The tax world is complex, which makes it all the more necessary to stay abreast of industry trends and changes. But that’s easier said than done. Many tax practitioners turn to professional tax organizations to get the information they need. Being part of one or more organizations gives you a leg up because it offers you ways to:
Whether your tax team needs outside assistance or you’re finally hiring dedicated internal resources to focus on property taxes, it’s critical to find someone knowledgeable who fits with your team. The right person will not only have property tax knowledge, but also be able to help you make good business decisions concerning this niche tax area.
Filing income and property taxes have always been laborious tasks for businesses of any size, even when everything is organized. Collecting information and filling out forms is time-consuming, and even if you choose to use an outside tax filing service, you must meet with a tax preparer in person to walk through documents and answer questions.
The role of a corporate property tax manager is multifaceted and includes leading your tax team, training and mentoring staff members, consulting with upper management on complex tax matters, and building and maintaining relationships with other departments. Somehow in the midst of all this, you also need to be on top of:
Having worked with some of the largest corporate tax teams around, we can say with certainty that most tax workflows are time-consuming and resource-draining operations, and otherwise burdensome. This is because, as humans, we have limits. Even as the volume of data increases, no amount of knowledge or professional experience can enable us to move or process information as quickly as a computer. Hence why today’s leaders are exploring tax workflow automation, the use of digital tools to increase the efficiency of tax practice.
Cloud services are expected to be the backbone of almost all organizations by the year 2025, with the public cloud market estimated to be $124 billion by that time. A public cloud is one where multiple organizations share third party-managed computing services and infrastructure. Software-as-a-service (SaaS) solutions such as cloud tax software fall under this domain. This software provides tax teams, consultants, and individuals with tools and features that help address a multitude of tax concerns.
How has technology changed accounting? Whether you’re a tech enthusiast or used to doing things the old-fashioned way, you can benefit from knowing the answer. The role of technology in accounting has become critical in recent years as more organizations go through digital transformations.
The holidays are meant to be a time of joy. While that may be true in our personal lives, work is another matter. Businesses are often scrambling to handle last-minute tax matters and plan for the year ahead.
Michigan business personal property taxes, when compared to other states, are fairly straightforward. For example, while some states have hundreds of different return forms—one for each county—Michigan is one of several states with a single standardized return form for all jurisdictions.
Filing return after return (by hand!) is probably last on your team’s list of favorite tax to-do’s. It’s right down there with entering data from the tax assessor’s notice of valuation. Would you believe there’s something that could push these to-do’s to the top of the list? It’s automated tax compliance—and here are a few key reasons for diving into this tax approach.
The concepts of an assessment and property tax have proven to be a point of confusion for some business owners—are they one and the same, or two different things? In fact, assessment is an integral function of the tax cycle, but taxation and assessment are two distinct things. The rationale behind the separation: It protects property owners from possible unfair treatment. As a taxpayer, that’s good for you, but there’s more you need to know to ensure you’re being taxed fairly.
Our mission at CrowdReason is and has always been to give you, our customers, the digital tools that will help you thrive. In our view, that involves a whole lot more than just selling software.
Property tax management can be complex even for veteran tax professionals. There are so many unique circumstances to consider across not only state lines, but also individual jurisdictions. Return deadlines, specific tax forms, appeal processes, depreciation schedules—figuring out these aspects for each of your business locations can be a headache without the right support.
Our clients who file Alabama business personal property tax returns have different perspectives on the state’s timing: Some see it as having an early return due date; others see it as having a late return due date. That’s because Alabama has an unusual tax year compared to other states. Learn more about that—and a few other highlights of Alabama’s property tax practices and policies—below.
Our mission at CrowdReason is and has always been to give you, our customers, the digital tools that will help you thrive. In our view, that involves a whole lot more than just selling software.
When was the last time you or anyone on your property tax team went home at 5 p.m. on a workday during tax season?
Sounds impossible, right? Well, that was the case with one of our clients, whose office I stopped into recently at the end of a workday. The place was deserted. When I asked where everyone was, the response was, “They went home. They’re done!”
Taxes are still one of the certainties in life (it’s nice to know some things haven’t changed since the 18th century), but the same can’t be said for the amount of taxes paid. Thanks to the property tax appeal process, valuation amounts are never set in stone—as long as you take full advantage of your right to challenge an unfair assessment.
