Who wants to pay more taxes than required for personal property? Proper planning, along with the supporting documentation of an accredited equipment appraisal with certification can help you adjust your personal property values and taxes to true market value.
Since tangible property tax is billed at a fixed rate, the value becomes the sole variable in determining how high or low the tax may be. State and local tax assessors typically use long-term formulas of depreciation for machinery, equipment, and personal property, which in many cases, is far slower than the way the real market value depreciates. So, for example, five years after you purchased and capitalized your business equipment, you may still be paying property tax at a rate close to what a new machine would cost in today’s market. The actual value of that equipment could be thousands of dollars less than what the assessment is telling you.
A qualified, accredited appraiser can help you adjust these figures to represent a true market value under a fair market value premise. The report will have a signed certification attesting to the objective opinion and associated credentials of the appraiser.
Contact Equipment Appraisal Services today to learn more about obtaining an equipment appraisal report for your tangible property and how it can help you with tax planning.