Knowing why your hotel’s intangible business value is not taxable can save you thousands, even millions of dollars in property taxes. Abraham Tieh, director of national commercial property tax, O’Connor & Associates, details how to use that knowledge to stop overpaying.
A large part of a hotel’s value lies in its flag. The intangible value associated with a franchise is exempt from ad valorem taxation in all 50 states. Yet, as Abraham Tieh, director of national commercial property tax, O'Connor & Associates, points out here, "Tax assessors have over-taxed hotels for years without first removing the non-taxable portion from their revenue because no one was able to calculate the intangible value created by the brands." Find out why The O’Connor Approach© is a major breakthrough for the hotel industry. The largest property tax consulting firm in the nation with more than 1,000 professionals, representing over 200,000 properties, including thousands of hotels, O’Connor collects massive RevPAR data from hotels in every region. Utilizing a sophisticated software developed by the firm, the net increase in revenue associated with the flag after deducting franchise fees is determined. Tieh explains how removing intangible assets from market value reduces property taxes far greater than ever before and why it has been proven successful across the country.
Just click play to learn how O’Connor is changing the way hotels are taxed and cutting one of owners' biggest expenses.
Episode sponsored by O'Connor & Associates: Abraham Tieh