Many businesses expect property tax liability to remain the same or increase
by AccountingWEB on
More than half of property tax executives expect their companies’ property tax burden to either remain the same or increase in 2010, compared with last year, according to a recent survey by the Tax & Accounting business of Thomson Reuters.
The survey was conducted during a Web seminar in May and polled more than 100 property tax executives in various industries, including manufacturing, energy, and telecommunications. The survey found that:
- 58 percent expect their property tax liability to either remain the same or increase, compared with last year
- 74 percent find compliance with business personal property tax on inventory a significant issue for their organization
Currently, there are more than 13,000 taxing jurisdictions in the United States, each with varying rules and regulations on how property, including inventory, is taxed.
“As the economy improves, many businesses may believe that they have maxed out their efforts to reduce property tax liabilities,” said Jeff Moore of Thomson Reuters. “But with various and changing property tax laws across state and local jurisdictions, as well as a plethora of existing exemptions, some businesses are not aware of the many opportunities still available to reduce their liability.”
For example, the Web seminar highlighted how the state of Louisiana offers a tax credit to businesses that pay property tax on inventory, and Arkansas, Georgia, Mississippi, Oklahoma, and Texas offer Freeport exemptions.
In addition, the stabilization and increases in some property values vary considerably between industries, property types, and geographic areas. Businesses need to carefully review their assessed values during this time of economic change.
©2010 by the Institute of Management Accountants (IMA®), www.imanet.org; reprinted with permission
- Managing sales and use tax compliance getting harder for small businesses
- Advise your clients how to get cash during hard times without taking a tax hit