Texas Property Tax Penalties
Texas businesses are required to report their tangible personal property—such as equipment, furniture, machinery, and inventory—each year by filing a Rendition of Business Personal Property with the local county appraisal district. This information is used to assess local property taxes. Failing to file accurately or on time can result in significant financial penalties. Understanding the consequences and knowing how to appeal can help you stay compliant and avoid costly errors.
Common Penalties for Non-Compliance
The most frequent penalty occurs when a business fails to file by the April 15 deadline. In such cases, the appraisal district may impose a 10% penalty on the total assessed value of your property. For example, if your assets are valued at $100,000, a missed deadline could result in a $10,000 penalty.
More severe penalties apply if you fail to file entirely or intentionally misreport the value of your property. In those situations, the district can levy a 50% penalty on the total appraised value. These penalties are designed to encourage honest and timely reporting.
Note: You may request an extension to May 15, but the request must be submitted in writing by April 15.
Appealing Penalties and Valuations
If you believe your property has been overvalued or you’ve received a penalty in error, you have the right to file a formal protest with your county’s Appraisal Review Board (ARB).
To begin the appeal process:
- Submit a written protest, usually on Form 50-132
- Include supporting documentation (e.g., purchase records, depreciation schedules, photos, or appraisals)
- Attend a scheduled ARB hearing to present your case
Appeals must be submitted by the deadline noted in your Notice of Appraised Value, which is typically sent in the spring.
Stay Compliant and Avoid Penalties
Being proactive is the best way to avoid unnecessary penalties:
- Maintain accurate asset records
- File your Rendition Form on time
Reach out to Dimov Tax today. Our property tax specialist team is ready to present professional assistance.