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Our recent survey shows that many businesses are paying 2 to 5 times the correct amount of the Business Personal Property Tax. And in almost every case it’s due to the 3 major mistakes.
What are they?
Using Inaccurate Depreciation Tables: Appraisal districts use a physical-life depreciation schedule that grossly over-values personal property. For example, district tables would value a one-year-old chair at 86 to 90% of its original cost. Hence, a $300 chair would be valued at $252 to $270, when its true value is likely $20 to $50.
Taxing on Intangible Personal Property: ONLY tangible personal property (items you can see, touch, feel, and move) is taxable in Texas. If you have a $2, 000, 000 phone system, the total cost includes Tangible (plastic, metal, and silicone) and Intangible (service agreements, software, and trade secrets) property. Districts encourage property owners to render the TOTAL cost, which is not correct.
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