Advantax identifies excessive historic costs and economic and functional obsolescence issues, saving a cement manufacturer over $300,000
THE CHALLENGE
The taxpayer operates an integrated cement manufacturing facility in Alabama that was exempt for 10 years. The company was concerned about the initial assessment after the abatement period expired.
THE SOLUTION
Advantax professionals conducted a thorough analysis of the operating real and personal property assets at the facility to identify excessive historic costs, excess operating costs, pollution assets and what assets were considered personal property versus real property. Advantax compared the historic costs to what a modern facility with the same capabilities would cost to replace the subject property, and then facilitated an agreement with the jurisdiction to reduce the basis of replacement cost. In addition, excessive shipping costs for the raw material were utilized to calculate obsolescence, while Advantax also identified obsolescence issues not recognized by the assessor in previous years.
THE RESULTS
Advantax submitted a detailed analysis to the jurisdiction and was able to resolve the matter prior to the board hearing, resulting in tax savings in excess of $300,000 per year. Our professionals have reduced the property tax liability of 4 of their clients at 7 different cement plants. This reduction resulted in savings of over $2.75 Million in property tax liability over the last three years.
