A large corporation’s successful effort to reduce its property tax on the basis of the economic downturn could arguably become a tool for other companies to use, a Jefferson City-based certified public accountant said Tuesday afternoon.
John Sheehan, a CPA with Williams Keepers in Jefferson City, said counties re-evaluate commercial property about every 2 years. Normally, a county will provide its assessment to a property owner far enough in advance that the owner has the opportunity to discuss or argue the assessment, he said. Barring changes, that owner’s bill is due by the end of the calendar year, Sheehan said.
An appeal summary provided by the state tax commission states that Caterpillar is appealing on the basis of economic obsolescence.
“Caterpillar is currently experiencing very difficult times because of the global recession,” the document states. “Their sales to both domestic and foreign entities have fallen dramatically. Consequently, production at their Boonville rubber component plant is projected to be off by 58.53 percent from its five-year average operational capacity of 40,813,266 units. 2009 production is projected to only be 16,926,970 units.”