Our mission at CrowdReason is and has always been to give you, our customers, the digital tools that will help you thrive. In our view, that involves a whole lot more than just selling software.
Table Of Contents
Things To Know About Comparing Property Taxes By State
Looking for property tax information about a specific state?
- New York
- New Jersey
- South Carolina
Want to simplify your business personal property tax process no matter what state you’re in?
If you’re operating your business in multiple states—or are contemplating putting down roots in another state—tax policies and obligations are probably already top of mind.
If you’ve worked with property taxes for any length of time, you know audits are an unfortunate reality. Just when you were sure you had everything just right—all your assets tied to the right locations, placed in the right asset classifications, and depreciated appropriately—an auditor points out various errors and wrong decisions, and calls out your unorganized recordkeeping.
Automation is a concept that’s had the business world abuzz for some time now. Leaders from nearly every industry praise automation for streamlining cumbersome or lengthy processes across the organization. Every functional area can benefit from it, and the tax department is no exception.
To some degree, digital transformation is taking place in nearly every industry, every vertical, and every functional area. But some organizational functions are lagging—the tax department is a good example. In an EY article on the challenges tax leaders are facing in 2021 and beyond, one industry professional shares his thoughts on why:
For organizations of all sizes, it seems there’s never enough time or manpower available for corporate tax planning. But the larger your organization, the more planning is required, especially when it comes to property taxes.
Remote work has been on the rise for years, and many companies have started to offer flexible work models—in part to attract talent and in part to modernize their operations. But thanks to the global pandemic, companies that previously hadn’t considered flexible work arrangements were suddenly forced to operate remotely.
Are you well-versed on how to report your company’s assets accurately, and forecast a reliable estimate for next year’s tax liability as well? Take a look below at some tips on how property tax professionals in the Lone Star State can best manage their assets for commercial property tax in Texas; and how to prepare for the 2021 budget season.
When it comes to Maryland business personal property tax, consistency is key. Unlike other states, which have multiple local jurisdictions handling personal property administration matters, the assessment of all personal property in the Old Line State lies within the purview of a single state agency: the Department of Assessments & Taxation (SDAT). The reasoning behind this strategy? To “foster the uniform and consistent administration” of business personal property tax, which includes everything from furniture and office equipment to machinery, tools, and any other property not classified as real property.
Finding it a challenge to stay on top of Indiana business personal property tax rules? This article summarizes the essentials of the tax, and highlights new policies you should be aware of for future filing.
When even toothbrush manufacturers now claim to use artificial intelligence (AI) in their products, it’s a sign—not that AI has come so far as to be ubiquitous, but that there’s definite confusion about the meaning of the term.
Business property tax in California has continued to increase in recent years. In fact, in 2017, California had the largest dollar increase in the U.S. in business property tax revenue—$1.5 billion more than the year before. And even though California property tax increases have been fairly predictable for the last few decades, all that may be about to change thanks to the split roll property tax initiative that will unfold in 2020.
Automation is becoming a standard part of business operations—even for small and mid-sized organizations. Gone are the days of doing everything manually. Staying competitive requires more agility, and the ability to focus more on strategic concerns and less on repetitive tasks.
You know the headache of missed deadlines—financial penalties, lost opportunities for lowering your tax burden, and falling further behind on your tax schedule. Accounting due date tracking software can mitigate deadline slippage, but what exactly should it be able to do? Keep reading to see exactly what questions you should seek answers to when looking for the right deadline tracking solution.
Tax practice management software is a staple for most accounting and tax firms. But there is no multi-use tax solution on the market that is designed to deal with the particulars of property taxes, as you’ll learn more about below.
If you’re reading this, chances are your tax team is so caught up in mundane tasks they can’t address higher-value work such as research, planning, and analysis. So strategic tax questions for your organization go unanswered.
By now, just about every industry has found a way to incorporate robotic process automation (RPA) into its workflow, but so far, banks are leading the way. Why? Because succeeding in today’s global financial markets requires “unprecedented levels of speed, accuracy, and cost efficiency beyond what a human workforce can provide.”
