San Diego’s eighth largest Biotechnology company was in the process of completing their annual four year audit by the San Diego County Assessor’s office when they engaged Paramount Property Tax Appeal to provide consultation. At the time they were looking at receiving a bill of $approximately $10,000, given the size of the operation they felt as though this would not be a terrible outcome. They engaged us to see if there was anything we could bring to the table to potentially reduce these taxes. As we began our review, we noticed numerous property type misclassifications as well as omissions made by the County Auditor. After our review we opened negotiations with the County Assessor and we were not only able to wipe out the proposed $10,000 bill we were able to obtain a refund for the client in excess of $90,000. This was refund they received and more importantly they will receive savings for the foreseeable future due to our reclassifications and shortening of asset lives.
A large electronics manufacturer in San Diego engaged us to handle all of their compliance work associated with the annual completion of their form 571-L, this included a review of their fixed asset records, a review of their asset classifications on their previous 571-L’s and any other deficiencies we might note. As part of this process we noted almost $6.5 million dollars of equipment that had been accumulated on their books from prior acquisitions that while fully depreciated was still being taxed on an annual basis and had been for almost 10 years. We were able to correctly complete all the forms with proper classifications and save the client almost $15,000 in 2013. They are currently up for audit and will be able to go back to prior years and claim refunds in the amount of approximately $45,000 based on the compliance work that we did in 2013.
A large cloud computing company in San Diego was under audit by the Assessor’s office, they were facing stiff penalties for non-filing of their 571-L’s in the previous two years. The Assessor came in and reconstructed their records and sent them a bill for almost $200,000. Due to their lack of understanding of the rules and regulations associated with assigning asset lives the client had no argument to make. After engaging us we were able to reconstruct their records in compliance with State Board of Equalization guidelines and save the client approximately $80,000 in taxes and penalties, an almost 40% reduction on the bill the County Assessor had sent.
One of Orange Counties largest commercial printers was facing their annual four year audit when they engaged us to provided expert valuation services. The client had felt that they had almost $4 Million in obsolete machinery that they were being unfairly taxed upon, but they didn’t have the expertise to argue this to the County Assessor. After our initial review we found the client did in fact have obsolete equipment on their books that should have been de-valued for Business Property Tax purposes. We were able to successfully argue the case to the Assessor and obtain a $50,000 refund for our client. These savings will be carried forward and the client will reap not only the current years benefits but for the foreseeable future.
In 2010 the property owner of retail complex in Los Angeles filed for a base year tax appeal. In 2007 he constructed the complex with the value being $21 million, but the assessor increased the improved value to $50 million. After unsuccessfully attempting to file his own appeals, he enlisted our services. We compiled a case and the result was the assessed value dropped to $24 million instead of the original assessment of $50 million. The owner received a refund of OVER $260,000 for 2010 and 2011, as well as being successful in lowering the value of the base year, thus lowering the tax basis for the life of the ownership of the property.
In 2008 our client purchased an industrial park in San Bernardino which was later assessed in 2010 for $20 million. After our tax agents demonstrated a more realistic cap rate, as well as proving the market sales had dramatically decreased, we were able to win the assessment appeal with the board and were successful in reducing the assessed value down to $11.5 million, which resulted in our client receiving a refund of over $85,000!
In 2009 our client purchased an office building in Sacramento County for $16.6 million that included both the real property and the business property. After building a case by showing the property should be appraised on the value of the real estate alone, along with using sales comparisons and constructing an accurate cost approach, our tax agents were successful in reducing the value of the property to $4.5 million! This resulted in our client not only receiving a $121,000 refund for both 2009 and 2010, but also establishing a new base year value, thus lowering the amount of property tax that will be paid over the course of the property’s lifetime.