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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!

     

     

     

     

     

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

    Total Tax Savings: $396,000

    The importance of monitoring your assessment each and every year cannot be overstated.  Protax LLC served as the agent for a large hospital in Los Angeles County. Although the actual hospital facilities were exempt, the hospital leased an office building across the street thereby making it subject to real property taxes. This second generation medical office building of approximately 59,000 square feet is located in close proximity to the hospital facility and is in good condition. However, the combined effect of HMO’s upon medical office space in the area and a high purchase price during the peak of the real estate market, gave this property an extremely high original base year value.

    Protax LLC reduced the $10,000,000 base year value to $6,000,000, and to $4,000,000 in the subsequent tax year.  Informal requests were submitted each year thereater, maintaining the reduced value at $4,000,000.  However, several years later the Assessor increased the assessment by posting a value of $7,120,000 effectively rescinding half of the reduction.  Protax responded by filing a formal appeal and successfully reducing the assessment to $ 4,460,000.  The total tax saving recognized by the hospital was $396,000.

     

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

    Total Tax Savings $ 235,000

    This client owns and operates a series of health care facilities providing retirement, convalescent and mental health care services to thousands of citizens within their respective community. Each facility contains approximately 50 to 100 beds plus all the additional facilities to provide nursing care, medical attention, recreation and restaurants.  The restructuring of the health care industry and the arrival of HMO’s created some drastic cash flow problems for this industry.

    From a property tax standpoint, this industry also suffers from a methodology of appriasal employed by many county assessors that fails to separate the real property from the personal property. The sales prices often includes the operating licenses which are intangible personal property and therefore should not be included in the assessed value of the real proeprty. Protax LLC’s previous experience with this industry, and expertise with the different assessment methodologies used by the county proved instrumental in saving this client 30% on its overall tax liability.