Case Study: Property Tax

Identifying Repeatable Cash Tax Savings Opportunities

Identifying Repeatable Cash Tax Savings Opportunities

CHALLENGE

Amid a severe industry downturn, a public oilfield service provider scrambled to preserve margins and defend its share of an increasingly lean market. The company engaged Merit Advisors to uncover all possible ways to minimize tax liability—allowing it to sustain operations.

MERIT SOLUTION

Merit began by conducting a thorough review of the client’s property tax appraisals. Our team then:

  • Negotiated directly with county appraisal districts (CADs) on our client’s behalf
  • Completed work before CADs issued appraisal notices, lowering the basis for negotiations and avoiding formal public hearings

RESULT

Merit successfully negotiated lower appraisal values, reducing the client’s tax liability by $5.2 million over two years—$3.6 million the first year, and $1.6 million the next. Our repeatable methodology allowed the client to continue reaping the benefits of our work going forward. Merit also developed a strategy to help the client predict future tax liability despite appraisal volatility among CADs.

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CHALLENGE

Amid a severe industry downturn, a public oilfield service provider scrambled to preserve margins and defend its share of an increasingly lean market. The company engaged Merit Advisors to uncover all possible ways to minimize tax liability—allowing it to sustain operations.

MERIT SOLUTION

Merit began by conducting a thorough review of the client’s property tax appraisals. Our team then:

  • Negotiated directly with county appraisal districts (CADs) on our client’s behalf
  • Completed work before CADs issued appraisal notices, lowering the basis for negotiations and avoiding formal public hearings

RESULT

Merit successfully negotiated lower appraisal values, reducing the client’s tax liability by $5.2 million over two years—$3.6 million the first year, and $1.6 million the next. Our repeatable methodology allowed the client to continue reaping the benefits of our work going forward. Merit also developed a strategy to help the client predict future tax liability despite appraisal volatility among CADs.

The Rewards of Merit
$5.2
million
Two-year cash tax savings