The typical tax cycle can be daunting: filing returns for your business personal property (BPP), keeping up with notices of assessment for BPP and real estate, handling valuation appeals, and paying tax bills. You can easily have 1,500 returns; 90 notices; and 50 bills due next month. It’s enough to keep you and your tax team working overtime, especially if your strategy is reactive, so that you’re only taking action after you receive tax documents in the mail.
Regardless of your industry, your tax workflow is probably largely comprised of research and data entry tasks: keeping track of your assets and their location, retrieving appropriate depreciation schedules, filling out business personal property tax returns, reviewing valuation notices, and paying tax bills. A substantial amount of time and effort goes into tax preparation office procedures.
There are a variety of tax research tools available, all of which aim to give you the most up-to-date tax information so you can prepare accurate returns and make informed tax decisions. But the best tax research software solutions provide a range of features that not only keep you informed, but also make your tax workflows more efficient.
If your business has locations in multiple cities or states, you could benefit from tax preparation outsourcing—having a third party or software solution handle one or more areas of your property tax cycle. Outsourcing is an appropriate solution for teams that:
You’ve just received an assessment notice for one of your commercial properties—now what? If the amount seems too high, hopefully you or another member of your property tax team will check the accuracy of the valuation by using one or more commercial property valuation methods, and then appeal if need be.
Cost reductions, efficiency gains, greater accuracy… these value propositions and more have long been drivers of change within organizations. From its earliest stages, automation has promised to deliver these benefits in spades. The idea of reducing human labor while at the same time transforming a business process for the better is why business leaders were attracted to automation from the start—and why many continue to view it as essential to organizational growth.
Looking for ways to make your property tax management process more efficient? Given the magnitude and complexity of the various aspects of property tax—and the fact that corporate tax teams are increasingly being asked to do more with fewer resources—it’s no wonder.
Whether or not your company operates in one of the few states that tax intangible assets—those with no physical form but do have value—understanding intangible asset valuation is essential. Why? Because it’s part and parcel of ensuring a fair assessment for both real estate and personal property.
Like all other areas of tax, corporate property tax teams have been facing a sea of new challenges in recent years. Not only is the amount of data they have to work with increasing at a rapid pace, but expectations for tax teams are shifting, as well. One recent study indicates that, while compliance is a necessity (and remains a top priority for 27% of companies), it’s no longer the sole priority for most organizations. Other top concerns include:
- Tax planning—22%
- Providing proactive support for the organization’s wider business and capital agenda—21%
- Managing the cost of the tax function—16%
- Positioning the tax team to provide insights—13%
Whether you’re new to property taxes in general or have acquired property in an unfamiliar location, or you have a few too many returns to file for the number of hands available, you’re here because one thing is clear: You need help with your company’s property taxes. The question is, what kind of help do you need—property tax consulting or a software management tool?
These days there’s much talk about artificial intelligence (AI) and machine learning. Will robots take over our jobs, or won’t they? What can we expect when these technologies ramp up? AI and machine learning technology will have a profound impact on the workplace. In many ways, they are simply advancements in a long line of improvements helping people do their jobs better. Computers changed the way people worked; the internet changed the way people accessed information, yet a succession of new computer applications will need mastering before they are useful—and this can take time.
If you’re wondering about the difference between secured vs. unsecured property taxes, I’d wager a guess you live in California. Why? Because it’s the only state in the union that uses this terminology in reference to this common ad valorem tax. Everywhere else, “secured property tax” is simply called real estate tax (real estate is attached to or secured by land); and “unsecured property tax” is called personal property tax (movable property not permanently affixed to a particular location).
Businesses can easily get bogged down in property tax data. County addresses, deadlines, valuation methods, depreciation tables, tax ratios… there are too many data types to list. And while there are common pieces of information people look for, the options are limited when it comes to places to look. That’s because a good chunk of this data varies by jurisdiction. So instead of having central repositories for “property tax information,” a single county website may be your only option. And even finding that isn’t quite as easy as it seems (we’ll get to that later).
What if you could manage your company’s property taxes from anywhere, in less time, with fewer errors, and with greater confidence in your work product?
If you’re like most companies, you’d jump at the chance. As the amount of data expands and the number of team members shrinks, lots of tax teams are in search of a property tax management system that can help them do more with less. They’re switching from the limited-functionality legacy solutions they’ve been using for years to newer, more modern solutions that encourage growth and support greater productivity.
