The nation’s telecommunication system has risk at its ‘foundation’
The hundreds of thousands of cell phone towers located across the United States are part of the foundation of what makes the telecommunications world go round. For the many operators whose cell tower is on leased land, that foundation is shaky, because they may be sitting on unquantifiable or invisible financial risk because of unpaid or delinquent real estate taxes.
These leasehold agreements with the landowner often have no provision that the landowner provides proof real estate tax payments, which means unpaid taxes may be accruing that would have a significant impact on their revenue, stock price, and reputation with their carriers can be significant. It might even result in the loss of the physical tower because of a tax sale.
If you are a cell tower operator concerned with addressing this uncertainty, Chronos Solutions can construct a tax solution that will identify the current financial risks and prevent them from recurring.
- Complete a comprehensive tax delinquency review of your current portfolio of towers, identify the count of parcels associated with each tower, and isolate the towers with delinquent real estate taxes.
- Convert your risk management methodology into a management reporting package structured to place each tower into a category of risk severity, giving instant visibility into the high-risk towers and enabling your to take immediate loss mitigation attention.
- Implement a portfolio monitoring solution to identify early stage tax delinquency and provide frequent updates based on a tower’s delinquent tax severity.
- Enhance the Tax Monitoring service to coincide with your strategy to acquire one or more tower parcels through the tax sale or tax lien process when delinquency occurs.
- Implement a pre-purchase review process to detect a tower’s real estate tax status under consideration prior to purchase.