Avalara acquires the software manufacturer CrowdReason

Avalara has expanded its tax software offering into the property tax arena by acquiring CrowdReason LLC, a Carrollton, Texas-based developer of SaaS-based property tax compliance applications, and its real estate appraisal and advisory services business.

Financial terms of the transaction were not disclosed. CrowdReason has a property tax database that contains content from more than 20,000 property tax assessors and collectors, including due dates, depreciation tables, postal addresses, and other information required to administer and pay applicable property taxes. The software helps manage ongoing property tax return requirements by aggregating data from reviews and appeals so clients can manage the workflow and view insights and trends over time.

Avalara has expanded beyond its initial focus on sales and excise software, especially after its IPO in 2018, adding tax compliance software in areas such as energy excise taxes, telecommunications taxes, and alcohol taxes. Earlier this month, Avalara acquired Track1099 LLC, a company that provides online software and services for the management and electronic filing and submission of IRS tax forms, including 1099s, W-2s, W-9s, and more.

The move to acquire CrowdReason adds another growing niche for the Seattle-based company. All 50 states and the District of Columbia levy taxes on real estate, the company said. Additionally, 38 states and DC impose business tax on items that a company uses to conduct business, including furniture, machinery, accessories, and more. CrowdReason’s software can also be used to track these property taxes.

“The addition of property tax content and software to our global compliance portfolio expands Avalara’s presence into a great and exciting new type of tax,” said Jayme Fishman, Avalara’s executive vice president of corporate development, in a statement Monday. “This transaction will increase the possibilities we have to support companies with their compliance requirements. Effective personal property and property tax management serves businesses of all sizes, especially large corporations, and is another step in our quest to be the global corporate compliance platform. “

In addition to acquiring the assets of CrowdReason, Avalara also acquired the assets of a valuation advisory service from CorrelationAdvisors LLC as part of the transaction.

“CrowdReason built its business to help corporate teams tackle the complexity and reduce the risk associated with property tax administration,” said Carl Hoemke, CEO of CrowdReason, in a statement. “We pride ourselves on world class products, accuracy and customer service, and we look forward to making our expertise available to Avalara customers.”

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