Delay and You May Overpay: Business Personal Property Tax Renditions and How You Can Save


If you’re a Texas business owner, you are required by law to report any business personal property that is used to run your business to your county appraisal district. Unfortunately, there are substantial penalties for any failure to file or a late filing.

The form you may have recently received in the mail, known as a rendition, is used by the county appraisal district to determine the value of your taxable properties as of the assessment date. In Texas, the assessment date is Jan. 1 of each year. For taxation purposes, business personal property are items that are owned but are not classified as real property, such as land and buildings. This includes furniture and fixtures, machinery and equipment, computers, inventory held for sale or rental, raw materials, finished goods and work in process, to name a few.

The business personal property rendition requires you to report the cost of each of your taxable assets. Your county appraisal district will then apply their specific depreciation schedule to each category of assets based on age and type of asset. Be sure to remember that each county appraisal district has their own depreciation schedule. The filed rendition will be analyzed and used, along with other information collected by the county appraisal district on similar businesses, to develop an estimate of the taxable value for the business personal property.

The county appraisal district will notify each business of their estimated business personal property value at some time in late May through early June. Each business has thirty days to appeal the notified value given by the district, but if the appeal isn’t filed on time, your business personal property tax bill will be based on the notified value you received.

The rendition deadline is April 15 of each year. You can request a 30-day extension as long as it is requested in writing prior to the rendition deadline. After May 15, no business personal property renditions will be considered by the county appraisal district. Additionally, if you fail to file timely or do not file at all, a penalty equal to 10 percent of the amount of taxes imposed on the property will be added to your tax bill for that year. Not ideal.

At the end of the day, if you are a business owner, it is critical that you, or your property tax consultant, render your business personal property to ensure you are paying the proper amount of taxes each year. If you delay, you may overpay.

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