Results at a Glance
- $44 million reduction in combined real and personal property taxable value
- Nearly $35 million lower total taxable value than the prior year
- Required property tax return completed after the original deadline was missed
- Client established a clear understanding of the Texas property tax calendar and appeal process
- 2027 Freeport application planned to pursue additional tax savings
Client
Following the acquisition of a large Texas manufacturing facility, the company inherited property tax filing obligations and compliance requirements that had not been fully addressed during the transaction. The organization had limited visibility into Texas property tax deadlines, reporting requirements, and appeal opportunities associated with the acquired assets.
Challenge
After the acquisition, the company discovered that required Texas property tax returns had not been filed and the deadlines to submit the return and apply for a Freeport exemption had already passed. By the time the issue was discovered, the company had accrued significant penalties and interest. The team also had little familiarity with the Texas property tax calendar, valuation process, or appeal requirements, making it difficult to determine the correct next steps.
Solution
DMA began by reviewing the company’s internal records to understand the acquired real estate and business personal property. The team then prepared and filed the required return, and appealed both the real property and personal property values. Throughout the engagement, DMA explained the Texas property tax process, key deadlines, and each action being taken so the client could make informed decisions with confidence. DMA will also manage the company’s 2027 Freeport application to pursue additional tax savings and strengthen compliance going forward.
Result
DMA reduced the company’s combined real and personal property taxable values by $44 million. After the reductions, the total taxable value was nearly $35 million lower than the prior year, when another provider managed the property for the previous owner. Just as important, the client now understands the annual tax calendar and is better positioned to avoid future penalties and interest associated with missed deadlines.
Why DMA?
Property tax obligations can be easy to overlook during a complex acquisition, especially when a company is entering a new state or inheriting unfamiliar assets. DMA combines detailed review, technical property tax experience, and clear communication to help clients understand what is required and what opportunities may be available. In this case, DMA delivered substantial value reductions and gave the client a practical roadmap for future filings, appeals, and exemption opportunities.
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