General Information Archives - Swartz + Associates

When Inventory Matters: Why Investors and Lenders Sometimes Need Independent Verification

June 22, 2026/in General Information/by Gary Stone

By Gary A. Stone, ASA, Manager at Swartz and Associates

For many businesses, inventory is one of the largest assets on the balance sheet. Companies rely on inventory records for financial reporting, operational planning, and financing arrangements. Most of the time, those records are accepted without question.

However, there are situations where investors, lenders, or prospective buyers require additional assurance that reported inventory quantities and values are accurate. In those cases, an independent inventory audit or verification can provide valuable insight.

Why Inventory Verification Is Important

Inventory often serves as a critical component in business transactions and financing arrangements. Decisions involving significant amounts of capital may depend on the accuracy of inventory records.

Examples include:

Business acquisitions.
Due diligence reviews.
Asset-based lending arrangements.
Credit facility renewals.
Shareholder or investor reporting requirements.

When inventory represents a significant portion of a company’s assets, independent verification can help reduce uncertainty and identify potential discrepancies before a transaction is completed.

Common Areas of Review

The scope of an inventory audit depends on the objectives of the client, but typically includes:

Observation of physical inventory.
Verification of quantities through sample testing.
Review of inventory records and reports.
Reconciliation of physical counts to accounting records.
Evaluation of inventory valuation methodologies.
Identification of obsolete, slow-moving, or damaged inventory.

The objective is to determine whether inventory records reasonably reflect the assets that actually exist.

Real-World Applications

In one engagement, an investment group requested independent verification of inventory as part of its due diligence process before completing an acquisition. Because inventory represented a meaningful portion of the company’s value, the buyer wanted additional confidence in the reported balances before proceeding with the transaction.

In another case, a financial institution requested verification of inventory that was being used as collateral. The review provided an independent assessment of the inventory supporting the lending relationship.

Although the circumstances were different, both projects shared a common goal: providing decision-makers with reliable information regarding a significant business asset.

The Value of Independent Verification

Typically, variances are due to process issues, timing differences, recordkeeping errors, or inventory management challenges.

An independent review can help identify these issues and provide stakeholders with greater confidence in the information used to support important business decisions.

Whether supporting a lender, investor, or prospective buyer, inventory verification can be a useful tool when significant financial decisions depend on the accuracy of inventory records.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Why Property Tax Appeals for Data Centers Are Becoming One of the Hardest Battles in Commercial Real Estate

June 15, 2026/in General Information/by Eric Owens

By Eric Owens, Director at Swartz and Associates

Data centers have become the backbone of the modern economy — powering AI, cloud computing, autonomous vehicles, and global digital infrastructure. But with that growth has come a new reality: data centers are now among the most aggressively assessed and most frequently overvalued property types in the U.S.

For owners, operators, and investors, this creates a perfect storm: high capital intensity, rapid technological obsolescence, and assessors who often misunderstand what actually drives value.

Here’s why property tax appeals for data centers are uniquely challenging — and why specialized valuation strategy is no longer optional.

1. Assessors Rely on Models That Don’t Fit Data Centers

Most jurisdictions still lean heavily on the cost approach, equating construction cost with market value. But data centers are not warehouses with servers — they are complex ecosystems of short‑life electrical, cooling, and mechanical systems. When assessors fail to separate rapidly depreciating infrastructure from the real estate, values are overstated from day one.

Compounding the issue, many states lack depreciation schedules tailored to data center equipment, leaving assessors to apply industrial‑building assumptions that simply don’t apply.

2. Rapid Technological Obsolescence Drives Accelerated Depreciation

AI‑driven server clusters generate far more heat and require dramatically different cooling and electrical configurations than prior generations. As a result, data centers depreciate 5–10% annually, compared to 2% for typical industrial buildings.

This means a facility can be technologically outdated long before it is physically worn — yet assessments often assume a 40–50 year economic life.

3. Over‑Assessment Is Structural, Not Cyclical

Unlike office or retail, data center over‑assessment doesn’t track market cycles. It stems from how assessments are timed and how infrastructure is treated. Data centers are built in phases.

