light_square

HOTEL/MOTEL

    Total Assessed Value Reductions: $ 500,000,000

    Total Tax Savings: 5 Million Dollars +

    Protax LLC has represented many prominent hotels throughout California thereby acquiring a in depth knowledge of the industry and how the property tax rules affect the assessments for these properties. The tragic events of 9/11 have perhaps affected this industry more than any other. Contact us immediately to determine if your hotel or motel may be eligible for this tremendous tax savings opportunity!

     

     

    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!

     

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

    Total Tax Savings: $ 775,000

    The owner and operator of a large number of hotels hired Protax LLC to manage its entire property tax portfolio. Protax LLC filed numerous informal and formal appeals on their real and personal property holdings. The total combined assessed value of the properties were reduced by 75 million dollars during this timeframe saving our client over 3/4 of a million dollars in property tax savings. This reduced their overall property taxes by 25%.

    “Protax LLC has been handling our real and personal property tax needs for approximately eight years. The tax savings are tremendous, however we really appreciate the service they provide. We simply fax over our tax bills whenever we have a question and they handle the rest. One County sent us a double billing on our personal property several years in a row due to a computer error. Protax LLC corrected the problem without charge.” JR (Ayres Group)

     

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

    Total Tax Savings: $1.2 Million

    A popular time share/resort hotel in Palm Springs approached Protax LLC for a property tax review.  The resort has 2900 weekly intervals assessed at $8,000 per unit. The sales demonstrated that the actual “Fair Market Value” was closer to approximately $2500 per unit. Protax LLC reduced the assessed value from $22 million to $6 million saving the resort $160,000 per year. The resort has renewed its contract with Protax LLC each and every year since then in order to maintain this significant but temporary tax savings. This decision has paid off quite handsomely as the reduction has been maintained for the past seven years even while many other assessments are being increased by County Assessors statewide. The taxable value for this resort remains assessed at only 30% of its original Proposition 13 base year value.

    “Protax LLC initially contacted us informing us about the potential for a reduction. We had no idea that the tax savings would be so dramatic. This one decision has saved the property and its many owners over 1 million dollars.”

    RR (RCI Management)

     

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

    Total Tax Savings: $19,000

    A Southern California hotel chain was assessed twice (double dipped) for a new hotel as the real property division and the personal property division assessed the same improvements. This double assessment is quite common and occurs more often than most people realize. In this case, our client reported 100% of the construction costs for its new hotel on county form 571L. The personal property division assessed these improvements without checking with the real property division which was quite busy as well assessing these improvements as fixtures.

    To correct the problem, Protax LLC contacted both the real and personal property divisions. The real property division had performed their own independent appraisal of the real property, arriving at a value equal to the total construction cost. However, the personal property division never communicated with the real property division which eventually caused the double assessment. Protax LLC corrected this error and the $19,000 double payment was refunded.

     

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

    Total Tax Savings: $90,000

    A well financed investment group purchased a five star hotel complete with a famous restaurant, on site retail shops and luxury accommodations. One of the main attractions of the hotel was its easy accessibility to the ocean. The partnership earned tremendous profits during the early years of its ownership as the high tide of a good market was in full force. However things began to change as the tide of the economy ebbed out taking profits with it. In order to cut costs, hotel management hired Protax LLC to oversee their property tax expenses. The hotel ultimately realized a significant tax savings.