restaurant tax

RESTAURANT REPRESENTATION

KE Andrews is a full-service state and local tax firm with several areas of focus, a key area of focus being the restaurant industry.  Tax management in the restaurant industry can be complex from state to state, involving various tax strategies that can be employed.  We are experts when it comes to restaurants, and our goal is to provide our restaurant clients with a strategy that equates to tax savings, and a one-stop shop for all state and local tax and valuation needs.  Our team has experience working for prominent chains, such as Steak N’ Shake, Golden Corral, Denny’s, Old Country Buffet, Pizza Hut, Hardees, Carl’s Jr., McCormick & Schmick’s, Whataburger, and Wendy’s, to name a few.

Tangible personal property tax can be a nuisance to property owners, especially in multi-state situations.  Every state is different involving different filing deadlines, assessment dates, protest deadlines, tax bill due dates, and differing tax exemptions. At KE Andrews, we’ve created systems to streamline this confusing, and sometimes complicated filing, ensuring every exemption available is taken, line items are argued aggressively, and every deadline is met.  We will file renditions on your behalf 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.

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 simple and complex restaurant properties, and are ready to serve you.

Over the years, KE Andrews has built proprietary state-of-the-art property tax software that is designed specifically for the process of tangible personal property, 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.

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 three-tier analysis of each property, and our appraisers carefully determine cases where a negotiation or appeal is warranted.

After NOV’s are issued, Our restaurant 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 has over the years retained one of the most knowledgable SUT teams in the country.  Many commercial businesses chronically overpay sales & use taxes, 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.

REAL RESULTS

Tax savings for a multi-state restaurant chain in 2017

$500,000

MULTI-STATE TAX REPRESENTATION - NO PROBLEM

VALUATION - TAX - SOLUTIONS

  • Ad Valorem Tax Representation
  • Tangible Personal Property Renditions
  • Due Diligence Reviews
  • Sales & Use Tax Review