Client: National Grocery Chain
Challenge: Reduce Tax Liability by Challenging Assessor's Valuation
A national grocery store chain, with 13 locations in one municipality, questioned the accuracy of a local assessor's valuation of its real estate. The company asked AccuVal to review the existing valuation, which totaled $18.6 million and, ideally, to challenge the assessment if it were too high.
A review by AccuVal's property tax group raised issues about the interrelationship of the real estate and personal property assets. With the anticipation of additional tax savings, AccuVal recommended that the client add personal property to the scope of the project. AccuVal reviewed all assessed values, analyzed the basis used to determine the value and researched current market data to produce an accurate value indication. AccuVal provided its value opinion to the local assessor and filed a formal objection to the assessment. The assessor's office agreed with AccuVal's valuation and concluded that a formal review board hearing was not required.
AccuVal was able to negotiate a 40 percent reduction in the assessed value while avoiding the protracted process of a formal review. The reduction resulted in a revised aggregate assessment of $11.1 million, $7.5 million less than the original assessment, on real estate alone. Based on the current tax rate, this provided the client with a one-year tax savings of approximately $198,000 for the 13 locations.
An intimate knowledge of personal and real property state tax codes. Experience recognizing the interrelationship between real and personal property. Real-time market data. The technical know-how to apply cost segregation and other tax strategies to help companies maximize competitive positions in the marketplace. That's The AccuVal AdVantage™ at work.