Texas Personal Property Tax
Texas business owners are subject to more than just income or sales taxes—many are also responsible for paying local personal property taxes on tangible assets used in their business. Understanding what’s taxable, how the process works, and your filing responsibilities is essential for staying compliant and avoiding penalties.
What Is Personal Property Tax?
In Texas, business personal property refers to movable assets used in the course of business, such as computers, equipment, furniture, inventory, tools, and machinery. These items are distinct from real property (land and buildings) and are assessed annually by the county appraisal district where the property is located.
Every year, businesses must file a Rendition of Business Personal Property (Form 50-144 or a county-specific equivalent) with their local appraisal district by April 15. This form lists all taxable business assets, their original costs, acquisition dates, and—optionally—their estimated market value.
Who Must File?
Any business operating in Texas with tangible personal property worth $500 or more must file a rendition. This includes corporations, LLCs, partnerships, sole proprietors, and even home-based businesses. If you use any equipment, furniture, or inventory to produce income, you likely fall under this requirement.
How Is the Tax Calculated?
Once you file your rendition, the appraisal district uses your reported data and other valuation tools to determine the market value of your assets. The local taxing entities then apply their tax rates to calculate the tax due. These rates vary by county and jurisdiction.
Penalties and Compliance
Missing the filing deadline can lead to a 10% penalty on the assessed value. Intentional misreporting or failure to file altogether may result in a 50% penalty. However, businesses may request an extension to May 15 by submitting a written request before the April deadline.
If you disagree with your property valuation or a penalty assessment, you have the right to appeal through the Appraisal Review Board (ARB).
Why It Matters
Filing accurately and on time not only helps you avoid penalties but also ensures you’re not overpaying on taxes due to incorrect valuations. Keeping detailed asset records has a streamlining impact on the process. Reach out to Dimov Tax for professional aid. Our team is ready to present expert support.