HOME | CONTACT US | BLOG | PROPERTY TAX CLIENT LOGIN | APPRAISAL CLIENT LOGIN
Tuesday, June 27, 2017 Search 
    HOME         ABOUT US         PROPERTY TAX         APPRAISALS         RESEARCH & CONSULTING         FEDERAL TAX REDUCTION         IN THE NEWS    
  BLOG 
RECENT POSTS
Property Taxes are Big Burden for Seniors in Texas
Property Tax Appeals can Result in Significant Savings
Things to Remember about your Property Tax Appraisal
Updated Property Tax Information for Texas Taxpayers
Texas has some of the highest property taxes in the country
MONTH LIST
2017
January (1)
February (2)
March (1)
April (2)
May (1)
June (1)
2016
January (1)
February (1)
March (1)
April (1)
May (1)
June (1)
July (1)
August (1)
September (1)
October (1)
November (1)
December (2)
2015
June (6)
September (1)
October (1)
November (1)
December (1)
2014
March (16)
April (32)
May (50)
June (19)
July (20)
August (20)
September (21)
October (17)
November (8)

Real Estate Services Company, Real Estate Research, Real Estate Support Services Firm Houston, Texas, USA

Blogs

What to do if Your BPP Value is Grossly Under-Assessed?

20th May 2014

In most cases involving Texas property tax, an under-assessment is a great thing. With business personal property (BPP), however, there are a lot of issues that you have to take into account. In general, a gross under-assessment of your BPP introduces a few options. A tax company provides the expertise you need to make sense of all your BPP issues. That being said, there are a few things you can do if you find out that your BPP value is grossly under-assessed.

What is BPP?

You may be wondering exactly what Business Personal Property is. It is, in effect, any property in a business that is used for the facilitation of creating income. It does not include buildings, land or other structures on a property. That falls within basic commercial property. Business personal property can be anything from machines and equipment to computers and furniture. Virtually, anything tangible within your business can be classified as BPP. Company automobiles, inventory and fixtures can all be considered BPP as well.

Filing a Rendition

Every business owner within a county must file a rendition of all BPP with the county appraisal district (CAD) between January 1 and April 15. This rendition effectively discloses all of your BPP and the estimated value of it. For instance, if you have 18 computers, 18 desks and 18 chairs, then you would report that information on your rendition. Filing fraudulent renditions can be considered a crime and may be punishable by stiff fines (up to 50% of the assessed value of your BPP). Likewise, missing the deadline for filing a rendition means that you will have to pay all property taxes on your BPP with an additional 10% penalty. So, a business owner with $10,000 of assessed BPP value would pay $300 in taxes at a tax rate of 3%, with an additional $30 penalty tacked on.

If you are in danger of missing the deadline, you can file for an automatic extension with the CAD. This will give you until May 15 to file your rendition. You can file for an additional extension to May 30 if you have good cause for doing so.

A Gross Under-Assessment

Finally, if you receive an assessment of your BPP value that is considerably lower than you might have imagined, you have a few options at your disposal. It is unlikely that you’ll be looking to make a property tax protest. While you might think that an under-assessment devalues your property, there is no reason to protest that.

Instead, you will have a decision to make in regard to filing your rendition. The law states that business owners must file a rendition or face a 10% penalty. With a gross under-assessment, however, a 10% penalty can be a relatively minor inconvenience. For instance, if you have $100,000 worth of BPP in your business and the assessed value of the previous year was only $10,000, then you stand to save a lot of money by not filing a rendition. Filing an updated rendition may alert the CAD that the value of your BPP has risen significantly. They will produce an appraisal that fits accordingly. If, however, you do not file a rendition, then they will use the most recent assessment of your BPP to tax you. In this case, it would result in a $330 tax bill instead of a $3,000 tax bill.

Many people might need the Texas property tax code explained to them, but there are a few intricacies that you can understand keenly. In this case, an assessed BPP value that is far lower than the actual value of your BPP may be a good thing.

If you have any question pertaining to Business Personal Property and would like the answers of property tax professionals, contact O’Connor today!


Posted in: Business Personal Property Valuation
Keywords: business personal property, property tax protest Houston, Harris County Appraisal district, Texas property tax, Texas property tax code explained

Related Posts

City leaders say property tax offers little relief, lots of pain

Best Way to Appeal Property Taxes

5 Reasons Greece Should Not Default

Incredible - How does HCAD Over-Assess 11 Houses in Zip Code 77041?

Incredible - How does HCAD Over-Assess 19 Houses in Zip Code 77044?

Mass Appraisal Means Massive Errors - Can you believe there are 18 Over-Assessed Houses in Zip Code 77047

Taxing Error - Are there really 11 Houses in Zip Code 77048 Way Over-Taxed?

Taxing Error - Can you believe there are 18 Houses in Zip Code 77049

Incredible - How does HCAD Over-Assess 11 Houses in Zip Code 77051?

