Case Study
Wilson & Franco, LLC achieved a value reduction of $70+ million over a 5 year period by successfully arguing value-in-exchange methodology on the inventory of a Texas retail distribution center. We saved the property owner over $1.5 million in property taxes, and added additional savings utilizing the Freeport Exemption.
Issue
Wilson & Franco researched inventory valuation according to the Texas Tax Code. With client approval, Wilson & Franco argued that cost wasn’t a fair valuation for inventory according to the code.
Case Position
Wilson & Franco successfully argued that using cost to determine market value of an inventory wasn’t a fair reflection of value in exchange. Taking value in exchange, private label branding, and obsolescence into consideration, Wilson & Franco achieved over $70 million in value reductions over a 5 year period.
Results
$70 Million
decrease in Market Value over 5 years
$1.5 Million
taxpayer savings