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Acid Test for Property Tax Assessment Appeal of Fixtures, Machinery, and Equipment in a Special-Purpose Business

 Acid Test for Property Tax Assessment Appeal of Fixtures, Machinery, and Equipment in a Special-Purpose Business
CPE Credit

Program Type: Recorded Webinar (Audio, PPT)
Program Level: Advanced
Prerequisites: Business valuation and business brokerage experience. Appraisal background in both real and personal property.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hours
Fields of Study: Accounting
Item Number: 15PBV0311
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

The presenter will discuss an "acid test" to help owners of special purpose properties quickly evaluate the potential of a successful property tax assessment appeal. Here it is: Most businesses valued at $1 million+ (not "main street" flower shops) sell on multiples of EBITDA and generally four to six times. Assessors usually assess fixtures and equipment based on reported costs and give absolutely no economic analysis of true value unless forced to do so.

Valuators can value the entire company and then examine the assessed value of the fixtures, machinery, and equipment to perform a quick set of tax appeal success. In struggling businesses, the assessed value of machinery and equipment can be two times the value of the entire company; all of the EBITDA analysis excludes real estate assets and assume rent is being paid by the owner of the business.

Learning Objectives

After completing this webinar, attendees will be able to:

- Implement the "acid test" to help their clients evaluate if their fixtures, machinery, and equipment are overassessed
- Determine whether or not the property tax assessment is realistic
- Critically evaluate tax-assessment bills

Who Should Attend

CPAs with manufacturing clients, CEOs of special purpose manufacturing companies, and business valuation practitioners

State laws are different when it comes to this area; however, there are common threads, and it should be helpful to anyone who works with clients that have large property tax assessments in fixtures, machinery, and equipment.


Stephen Clark, MAI Appraiser and California Real Estate Broker
Stephen Clark has been a real estate appraiser since 1977 with experience is two different assessor's offices—the last as assistant assessor in Douglas County, Nevada. He has been in private practice appraisals since 1981 and an independent business owner since 1984. Mr. Clark has authored a book and professional journal articles both on real estate and business valuation both published by the Appraisal Institute.

Mr. Clark is the co-owner with Shon Kelley of California Tax Appeals, LLC, since 2010. The firm has saved tax payers millions of dollars on over-assessed property, Mr. Clark has also been a business broker with business team for nearly three years and, during that time, has sold half a dozen businesses.