Property Tax 201 - Unlocking Value & Avoiding Risks with Marcia Shippey-Pryce
Aprio's Meredith Smith and Stacey (Roberts) Chamberlain continue their conversation with Marcia Shippey-Pryce, turning from how personal property tax value is determined to how businesses can unlock that value. Marcia explains why a proactive posture pays off: because many jurisdictions apply a trend factor that can push even a decades-old asset's value back up, the fixed asset register deserves a closer look than it usually gets. She walks through the ghost assets that no longer exist, the double counting that follows machinery rebuilds, why a fully depreciated asset can still generate a bill, and the supplies and inventory exemptions that vary state by state.
The recurring theme: the earlier a property tax professional is involved, the more room there may be to help manage exposure before an assessment is finalized.
Key Takeaways:
● Fully depreciated assets may still be taxable. Some jurisdictions apply a trend factor that can push the value of an older asset back up, so a low net book value rarely tells the whole story.
● Ghost assets can drive overpayment. Property still sitting on the books but no longer in service may be generating tax, which is why reviewing the fixed asset register matters.
● Rebuilt machinery can lead to double counting. When an original asset is rebuilt, some of the original cost is no longer there, and reporting both can mean overpaying.
● Unreported property carries real risk. Because property tax rarely offers amnesty or voluntary disclosure, a health check can help a company gauge what it may owe before an assessor finds it.
● Appeals and exemptions can be worth pursuing. Obsolescence, slow-moving inventory, assessor errors, and exemptions like Freeport may support a value adjustment, and a reduction can carry forward.
● Proactive SALT advice is available. If companies cannot justify a full-time in-house specialist, outside SALT advisors can help companies mitigate risk.
Connect:
● Website: https://www.aprio.com/business-tax/state-local-tax-salt-consulting/
● Meredith Smith on LinkedIn: https://www.linkedin.com/in/meredith-smith-047aa13/
● Stacey (Roberts) Chamberlain on LinkedIn: https://www.linkedin.com/in/stacey-chamberlain-90072b5/
● Marcia Shippey-Pryce on LinkedIn: https://www.linkedin.com/in/marcia-shippey-pryce-cpa-cmi-331aa16/
● Subscribe on your favorite podcast app.
Disclaimer:
The information provided in this podcast is for general informational and educational purposes only and does not constitute tax, legal, or accounting advice. State and local tax rules vary by jurisdiction and change frequently. Listeners should consult a qualified SALT advisor before acting on any information discussed in this episode.
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