Methodology

The Armstrong Method of Representation – We are Armstrong STRONG

The Armstrong Method has obtained our clients an average 38% reduction in its annual property tax expense, which goes directly to a client’s bottom line earnings.This is a high-level outline of The Armstrong Method and how we can find and support our findings:Papermachine

  • Meet with the client throughout the representation process to understand and protect their interest
  •  Conduct thorough onsite inspections and meet with key personnel to gain a comprehensive understanding of:
    • Operations of the business, industry, and the competition
    • Production process
    • Facilities and equipment (general information, conditions, uses, problems)
    • Complete a detailed inventory list including photos (equipment employed and condition of assets)
  • Compile, sort, research, and get comps for each item to find true market value using both the cost and sales comparisons approaches to value
  • Match a clients fixed asset list to our detailed inventory list that we created during our onsite inspection to find:
    • Ghost assets
    • Items of repair to be depreciated correctly
    • Inventory valuations
  • Discover any potential property tax issues and use generally accepted appraisal practices throughout the valuation process (employing independent experts when needed)
  • Prepare a Findings Memo that details the property tax issues to be addressed and outline the potential tax savings of each issue
  • Obtain approval from the client on the Findings Memo (this ensures our intended actions serve the stated and implied interests of our clients)
  • Prepare the valuation of both current and non-current assets in accordance with the particular states property tax laws (using the expertise of independent experts when necessary)
  • Create the Value Report, which fully documents how the valuation of the assets were derived and the legal basis thereof
  • The final Value Report is presented to the Client for approval
  • Once client approves, the Value Report and Property Reporting form are submitted
  • If needed, The Armstrong Company will
    • File appeal of the assessment
    • Negotiate with the appraiser
    • Go to the ARB Hearing
    • Hire appraisers and lawyers to settle value disputes (The Armstrong Company hires and pays for the appraisers and lawyers)

The Armstrong Method Difference on Valuation

A proper value must be derived using generally accepted appraisal methods and techniques that are performed in accordance with governing state laws. The Armstrong Company employs and works with independent appraisers, used equipment brokers, original equipment manufacturers (OEMs), as well as attorneys specializing in property tax law (we pay for these experts). These experts provide:

  • Legal guidance in determining issues and legal basis for defending positions
  • Detailed information of comparable sales
  • Provide expert testimony of actual physical and economic life of equipment
  • Provide quantification of physical, functional and economic obsolescence from the market place
  • Provide differences in operating costs between makes and models of similar equipment
  • Qualify and quantify software, design engineering, programming, integration and specialized construction and installation

Our firm then uses this expert data to perform a sales comparison, cost and income approach value that is then correlated into a value conclusion – that is well documented and supported under the governing tax laws of the specific state.

The Armstrong Company has worked with the most knowledgeable experts on other issues related to property taxes. This allows our firm to assist our clients in finding the perfect expert to guide them through issues relating to:

  •  Pollution Control Exemptions
  •  Procuring Abatements and assisting clients on compliance paperwork
  •  Negotiating Freeport Agreements
  •  Preparing Green Site Studies

The Armstrong Method Difference on Settlements

A settlement is only for a year if it’s not based on a methodology. The Armstrong Method creates a long-term result for our clients by settling value disputes, not based on a specific value, but a methodology that results in the fair and equitable market value of the property. We do this by utilizing the assessor’s local assessment practices and depreciation schedules in order to reach a value consistent with state law, and in accordance with the market value of the property – using generally accepted methods and techniques.