For Texas business owners, April 15 is the deadline for filing tangible personal property renditions.
What Is a Rendition and Why Does It Matter?
A rendition includes taxable inventory that the property owner is responsible for or has in his or her possession from January 1 of one year to January 1 of the next year. This includes furniture, equipment, machines, and any other taxable inventory included in asset listings. This information is used by the county to establish property values as well as the current year’s estimated taxes.
Renditions are particularly important to business owners as they ensure the property owner has a voice in the value set by the county. After a rendition is received, the county will issue a Notice of assessed value beginning in late May-June. If there are estimated value differences between the Notice and the total value provided on your rendition, that notice can be protested by the issued deadline.
What If the Property Was Damaged?
If the property was damaged due to extreme circumstances, such as a fire or natural disaster, property owners can file a report notifying the county of these changes. This information usually leads to a lower assessment and property tax bill for that year. Additionally, Tax Code Section 11.35 “allows a qualified property that is at least 15 percent damaged by a disaster in a governor-declared disaster area to receive a temporary exemption of a portion of the appraised value of the property.” Property owners in these areas must apply for the temporary exemption no later than 105 days after the governor declares a disaster area. This may prove financially beneficial for residents in areas affected by the recent Texas tornadoes, such as Jack/Montague, Travis, Williamson, Houston, Rusk, and Panola Counties.
What if I Need More Time To File My Rendition?
If a property owner needs additional time to file a rendition, an extension request must be postmarked no later than 15 April (the same date as the rendition deadline).
This extension will allow an additional 30 days to submit all rendition paperwork, making the new, and final, deadline 15 May, 2022.
I Did Not File My Rendition or an Extension. What Happens Now?
According to rules set by the Texas Comptroller, a 10-15 percent penalty will be issued for any rendition submitted late, incomplete, or not at all.
This is, especially, significant for larger businesses and/or businesses with a substantial amount of inventory. To put it into perspective, a business whose tax bill totals $150,000 will receive an additional penalty of $10,000-$15,000 on their tax statement for failure to submit a complete rendition.
Where Can These Forms Be Found?
Anyone with questions or concerns should visit the Texas Comptroller’s site to learn more. This is a central hub for rendition forms, decreased value forms, and other types of documents that property owners might need to access by 4/15.