IPT- Institute for Professionals in Taxation- is a non-profit educational association serving over 4400 members representing approximately 1450 corporations, firms, or taxpayers throughout the United States and Canada. It is the only professional organization that educates, certifies and establishes strict codes of conduct for state and local income, property and sales & use tax professionals who represent taxpayers (government officials or organizations do not qualify for membership).

IPT is a non-profit educational association serving over 4400 members representing approximately 1450 corporations, firms, or taxpayers throughout the United States and Canada. It is the only professional organization that educates, certifies and establishes strict codes of conduct for state and local income, property and sales & use tax professionals who represent taxpayers (government officials or organizations do not qualify for membership). For more information, go to www.ipt.org

The ILTA Annual International Operating Conference addresses the latest developments in terminal operations, renewable fuels, environmental compliance solutions, and personnel management. The 2008 conference program includes a panel discussion, featured speaker, keynote luncheon, and five tracks designed for terminal engineers, operators, maintenance personnel, terminal executives and general managers. For more information, go to www.ilta.org

Gregg Manzione, MAI testified with regard to his valuation of the property using various valuation methods, that he went through a rather detailed analysis for this Court with regard to how he reached certain facts and certain figures and certain values.
In all of the years that I have been sitting as a judge, Mr. Manzione came across to this Court as one of the most credible real estate appraisers that the Court has had the opportunity to observe. He was clear on his facts. He was clear with regard to the work that he had done and even in the face of cross-examination by Mr. Tencza he never varied from the information that he provided to this Court. And the Court was significantly impressed with that testimony.

Gaylord Palms Resort and Convention Center, Orlando, FL

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Nationwide Consulting Company will participate at the 2008 International Self-Storage Convention & Exposition - April 1 - 3, 2008. Nationwide Consulting is one of the foremost national experts in property tax analysis for the self-storage industry. Our knowledge and experience will enable you to reduce your expenses, which increases your bottom line. We also offer an interactive website where you can monitor the status of your properties and run reports, such as tax savings reports.

The 2008 Spring International Convention and Exposition (April 1 - 3, 2008 at the Gaylord Palms Resort in Orlando) is an SSA event developed by self storage professionals… for storage professionals. The 2008 Convention will provide you, the self-storage owner/operator, with information to continue to grow and succeed in the self-storage industry. This is your chance to learn from the best, network with your peers and the industry’s top suppliers, and have fun!

Experience for yourself the power of SSA, as we present a program packed with timely information for individuals responsible for every segment of the self storage industry… site and area managers, owners, developers, suppliers… those who have made a significant investment in self storage.

 Case Summary:  The city of Stratford, CT, assessed Motiva Enterprises, LLC’s petroleum terminal on Long Island Sound at $13,750,700 on the tax reevaluation date of October 1, 2004.  The Stratford Board of Assessment upheld the valuation in a decision issued on April 5, 2005.  Motiva appealed the decision to the local Superior Court on the ground that the tax assessment was “grossly excessive and unlawful.”  The court found that Motiva operated the property as a tank farm for petroleum and ethanol, and as a distribution center.  The total site covered 48 acres, but only 25.6 acres were located in Stratford.  The remaining acreage was in the city of Bridgeport, CT.  The tanks ranged in size from 81,000 barrels to 120,000 barrels and were served by two 40-foot high vapor recovery units.  The Stratford portion of the petroleum terminal did not have water access.  The court’s function in a tax appeal was “to first determine whether the subject property was overvalued, and if it was overvalued, what was the fair market value of the property.”  After reviewing the various methods of valuing property, including the “cost to build,” the court used the comparable sales approach.  The court analyzed five transactions involving terminals presented by Gregg Manzione, MAI of the Nationwide Consulting Company, who was found by the court to have extensive experience in appraising petroleum storage facilities.   The first facility sale used for the sales comparison was sold twice, in July 1993 and again in May 2000.  This facility, a terminal in New Haven, CT, with a tank capacity of 1,737,793 barrels, sold for $15,400,000 and $13,535,000, respectively, or $8.86 and $7.95 per barrel.  The third sale, a New Haven facility that exclusively handled barges, sold in June 1997 for $3,100,000, or $6.70 per barrel.  The fourth sale, a Portland, ME, facility capable of handling deep water vessels, barges, and rail traffic, sold in May 2001 for $3,100,000, or $6.75 per barrel.  The fifth sale, a Bayonne, NJ, facility capable of handling deep water vessels and barges, sold in May 2004 for $13,700,000, or $6.41 per barrel.  The appraiser then adjusted these sale prices for variables such as location, capacity, supply sources, product spectrum, tank conditions, and improvements such as tank loading racks, vapor recovery systems, offices, and warehouses.  Based on these adjustments, the appraiser computed a price of $7.50 per barrel, compared to Stratford’s assessed value of $16.90 per barrel.  The court, after finding Motiva’s appraiser more qualified than Stratford’s, valued the property at $8.00 per barrel.  Finding further that the property had a safe fill capacity of 813,000 barrels, the court held that “the true actual proper fair market value for the subject property is $6,510,400.”  (Motiva Enterprises, LLC v. Town of Stratford)

 Lesson Learned:  Terminal operators can successfully challenge tax assessments by local municipalities that overvalue their facility.  A key factor in overturning an overvalued assessment is the retention of an appraiser with more experience than the appraiser(s) hired by the municipality.  In this case, the court was very impressed with the credentials of Motiva’s appraiser.  Also, as the value of terminals has skyrocketed in the last few years, and the cost of building new terminals has soared, terminal operators should anticipate higher valuations in the future and recognize the increased risk that local tax assessors will overestimate the fair market value.

Melinda Whitney
Vice President
Independent Liquid Terminals Association
1444 I Street NW, Suite 400
Washington, DC 20005
(202) 842-9200 ext. 22;  (202) 326-8660 fax

Join Nationwide Consulting (Booth #1042) at the ISS Las Vegas Expo and get entered for a chance to win an iPod Touch MP3 Player!

Nationwide Consulting is one of the foremost national experts in property tax analysis for the self-storage industry. Our knowledge and experience will enable you to reduce your expenses, which increases your bottom line. We also offer an interactive website where you can monitor the status of your properties and run reports, such as tax savings reports.

The ISS Las Vegas Expo is internationally recognized as the largest, most dynamic tradeshow for the self-storage industry. Whether you are new to the business or a seasoned veteran, the expo provides the education, environment and tools you need to succeed. It is sponsored by Inside Self-Storage magazine, which has supported and informed industry professionals for more than 16 years.