For over 35 years, we have held a substantial position in the auto dealership commercial real estate market. With over $300 Million in representation across the Continental United States, we’ve become experts in the industry. We have also developed expertise in Vehicle Inventory Tax filings over the years. We’ve worked hard to become the one-stop shop for all of your state and local tax needs. Please contact us if you’d like a free evaluation of your tax position.
Tangible personal property tax can be a nuisance to auto dealers, especially in multi-state situations. Every state is different in this realm, involving different filing deadlines, assessment dates, protest deadlines, tax bill due dates, and most importantly differing tax exemptions. At KE Andrews, we’ve created systems to streamline this confusing, and sometimes complicated filing, ensuring every exemption available is taken and every deadline is met. We will file renditions on your behalf timely, and will work with local assessors to ensure that you are being taxed properly. We’ll make sure you are taking advantage of the maximum depreciation available along with all applicable tax exemptions. We will also back up our work, representing you in audit situations that arise in audit states. Allow us to take this headache away, becoming your property tax department down the hall.
As stated by the TX Comptroller’s office, Texas law provides for the special appraisal of dealers’ inventory including heavy equipment, motor vehicles, vessels and outboard motors and manufactured housing retailers. Special inventory appraisal is based on sales, leases and/or rentals depending on the type of inventory. Dealers and retailers must file inventory declaration forms with the county appraisal district each year listing the total sales, leases or rentals, as applicable, in the preceding year and an inventory tax statement with the county tax office each month. Most tax firms will not handle VIT filings. With over $2.8 billion in VIT filings, KE Andrews is the expert in this area and we are ready to serve you.
When engaging in real estate valuation, there are three generally accepted approaches to value that are used in discussions between the assessor and the agent. These include the cost approach, the income approach, and the market approach. Simply put: what does it cost to rebuild the building, what are the economics of the building, and what is the building worth if placed on a free market for sale as of the assessment date (arms length transaction)? Real estate appraisal is an art, not a science. There are many technical factors to be considered when performing an appraisal, including determining which methods are most appropriate for a given situation. Our real estate experts have decades of experience appraising auto dealership commercial properties, and are ready to serve you.
In most states, after a TPP rendition is filed the assessor issues a ‘notice of value’ (NOV) to the taxpayer. For real estate, there typically is no rendition required, and an NOV is simply issued by a certain date. In cases where a rendition was filed, KE Andrews will review every single NOV to ensure accuracy, and will contact counties for corrections in cases where there are errors. In cases where a state simply issues an annual NOV for commercial real estate, every single NOV is reviewed along with an aggressive and comprehensive analysis of each property, and our appraisers carefully determine cases where a negotiation or appeal is warranted.
After NOV’s are issued, Our commercial real estate property tax consultants analyze your real estate and tangible personal property assets aggressively to ensure a fair market value for assessment. Many times, disagreements in value arise between the taxpayer/agent and local assessor. We make every effort to negotiate with local assessors on your behalf on the front end before having to file an appeal. More times than not, we come to a fair agreement before having to engage in the formal appeals process. This is a result of the relationships we’ve established with local assessors all over the country that span decades.
When an agreement is not reached in the informal negotiation period with the assessor, and certain NOV’s have been determined to be unfair, we will file a formal appeal with the county and prepare to present a case before the local board of assessments. We make it a point to go to board hearings every year, firstly because many times we are able to again negotiate and come to an agreement immediately prior to the hearing, and secondly we feel it is important to meet the assessors in person to establish and maintain a healthy working relationship. KEA maintains a highly successful track record when presenting cases at board hearings.
After board hearings are complete, values become finalized. At this point, KE Andrews is able to compile tax accruals for our clients based on the final values issued by the county. Accrual reports are issued at minimum once per year after values are finalized, but they can be updated at different points throughout year at the client’s request.
After values are finalized, tax bills are issued by the county treasurer or tax collector, along with other taxing jurisdictions. Tax due dates vary by state. KE Andrews is here to review every single tax bill for accuracy, and will process them to the client for timely payment. We have adopted several methods to execute the tax payment process. Ask us about our “KEA Administrative Advantages.”
KE Andrews maintains a SOC1 Type 2 every year. This is an audit of our processes and controls, ensuring that we do what we say we are doing year after year. These audits are extremely valuable to publicly traded companies that require SOX compliance.