a facility that was not yet operating as originally intended
The company needed guidance not only on compliance and reporting methodology, but also on how to engage with the local taxing jurisdiction to support a more appropriate valuation outcome.
Solution
DMA reviewed the company’s personal property reporting methodology and advised adjustments designed to better align the filing with the operational realities of the facility. This included recommending and supporting an amended return.
In parallel, DMA complex property experts worked directly with the local county assessor to address valuation concerns associated with the LNG facility and the processing train that was not yet fully operational. The engagement required a combination of:
- Property tax reporting expertise
- Knowledge of LNG infrastructure and asset valuation
- Strategic coordination with the taxing authority to support long-term outcomes
Throughout the process, DMA focused not only on resolving the immediate issue, but also on establishing a sustainable approach that could support future annual reporting and maintain positive long-term relationships with the taxing jurisdiction.
Result
DMA’s efforts resulted in a revised 2024 assessment that generated approximately $1.2 million in property tax savings. The revised treatment and methodology also carried forward into 2025, producing an additional $436,000 in savings.
In total, the engagement delivered approximately $1.7 million in combined tax savings across the two years while helping position the organization for more consistent long-term reporting and valuation treatment.
Why DMA
DMA combined extensive property tax expertise with industry-specific LNG and energy infrastructure knowledge to help the client address a highly specialized valuation and reporting challenge. The engagement drew on both local jurisdiction experience and specialized valuation capabilities within DMA’s Strategic Valuation Services team, enabling a coordinated approach across compliance, valuation, and assessor negotiations.
Equally important, DMA approached the engagement with a long-term perspective—focusing not just on immediate savings, but on creating a reporting methodology and assessor relationship strategy designed to support sustainable outcomes in future years.
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