Silver Oak Advisors has decades of real and personal property consulting experience that we can use to assist your business to create bottom line savings.

Some of the various strategies we implement for our clients are:

Case Study

POLLUTION CONTROL TAX EXEMPTIONS

Depending upon industry and state, may represent up to 20% of the total investment. Even in those jurisdictions without statutory provisions for pollution control, may grant some relief on the basis that the investment in pollution control equipment provides no return of the investment. Applicable to equipment that mitigates or eliminates air and water pollution; some states also provide for exemptions or partial exemptions for resource recovery or recycling equipment.

TAX ABATEMENT OR BOND REVIEWS

Review/assistance of new tax incentives exemptions; review of previously negotiated exemptions, to ensure companies are receiving what they negotiated. Focus on tax incentive calculations, replacement property and new additions.

DUPLICATE ASSESSMENT REVIEW

Real Estate vs. Personal Property. Review to ensure that equipment such as Tank Farms, Foundations, Piping, etc. is not double assessed (reported by taxpayer as personal property, picked up by taxing jurisdiction as real estate).

COST COMPONENT REVIEW

Analysis of asset rebuilds, repairs, modifications, upgrades, etc. – Is the market value of the asset equal to the depreciated original cost plus the depreciated value of the rebuild or modification?

DEPRECIATION REVIEW

Physical Depreciation, Functional and Economic Obsolescence – Identification and quantification of functional obsolescence (internal factors impacting value) and external obsolescence (external factors impacting value). Review and quantification of excessive physical wear and tear associated with heavy industry or 24 /7 operations. Includes analysis of the economic life of the asset assigned by the taxing jurisdiction.

FIXED ASSET INVENTORY

Identification of ghost assets. Because these assets are often fully depreciated for federal tax purposes, these assets are often overlooked as to the property tax consequence of these assets remaining on the books. Because property tax residual factors typically remain at the 20% to 30% level, failure to adequately maintain inventory control can result in significant tax consequences.

CONSTRUCTION IN PROGRESS REVIEW

Construction in progress is often over-reported or over-assessed in those jurisdictions that assess CIP. Our review includes a carve-out of pre-payments, deposits, non-sitused property, and other non-assessable costs.

INVENTORY VALUATION

Many states tax inventory but also allow Freeport exemptions. These Freeport exemptions require timely filings. There may be situations where the client does not report correctly thereby causing an exposure or an opportunity. Additionally, the valuation of the non-exempt inventory is often excessive, including costs that should not be reported. Inventory that is on the books but not on site is another issue. And, most jurisdictions do not readily grant adjustments for obsolete inventory.