Description
Learn about the solutions available to owners of business personal property (BPP) to avoid gross overassessment.Business personal property is routinely valued at 150 to 200 of fair market value, with the exception of inventory and vehicles. Inaccurate appraisal district straightline depreciation schedules and inclusion of intangible personal property (which is not taxable) are the primary causes of gross overassessment.Learn about the solutions available to owners of business personal property (BPP). These solutions will include rendering based on market value instead of rendering cost (as allowed by state law), excluding the value of the intangible personal property, and appealing excessive assessments using market value evidence.
Date: 2022-07-20 Start Time: End Time:
Learning Objectives
Types of Property
• Real
• Personal Property
• Intangible Personal Property
Options to Render
• Cost/Year of Acquisition
• Opinion of Value
• No Rendition
How Assessors Value
• Prefer to Start With Cost and Year of Acquisition by Property Type
• Use Straight-Line Depreciation
• Dont Consider Obsolescence
Problem With Assessor Valuation
• BPP Is Grossly Over-Valued by Straight-Line Depreciation
• Does Not Consider Market Value
• Does Not Consider Intangible Personal Property Embedded in Personal Property
• Often Values Ghost Property
• Overstates Value Throughout Ownership Period
Recommended Approach
• Render Opinion of Value If Possible
• Exclude the Value of Intangible Personal Property
• If Not Possible to Render Opinion of Value, Appeal If the Assessed Value Is Excessive
• Continue the Appeal After the Administrative Hearings If the Value Is Excessive
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Patrick O’Connor-O’Connor Tax Reduction Experts
