UNDERSTANDING BUSINESS PERSONAL PROPERTY

MCLENNAN COUNTY APPRAISAL DISTRICT

What is business personal property?

Business Personal Property consists of movable items used in the course of business not permanently affixed to, or part of, the real estate.

Business Personal Property is not appraised on how much money is made in the business.

In other words…

Anything not real property!

Tangible Assets Inventory (goods for sale) Fixed assets (furniture,

fixtures, computers, & equipment)

Supplies (raw goods or goods for production)

Vehicles

DISCOVERY PROCESS

DBA LISTING

PHONE BOOK

SALES TAX LIST

TENANT LISTINGS

VEHICLE PRINT OUT (VPO)

PHYSICAL INSPECTION

BPP RENDITIONS

ADVERTISEMENTS

PREVIOUS YEARS LISTINGS

Rendition Time

Texas Property Tax Laws require business owners to render all tangible property used or held for the production of income as of January 1.

Verify the Legal Owner, DBA, and Physical Location of the property as of January 1 of the appraisal year.

Use contact information on the rendition form if the appraiser has questions about the business being appraised.

RENDITION CONT…..

Verify the Legal Owner, DBA, and Physical Location of the property as of January 1 of the appraisal year.

Compare cost or opinion of value information against the estimate of value made by the appraiser in the field.

McLennan County Appraisal District mails BPP rendition forms to all existing accounts in late January, early February of every year

Confirm information provided to make sure it is correct, if not, make needed corrections in section 1. See next page.

Failure to timely file this form will result in a 10% penalty! Sample Rendition

Also on this page: Business Ownership has changed or Business Closed Optional information requested here: Dates & New Owners Name

Section 1: For any correction from the first page. For first time filers complete all segments. This section also includes agent information if applicable, if you are being represented by someone other than yourself, spouse, family member or employee. You will need to have an Authorization of Agent form on File with the District

Section 2: Summary of the pages to follow. Optional only if multiple entry details not needed in section 5.

Sample Rendition

Section 3: This section is for listing taxable property if your business value is less than $20,000.

As in all sections if additional space is needed you may attach additional sheets or, you may attach a computer-generated copy listing.

Sample Rendition

Failure to timely file this form will result in a 10% penalty!

Section 4: This section is for reporting Equipment Leased or Loaned to you, Property Under Bailment, Lease, Consignment or other Arrangements.

As in all sections if additional space is needed you may attach additional sheets or you can attach your listing in Excel Format.

Sample Rendition

Section 5: It is a listing of previously reported items. If you have disposed of or replaced an item here you will line through the item and give a brief remark in the column to the far right. Example: Item disposed, broken, sold trashed etc….

Do not fill in new items here that will be completed in section 6. Unless it is a vehicles that is listed in section 7.

For first time filers this area will be blank.

Sample Rendition

Failure to timely file this form will result in a 10% penalty!

Section 6: This section is for reporting new assets acquired in the previous year.

Section 7: This location is for reporting motor vehicles used for business purposes. (This includes listing your exempt vehicle.)

Section S: Your form cannot be processed unless it is signed and dated. Signing this document makes it a legal binding document.

Sample Rendition

If additional space is need you can attach your listing on a separate page or attach an Excel format spreadsheet.

Quick overview of the Rendition process and information about a Penalty for not filing on time. Mailing information and physical location of the Appraisal District And Email address for filing electronically. Rights if a penalty is assessed.

Failure to timely file this form will result in a 10% penalty!

Reminder Freeport Exemption filing Dealers retail inventory only report the part of Inventory not subject to Special Inventory filings. Comptrollers Definitions

Providing as much detail as possible is beneficial for accurate market value!!!

Emailing your rendition to pp@mclennancad.org is a quick and effective way for filing your rendition. We encourage you to file in a similar format as shown on the left. Excel spreadsheets are the most popular form of emailed renditions.

Is this information confidential?

Yes! Information contained in a rendition cannot be disclosed to third parties except in very limited circumstances. The final value we place on your property is public information, but your rendition is not!

EXEMPTIONS

ABATEMENT FREEPORT GOODS IN TRANSIT POLLUTION CONTROL VEHICLE EXEMPTION

ABATEMENT

Tax Abatement is used in the field of economic development to encourage businesses to relocate, expand, and more currently to retain facilities in a community by means of lowering the local property taxes due to a local taxing authority. This in effect reduces the cost of operations.

FREEPORT

Freeport Exemption from ad valorem taxation of tangible personal property (inventory) that is acquired in or imported into this state to be forwarded outside this state. The property must be transported outside of this state not later than 175 days after the date the person acquired or imported the property in this state. The exemption is only available in those taxing units that have not elected to tax freeport goods.

The exemption must be applied for annually no later than April 30th of the tax year.

GOODS IN TRANSIT

* This application must be applied for annually no later than April 30th.

Goods In Transit Inventory that is detained at a location in this state not owned either, directly nor indirectly, or under the control of the person who acquired or imported the tangible property, and the tangible property is transported to another location in or out of this state within 175 days. This is only available in certain districts.

POLLUTION CONTROL

Pollution Control Exemption from ad valorem taxation of personal property that a person owns and is used wholly or partly as a facility, device, or method for the control of air, water, or land pollution.

This exemption must be applied for annually no later than April 30th of the tax

year.

VEHICLE EXEMPTION

Vehicle Exemption You may exempt one vehicle from taxation if said vehicle is owned by an individual and it is used in the course of the owner’s occupation and also personal activities of the owner that do not involve production of income. The exemption does not apply to a vehicle (taxi, limousine, etc.) used to transport passengers for hire.

This vehicle must be listed on your currently filed rendition.

This application must be applied for annually no later than April 30th.

A copy of the title and or current registration is required for processing your exemption.

IMPORTANT DATES

January 1 – Taxable date in Texas April 15 – Rendition deadline (unless an automatic

extension request is filed to extend the deadline to May 15)*

Late May – Appraisal notices are mailed (30 days to file a protest)

October 1 – Tax statements are mailed (payment due upon receipt)

January 31 – Last day to pay taxes w/o late penalties * All extension requests must be filed by April 15

QUIZ TIME

Want to put your personal property knowledge to the test?

In the following examples, try to name the category in which each asset will fall.