Avalara has expanded its array of tax software into the property tax area by acquiring CrowdReason LLC, a Carrollton, Texas-based developer of SaaS-based property tax compliance applications, along with its property valuation and advisory services business.
Financial terms of the deal were not disclosed. CrowdReason has a property tax database populated with content from more than 20,000 property tax assessors and collectors, including due dates, depreciation tables, mailing addresses, and other information required to manage and pay the appropriate property tax owed. Its software helps manage ongoing property tax return requirements by aggregating data from assessments and appeals to allow customers to manage workflow and view insights and trends over time.
Avalara has been expanding beyond its initial focus on sales and use tax software, especially after going public in 2018, adding tax compliance software in areas such as energy excise taxes, telecommunications taxes and alcohol taxes. Earlier this month,
The move to acquire CrowdReason adds another growing niche for the Seattle-based company. All 50 states and the District of Columbia impose taxes on real property, the company pointed out. In addition, 38 states and D.C. also impose a business personal property tax on items a company uses to conduct business, including furniture, machinery, supplies and more. CrowdReason’s software can be used to track those property taxes as well.
“Adding property tax content and software to our global compliance portfolio extends Avalara’s footprint into a large and exciting new tax type,” said Jayme Fishman, executive vice president of corporate development at Avalara, in a statement Monday. “This transaction will increase the opportunity we have to support businesses with more of their compliance requirements. Effective management of personal property and real property tax serves businesses of all sizes, especially enterprise companies, and is another step forward in our pursuit to be the global compliance platform for businesses.”
In addition to acquiring the assets of CrowdReason, Avalara also acquired the assets of a valuation advisory services business from CorrelationAdvisors LLC as part of the deal.
“CrowdReason built its business to help enterprise teams manage complexity and reduce the risk inherent to property tax management,” said CrowdReason CEO Carl Hoemke in a statement. “We pride ourselves on best-in-class products, accuracy and customer service, and we are excited to contribute our expertise to Avalara’s customers.”
