Property Tax Solutions
CPCON is an industry leader in property tax advisory solutions to assist clients in effectively managing their tax obligation, minimizing liability, and navigating statutory exemptions.
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Simplify the Complexities of Tangible Property Taxes to Uncover Savings Opportunities
Tangible personal property taxes are a significant part of a business’s state and local tax obligation. Navigating the complexities of tangible personal property tax can be expensive and overwhelming for organizations, with varying tax rules and filing requirements across multiple state and local taxing jurisdictions. Asset classifications and depreciation schedules are often inconsistent, which may result in property tax overpayments.
Our tax professionals draw upon deep experience and cutting-edge technology to help clients account for and manage their tax obligation, while taking advantage of the statutory and tax liability exemptions. We routinely perform detailed diagnostic studies to assess the client’s fixed asset accounting records and tax regulations. By properly identifying misclassifications, depreciation schedules, ghost assets, data gaps, we’ve helped more than 1,200 clients lower their property taxes and ensure proper controls for financial and tax reporting.
Our solutions include:
- Exemptions Review
- Fixed Asset Classifications
- Ghost Asset Identification
- Valuation Advisory
CPCON Group is a global leader in fixed asset advisory services, providing our clients with accurate data and automated tools needed for fixed asset management.
As a trusted partner in the area of fixed asset management to organizations for more than 25 years, CPCON provides endto-end fixed asset management solutions. Empowering clients to gain insights, manage risk and drive improved financial
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Frequently asked questions
Property tax is a tax imposed by state and local governments on real estate and personal property, such as equipment and machinery, owned by individuals and businesses.
The tax is calculated based on the assessed value of the property, which is determined by the government. The assessed value is usually a percentage of the property’s fair market value, which is the estimated price the property would sell for on the open market. The property tax rate is then applied to the assessed value to determine the amount of tax owed.
Property tax rates can vary depending on the location and type of property and are typically set by the local government.
First, one should review their property tax assessments to ensure that their property tax assessments are accurate by checking for errors, such as incorrect property valuation or double assessments.
Depending on the state and local tax laws, businesses may be eligible for certain exemptions, such as exemptions for new construction or renovations, or for properties used for specific purposes, such as charitable or educational purposes.
Monitoring property asset classification ensures that property is being properly reported for tax purposes, as certain types of property may be subject to lower tax rates or exemptions.
Some states and localities offer tax incentives to businesses that invest in certain types of property or in certain areas, such as enterprise zones.
Tax assessment is based on the value of the asset and its tax rate is set by the local government – where the asset is located. Unfortunately, it is not uncommon for organizations to be overpaying taxes by 10% to 20%, due to inaccurate fixed asset records – containing “ghost assets” (not found during physical inventory but are still on the books), grouped assets, data gaps, etc.
Another common mistake is not taking advantage of statutory exemptions – such as, tax exemptions on properties used for educational or charity purposes -, which results in higher property tax liabilities.
Not to mention that misclassifying assets can result in higher tax liabilities. For instance, if one classifies an asset into building improvements account, instead of machinery and equipment account, it will be subjected to a higher tax liability due to differences in depreciation schedules.
Businesses shall maintain accurate and up-to-date records of their fixed assets, including purchase price, acquisition date, depreciation schedules, and any changes to the assets over time.
Another way to ensure property tax compliance is to identify and follow on any changes in statutory exemptions that may affect tax liability. When businesses receive assessment notices from taxing authorities, they should review them carefully to ensure that the property valuations are accurate and that any exemptions or other tax-saving opportunities are being properly applied.
Businesses can benefit from working with an independent tax professional firm with deep expertise and vast experience in property tax compliance. CPCON tax professionals can help businesses stay on top of their tax obligations, identify tax-saving opportunities, and ensure compliance with all applicable regulations.