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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!

     

     

     

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

    Total Tax Savings: $ 242,000

    Entertainment Centers present a unique blend of real property, personal property and trade fixtures. These businesses offer a wide variety of entertainment options to their customers from a miniature golf center to amusment rides and arcades. The variety of these trade fixtures offer a challenge to any appraiser when valuing these items for property tax purposes. Protax LLC represented a well known family who owned and operated a number of these amusement centers throughout the State. We found that quite often these items are inadvertently misclassified by county appraisers. After an extensive review of each location, its inventory, and the total assessment of the real and personal property, we were able to put together an overall tax reduction strategy that eventually produced a 1/4 million dollar property tax savings.

     

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

    Total Tax Savings: $ 160,000 per year

    The members of a prestigious Pete Dye designed Golf Club purchased the golf course from the original developer at a sales price that had been pre-established in the late 1980’s. The purchase price was nearly double what the actual “fair market value” of the golf course and clubhouse were worth. After the purchase, the members invested an additional $7,000,000 to repair and remediate a number of problems that had plagued the course since its original construction. The manager of the club recognized that if the actual sales price and renovations costs were enrolled the property taxes would triple. Protax LLC recommended a two pronged approach. First, it was necessary to contact the assessor’s office before they re-appraised the property in order to ensure that the sales price was not enrolled as the base year value. This was accomplished successfully and a new base year value was established at 50% of the actual purchase price. Once this was done, Protax LLC contacted the assessor one more time to discuss the appropriate value to be enrolled for the renovations which were now complete. The argument was put forth that these renovations added almost no market value to the property as most of the $7,000,000 went to renovating and repairing the actual course itself. The county agreed and enrolled these improvements at less than 10% of their cost. In the end, the total base year assessement was less than 40% of the entire investment made by the members.

    “Protax LLC provided us an excellent service which will save our membership hundreds of thousands of dollars through the coming years. They spent a great deal of time reveiwing our records, touring the course, and meeting with the assessor. The results speak for themselves and we highly recommend their services!”

    D.K. (Rancho Santa Fe Farms Golf Club)

     

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

    Total Tax Savings: $ 45,000

    This Norther California company specializes in providing campground services throughout California and the western United States. They initially contacted us regarding a proeprty they had recently acquired which had received an assessment notification from the county that appeared to be far above its fair market value. From this initial introduction, Protax LLC eventually performed an audit of all their proeprties to determine which ones might be eligible for property tax relief. In the end, several properties were reduced producing a total tax savings of about $45,000.