On the assessment date:

Only certain floors may be revenue‑enabled
Only some power/cooling systems are energized
Large portions of capacity remain intentionally unfinished

Yet assessments frequently treat all shell space and deferred infrastructure as fully contributory, overstating value.

This mismatch between installed vs. revenue‑producing capacity is one of the biggest drivers of appeal‑ready errors.

4. Sales Comparison Is Nearly Impossible to Apply Correctly

True arm’s‑length data center sales are rare — and when they occur, they reflect:

Business value
Personal property
Intangible assets
Enterprise‑level economics

Assessors often misinterpret these transactions as pure real estate indicators, leading to massive overstatements of taxable value.

Without proper allocation, the real estate ends up absorbing value that belongs to equipment or business operations.

5. Land Is Frequently Over‑Valued Due to Misunderstood Site Requirements

Data centers require:

Reliable power
Access to water
Fiber connectivity

These factors increase land value to a data center developer, but not to the broader market. Some assessors mistakenly inflate land assessments based on these specialized needs — a clear inequity compared to other parcels in the same district.

6. Political Dynamics Make Data Centers Easy Targets

Because data centers are often owned by large, non‑local corporations, they face less political resistance than residential or locally owned commercial properties. Assessors know this — and many jurisdictions are leaning harder on data centers to fill revenue gaps.

This means owners must be proactive, not reactive, in defending their assessments.

What This Means for Owners and Operators

The complexity of data center valuation means that traditional appeal strategies fall short. Winning appeals requires:

Separating real property from personal property and business value
Quantifying accelerated depreciation and functional obsolescence
Correcting misapplied cost models
Challenging improper land valuation
Demonstrating what is actually installed and revenue‑producing as of the lien date

Firms that treat data centers like industrial buildings will lose. Firms that understand the economics, phasing, and technology cycles will win.

The Bottom Line

Data centers are the most misunderstood — and most frequently over‑assessed — asset class in commercial real estate today.

For owners, the stakes are enormous: millions in annual tax liability hinge on getting the valuation right.

As data centers continue to scale to meet AI‑driven demand, property tax strategy must scale with them. The jurisdictions aren’t slowing down — and neither should your appeal strategy.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Espressoself: Next Stop, Paris and Bordeaux

June 8, 2026/in General Information/by Keith Sherman

By Keith Sherman, Business Development at Swartz and Associates

Research can certainly be interesting and fun, especially if you’re making the effort to espressoself.

In spring of 2023, my wife and I were in Milan after spending time in Rome, Florence, and Cinque Terre. This is where I discovered, or let’s say tried for the first time, an espresso martini. I was told that the bartender that served us was one of, if not the, best mixologist in all of Milan. Since then, I have been on a quest to find the best espresso martini most everywhere I go… sometimes on weekdays.

Fast forward to our latest adventure a couple of weeks ago. We went to Paris and Bordeaux where we encountered espresso martinis with design and artistry worthy of a fancy coffee drink. In Paris, the bartender assured me he makes the best version. I’ve heard that a number of times, confidence is clearly a part of the recipe. Cue the photos in this blog!

Were these the best of espresso martinis of all time? Hard to say. It’s often a formula that involves the people you are with, where you are geographically, and being open to the variety of ways they are made. I’ve tried this yummy concoction in 42 cities, stateside and internationally and it is pretty fun taking this show on the road. Where have you had your favorite espresso martini?

Whether I’m helping you save money on your commercial property taxes with Swartz + Associates or not, espressoself!

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Multi-State Business Personal Property Tax: Why It’s More Complicated Than It Should Be

June 1, 2026/in General Information/by Gary Stone

By Gary A. Stone, ASA, Manager at Swartz and Associates

If you operate in more than one state, you know that business personal property tax is not uniform. Every state, and sometimes local jurisdiction, that taxes personal property, has its own laws governing what is taxable and how reported costs are valued. After working with companies across multiple jurisdictions, the challenge is to keep abreast of each state’s statutes and the lack of consistency that exists from county to county.

