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Business personal property tax: are you overassessed?
Many assessors value equipment from the owner's fixed asset list using cost and a depreciation table. That method misses most of what lowers real market value.
How it works
How assessments are usually set
The owner files a list of equipment with its original cost and year of purchase. The assessor applies a depreciation table and multiplies by the tax rate. The table does not see the equipment, the market for it, or the business that uses it.
Where it goes wrong
Common sources of overassessment
- Ghost assets: equipment sold, scrapped or replaced but still on the fixed asset list.
- Capitalized soft costs: freight, installation, software and engineering added to cost.
- Idle or obsolete equipment: machines out of service or overtaken by newer technology.
- Economic obsolescence: an industry or local market that cannot support the cost of the equipment.
- Depreciation floors: tables that stop depreciating old equipment at a fixed percentage of cost.
The appeal
What an appraisal adds
An independent appraisal of market value gives the owner, the attorney or the tax consultant evidence the assessor can review and act on. It identifies each asset, its condition and its market value, and it explains the obsolescence the table misses.
Appraisals for tax appeals are prepared for a flat fee, never a share of the tax savings, so the value conclusion stays independent.
Deadlines
Act before the deadline
Filing and appeal deadlines are short and vary by state, county and parish. Confirm the dates and procedure with your tax consultant or attorney. This page is general information, not tax or legal advice.
Have an assignment?
Send the asset list or company name and the intended use. You will get scope, fee and timing back by email, the same business day.