Colorado is generally considered a tax-friendly state for businesses. However, business personal property tax seems to be a bone of contention as of late, with a number of bills having been introduced in recent years attempting to ease the burden. Passed in 2017, Senate Bill 267 gave small businesses a break, reducing tax liability for companies with business personal property valued at less than $18,000. (Efforts to reduce it further at the state level, however, have failed.) And in late 2018, Jefferson County voted to eliminate its business personal property tax completely in an effort to retain existing businesses and attract new ones.
By now every business leader has heard about the need to “digitally transform” to stay competitive. But not everyone is so clear as to what a digital transformation means in reality—and they’re even less clear on how to get the job done. Despite the confusion, many executives still name digital transformation a top priority.
Oklahoma is an attractive locale for businesses in a number of industries, with transportation and warehousing, aerospace, and health care leading the pack in recent years. It’s also home to two cities, Tulsa and Oklahoma City, named among the best in the nation for starting a business. Oklahoma’s tax exemptions and low to moderate property tax rate are part of the reason for its appeal. If you do business in the Sooner State, here is what you need to know about Oklahoma’s business personal property tax.
Imagine if your team no longer had to spend hundreds of hours each tax season on data entry. What could they be doing with all that time?
No matter what you were hired specifically to do, as a property tax consultant, your ultimate goal is always the same as that of your clients: to ensure they pay only their fair share of taxes. But some property tax consulting firms deliver more value than others, not because of the type of work they do (advisory, valuation, or compliance) but because they approach the consulting process more strategically, which often translates into better (and more) work.
Consistently ranking high among the 50 states for its business-friendly environment, Georgia is home to many successful Fortune 500 companies, mid-sized corporations, and small businesses alike. If your organization is considering setting up shop in the Peach State, here’s what you need to know about Georgia business personal property tax, which the Georgia Department of Revenue refers to as “tangible personal property.”
In talking with prospective customers, we’ve heard just about every possible way property tax teams try to manage deadlines:
- Excel reports compiling dates
- Personal Outlook calendars
Depending on where your organization operates in the U.S., your team might currently be working to meet an upcoming property tax deadline. However, these days are anything but business-as-usual. The COVID-19 pandemic has spurred a fair number of tax jurisdictions to close in-person offices and limit their hours to keep workers safe. Many are also encouraging businesses to submit filings and payments electronically. (Tweet this!)
There’s a sea change happening in the tax industry: Where the focus was once on compliance, it’s now about value—ensuring fair taxes are being paid, managing tax risk, evaluating the tax consequences of business activities, and more. Underlying this shift to a more strategic tax practice—and enabling it to happen—is a new reliance on tax technology. In this article, we’ll look more closely at what tax technology is, and how it’s changing tax practices for the better.
The telecommunications industry is fast-changing. Technology advancements—including the still-developing Internet of Things and 5G—are seemingly constant, presenting new opportunities and challenges with regard to doing business. Oftentimes, the introduction of new technology also impacts tax policy, and by extension, your tax strategies as they relate to sales and use, income, and property tax.
As COVID-19 continues to spread throughout the U.S. and around the world, we’ve heard from numerous clients concerned about whether the disruption will adversely affect our property tax software and data extraction service, and by extension, their tax practices. The foundation of our business has always been about giving you, our customers, the digital tools you need to thrive in any situation. Today, that mission has become more important than ever, as so many tax teams need support in continuing to work effectively away from the office, on their own terms.
Companies are known to have multiple sets of books when it comes to depreciation, and it’s not only legal but required to meet all of your tax and accounting compliance requirements. The first two sets of books companies are required to keep are for income tax purposes (IRS) and accounting depreciation (financial accounting). In property tax we primarily deal with accounting depreciation and what is known as appraisal depreciation.
A consistently high-ranking state for business competitiveness, Virginia is known for having a steady tax rate and a relatively business-friendly environment. Unfortunately, however, when it comes to business personal property taxes across the Commonwealth, the only consistent thing about Virginia is its inconsistencies. This article offers a round-up of information about Virginia business personal property tax for companies doing business—or planning to do business—in the state.