Same Assets, Different Treatment

One area to consider is that the same asset can be treated completely differently depending on where it is located, for example manufacturing equipment. In one state, it might be fully exempt. In another, it’s taxed but benefits from favorable depreciation. Whereas in other states, manufacturing equipment is fully taxable with a longer economic life.

That creates a situation where companies are not just managing assets. They are managing how those assets are viewed in each jurisdiction.

Valuation Isn’t One-Size-Fits-All

Valuation also varies from state to state. Typically, each state will have prescribed depreciation tables. This helps with providing uniformity for all the assessors to follow within the state. However, the tables will invariably differ with each state. There are some that use a modified version of the MACRS federal income tax depreciation schedule. While other states have an option for the taxpayer to offer a fair market value approach.

Even when tables are provided, how assets are classified can significantly impact the outcome. I’ve seen situations where something as simple as how tooling is categorized can materially affect a tax bill.

Classification Does Make a Difference

As previously stated, the misclassification of assets is an area that can unnecessarily inflate a taxpayer’s liability. I’ve come across questions such as:

Is it real property or leasehold improvements?
Is it exempt or taxable?
Should construction-in-progress be reported?

Those answers vary by jurisdiction and getting them wrong can have a significant impact on your liability.

Deadlines, Filings, and the Administrative Burden

Then there’s the compliance side. It’s not typically where companies run into major issues, but it does require ongoing attention. Each jurisdiction comes with its own deadlines, forms, and reporting expectations.

Across multiple states, this could be a laborious process for a team or person that is already managing a full workload, it’s one more responsibility that needs to be done right and on time. In many cases, the value isn’t just in getting it done, it’s in not having to think about it at all.

Where a Structured Approach Makes a Difference

Companies that handle this well tend to take a more disciplined approach. They centralize their asset data, apply consistent internal logic, and then adjust for state-specific rules where needed.

Just as importantly, they don’t assume that what worked last year, or in another state, will hold up everywhere else.

Why This Matters

Business personal property tax is local by design. But for companies operating across state lines, that local focus creates complexity that’s easy to underestimate.

That is where having someone who understands the nuances can make a difference. My role as a property tax consultant is to help companies navigate those differences; whether that’s improving reporting accuracy, identifying misclassifications, supporting audit defense, or simply taking the compliance burden off your team.

When you’re dealing with a system that isn’t consistent, having a consistent approach on your side matters.

Final Thought

If you’re operating in multiple states and treating business personal property tax as a routine compliance task, there’s a good chance you’re either taking on unnecessary risk or leaving money on the table. It’s probably worth a conversation.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Moving from the Classroom to the Real World of Commercial Property Tax Appeals

May 25, 2026/in General Information/by Pacey Salzman

By Pacey Salzman, Client Research Specialist at Swartz and Associates

Graduating this May feels both exciting and a little surreal. After years of classes, projects, and exams, I am stepping into the next phase of my life with a better understanding of what “real-world” business actually looks like. A big part of that perspective comes from my experience as a Client Research Specialist at Swartz + Associates, Inc. (SAI).

In the classroom, business problems are structured. You’re given clean data, clear assumptions, and a defined path to the answer. That foundation is valuable; it teaches critical thinking and builds technical knowledge. But in my work at SAI, I have learned that real-world business is rarely that straightforward.

Diving into the world of real and personal property tax, I’ve seen just how rarely there is a single, straight forward approach. Deadlines differ by jurisdiction, data can be inconsistent, and answers aren’t always obvious. Instead of solving a clearly defined problem, you’re often gathering information from multiple sources, identifying gaps, and making informed decisions with incomplete data. That level of ambiguity is something you don’t fully experience in a classroom.

That said, my classes have absolutely prepared me for my role with SAI. They gave me the foundation to analyze information, think critically, and manage my time effectively. What’s changed is the context, now the work has real implications beyond a grade.

As I graduate, one thing is clear: education doesn’t stop here. The classroom teaches you the fundamentals, but the workplace teaches you how to apply and adapt them in the real world.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

CinemaCon 2026: Meeting New Clients at the Buffet

May 18, 2026/in General Information/by Don Swartz

By Donald Swartz, President

Last month, my blog covered the 2026 Rail Equipment Conference I attended in Palm Springs and the importance/significance of attending and meeting with prospects and clients.

