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Frequently Asked(BPP) Business Tangible Personal Property Questions

Get answers to all the important personal property questions you might have below. We cover everything from what is personal property, to what a rendition is.

What is the difference between Real Estate and Personal Property?

Property (real estate) tax is charged on immovable property—land and structures that are permanently attached to the ground such as a house, building, or land. If you own a home, you pay property (real estate) tax directly to your local tax assessor or indirectly with your monthly mortgage payment.

On the other hand, personal property tax is an annual tax imposed on movable assets—machinery and equipment, vehicles, tools, inventory, furniture and fixtures.

Mark and his team are extremely knowledgeable in the area of property tax and professionally serve Cardinal with the goal of reducing our property tax exposures. I have been extremely pleased with ITC’s services and highly recommend the firm to any other companies considering the appointment of a property tax consultant. ITC has successfully worked with the local tax assessors in Ellis County to obtain property tax value reductions and pollution control exemptions for the company.

Chris Smith

Corporate Controller, Cardinal Glass Industries

Does my state tax personal property? 

You can see which states impose a personal property tax and your states property tax deadlines on our updated 2019 Property Tax Calendar found below.

 

What is a rendition or personal property tax return? 

A business tangible personal property return or rendition is simply a form that provides the appraisal district or assessing authorities with the description, location, cost and acquisition dates for personal property that you own. The appraisal district uses the information to help estimate the market value of your property for taxation purposes.

 

When is my states rendition deadline?

Some states do not impose a personal property tax, therefore, they do not require that you file a business personal property return. However, it is important that you know which states impose a personal property tax and what date the deadline to file is. It is important to keep up-to-date with your state’s deadlines as they may change annually. For example, Texas changed its property rendition deadline to April, 1st for the current 2018 calendar year.

 

 

When is the deadline to file personal property tax exemption applications for my personal property and inventory in Texas?

The deadline to file your business personal property tax exemption applications is April 30th

Why should I consider using a Business Personal Property Tax Consultant?

Hiring an experienced business tangible personal property tax consultant with a thorough understanding of state and local property tax laws and personal property filing requirements can provide a cost-effective solution to ensuring you have the right peace of mind. Our personal property tax consultants are highly experienced in filing multi-state property tax returns, providing market value valuation and appraisal services for our clients BPP and Inventory, and securing the right personal property tax exemptions that result in significant property tax savings for our clients.

What type of Business Personal Property Tax Exemptions does my state offer?

We will use Texas as an example. In Texas taxpayers are offered a multitude of different business personal property tax exemptions that they may qualify for which are:

 

  • Inventory Freeport Exemption: The Freeport Exemption is a business personal property tax exemption on inventory that is in Texas for a short period of time (175 days or less) and will be transported outside of the State of Texas. (Tangible Personal Property in Transit Exemption)

 

  • Pollution Control Exemption: Property acquired after Jan. 1, 1994 and used for pollution control may receive an exemption. The exemption applies to all or part of real and personal property used solely or partly as a facility, device or method to control air, water or land pollution.

 

  • Solar-and-Wind Powered Energy Device Exemption: Persons who install a solar- or wind powered energy device to produce energy for onsite use are entitled to exempt the amount of value the device contributes to their property.

 

  • Offshore Drilling Rig Property Tax Exemption:  Drilling Rigs that are stored in a county bordering the Gulf of Mexico or a bay or other body of water immediately adjacent to the Gulf of Mexico are exempt. Drilling rigs are exempt only if they are stored for a purpose other than repair and are not used for drilling.

 

  • Tax Abatement: Property owners who have entered redevelopment and tax abatement agreements with local taxing units under Tax Code Chapter 312 are allowed to exempt all or part of the property’s value from taxation.

Nationwide Personal Property Tax Consultants

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See if outsourcing or co-sourcing your personal property tax valuation, exemption, and compliance work makes sense.

Give us a call and see how we might be able to help you simplify your multi-state property tax compliance requirments.

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