Navigating Cash Flow Challenges During the Covid Pandemic at a Montessori School in Ventura County
Total Tax Savings
Overview
In 2015, a family-owned real estate cooperative entrusted Protax LLC with managing its entire portfolio of properties, including a private Montessori school that had long operated successfully as a daycare facility. However, the COVID-19 pandemic, which struck in March 2020, created an unprecedented cash flow crisis for the school due to mandatory shutdowns.
Challenge
The abrupt onset of the COVID-19 pandemic forced the Montessori school to close indefinitely, severely disrupting its revenue streams. The sudden financial strain created an urgent need for immediate relief to sustain the school’s operations during this uncertain period.
Solution
In response, Protax LLC acted swiftly by filing an informal request with the county assessor in June 2020 for a temporary Proposition 8 reduction. This request was grounded in the exceptional circumstances brought about by the nationwide lockdown, which had directly impacted the school’s financial health.
Results
By October 2020, Protax LLC’s proactive efforts were successful. The assessor approved a reduction of the property’s assessed value by $600,000, delivering a 25% savings in crucial operating capital for the school. As the pandemic continued, Protax LLC secured additional reassessments, ultimately increasing the temporary reduction to 50%, which lowered the assessed value by $1.1 million. Over the ongoing 10-year engagement, these efforts have resulted in total tax savings exceeding $50,000.
Conclusion
This case exemplifies the importance of partnering with a professional property tax consulting firm like Protax LLC, particularly during periods of economic turbulence. By combining deep expertise in the property tax system with prompt, decisive action, Protax LLC was able to implement a strategic two-tiered approach that delivered substantial and timely financial relief when it was needed most.