Interstate Allocation and Business Personal Property Tax Compliance: How to Change, Adapt and Save.


It often feels like the Texas Property Tax system is constantly changing. However, when there are changes in the property tax code that affect your business personal property, business owners aren’t always aware of how those changes will affect them directly. A recent example of this is the change to the filing requirements for Interstate Allocation.

Are you paying too much?

Whether you own an aircraft or motor vehicle that travels interstate, it is your – the taxpayer’s –responsibility to report the in-state and out-of-state miles to the local appraisal district. Otherwise, you may end up paying more than your fair share of business personal property taxes for those vehicles. Up until a few years ago, when and how you reported that information had no time limit or penalty. Now it does.

By missing a filing deadline, you’re not only subject to late filing penalties, but you could also miss your opportunity to file altogether. Missing that deadline means you’ll have to pay property taxes on the full value of your vehicles, instead of the allocated portion of the vehicles’ value. If you’re based in Texas but travel cross-country, that can mean a big loss in tax savings.

Is it too late?

Unfortunately, we’ve had clients learn the hard way. For example, the first year the Interstate Allocation filing deadlines were changed, we had a logistics company reach out to us to review their business personal property value once they received their tax bill that fall. Unaware of the original business personal property filing requirements and the recent filing deadline changes, the company soon learned they were too late to have their value adjusted and their current taxes lowered. That mistake ended up costing them roughly $113,000 in taxes. They hired us the following year to handle their business personal property tax filings, and we were able to save them $370,000 in taxes on their vehicles alone.

So, when the property tax code changes and there are effects on your industry, don’t get stuck paying too much in taxes because you missed a filing deadline or the deadline for your property tax appeal. Trust the professional to keep track of these changes, letting us help you minimize your tax burden and plan for the future.

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