Tax Ad Valorum

 

The success of a winning property tax appeal is based on a clear understanding of that State’s Ad Valorem tax law and the definition of “Full Cash Value” (aka Fair Market Value). Neale & Sons has prepared numerous ad valorem tax appeal appraisals with a clear understanding of  The California Revenue and Taxation Code, as well as The California Assessor’s Handbook.

Our appraisals utilize the Comparative Sales Approach (also known as the Market Data Method), to valuing personal property as specified in appraisal practice standards and in California Property Tax Rule 4. The Comparative Sales Approach, as described in The California Assessor’s Handbook, Section 504, describes the Comparative Sales Approach in the following terms:

The comparative sales approach may be defined as any approach that uses direct evidence of the market’s opinion of value of a property. It is based upon the principle of substitution, that is, the fair market value of an item is closely and directly related to sales price (under the conditions of fair market value) of comparable, competitive properties. Thus, this method presumes that the value for a property will approximate the selling prices, listing, offers, the opinions of owners and appraisers, and appraisals of competitive substitutes. Ideally, however, value is estimated based not only on an opinion of value (such as list price), but measured by actual purchases of comparable properties.

Our appraisals document our findings for those assets as to which we are able to find reliable market data. Each appraisal includes the following steps for each piece of equipment valued:

  • Where possible we view all items available which we are to appraise.
  • We then start with a list of the specific assets, which include the manufacturer, year of acquisition, model number, a brief description, retirement information, and other relevant identifying information. In addition, we are given specific dates on which the assets were to be valued.
  • We then identify each asset to be sure that we understand all the relevant characteristics.
  • Then we make a search of our company’s research library for records of value indicators, in the specific years requested for: records of sales as well as offerings and listings of identical or comparable equipment.
  • Finally, we adjust the data as required, based on accepted appraisal methodology, in order to determine the value conclusion on the dates of sale. In conformity with the Assessors Handbook, we place greater weight on actual sales, but we also consider offerings and listings as valid indications of the upper limit of value.

We have prepared ad valorem tax appeal appraisals for such business categories as: Aviation, Aerospace, Defense, Hi Tech, Satellite Communications, Amusement Parks and Carnivals, Bio Medical, Law Office, Retail Stores, as well as a myriad of other businesses.

We have appeared as expert witnesses before Franchise Tax Board Hearings in the following counties:

California:

Santa Clara County

San Mateo County

Los Angeles County

Orange County

Oregon:

Marion County

Below is a partial list of clients we have prepared ad valorem appraisals for:

Lockheed-Martin

Hughes Raytheon

TRW

IBM

Hewlett Packard

Applied Micro Circuits

Advanced Micro Devices

Intel

Rolm Mil Spec

Quantum Corporation

Loral Corporation

Seeq Technology

Applied Material

CLI (Compression Labs Inc.)

TanThap

Fujitsu Micro Services

NeoPhontics

Direct TV Group

Show of Shows Inc.

Genentech

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