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Tax Day: Save Your Company Money on Your Next Right of Way Project

April 17, 2018
By: Vivian Nguyen

Companies can benefit from plenty of tax incentives for right of way projects, but finding them can be a challenge.

Tax incentives can be critical for companies looking to improve their bottom line. Companies handling right of way projects are often surprised to learn how much money they can save on taxes by having current, accurate location intelligence. In fact, many companies that leverage location intelligence ultimately find that they are entitled to tax reimbursements.

tax incentives for right of way projects
photo credit: 401kcalculator.org

A location intelligence platform can save your company a lot of money during tax time by providing continuously updated property data and combining it with tax information. You just need to know where — and how — to look.

Location Intelligence and Right of Way Tax Analysis

A strong location intelligence platform allows users to review huge amounts of spatial data overlaid onto a map, and that includes current tax maps. It can show usable and unusable land and exactly where that land falls into your projects, and how many tax exemptions you may be entitled to.

Whether you’re in the early stages of planning your next right-of-way project or managing assets after projects are completed, you need to ensure your company is being taxed appropriately. Property data is constantly changing, as are tax boundaries. A location intelligence platform maintains property data and tax information for you and your team so that you’re always working off of accurate information.

Understanding tax boundaries can be complicated for right-of-way projects, but it doesn’t have to be. Don’t get stuck using outdated data, because it could cost you at tax time. Users of a location intelligence platform can overlay specific tax information when mapping out new projects, and also when managing assets from completed projects. Seeing this information overlaid spatially onto a digital map streamlines decision making, helping your team work smarter and faster.

Finding Tax Incentives for Right of Way Projects

A location intelligence platform allows you to filter parcels and understand tax codes to help find tax incentives when analyzing the land your project could occupy. Consider the following three tax incentives for right-of-way projects before planning your next project. You’ll want to have this data if you’re managing assets from finished projects as well.

1.  Confirm Accurate Tax Rates

It seems obvious, but you’d be surprised by how many companies lose money by paying taxes based on outdated information or by paying for land they shouldn’t be taxed on. A location intelligence platform can help you measure usable land, and ensure your company is being taxed at the correct rates for current and future projects. A location intelligence platform provides tax maps with data that is continually being updated.

You will be able to quickly self-audit to ensure your company is making accurate payments within the correct tax brackets

2. Seek Land with Lower Taxes During Project Planning

The amount a parcel of land is taxed depends on its zoning and usability. A location intelligence platform can help identify land with lower taxes, such as wetlands. County property appraisers can reduce tax assessments based on the portion of that parcel that contains wetlands, but some companies don’t realize this. A location intelligence platform can show options for unusable, lower-taxed land that could be ideal for your projected route.

Most right-of-way projects run through several districts, counties, and even states. Tax exemptions vary from region to region, and a location intelligence platform will clearly illustrate exactly where exemptions could apply to your project.

3. Tax Rebate Opportunities

Location intelligence platforms offer valuable land data in addition to tax maps. This data includes demographics, points of interest, land use, zoning and much more. Spatial analysis could reveal areas ripe for economic revival or development, in which an accessible transit line could help boost economic development.

If your right-of-way project poses the potential for economic benefit, and to spur investment in underutilized areas, you may be entitled to tax rebates.

Use a Location Intelligence Platform to Save Money on Right of Way Projects

Overlaying plans for right-of-way projects onto a digital map in a location intelligence platform reveals the most cost-effective routes and where the tax incentives are. Tax rates can change as district lines are redrawn and land is reclassified, and your company must maintain awareness of these changes and how they affect your cost cycles. A location intelligence platform is the key to ensuring your company saves money by finding tax incentives for right-of-way projects.

Click here to contact us for more information on using location intelligence to find tax incentives for right-of-way projects. You can also request a copy of our comprehensive guide to right-of-way project management.

Note: Because Digital Map Products cannot legally offer tax advice, you should always consult the IRS or your personal tax advisor for the most current information about your particular situation.

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