Without a doubt, all tax departments—income, sales and use, and property tax—make a unique contribution to a company’s bottom line. But as a former director of property tax at a large corporation, I can also attest to the fact that all corporate tax functions are interrelated. In fact, I’d argue that joint strategizing between all tax departments can actually have a greater impact on profitability than any one single tax department can make on its own.
If you haven’t yet read about it on our blog, you’ve surely heard it elsewhere: Enterprises around the world are heavily investing in digital transformation tools and services. And it’s pretty clear their efforts are paying off—research shows that companies committed to digitizing (converting information and processes to digital) are growing faster and have higher net profits after two to three years compared to those who didn’t make a similar investment. No wonder nearly eight in 10 companies in the U.S. are currently in the process of a digital transformation.
Do you do business in the Sunshine State? If so, you’ll need to get familiar with its policies regarding property tax. This article highlights some important information about Florida business personal property tax and property tax. For even more details, check out the Florida Department of Revenue’s Property Taxpayer Bill of Rights.
Compared to other states, Wisconsin consistently ranks on the high end when it comes to property tax. Why are Wisconsin property taxes so high? Because the state law has tax restrictions that make it difficult to collect funding for public services from any other source. Only the state can levy an income tax, and sales tax is reserved for the state, counties, and a few select municipalities that qualify as “premier resort areas.” (The Badger State also receives less federal aid than other states.) As a result, local governments rely on property tax to provide a significant portion (42%) of their revenue.
Business personal property tax is no simple matter—certainly not one that can be covered by a single blog post. There’s always more to learn and do in order to improve your compliance processes and make sure you’re paying the right amount. (Check out our blog for a ton of information on those topics.) But at a foundational level, personal property tax compliance hinges on a few important basics. Get these pieces right and you can feel confident you’re fulfilling the requirements correctly.
Tax research is a very important part of a property tax professional’s agenda. Knowing which tools to use will improve your process, and staying up to date with the industry’s new tools is beneficial. However, some resources are better than others. The more research you do, the better you’ll get at determining which ones work for you and your specific cases—this is key to streamlining your practice and enhancing your work product.
As one of the largest expenses for corporations, tax is an area worth scrutinizing. Changes in tax law as well as the way the profession is practiced can have a material impact on the success of an organization. And while tax law is not within our purview (unfortunately!), we do have some idea about common problems faced by tax professionals—after all, our team’s tax backgrounds have a big impact on the design of our property tax software.
Every corporate leader who invests in advanced technology is motivated in large part by the expected ROI it will produce. (There’s also a healthy fear surrounding what could happen as a result of doing nothing.) The same is true for the tax industry. Property tax professionals who have already started using the latest technology tools—including tax document automation software like CrowdReason—are seeing greater levels of productivity and higher-quality work product that makes their team more valuable for their organizations and clients. Why?
No matter what kind of business you are or where you’re located, property taxes cannot be ignored. Tax compliance—not only following the rules of filing but actually paying the taxes themselves—isn’t something to take lightly; the consequences of noncompliance could be devastating for any company.
Shopping around for new property tax software? Use this thorough guide to confidently select a property tax software vendor that’s the best fit for your team—now and well into the future.
By now you’ve heard all about it: Technology is changing the way people work. That’s true across all industries and workplaces, whether it’s the floor of a manufacturing facility or the office space of an insurance company.
For oil and gas companies across the spectrum—upstream, midstream, and downstream—valuation of assets and the property tax process can be highly complex. By nature, several of the tasks involved are routine and mathematics-based—exactly the kind of tasks that computers excel at and, thanks to advanced technology, can do faster (and more accurately) than humans.
Whether you’re considering transitioning to new property tax management software or you’re a first-time user, the road to implementing a new property tax tool can be a long one. No matter what software you end up transitioning to, though, one thing is certain: You’ll only get the full benefit of the software if the data you put into it is clean and accurate.
Much of the recent Association of Computers and Taxation conference was focused on data analytics—how to manipulate data, and the opportunities and challenges analysis presents. A problem that was discussed at length is one most companies are currently struggling with: How do tax departments gain easier access to the variety of data that will help them make more strategic decisions?
