On Wednesday, February 10, 2010, an earthquake measuring 3.8 shook northern Illinois.  It was actually felt from Wisconsin to Tennessee.  How do you like that?  Ten inches of snow and then an earthquake!  Back to back surprises.  Needless to say, it’s been an eventful week!

The epicenter for the earthquake was a farm field in Elgin, which is less than10 miles from where I work in St. Charles.  As fate would have it I missed the earthquake (traveling) but I did not miss the drama surrounding it.  Friends and family were emailing and texting feverishly by 4:30 am.  Some thought a snow plow had hit their home.  Others wondered if a train had derailed.  Some slept through it.  But all were surprised by the event.

It’s the 2010 property tax compliance season and most of us don’t want to be surprised, at least with unpleasant surprises like missing an important deadline or incurring the penalties that follow a missed deadline.  So many dates – assessment dates, return due dates, extension dates, appeal dates.  Even the best tax departments can feel overwhelmed (and addicted to post-it-notes).

In the spirit of ‘entertaining and enlightening those afflicted with property tax’ (particularly the enlightening part), I want to offer you our 2010 PropTax Calendar.  The 2010 PropTax Calendar is a handy tool that includes all of these important property tax dates.  The information is categorized by state and between personal property and real property.  I regularly receive feedback on how the calendar is a useful resource for tracking and planning.  In fact, if you already have a 2010 PropTax Calendar, post a comment and share your thoughts on it.

You can get your free 2010 PropTax Calendar several ways; go to www.advantax.com, email me at dlevan@advantax.com,or leave a comment on this blog post.  Either way, we’ll get you a calendar and help you avoid the surprises… maybe even save some post-it-notes.

Flying to the West Coast today and reflecting on my travel experience thus far, I can’t help but wonder…..  On a $300-$500 ticket, why do they charge an extra $15 to check a bag?  Or $25 for a second bag?  As a frequent flyer I don’t actually get charged the fee (which might upset some of you – remember that I am just the messenger - try to focus your anger elsewhere, perhaps towards the airlines).  I do, however, still experience watching the definition of “carry on” expand in the minds of passengers.  It is quite a spectacle watching my fellow passengers fighting with each other, the flight attendants and the overhead bins as they attempt to make bags of all sizes and shapes fit on the plane (I have to admit it can be quite entertaining).  Flights are delayed, people are unhappy, overhead bins are destroyed and all for what…… an extra 15 bucks!  What a nuisance the airlines have brought on themselves.

Who likes to be nickel and dimed (is that actually a verb??).  How many corporate taxpayers have received a property tax bill for under a dollar?  How about $.11?  Why do jurisdictions do that?  Last time I checked it cost the average company $25-30 to cut a check.  If that is how much it costs a corporation to cut a check, I shudder to think of how much it costs the average jurisdiction to process a bill!  Let’s wrongly assume that it is a similar cost for the jurisdiction.  That means it collectively costs $50-60 to cut a check and process that $.11 property tax bill.  What is wrong with this picture?

Just for fun, let’s find out who has received the lowest property tax bill.  If you have received a bill for less than $1, tell us about it by commenting on this blog (for those of you who have never commented on a blog, congrats! for having the courage to try something new).  And what the heck we’ll even throw in a prize for the lowest bill submitted (or most interesting story).  I’ll make sure it’s worth more than a buck… so you don’t feel nickel and dimed. Click here to leave your comment

Why is Brett Favre a Viking?!?  This question vexes the Packer nation, and really, anyone who follows the NFL.  He just can’t let it go….can’t say goodbye to the glory years…. the way it was.  Look at his picture in that goofy purple jersey - he doesn’t even look like Brett Favre in that new uniform.  But I assure you when he begins throwing interceptions the Packer secondary will know it is still the same old Brett.

Like Brett, many of the systems and processes by which property taxes are managed are antiquated.  And I’m not just talking about the jurisdiction side (which would take multiple blogs to even begin to cover).  I’m talking about from the corporate perspective.  How many companies are still using an internal system or no system at all to manage their property taxes?  I can think of $400 billion (that happens to be the total property tax liability in the United States) reasons why it might be a good idea to upgrade to a new process for managing your property taxes.  With the technology and resources available there is no reason to fear moving on.  There is a better way.

Let’s stop repackaging the same old processes.  Let’s say goodbye to the past and embrace the future, letting go of “that’s the way we always do it”.  Let’s move forward.  Like Brett Favre, the way of managing property taxes are old, injury prone, and we wonder “will they last another season”.  It’s time for a change.  Hey Brett, how about moving on to something different…. property taxes?

Are you still paying for deceased assets?  As you file your personal property tax return this year, try to recall the last time you took an inventory of your assets.  It may have been so long that there are dozens of assets—maybe even hundreds—that are nothing more than GHOSTS!

How many GHOSTS are you still paying tax on? Our experience has shown that GHOST assets come in all shapes and sizes, even in relatively new facilities.  Prime candidates are smaller items, such as forklift batteries or computer equipment.  Whenever there is constant turnover, retirements can be overlooked and the cumulative effect can add up to sizeable dollar amounts. 

If there is a turnover in personnel, asset retirements can slip through the cracks.  In one instance a whole processing line had been disposed 7 years prior but not removed from the books. While some of the assets had been removed, many items were left on the asset register.  In part, this occurred because the classification description made it difficult to identify individual assets as part of the disposed process.  Another recurring cause of GHOSTS is when a group of assets is transferred from one location to another. In these cases, we often find a significant cumulative dollar amount in assets left unwittingly on the books. 

To be a GHOST BUSTER, one should first perform an on-site inspection of the facility is economically feasible.  You’re a step ahead of the program if you are familiar with the layout and processes.  Discussions with local personnel are a key ingredient in identifying disposed items.  The day you sit down with on-site personnel to review the asset listing item by item, is the day you become a GHOST BUSTER!