A recent Utah Supreme Court decision may influence taxes throughout the country by clarifying whether goodwill is a component of taxable real estate value. Most states exclude intangible property from taxation, so identifying intangible components of a business can significantly reduce property tax liability. In T-Mobile vs.Utah State Tax Commission, the Court declared that accounting goodwill is intangible property and not subject to property tax. The Court defined goodwill as “a business’ reputation, patronage, and other intangible assets that are considered when appraising the business.” The taxing jurisdictions argued that “accounting goodwill is not intangible property but rather taxable tangible…

Property taxes represent the largest operating cost for most real estate portfolio owners. By combining powerful technology with a solid data management plan, that pesky annual tax bill can likely be cut, adding dollar-for-dollar to the bottom line.  Successful property tax appeals depend on facts. Not only are facts about the property important, but data pertaining to competing properties, equality of appraisal, intangible components, market trends and macroeconomic forces play a vital role in obtaining meaningful tax savings. Gathering information about your own property is easy. Rent rolls, income statements and deferred maintenance lists are readily available. Unfortunately, this is…