You’re probably aware of the availability of experts who offer commercial property valuation services, but you may not know when or if you need them (or what exactly they bring to the table). This article covers the most common reasons why companies enlist a valuation expert for property taxes, and how to know if you should consider hiring one.
Often, transformation requires disruption. It’s our belief here at CrowdReason that the property tax industry is ripe for transformation, perfectly poised to benefit from disruptive influences such as artificial intelligence. And our advanced property tax software, MetaTaskerPT and TotalPropertyTax (TPT), are leading the charge.
Is your tax team currently using a homegrown tool to manage your company’s property taxes? You may be in that position for any number of reasons—you’re a small-enough company that your solution seems sufficient for the job; you expect you’ll have to pay more for vendor software than you do for your annual tax liability; or maybe you’ve simply been doing things the same way for so long that you haven’t investigated your options lately.
Almost every business carries property insurance of some kind, whether it’s for the building the company is housed in (building insurance) or the assets inside it (business personal property insurance). But just because insurance is a necessity doesn’t mean it should be viewed as an expense line item that’s out of your control. (The same holds true for business personal property tax compliance—you have more control over the process than you might think.) The more you understand about business personal property insurance (or BPP insurance), the better equipped you’ll be to find the right coverage, and an insurance partner you can trust.
Thinking of purchasing new property tax software? Or maybe you’ve already invested in new software (of any kind) and are planning the implementation process. Either way, you’re right to be doing your homework in advance of the change. Tech-related implementations require the same level of attention as any other type of organizational change initiative—a substantial number of which are prone to failure due to lack of planning.
Almost all companies have been subject to downsizing at one point or another. Even during periods of strong economic growth, sometimes the individual needs of companies in the short-term makes intermittent layoffs unavoidable. Following any downsizing activity, the question then becomes: How does a smaller group of people handle the same workload as before?
These are all terms that have been used to describe TotalPropertyTax (TPT), the most advanced property tax software in the industry. But what, exactly, do those terms mean as applied to daily use, and how do they impact the user experience?
According to the Tax Foundation, South Carolina ranks roughly in the middle of the pack when it comes to property taxes in the U.S. Both real property and business personal property are taxable here, though there is no tax on intangibles.
Searching for information about New Jersey’s business personal property tax? You can stop looking: The state has no business personal property tax to speak of. At least, that’s the case for the majority of New Jersey companies. Keep reading to find out if one of two exceptions might apply to you, and for some general information about New Jersey real property tax as well.
Are you researching property tax software options in an effort to switch from your current solution? Or maybe you’re trying to build a case to convince higher-ups (or other members of your team) to get on board with a new implementation. Either way, you’re in the right place.
The telecom industry has some unique aspects of assessment that don’t apply to other industries. In this post we’ll cover the issues associated with telecommunications tax assessments so you can ensure accurate valuation.
We do many sales presentations for our property tax management software. During every single one we emphasize the idea of data accuracy. And even though most of our audience agrees that data accuracy is important, there’s rarely the sense of urgency surrounding it that there should be.
How would you characterize your tax team’s approach to business personal property tax—are you managing it (on top of deadlines and working on appeals) or just managing to get by (filing returns down to the wire and no time for appeals)?
With many property tax return form deadlines upon us (most are between late February and mid-May), it’s a busy time of year for tax professionals. It may be part of your process to compare this year’s business personal property forms with last year’s, in which case it’s good to know when a form has changed. Most forms don’t change from one year to the next, and even when they do, the changes rarely impact the way you’ll prepare or file. But having a heads-up about the differences can help speed up the process—and sometimes even prevent mistakes.
Property tax teams deal with numerous challenges throughout the course of a year, not the least of which is managing deadlines. Every season of the tax cycle has critical due dates and there’s virtually nothing straightforward about them. (Does the return due date apply to the postmark date or the date received? What if 30 days after the assessment falls on a weekend? When are installment due dates and extensions?) For tax teams working with more than a few properties in various locations, the property tax calendar can become so complex that it’s no longer plausible to keep track of it all on spreadsheets.
The course of a tax year offers numerous opportunities for property tax practitioners to hone their precognitive skills. The ability to read and interpret available data for signs of what’s upcoming in the tax cycle—and then to determine if action should be taken—is key to carrying out the job successfully.
