Tax directors in the telecom industry face two types of property tax structures for their personal property. Centrally assessed and by county. It’s the by county that creates a special challenge. Florida and Texas for instance take a telecom system and chop it up into pieces by county. So each county individually assesses their small portion of the entire system. And each assessor has their own view on value and variations of telecom experienced staff. It is also trending toward hiring third party consulting firms. So if there a 67 Counties, the tax director is facing the filing of 67 different returns, 67 different assessments to negotiate and 67 different tax bills to pay……….all done ANNUALLY!
We stay current on high technology changes and the affects these changes have on the industry. Telecom experiences high amounts of obsolescence in tangibles over short periods of time. Some examples of such obsolescence include:
– Long line is losing customers to wireless and email.
– Local Bells are losing home lines at alarming rates due to wireless and cable.
– The wireless industry with its implementation from 2G to 3G to 4G to LTE renders equipment that is only a few years old almost totally obsolete.
Tax directors have the same issues with real estate and the challenge of protesting hundreds of central offices. Gulfstream Tax Group critically reviews real estate holdings for potential obsolescence. Special use facilities need to be analyzed for loss in market value. Our expertise in special use facilities allows us to better represent you and minimize tax liabilities.