For nearly all companies that request we review of their business equipment records, we are able to find enough tax savings to produce a refund. However we may not submit an appeal for each one. Approximately twenty percent of companies will have under-reported their property and the additional tax on that would offset the savings. When we do an analysis, we look at both areas where we can generate a refund as well as areas of additional tax exposure. It is very important to do a complete analysis, as we don't want to be surprised by a tax increase. Remember, the taxing authority's job is to maximize their revenue.
If you or your agent hasn't filed an appeal in the last five years, something has probably been overlooked. Errors or omissions by both the Assessor's office and/or the taxpayer can accumulate over time. We also find that most errors made by the Assessor's office are caused by insufficient information provided by the taxpayer.
We take great pains to minimize the time the client's personnel need to help us do our job. We know how busy you are and we don't want to burden you any more than necessary. There will be some areas where we require the client's assistance, but we are experts and those areas will be as few as possible.
We are experts at understanding the state tax laws relating to property tax and are very familiar with the Arizona personal property manual. Our accounting experience also helps because the personal property manual complies with Generally Accepted Accounting Principles (GAAP). Accounting rules that apply to property also apply to income tax. For example, equipment becomes taxable when it is placed into service.
We find it helpful for all involved to have a friendly relationship with the various county appraisers. They are not the enemy. They simply have a job to do; appraising property in accordance with the law. Their job is to be fair, but to maximize the county's revenue. Our job is to advocate for your side and to minimize the tax you pay within the law. Much more is accomplished in a shorter amount of time by treating the county appraisers with respect.
If you completely understand why and how property is taxed, you can also figure out why it shouldn't be taxed.