Complex Industrial Services
With the experts at Paradigm Tax Group, we have a dedicated team with decades of experience in evaluating your complex industrial tax needs and providing tax savings.
Properties deemed Complex Industrial typically include valuation and property tax considerations for both Business Personal Property and Real Property. Due to the nature of these properties, it is not uncommon for these properties to be taxed more than once.
Examples of Complex Industrial Properties that are accessed using the Unitary Valuation Methodology, include:
- Railroads
- Wireline & Wireless Telecommunications
- Passenger Airlines and Air Cargo Operators
- Cable Television
- Fiber Optic Cable
- Power Generation and Distribution
- Pipelines
Types of Complex Industrial Properties
Special Purpose Property
These properties are highly custom and have been built for a specific purpose. This property type is most often valued under the Cost Approach to Value model. However, at Paradigm Tax Group we have seen an increasing trend of assessors attempting to estimate the value of the output and apply a capitalization rate to the income stream (Income Approach to Value). This practice often fails to recognize the valuable contributions of Intangible Property such as assembled work force, working capital, trade secrets, contracts, or a host of other non-taxable property. The value of Special Purpose Property is highly dependent on its economic life and the impact of disruptive technologies. For this reason, the proper estimation of the impact of Functional and Economic Obsolescence can greatly impact the overall taxable value of the property.
Intangible Property
Special purpose properties may also have proprietary self-developed technologies that are used to design and operate the equipment. Processes may have been developed in order to meet the needs of one long-term client who has contracted for the specialty product. Other types of Intangible Property include goodwill, trained and assembled workforce, permits, licenses, and computer software. Taxability of these kinds of assets varies by state.
Leveraging Our ExpertiseUnitary Valuation Methodology
Some Complex Industrial Properties may be valued under Unitary Valuation Methodology. This means that it is assessed using business value concepts as a single operating property and then the value is apportioned to where the physical assets reside. In each state, the assessor will value the entire operating unit and then allocate a portion of its value for assessment purposes. The benefit of partnering with a company such as Paradigm Tax Group, is we know how to address your complex industrial property needs to maximize tax savings and will work on assessing value based on each states tax code.
Case StudyComplex Industrial
8 Years
$26M
Industry Experts
Ascend by ParadigmInnovative Technology Platform
Our team has an exceptional track record with national portfolios and consistently displays the requisite mix of technical knowledge, understanding of local market nuances, and the aggressiveness it takes to ensure timely compliance with a focus on tax savings. Our goal is to save you 20% or more on your compliance costs.