Fast forward one month as I attended CinemaCon 2026, the largest annual conference for theatre owners, vendors and consultants to the theatre industry. This conference typically draws over 3,000 attendees and I always wonder how I can make the “this year’s conference” meaningful and productive.

Sure enough, I was taking advantage of the buffet lunch during the tradeshow and ended up sitting (actually standing at a high top as there were no seats available!) with a group of people. The usual banter took place, “Where are you from? Is this your first conference? What do you do and what is your relationship with the theatres?”

Property Tax Reviews

After explaining our services, one of the individuals asked if we only represented theatre owners or if we handled property tax reviews for other types of commercial property. Hmmm, good question. 😊 He took my business card (big hint for those who think business cards are so yesterday), turned it over and scanned the QR code on the back and forwarded my information on to his boss.

About two weeks later I received an email from said boss, inquiring about our services. This company has three operating locations and a fourth soon to be open. The three current locations are in Des Moines, Minneapolis greater area and Omaha. Three areas we have significant experience as well as appeal success. With looming appeal deadlines approaching at the end of April, we moved very quickly and now have the MN and IA properties under appeal with a review of NE pending by June 30^th.

What is the moral of this story?

Business cards are still worth carrying?
Don’t miss the lunches at a conference?
Don’t talk with your mouth full?
Make the most of attending conferences as you never know where they will lead?

I will let you decide. Thanks for reading!

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Results when we appeal property assessments: Percentage of success? Typical savings achieved?

May 11, 2026/in General Information/by David Swartz

By David Swartz, Business Development at Swartz and Associates

We are often asked about our percentage of success and the typical savings achieved when we appeal property assessments – 95% success or better and 10-20% savings. This answer may have kept you interested in reading further, but the better answer is – It depends. Please keep reading.

Our success rate is very high, but we typically only appeal 1/3 of the properties we evaluate. As we go through the appeal process, we may not achieve all the desired results we think are warranted in the first round of hearings, so we will collaborate with the owner about pursuing the case further where a judge or impartial panel will consider more evidence. We rarely lose a case once we choose this path. The evidence and expert testimony can be costly, but these cases usually have a larger misalignment in values resulting in bigger potential tax savings.

We can also leverage the time to negotiate a better settlement with the county and avoid the costly trial. This often results in a very good outcome or a multi-year agreement.

We have a forty-year history to back up our results and every case is unique. This methodology over the years has helped us build our relationships with both our clients and the respective assessors’ offices. Clients recognize if there is property which warrants discussion and appeal, we will pursue this appeal vigorously. Likewise, the county understands if we have filed an appeal, we will have the data to support our basis for the appeal.

Let us know if you have questions about how your property is assessed.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

The Swartz Report: Rail Equipment Finance Conference Recap

April 27, 2026/in General Information/by Don Swartz

By Donald Swartz, President

Noelle Giacomino and I recently attended our fourth Rail Equipment Finance Conference, held annually at the La Quinta Resort in La Quinta, CA. This has been an excellent conference to attend over the years as it provides us the opportunity to meet many of our clients and receive updates relating to railcars.

While the setting is conducive to a laid back and casual conference, it is not exactly what I would consider to be “laid back” or “casual”. The conference begins bright and early on Monday morning at 7:30 am and sessions run continuously through 5 pm. Even lunch is its own learning session. Following the conclusion of the daily sessions, there is an outdoor reception that is usually very well attended before breaking off for respective dinners.

Connecting with Clients

Each year the goal is to spend a few minutes with our clients in attendance; meet prospective clients and follow the latest trends and updates in the industry. However, there is an art to making the most out of a conference and I’m certainly still learning.

It appears contacts already have breakfasts, lunches and dinners set up well before the conference begins. Whether companies are taking their employees to meet their vendors or they have scheduled planning meetings, etc. it can be tricky to line up face-to-face time on the fly.