Like every industry, property tax has its share of conferences. Whatever you’d like to know more about, whether it’s real estate, personal property, business valuation, compliance, depreciation, tax technology, or anything else, there’s probably a conference that covers it. You’ll also find conferences that specialize in certain industries (like the Broadband Tax Institute’s annual conference for internet and cable companies) and ones that focus on taxation in certain regions (like the Texas Association of Assessing Officers conference). There’s no shortage of learning opportunities for those looking to expand their knowledge and skills.
New York businesses have an uphill climb when it comes to property tax, and corporate tax rates in general—it is ranked 49 out of 50 (just above New Jersey) on the Tax Foundation’s state-by-state comparison with regard to business tax climate. And over the last decade, property taxes in New York City have risen at a rate three times faster than income growth. (The recently created New York City Advisory Commission on Property Tax Reform is likely to recommend tax reforms in the coming year.) In recent years, the state has been making strides toward improving its tax system by enacting things like a two percent property tax cap and real property tax relief credits. Still, the tax climate may be a reason why some companies have chosen to leave the state (though that perspective is debatable).
I think it’s safe to say that all property tax teams strive to avoid penalties. But they happen. Teams working for companies with a large number of properties sometimes don’t have enough staff to keep up with deadlines or they have new, untrained staff members. Other times a failure in the process leads to a missed deadline, and extra expenses are incurred. But just because penalties happen doesn’t mean they’re acceptable—or that you should stop searching for ways to avoid them.
The start of a new year is a popular time for predictions—what developments do experts and visionaries see around the bend?
Cumbersome software, inefficient processes, a lack of data visibility… these are just a few things commonly mentioned by property tax professionals when we ask them to identify pain points in their current practice. Until a few years ago, corporate tax practitioners at Comcast, the global telecommunications company, would’ve said the very same things about their processes. Then they switched to TotalPropertyTax (TPT), and eventually added MetaTaskerPT, and turned things around. Here’s the story of why Comcast chose CrowdReason software—and how it’s impacted their practice since its implementation.
By now, you’ve heard all about how automation saves time. Applied to the manual processes in any industry, it takes over the tedious and time-consuming (but necessary) tasks of everyday work so employees can focus on activities that provide a greater return. In the case of business personal property tax, automation means your team members can forego data extraction and data entry work in favor of long-term strategy activities like tax planning and predictive analytics—tasks that have real impact on an organization and make your team more valuable.
If you’re part of a corporate tax department, there are plenty of resources providing information about tax issues and strategies related to real property, but few doing the same for personal property—even though personal property offers similar opportunities for tax savings. To help with strategizing on both fronts equally, this article starts by defining each term at a basic level, then highlights the differences between real and personal property that are relevant to tax practice.
Cable companies, railroad companies, natural gas and oil companies—these are some of the types of organizations whose primary assets tend to cross county or jurisdictional borders. Because taxes are assessed on property located in specific jurisdictions, that creates a challenge when it comes to business personal property tax filings: How do you properly distribute the value of those assets over the various jurisdictions in which they’re located? This article examines the most efficient method for doing that, as well as how to choose the right allocation metrics to ensure the fairest possible distribution of value.
While it might be desirable to handle all aspects of property tax in-house, it’s not always practical. In many instances, there’s a good business case to be made for outsourcing. For instance, you may be part of a corporation with limited resources to devote to the tax function or a team that lacks personnel with specialized knowledge. You may even need expert advice on tax matters if your organization is implementing new venture strategies. (What’s one case where outsourcing isn’t the best solution? If you’re simply looking for ways to improve your team’s efficiency, software can take care of that.)
Planning to appeal your property taxes? If you’ve done your homework, your efforts will likely save your organization a fair amount of money. You might be wondering, though, if property tax appeal software would be a helpful tool to have at your disposal. Will it help streamline the process? Will it prevent errors? Will it give you a leg up in meeting deadlines?
Managing the business personal property tax cycle is a herculean task for companies of every size. But mid- to large-size businesses, who may have hundreds of property tax assessments to deal with annually, face exceptional challenges staying on top of information tracking, due dates, filing paperwork, and more. When their workload has outgrown the standard organizational tools—like Excel spreadsheets and online project management tools—most teams know it’s time to make the leap to property tax software.
