Is your company paying more than it should in property taxes? How well are you tracking different rules across multiple jurisdictions? Would you appeal a tax assessment if you knew you could support the case?
PowerPlan’s enterprise platform helps companies maintain a minimal property tax base by tracking at a detailed level the information that factors into the valuation. With insight into this data across all jurisdictions, companies are able to take advantage of tax breaks and incentives, improve cash flow and optimize financial performance.
Get Rid of the Ghosts
A “ghost asset” is an asset that is on the books but no longer in service, which means the company is still paying taxes on it. According to the CPA Journal, an estimated 25% of a company’s assets are typically ghosts. Assets become ghosts when operations removes it from the field, but that information doesn’t get communicated to other parts of the company. PowerPlan reduces the chance of this happening by improving the granularity of asset definition and the flow of information throughout the organization, ensuring that assets are retired on a timely basis.
Define Asset Types
Depending on the taxing jurisdiction, the valuation of assets can vary based on materials used during construction and repair. For example, companies transitioning from steel to plastic have seen valuations reduced in some locales, which should mean a lower tax assessment. But if the company hasn’t defined “material type” as a component of the asset, they can’t prove the new valuation and must continue paying the original bill. With PowerPlan, companies can define an asset in as much detail as necessary to support multiple tax bases and defend a revised valuation.
Automate to Better Leverage Tax Deductions across Multiple Jurisdictions
PowerPlan uses rule-based processing, so when a new asset is added or retired it follows the established mappings, rather than being classified individually. When tax laws change, the mapping is changed in one place and all associated assets are automatically updated. By streamlining the process, companies are better able to ensure compliance with local laws, avoid costly fines and take advantage of newer tax legislation.
Generate Tax Savings
By choosing PowerPlan, companies have:
- Reduced property tax burden by $20 million annually
- Eliminated millions of dollars in penalties by prioritizing the appeals process in markets with high assessments
- Increased annual retirements, resulting in significant property tax savings