I’ve always thought we should sit through every educational session to pick up anecdotes which may help us in our reviews of railcar property tax valuations and support for appeals we may consider. After attending several conferences, I do not necessarily believe that to be the case. I constantly see side conversations in the halls or in various areas for a coffee or beverage. Nothing formal, just 15-20 minute connections during the day to connect or to discuss a specific issue. Once finished, they may go back into the current session or have their next informal meeting.

Picking and Choosing Sessions

We need to pick and choose our sessions more carefully, and once we receive the annual attendance listing, reach out to those who will be attending. Rather than schedule long lunches or dinners, it may be more beneficial to try to set up quick, informal meetings throughout the conference. For seasoned conference attendees, this may be obvious. But even for someone like me who has attended conferences of some sort for almost 40 years, there are tricks to the trade that can always be honed.

Conferences are usually held in fantastic locations for a reason, I just need to make sure I take care to enjoy all the aspects the conference has to offer and not just the learning sessions. 😊

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Simplifying Compliance: States Are Raising Business Personal Property Exemptions

April 20, 2026/in General Information/by Katy True

By Katy True, Operations Manager at Swartz and Associates

Across the country, states are increasing business personal property exemption thresholds – some with incremental adjustments, others dramatically. These changes are reshaping compliance requirements, reducing administrative strain, and many businesses are seeing meaningful reductions in taxable value.

Higher exemptions eliminate filings for lower‑value accounts, easing the burden on multi‑location companies, and remove many small businesses from the tax rolls. The overall trend points to a more simplified, taxpayer‑friendly landscape that lightens compliance demands for businesses of all sizes.

For organizations with operations in multiple states, conducting an annual review of each state’s requirements is essential to stay aligned with evolving rules and to benefit from favorable developments.

The trend is clear: states are moving toward easing the burden of business personal property taxation for 2026 and beyond.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

2026 UMKC Real Estate Symposium — What Commercial RE Participants Should Be Watching

April 13, 2026/in General Information/by Eric Owens

By Eric Owens, Director at Swartz and Associates

The 2026 UMKC Real Estate Symposium, which took place at Arrowhead Stadium, once again proved why it is still an important gathering for commercial real estate participants in the Kansas City MSA. Hosted by the Lewis White Real Estate Center, this year’s event brought together practitioners, investors, developers, and advisors to examine the market conditions that are reshaping our industry — and what they mean for the decisions we make every day.

Key Takeaways

1. Market Conditions Are Fragmented — Asset‑Level Strategy Wins

Industrial is still strong, office is redefining itself, retail is stabilizing, and capital markets remain tight. For decision‑makers, the takeaway is simple: Broad narratives don’t matter — your specific asset, submarket, and income story do.

2. Workplace Shifts Are Now a Financial Strategy Issue

Office hybrid work models are not a trend; it’s a structural shift. Owners and CFOs are now modeling:

Office utilization,
Tenant Improvement risk,
Long‑term occupancy patterns,
and the Cost of Flexibility.

Workplace strategy is a balance‑sheet issue.

3. Fiscal Sustainability Is Reshaping Development & Valuation

Cities are prioritizing long‑term revenue stability. That means:

more scrutiny on incentives,
tighter underwriting assumptions,
and increased attention on property tax impacts.

For owners, this is a direct signal: Your valuation strategy matters more than ever.

4. AI, Data Centers & Energy Infrastructure Are Creating New Winners

Demand for power, connectivity, and compute is reshaping land use and development economics. Developers who understand these drivers — and can navigate zoning, incentives, and valuation — will lead the next wave of growth.

5. Tax & Legal Updates Are Becoming Competitive Advantages

From evolving Opportunity Zone rules to investor‑focused tax strategies, the regulatory environment is shifting fast. CFOs and owners who stay ahead of these changes will protect more value and reduce avoidable risk.

6. Affordable Housing & Community Development Remain Central

The capital stack is more complex, but the opportunity is real. Public‑private partnerships, layered financing, and long‑term community ROI were major themes.

Where we are headed…

The UMKC Symposium reinforced what many of us already feel: CRE is entering a cycle where discipline, data, and strategic clarity separate leaders from everyone else. If you’re an owner, CFO, or developer, this is the moment to sharpen your valuation strategy, reassess risk, and position your assets for the next phase of the market.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!