It’s no secret that the nature of work is changing, which is why a growing number of business leaders like yourself are beginning to assess what their future workforces might look like. Part of that assessment includes identifying which capabilities and tools will be most needed by their teams. In recent years, your research may have identified robotic process automation (RPA) as the answer to future challenges; today, there’s an advanced version of automation that will prove to be even more valuable for organizations: smart process automation, or SPA.
Taxes may be a certainty, but when it comes to property tax, the amount of taxes owed is not. That’s because commercial properties can be appraised in different ways, depending on who’s doing the appraising: an assessor or a fee appraiser. It’s important to know the differences in these commercial property appraisal methods so you’re better prepared to advocate for a fair assessment—and the appropriate amount of taxes owed.
There’s no question about it: Artificial intelligence (AI) is reinventing the way tax professionals approach tax season. To better understand the use of artificial intelligence in tax, it’s important to know what tax bots are, how they’re beneficial to tax teams, and why some professionals are still hesitant to adopt automation technology.
After you receive an assessment for your business/commercial property, you may find yourself questioning the amount—but also wondering if it’s worth the cost to appeal the property tax assessment. In many cases, particularly for companies experiencing technological or economic change, the answer is yes. But a property tax appeal doesn’t make sense for every piece of property. While the answer isn’t a simple yes or no, there are a few tips to help you determine whether or not it’s worth the cost to appeal your business property tax assessment.
In my view, tax practitioners are no different than other industry professionals when it comes to analytics—the more analysis you do surrounding your work, the better you tend to perform. If you’re not measuring it, you’re probably not improving it.
If you’re still using the property tax management software you bought 15+ years ago, you might be thinking, it still works, so why switch?
If that’s the case for you, I’m glad you stopped by. Whatever tool you’re currently using almost certainly improved your team’s productivity 15 years ago, but it would probably fall short by today’s standards. Why? Because it uses outdated technology that keeps your property tax team working the same way it did one or two decades ago. Even though the software is still functional, it lacks the sophisticated tech advancements used in more modern tools—those that can actually give your team a competitive edge. Think about it this way: If you were sizing up a new software today, would the fact that it’s operational be enough to sell you on it? I’m guessing the answer would be no.
If there was an easy way to ensure you never missed a single property tax bill payment again, would you take advantage of it?
The good news is, there is a way! We’re happy to announce that CrowdReason, developer of next-generation property tax management software, and Anybill, a leading provider of tax payment services, now work seamlessly together to guarantee your tax bills are paid accurately and on time, every time.
Washington, DC. (PRWeb) July 18, 2018
Leading property tax software provider CrowdReason has introduced an integration with Anybill for property tax payments. CrowdReason clients can use the Anybill integration to pay their tax bills directly from MetataskerPT and TotalPropertyTax.
Most organizations would take advantage of all available means to reduce their property tax bills—if only they knew about them (or had time to spend applying them).
If you’ve been reading our blog, you already know that the business personal property tax cycle is filled with complexities, whether you’re a business with one location or several. If you have 500 or more locations, keeping up with paperwork, information tracking, and due dates can be downright labyrinthine—never mind having enough time to put a case together for appeals (unless you’re taking advantage of all the tools at your disposal, which we’ll get into later).
For many companies, property tax due dates are always looming. Between return deadlines, appeal deadlines, and payment deadlines in multiple jurisdictions, another due date may be just around the corner, no matter what time of year it is. So how do tax teams manage and meet these dates? While there’s no single standard that works for everyone, there are tools that can help companies of all sizes do it more efficiently.
Part of your job as a property tax manager is to forecast the expected property tax liability for the upcoming year’s budget. Anyone who’s been in this position before knows that it’s a balancing act: Management wants lower taxes, so they hope you’ll come in low. Accounting wants you to be accurate, not too low or too high. And you personally? You want to give yourself some breathing room in the event that something unexpected happens to throw your forecast off. (There are lots of moving parts that can change your tax liability at any time!)
Property tax is a complex world where exceptions are the rule. These rules can vary by jurisdiction, and no two places refer to the same thing in the same way! There are in-depth publications and countless county websites that define their own unique property tax terminology, however, we decided to condense all that information into some core concepts that, once you know them, will help you navigate more proficiently through these complexities.