The growth expected in the Data Center and Technology Industry provides unique opportunity for property tax minimization strategies. Data processing and network equipment are constantly evolving. New technology brought to market can have a substantial impact on the use and effectiveness of current technology in place, resulting in increased deprecation rates and functional obsolescence.
Data center tangible personal property is typically valued on a cost approach methodology, where the replacement cost of the assets placed in services are depreciated for the economic life of the assets.
There are three areas that consultants should concentrate on with regards to property tax minimization for data centers:
Cost segregation and intangibles.
Paradigm Tax Group specializes in the Data Center and Technology market and wants to insure you reach maximum tax savings. We make sure they review leasehold improvements, account for all forms of obsolescence and ensure intangibles are appropriately addressed to ensure an accurate and fair assessment for their client. Most assessors do not have the time, resources or market data available to accurately assess these assets. An appropriate property tax strategy addresses the concerns expressed here to ensure your client is fairly assessed.
Paradigm’s nationwide footprint enables us to offer a variety of property tax minimization solutions for commercial real estate across a variety of industries throughout the U.S. For more information on our experience in your industry, please contact us for a complimentary consultation.
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.