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Case Studies

    APARTMENTS

    Total Assessed Value Reductions $ 2,250,000,000

    Total Tax Savings 24 Million Dollars

    Case Study #1: Developer of large garden-style luxury apartment complexes saves ½ million dollars!

    Case Study #2: Property Management Company receives mutli-million dollar tax savings!

    Case Study #3: A wealthy doctor partners with Protax, LLC for big tax savings!

    Case Study #4: Russian immigrant donates her entire real estate portfolio to religious organization!

    Case Study #5: Section 515 & 236 federally subsidized housing battles the State Board of Equalization!

    HOTEL/MOTEL

    Total Assessed Value Reductions: $ 500,000,000

    Total Tax Savings: 5 Million Dollars +

    Case Study #1: Hotel Chain reduces its overall property tax expense by 25%!

    Case Study #2: Time Share hotel in Palm Springs receives a 70% tax savings!

    Case Study #3: Hotel gets “double dipped” on real and personal property!

    Case Study #4: Five Star Hotel on the ocean feels the tides of change!

     

    INDUSTRIAL

    Total Assessed Value Reductions: $ 900,000,000

    Total Tax Savings: 9 Million Dollars+

    Case Study #1: Publishing company sale/leaseback creates potential property tax liability!

    Case Study #2: Investment firm nets substantial property tax savings despite tremendous cash flow!

    Case Study #3: Industrial Park with 1/2 million square feet assessed at cost!

    Case Study #4: Owner of a refrigerated warehouse heats up then cools down!
    LAND
    LAND – AGRICULTRUAL

    Total Assessed Value Reductions: $ 150,000,000

    Total Tax Savings: 1.5+  Million Dollars

    Case Study #1: 240 Acre vineyard receives reduced tax bill before refund for prior year is finalized!

    Case Study #2: Farmer overpays for 320 Acre farm purchased in 1992!

    Case Study #3: Nursery receives $30,000 annual reduction for ten years!

    Case Study #4: Land Speculation turns into raw deal!

     

    LAND – COMMERCIAL

    Total Assessed Value Reductions: $ 250,000,000

    Total Tax Savings: 2.5+ Million Dollars

    Case Study #1: Industrially zoned land purchased for commercial development!

    Case Study #2: Partial ownership transfer creates huge property tax increase!

    Case Study #3: County creates “owner’s nightmare” by assessing property at 4 times its purchase price!

     

    LAND – RESIDENTIAL

    Total Assessed Value Reductions: $ 200,000,000

    Total Tax Savings: 2+ Million Dollars

    Case Study #1: Home Builder receives a 65% reduction on 235 acres being held for future development!

    Case Study #2: Lot Developer receives reductions of 81% and 85% on multi-million dollar properties!

    OFFICE

    Total Assessed Value Reductions: $ 1,200,000,000

    Total Tax Savings: 12+ Million Dollars

    Each year Protax, LLC represents nearly 3 million square feet of office space. The typical office building that we represent receives a reduction of approximately 20% saving on average $10,000/year.

    Case Study #1: Hurricane Floyd threatens potential property tax refund!

    Case Study #2: Major Defense contractor saves over 1 million dollars on its corporate facilities!

    Case Study #3: Downtown high-rise saves 53% while its building remains fully occupied!

    Case Study #4: A large insurance carrier faces massive losses on its REO portfolio!
    RESIDENTIAL

    ATTENTION HOMEOWNERS: The current slowdown in the California residential real estate market offers a significant opportunity to reduce your property tax expense.  Please contact us immediately to discuss your specific situation.

    Each year Protax, LLC represents hundreds of individual homeowners throughout California. The average tax savings for each homeowner that we represent is about $3,500. Although we have many commercial properties and clients, we represent many more owners of single family residences and have achieved significant property tax savings for these homeowners in nearly every county throughout the State of California.

    Total Assessed Value Reductions: $800,000,000

    Total Tax Savings: $8+ million

    Case Study #1: Appellate Court rules the actions of the Assessor are “arbitrary and capricious”!

    Case Study #2: Significant refunds for executive Golf Course Homes to be determined by the court!

    Case Study #3: Custom Home Owner in Palm Springs saves thousands of tax dollars year after year!

    Case Study #4: Northridge earthquake shakes up its owner and then the assessor’s office!

     

    RETAIL

    Total Assessed Value Reductions: $ 750,000,000

    Total Tax Savings: 7.5+ Million Dollars

    Protax, LLC has represented nearly every type of retail property imaginable, from the smallest retail property such as a local shopping center owned by an individual investor up to the largest Regional Shopping Mall owned by corporate conglomerates.

    Case Study #1: Foreign investor sinks over $30 million in poorly planned retail shopping center!

    Case Study #2: Large community shopping center receives a facelift!

    Case Study #3: Three high end retail stores take a dip on the “strip” in Palm Springs!

    Case Study #4 : Auto dealers save a bundle in property taxes!

    Case Study #5 : Functional Obsolescence threatens Regional Shopping Mall!