Incredible - How does HCAD Over-Assess 12 Houses in Zip Code 77060?

Taxing Error - Can you believe there are 14 Houses in Zip Code 77061

Incredible - Are there really 22 Houses in Zip Code 77062 Way Over-Taxed?

Can you believe there are 28 Houses in Zip Code 77064?

Taxing Error - Can you believe there are 19 Houses in Zip Code 77066

Which are the Most Over-Taxed Houses in Zip Code 77067?

Can you believe there are 19 Houses in Zip Code 77068?

Incredible - Are there really 17 Houses in Zip Code 77069 Way Over-Taxed?

Mass Appraisal Means Massive Errors - Which are the Most Over-Taxed Houses in Zip Code 77070?

Mass Appraisal Means Massive Errors - Which are the Most Over-Taxed Houses in Zip Code 77071?

Incredible - Which are the Most Over-Assessed Houses in Zip Code 77073?

Can you believe there are 11 Houses in Zip Code 77075?

Which are the Most Over-Taxed Houses in Zip Code 77077?

How does HCAD Over-Assess 9 Houses in Zip Code 77080?

Can you believe there are 18 Houses in Zip Code 77082?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77083?

Incredible - Which are the Most Over-Assessed Houses in Zip Code 77088?

Which are the Most Over-Taxed Houses in Zip Code 77089?

How does HCAD Over-Assess 11 Houses in Zip Code 77090?

Incredible - Which are the Most Over-Assessed Houses in Zip Code 77092?

Which are the Most Over-Taxed Houses in Zip Code 77093?

Taxing Error - Can you believe there are 34 Houses in Zip Code 77095

Wow - Which are the Most Over-Taxed Houses in Zip Code 77096?

How does HCAD Over-Assess 13 Houses in Zip Code 77099?

Taxing Error - Can you believe there are 11 Houses in Zip Code 77336?

Can you believe there are 22 Houses in Zip Code 77338?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77339?

Wow - How does HCAD Over-Tax 22 Houses in Zip Code 77345?

Mass Appraisal Means Massive Errors - Can you believe there are 23 Over-Assessed Houses in Zip Code

Incredible - How does HCAD Over-Assess 26 Houses in Zip Code 77377?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77388?

How does HCAD Over-Assess 25 Houses in Zip Code 77389?

Which are the Most Over-Taxed Houses in Zip Code 77396?

Mass Appraisal Means Massive Errors - Can you believe there are 33 Over-Assessed Houses in Zip Code 77433

Incredible - Which are the Most Over-Assessed Houses in Zip Code 77502?

Can you believe there are 12 Houses in Zip Code 77503?

Wow - How does HCAD Over-Tax 12 Houses in Zip Code 77506?

Taxing Error - Can you believe there are 20 Houses in Zip Code 77520

Mass Appraisal Means Massive Errors - Which are the Most Over-Taxed Houses in Zip Code 77521

How does HCAD Over-Assess 22 Houses in Zip Code 77532?

Incredible - Are there really 20 Houses in Zip Code 77536 Way Over-Taxed?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77571?

Wow - How does HCAD Over-Tax 9 Houses in Zip Code 77039?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77035?

Taxing Error - Are there really 19 Houses in Zip Code 77034 Way Over-Taxed?

Taxing Error - Can you believe there are 25 Houses in Zip Code 77033?

Wow - How does HCAD Over-Tax 10 Houses in Zip Code 77031?

Which are the Most Over-Taxed Houses in Zip Code 77029?

Can you believe there are 9 Houses in Zip Code 77025?

Taxing Error - Can you believe there are 10 Houses in Zip Code 77024

Which are the Most Over-Taxed Houses in Zip Code 77021?

Taxing Error - Can you believe there are 35 Houses in Zip Code 77018?

Wow - Which are the Most Over-Taxed Houses in Zip Code 77017?

Mass Appraisal Means Massive Errors - Can you believe there are 16 Over-Assessed Houses in Zip Code 77016

How does HCAD Over-Assess 18 Houses in Zip Code 77015?

Wow - Which are the Most Over-Taxed Houses in Zip Code 77014?

Mass Appraisal Means Massive Errors - Can you believe there are Over-Assessed Houses in Zip Code 77009

Wow - Which are the Most Over-Assessed Houses in Zip Code 77008?

Mass Appraisal Means Massive Errors - Can you believe there are 9 Over-Assessed Houses in Zip Code 77005

Taxing Error - Can you believe there are 16 Houses in Zip Code 77004?

Mass Appraisal Means Massive Errors for Property Owners in Harris County

Can you believe there are 63 Houses in Zip Code 77449

Taxing Error - Can you believe there are 7 Houses in Zip Code 77429

Incredible - Are there really 8 Houses in Zip Code 77379 Way Over-Taxed?

