Business Personal Property Distribution Center

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Case Study

Wilson & Franco has achieved a value reduction of over $70 million dollars over a 5 year period, by successfully arguing inventory value in exchange on the inventory in a Texas retail distribution center. Wilson & Franco saved the property owner over $1.5 Million dollars in property taxes based on this methodology, and achieved 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 Mil
decrease in Market Value over 5 years
$1.5 Mil
taxpayer savings