The assessment and negotiations of oil and gas midstream and downstream assets in regard to property tax can be complex, involving a number of different methods applied to various types of assets. Without knowledge and proven industry expertise, consultants have a difficult time providing a “maximum tax savings” scenario. Here at KE Andrews, we have been deeply involved in the midstream arena for over 35 years. Every year we save our midstream clients millions of dollars in tax using our industry specific, aggressive but fair approach to valuation of these various types of assets. We spend a lot of time out in the field inspecting sites and assets and ensuring our clients don’t pay a penny more in property tax than what is right and fair. Our relationships with local assessors and appraisers spans decades in this area, and we’ve worked hard to develop a reputation that exemplifies a high mutual respect between us and our counterparts at the county and state level while working in the best interests of our clients to secure the maximum tax savings possible.
Over the years, KE Andrews has built proprietary state-of-the-art property tax software that is designed specifically for the process of oil and gas midstream, and real estate valuation. It has been built to produce a maximum tax savings situation for our clients, along with providing administrative advantages that are unmatched in the industry.
Every year, KE Andrews renders hundreds of thousands of miles of pipeline for our clients. Our sophisticated mapping system is an integration of computer software and geographic data, allowing us to manage and query spatial information related to pipeline systems and mobile personal property. It provides a framework for gathering and organizing spatial data and related information so that it can be displayed and analyzed, and it gives us the tools to visualize the data and see the results in the form of powerful, interactive maps that reveal precise location. To provide seamless client service integration, we utilize the GIS data or “Shape Files” that the client has created for other purposes and merge it with our mapping system. Our goal is to minimize your time spent gathering information.
When it comes to midstream assets, site inspections are extremely important when determining taxability and performing valuations. Assessors and third-party appraisers make physical inspections a point, and so do we. Some of our best valuations work is done on site, out in the field.
Our midstream property tax consultants analyze and negotiate your assets aggressively to come to a fair market value for assessment. There is a wide range of assessment techniques applied to midstream assets, depending on the state of location and the type/complexity of the asset. KEA retains experts in every state where midstream assets of all types reside. We are prepared to handle midstream clients of all sizes seamlessly, becoming your property tax department down the hall.
In most states, either after an initial informal negotiation period or after the filing of a rendition, the assessor issues a ‘notice of value’ (NOV) to the taxpayer. 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 more complex method is applied to value properties, every single NOV is reviewed along with an aggressive analysis of each property, and our appraisers determine cases where an appeal is warranted. State assessed FERC regulated properties require a much more complex rendition, analysis and negotiation with the state to come to fair market value.
When an agreement is not reached in the informal negotiation period with the assessor or third-party appraiser, and certain NOV’s are issued that we determine 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 and third-party appraisers in person to establish and maintain a healthy working relationship. KEA maintains a highly successful track record when presenting midstream cases at board hearings. Board hearings at the state level are typically more complex than at the county level.
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 the 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. For our pipeline property tax clients, this helps when they have intrastate or interstate assets. We have adopted several methods to execute the tax payment process. Ask us about our “KEA Administrative Advantages.”
KE Andrews over the years has retained the most knowledgeable oil & gas and midstream specialized sales & use tax team in the country. Many midstream companies chronically overpay sales & use taxes due to the complexity of exemptions, and we are here to help. We don’t subscribe to low hanging fruit methods here at KEA. Rather we do a deep dive into all of your records to create a maximum tax recovery situation. If you are worried you have overpaid these taxes and would like to recover lost tax dollars, contact us for a review today!
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.
KE Andrews currently represents more FERC regulated pipeline in the United States than any other tax firm. State assessed renditions can be extremely large and complex, and we are here to help. We have designed systems around the state assessed renditions process that will not only ease your burden, but will leave you in a maximum savings tax position. Put our interstate pipeline expertise to work for you. Contact us with your next project to see how we can help.
With the recent interest in Hydraulic Fracturing techniques, the use of Salt Water and the need for Salt Water Disposals has been increasing. We have a considerable presence in this sub-industry, and there are many opportunities for reduction of value. We currently represent one out of every four SWD’s in the state of Texas.
We represent 35% of the processing and treating capacity in the US
Midstream SUT exemptions are extremely complex, dependent upon specific methods of operation and construction. We are the midstream experts. Our Sales and Use Tax division can recover millions of dollars in lost revenue to your bottom line.