     

    SPECIALTY

    Total Assessed Value Reductions: $ 350,000,000

    Total Tax Savings: 3.5+ Million Dollars

    The “specialty” category includes several different types of properties, all of which do not fall within the seven largest standard property types. Protax, LLC has represented such a tremendous variety of properties that is nearly impossible to list them all. Therefore, we have put together a sampling of some of them more interesting cases that we have encountered through the years.

    Cemetery

    Case Study #1: Fortune 500 Company specializing in mortuary services!

     

    STUDIES – LEGAL CASES

    Protax, LLC has been involved in a number of legal cases due to the overall complexity associated with property tax law. Several of these cases have or will establish a major precedent once they are settled. It is important to understand that the assessment authorities are governed and bound by a sophisticated set of statutes, regulations and rules, most of which are outlined in the Revenue and Taxation Code of the State of California. These laws are designed to ensure the general welfare of the State so that it can collect its property tax revenue while at the same time protecting the individual rights of the property owners who make up the State body.

    Case Study #1: Appellate Court rules the actions of the Assessor are “arbitrary and capricious”!

    Case Study #2: Significant refunds for executive Golf Course Homes to be determined by the court!

    Case Study #3: Appellate Court to decide the property tax fate for federally subsidized low-income housing in California!

    CONTAMINATED SITES

    Case Study #1: Mobile Home site emits methane gas but collects plenty of cash!

    Total Tax Savings: $188,000

    For over seven years, Protax, LLC represented a large mobile home park in Los Angeles County that was built on top of an old landfill. The site burns methane gas around the clock and the estimated repair cost is far greater than the value of the property. Nevertheless, the property is allowed to operate and due to a shortage of available mobile home spaces in the area, the owner earns enough income that would warrant a substantial increase in the assessment on the property under normal valuation circumstances. However, the contamination clean-up costs carry with them a substantial liability to the owner, and it “stigmatizes” the future value of a property, hampering the ability of the owner to liquidate or get a loan on the property. As a result of our efforts, the owner has enjoyed a large income stream for the past seven years while paying only 60% (on average) of his previous tax liability.

     

    MOBILE HOME PARKS

    Case Study #1: Mobile Home site emits methane gas but collects plenty of cash!

    Total Tax Savings: $188,000

    From 1994 through the year 2001, Protax, LLC represented a large mobile home park in Los Angeles County that was built on top of an old landfill. The site burns methane gas around the clock and the estimated repair cost is far greater than the value of the property. Nevertheless, the property is allowed to operate and due to a shortage of available mobile home spaces in the area, the owner earns enough income that would warrant a substantial increase in the assessment on the property under normal valuation circumstances. However, the contamination clean-up costs carry with them a substantial liability to the owner, and it “stigmatizes” the future value of a property, hampering the ability of the owner to liquidate or get a loan on the property. As a result of our efforts, the owner has enjoyed a large income stream for the past seven years while paying only 60% (on average) of his previous tax liability.

    POSSESSORY INTEREST

    Case Study #1: A Naval Defense Contractor on a waterfront “possessory interest” saves a boatload!

    Total Tax Savings: $230,000

    A defense contractor entrusted with building and repairing naval vessels, leases land from the Port of San Diego under a long term contract where their shipyard repair facilities are located. The tenant’s interest in the land is known as a “possessory interest” and the entire real estate is appraised for property tax purposes using specific valuation methodologies. Two key factors that must be considered when valuing a “possessory interest” are current lease rates and the remaining life of the lease. As the government downsizing began to impact the defense industry in the early 1990’s, lease rates fell precipitously. Our analysis of the shipyard’s financial information combined with our knowledge of the applicable valuation methods for “possessory interest” properties produced dramatic results. The final tax savings was bolstered by our knowledge that the value of the lease falls geometrically in value near the end of the lease contract. As a result our client is recognizing a continually declining property tax bill each year as the lease approaches its expiration.

    HOSPITAL/MEDICAL

    Case Study #1: Vigilantly monitoring property taxes pays off for large Los Angeles hospital!

    Case Study #2: Southern California Health Care Provider watches over property tax expense!

     

    OIL FIELDS/MINERAL RIGHTS

    Total Tax Savings: $138,000

    Oil rights are valued using the income approach with a specific emphasis on the current market rate for the price of oil. It is quite obvious, therefore, that the value of these rights can fluctuate greatly from year to year. The owner of an oil field in Orange County contacted Protax LLC after oil prices had fallen in the hopes of realizing some property tax savings. After analyzing the property and its financial history as well as the appropriate valuation methodology employed by the county assessor, Protax developed and implemented a tax reduction strategy that produced an overall tax savings of $138,000.

    RECREATIONAL

    Case Study #1: Family Fun Entertainment Centers don’t play around with their tax dollars!

    Case Study #2: Championship Golf Course receives major renovation and tax relief!

    Case Study #3: Campgrounds look for tax savings in their own backyard!