If you are a business owner or conduct business in Texas, the preparation of business personal property tax filings should be on your compliance checklist. Any business that utilizes personal property or has inventory is required to remit a property listing (known as a rendition) and pay personal property tax. The tax rate varies by jurisdiction and is generally the same rate used for real property.
Each Texas county may have different processes and procedures for rendering. Additionally, many states also tax business personal property. The rendition is prepared or revised annually and submitted to the applicable County Appraisal District. Property owned by the taxpayer on the first day of the year should be included. If you have property in multiple locations, a rendition must be filed for each location.
2020 Business Tangible Property Tax Deadlines
If you do business in Bexar County, these are important dates to keep in mind:
January 1 Valuation date of business assets
February 1 The date previous year’s taxes become delinquent, if unpaid
April 1 Due date for filing renditions
May 1 Extended due date for filing renditions
May 15 Second extended due date (if you can show good cause)
May 15 Deadline to file a protest for the current year (or 30 days after the notice was mailed by the appraisal office.)
Most Texas counties follow the same approximate timeline. If you do business in other states, be sure to research the filing requirements for those states.
Preparing Your Rendition
Here are a few things to consider when preparing your rendition:
- You have the option of reporting your personal property at original cost or fair market value. However, the county appraiser has the right to adjust these numbers to what they believe is fair market value.
- Real property improvements are generally not included on the rendition even though they may be treated as personal property for federal income tax depreciation purposes.
- Computer software is not taxable as it is considered an intangible.
- Inventory on hand is taxable.
- The county appraiser has the right to stop by and inspect the property.
- You have the right to protest if you do not agree with the value assigned by the appraisal district.
If this feels overwhelming, ATKG can help ease the burden ensuring you are filing the correct forms, including all applicable property and correctly valuing your business personal property. Contact your ATKG tax adviser with any questions or clarification needed.
Marcus Cantu is a Tax staff member at ATKG. He obtained his Master of Accountancy and a Bachelor of Science in Biology from The University of Texas at San Antonio. Marcus can be reached at 210.733.6611 or via email at office@atkgcpa.com.
