When organizations look for ways to reduce fleet costs, they typically focus on vehicle acquisition, maintenance, fuel, or lifecycle strategy. Those are all important pieces of the equation, but they’re not the only opportunities to improve total cost of ownership (TCO).
Sometimes, meaningful savings come from places many fleet managers don’t think to look.
For clients with vehicles registered in Texas, Merchants Fleet identified an opportunity that has already resulted in more than $4 million in property tax savings since the program began in 2018. It’s another example of how a proactive, consultative approach can uncover value well beyond traditional fleet management.
Looking Beyond the Annual Tax Bill
Several states assess annual property or excise taxes on commercial vehicles. The amount owed is based on the assessed value of each vehicle, and those values are established every year.
While many organizations simply pay the assessed amount, Merchants recognized there was an opportunity to ensure those values accurately reflected how commercial fleet vehicles are used.
In 2018, Merchants launched a property tax management initiative for vehicles registered in Texas. Working alongside a property tax consulting firm, the team reviews annual vehicle assessments and, when appropriate, challenges valuations that may not accurately reflect commercial fleet operations.
Unlike real estate assessments, vehicle valuations begin anew each year. Every tax cycle presents another opportunity to evaluate assessments, submit supporting documentation, and, when necessary, present cases before local appraisal review boards.
“It’s easy to think of property tax as a fixed cost of operating a fleet, but that’s not always the case,” said Corinne Trovato, Vice President, Financial Operations at Merchants Fleet. “Every year creates a new opportunity to review valuations and determine whether they’re truly representative of the vehicles’ commercial use. Taking a proactive approach can translate into meaningful savings for our clients.”
A Different Approach to Fleet Partnership
Typically, property tax is another invoice passed through to clients.
Merchants saw an opportunity to provide additional value.
Rather than treating annual assessments as a routine administrative process, the Financial Operations team evaluates opportunities to reduce property tax expenses where regulations allow. By partnering with specialists who understand commercial fleet valuation and local tax authorities, Merchants helps clients identify savings they may not have had the resources or expertise to pursue on their own.
This consultative approach reflects a broader philosophy that guides every client relationship: continuously looking for ways to improve fleet performance and reduce unnecessary costs.
“Our responsibility goes well beyond helping clients acquire and manage vehicles,” Trovato said. “We’re constantly evaluating every aspect of fleet ownership for opportunities to create value. Whether that’s optimizing replacement cycles, improving utilization, or identifying tax savings, we’re always asking where we can help clients operate more efficiently.”
Millions Saved and Growing
Since implementing the program, Merchants’ Texas long-term fleet clients have realized more than $4 million in cumulative property tax savings, even after consulting fees associated with successful appeals.
In 2025 alone, the initiative generated hundreds of thousands of dollars in savings for clients operating vehicles throughout Texas.
Because vehicle assessments reset annually, those opportunities continue year after year.
Building on Success
The success of the Texas program has prompted Merchants to expand the initiative into Tennessee, where similar valuation strategies will be implemented beginning with the 2026 filing cycle. The team also continues evaluating additional states where comparable opportunities may exist.
Rather than applying a one-size-fits-all approach, Merchants continuously looks for opportunities that reflect each state’s unique tax structure and regulations.
Fleet Optimization Means Looking Everywhere
Reducing fleet costs isn’t always about making big changes. Sometimes, it’s about paying closer attention to the details.
From acquisition strategy and maintenance planning to licensing, compliance, and property tax management, every part of fleet ownership contributes to overall operating costs. Identifying opportunities across each of those areas is what transforms fleet management from a transactional service into a strategic partnership.
“One of the things that makes Merchants different is that we’re always looking beyond today’s transaction,” Trovato said. “If there’s an opportunity to help our clients reduce costs or improve operational efficiency, we’re going to pursue it. That’s what being a true fleet partner means.”
As organizations continue looking for ways to improve efficiency and control operating expenses, Merchants remains focused on uncovering every opportunity to help clients maximize the value of their fleet investment.
That’s what a true fleet partnership looks like in practice. Connect with Merchants Fleet to see how we can help uncover more value across every part of your operation.