Property Taxation - Governmental Affiliation


Problem

The soaring installed base of corporate computer assets in your tax jurisdiction represents a substantial percentage of your tax revenue. Assessment appeals by corporations are putting a large portion of local tax revenue at risk. Perhaps the entire depreciation schedule establishing the assessment on all computers in the jurisdiction is under attack.

 

Analysis

Corporations and tax authorities are in a high-stakes battle over the fair market value of computer assets. Many of these cases can reach a negotiated settlement based on a reliable valuation document. These forensic appraisals may ultimately end up in the courtroom with the outcome dependent on the expert and the quality of appraisal report.

 

Solution

An asset-by-asset appraisal will provide the most reliable estimate of value for a particular asset but where the number of assets is large and time and/or budget is limited, a mass appraisal approach can reduce costs while maintaining high standards of value reliability. The long-term solution is an independent analysis of computer depreciation trends to assist in applying fair and reasonable personal property assessments on computer assets within the jurisdiction. The valuation process should comply with USPAP with the appraisal report signed by an ASA appraiser. The outcome of any dispute largely depends on the expert selected, therefore your selection criteria is very important.



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Visit our Publication pages for related information such as:

Case Study #721: "Developing a Depreciation Schedule for Computer Property"

Case Study #723: "Why Tax Court Rejected Computer Price Guides"