Sarbanes-Oxley has changed reporting and authority protocol requirements for public companies. Public and private investors need better numbers and a no-surprise reporting system. Property tax estimates that are based on a simple percent over last year's do not align with these needs. At Equity Property Tax Group, professionals understand the issues unique to public companies, funds and investors. We understand the number of needs of different users. We apply the appropriate level of controls and reporting to fit each client. The range of updates can vary from quarterly to annual to even longer, based on evolving cash flow models of asset performance.
Budgeted numbers usually vary based on intended uses. Cash accrual split fiscal years and leasing quotations can all generate different numbers that are easily confused. Each organization's requirements vary based on their reporting needs. The basis for the accounting numbers must reflect what the local jurisdictions are planning – while the leasing may reflect the brokers' market.
Our clients' needs vary, but the trend is toward transparency and understanding of variables that drive the numbers. Comparisons with acquisition underwriting or other variable analysis may be important. The primary focus is putting the best numbers out and setting the parameters for updating while meeting Sarbanes-Oxley and delegation of authority protocols.
- Next year projection – A one-year property tax projection reflecting estimates of both taxable value and tax rate components based on anticipated local events.
- Multi-year projections – A multi-year property tax projection reflecting estimates of both taxable value and tax rate components based on anticipated local events and anticipated property performance.
- Auditor meetings or letters – Independent auditors often require third-party comment on tax issues, particularly where there are open appeals or other contingencies.