In 2018, Votorantim intended to negotiate the value of the Property Tax of Atlas Office Park with the City Council of São Paulo and the EREA/Capright joint venture was hired to conduct a study to substantiate and justify the feasibility of this negotiation.
The Work Conducted
Atlas Office Park totals 59 numbers of taxpayers and 30,620.71sqm of private area and, by analyzing 15 fields of the Property Tax notice, being 4 fields for calculating the tax assessment value of the building, 7 fields for calculating the tax assessment value of the land and 4 fields for the calculation basis of the value of the Property Tax, we identified some classification discrepancies.
The land was evaluated by the Direct Market Comparison Method and the building by the Cost Method.
All possible variables for the negotiation of the value of the Property Tax with the City Council of São Paulo were submitted pointing out possible risks and its feasibility.