Archive 2019-137: Valuing Intangible Assets for Property Tax Purposes




Archive 2019-137: Valuing Intangible Assets for Property Tax Purposes

**Webinar 137: Live Broadcast Date: November 17, 2019**

VPS StraightTalk Webinar Series: Valuing Intangible Assets for Property Tax Purposes with Robert Reilly CPA/ABV/CFF and Matt Courtnage, CFA

Most valuation analysts are familiar with valuing intangible assets for fair value measurement, income tax accounting, and litigation (e.g., infringement) purposes. This program describes the valuation of industrial and commercial company intangible assets for property tax compliance, appeal, and litigation purposes. Many industrial and commercial taxpayers are assessed based on the “unit valuation principle” for property tax purposes. That is, all of the taxpayer operating assets are valued collectively, on a going-concern basis, as a single “unit.” Accordingly, a unit valuation is similar to a business valuation. However, most taxing jurisdictions tax only real estate and tangible personal property. Therefore, corporate taxpayers (or their legal counsel) often retain analysts to identify and value the industrial or commercial intangible assets that are exempt from state and local taxation (“SALT”). This program explains what types of taxpayers are subject to the unit valuation principle for SALT purposes. This program describes how to identify which intangible assets are exempt from property tax in each jurisdiction. And, this program illustrates how to prepare and defend such intangible asset valuations for SALT purposes.

Webinar Outline
1. The unit valuation principle versus the summation valuation principle
2. Types of taxpayers subject to the unit (originally called utility) principle of property valuation
3. Unit valuations are not applied only to public utilities
4. Unit valuations are not applied only to centrally assessed taxpayers
5. Differences and similarities between unit valuations and business valuations
6. Generally accepted unit valuation approaches and methods
7. Intangible assets that are captured in the unit valuation conclusion
8. Generally accepted approaches and methods for identifying and valuing exempt intangible assets for property tax purposes
9. Illustrative examples of developing exempt intangible asset valuations
10. Illustrative examples of extracting exempt intangible asset values from unit valuation conclusions

Learning Objectives

Participants in this program will learn how to:

1. Identify the types of industrial and commercial taxpayers subject to unit principle valuations
2. Recognize when a commercial property tax assessment is based on the unit valuation principle
3. Describe and apply the differences between a unit valuation and a business valuation
4. Identify and value intangible assets that are exempt from state and local property taxation
5. Extract the value of exempt intangible assets from the taxpayer’s unit principle valuation

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