China Lockdowns’ Impact On Your Property Taxes. Real or imagined?

What dominates the news these days:?rising inflation, higher gas prices, delivery issues, food shortages, new COVID variants, sanctions, a decline in the global economy and so on. Lockdowns in many parts of China only add to the supply crunch we are experiencing.

Closer to home you learn that the governor of Texas ordered additional inspections to trucks crossing the border resulting in delays exceeding five hours and leading to a decline of about 60% in commercial traffic. As a result, we have idle trucks and half empty warehouses. And that’s only part of the ripple effect that has started to ripple. It will soon reach your property tax assessment. Here’s how.

While the lockdowns in China could eventually help ease the global supply crunch caused by sanctions and bring prices down by diminishing demand, the emphasis is on eventually. Meanwhile, your tax assessments are happening now and may be inaccurate because they’re not taking contestable factors into consideration. Therefore, re-examining your tax planning now is imperative. Here are some suggestions that may help improve your bottom line in these extraordinary times.

Let’s, for a moment, get back to idle or currently underutilized equipment like those trucks mentioned earlier that are not running and stopped re-stocking your warehouse. They may be entitled to a value re-assessment. You may even have obsolete equipment sitting around that qualifies for a write-off. In brief, properly documented and assigned a fair and equitable value, these assets can make a difference towards reducing taxable income.

So, what’s important is to conduct a thorough valuation analysis of every aspect of your business leading to the identification of new avenues for tax relief. This includes various existing income-based valuation models in order to optimize reductions. The complexities and particular characteristics of an industry or business need to be taken into consideration, and they include the application of the different cost to capital principles for different income streams.

Once the revaluation process is completed and a discrepancy between the official declaration and the updated assessment have become apparent, it’s time to file for either a judicial appeal or an arbitration. Which now presents an opportunity to sit face-to-face with the tax collectors to debate the original valuation.

To get back to the lockdowns in many parts of China and their effect on your property taxes, they are real alright. Fortunately, ITC’s teams of experts can help outline and execute successful tax strategies that take present and changing circumstances into consideration. Expertise which is based on 50+ years of combined experience, aided by state-of-the-art software technology. So with all the uncertainties in today’s global economical climate, one thing is sure: you can?

Count. On. Us.