Property Tax Services

In these unprecedented times, many taxpayers are considering the best way to respond and position themselves for the future. Unlike other tax areas, where the tax impact of economic decline may be reflected on their filings as a matter of course (e.g., reduced receipts on a sales tax return, or net operating losses on an income tax return), property tax may require taxpayers to take affirmative steps to ensure that their property tax assessments align with their fast‐changing economic circumstances.

Property owners facing economic hardships, such as declining demand or supply chain delays, may want to engage with assessing jurisdictions about the nature of those external factors and the impacts on the value of their assets. Timing is critical as assessing jurisdictions typically have greater flexibility to grant relief on matters that are raised proactively versus in an appeal setting. Addressing these issues in the current property tax filing season may impact the property tax assessment for 2020 and beyond. For property owners concerned about disruptions to their operations, it may be important to review for process efficiencies and look for opportunities to automate functions.

Deloitte’s Property Tax practice assists clients with multiple aspects of property tax. Our practitioners have extensive experience with the identification and quantification of economic obsolescence resulting from economic conditions external to a taxpayer’s business. The diverse backgrounds of our teams include former state assessment officials and former industry personnel, with deep geographic and industry experience. Our group provides clients with a breadth of insight into property tax issues. Our practice also has access to Deloitte’s network of industry specialists, valuation professionals, economists, statisticians and engineers.

Property taxes can be complex and costly, with their fluid and localized requirements carrying the potential for overpayment. Without industry and jurisdiction-specific experience, your company could face excessive, annually recurring property tax expenses.

It is important for asset-intensive companies to better understand the value of their holdings, the local taxing jurisdictions and how they function, and the systems, processes, and technology required to manage their ongoing property tax liabilities.

Deloitte’s Property Tax Advisory Services team helps clients identify potential opportunities to reduce property tax expenditures and issues, quantify and document proposed assessment values for proactive discussions with local tax assessors, and develop and implement strategies for proactively managing property tax exposure.

Preparing and filing personal property taxes is often a complicated and time-consuming process. Whether you are managing them in-house or through an outsourced approach, property taxes can be a significant part of your company’s total state and local indirect tax liability, so it is critical to get property tax compliance right.

Dedicating more time and resources to this one aspect of your total tax picture may not be an option—especially for tax departments that are already stretched thin with day-to-day demands. The potential for improving outcomes may be the combination of technology, process efficiencies, tax technical capabilities, and reimagined resourcing.

Deloitte’s Property Tax Compliance Services can help you plan for and address your personal property tax compliance efforts in a more streamlined, seamless, and tax-efficient manner.

Complex assets present challenging property tax issues. Significant annual capital expenditures can yield corresponding annual increases in property tax liabilities. Complex properties such as heavy manufacturing, electric distribution, and telecommunications, typically cross over a number of jurisdictions. This can further complicate the tax reporting.

Property spread over multiple tax jurisdictions increases the compliance workload, and increases risk in assessment tracking and tax bill processing. With these levels of administrative burdens, many companies have fewer resources available for managing property tax assessments and liabilities. The full suite of skills necessary for enhancement of the property tax function and management of expenditures can also be difficult or impractical to maintain in-house.

Deloitte Tax’s Complex Property Services team assists complex property owners with all aspects of property tax. We have practitioners of diverse backgrounds, including former state assessment officials and former industry personnel, with deep geographic and industry experience.