Which are the Most Over-Taxed Houses in Zip Code 77373

Which are the Most Over-Taxed Houses in Zip Code 77346

Which are the Most Over-Taxed Houses in Zip Code 77346

Mass Appraisal Means Massive Errors for Property Owners in Harris County

How does HCAD Over-Assess 13 Houses in Zip Code 77586

Taxing Error - Can you believe there are 11 Houses in Zip Code 77530

Can you believe there are 12 Houses in Zip Code 77072

Mass Appraisal Means Massive Errors for Property Owners in Harris County - 77071

Mass Appraisal Means Massive Errors for Property Owners in Harris County - 77045

Mass Appraisal Means Massive Errors - Can you believe there are 14 Over-Assessed Houses in Zip Code - 77040

How does HCAD Over-Assess 7 Houses in Zip Code 77036

How does HCAD Over-Assess 7 Houses in Zip Code 77598?

Wow - How does HCAD Over-Tax 7 Houses in Zip Code 77546

Taxing Error - Are there really 9 Houses in Zip Code 77086 Way Over-Taxed?

Incredible - Are there really 83 Houses in Zip Code 77084 Way Over-Taxed

Taxing Error - Can you believe there are 25 Houses in Zip Code 77065

Mass Appraisal Means Massive Errors - Which are the Most Over-Taxed Houses in Zip Code 77028

Which are the Most Over-Taxed Houses in Zip Code 77020

Taxing Error - Are there really 8 Houses in Zip Code 77587 Way Over-Taxed?

Mass Appraisal Means Massive Errors - Which are the Most Over-Taxed Houses in Zip Code 77562

Which are the Most Over-Taxed Houses in Zip Code 77505?

Incredible - How does HCAD Over-Assess 8 Houses in Zip Code 77493?

Wow - Which are the Most Over-Assessed Houses in Zip Code 77447?

Can you believe there are 8 Houses in Zip Code 77087?

How does HCAD Over-Assess 7 Houses in Zip Code 77079?

Incredible - Which are the Most Over-Assessed Houses in Zip Code 77074?

Mass Appraisal Means Massive Errors - Can you believe there are 25 Over-Assessed Houses in Zip Code 77065

Wow - Which are the Most Over-Taxed Houses in Zip Code 77063?

Taxing Error - Can you believe there are 7 Houses in Zip Code 77059

Wow - Can you believe there are 77057 Houses in Zip Code 77057

Taxing Error - Which are the Most Over-Assessed Houses in Zip Code 77056?

Taxing Error - Which are the Most Over-Taxed Houses in Zip Code 77043?

Wow - How does HCAD Over-Tax 7 Houses in Zip Code 77019?

2014: What Has Changed Regarding Property Tax Law

5 Reasons You May Qualify for Binding Arbitration

African-American Areas of Houston Over-Taxed by 100%

Lawsuit on Discovery HCAD

5 Differences between Real Property and Business Personal Property When It Comes to Property Taxes

Forgot About Your Property Tax Hearing? Here is What You Can Do!

Settling with the County Appraisal District: online system or formal protest?

The ARB Isn't Always Fair: 5 Things You Can Do after the Appraisal Review Board

What Are Your Options When You Forget to File a Property Protest by May 31?

When Should You Protest Your Property Tax Notice?

Why Should You Pay Much More than Your Fair Share of Property Taxes?

10 Reasons Your House Is Different from Any Other House and Should Be Valued Accordingly!

5 Corrections You Should Make On Your Property Tax Protest

Missing the Deadline: When Are Property Taxes Due?

Don't Miss Your Property Tax Protest Deadline: May 31 or 30 Days after Notice Sent

3 Things You Should Expect When You Protest Your Property Tax Notice!

Why You Should Litigate Your Value

3 Reasons Why You Should Get a Tax Certificate!

3 Steps to Take When You Don't Receive Your Notice of Appraised Property Value

Limits Who can Communicate with the District Court Administrative Law Judge who is Responsible for Selecting ARB Members

Unfair Assessments for Low Income Housing

ARB Members Can be Fired Based upon Clear and Convincing Evidence of Repeated Bias or Misconduct

Texas Comptroller Shall Annually Issue a Report Card for Each ARB

The Chief Appraiser Must Have Valuation Qualifications

ARB Members Must Take a Training Class Annually

ARB Members must Perform their Duties Without Bias or Prejudice

Clarifies that Evidence not Timely Presented to the Property Owner two Weeks Prior to the Hearing

Do not Have to File the A of A Prior to the Hearing

ARB Panel Members Must Give a Decision for each Issue Protested and Must Deliberate Orally

New Rules for Hearings That Clarify Rights

Can Request a New Hearing Date if CAD or ARB Attempts to Move to a Different ARB Panel

Request for New Hearing Date if Appraisal District Does not Provide 41, 461 Information

ARB Must Reschedule If Two ARBs Scheduled for One Date

Can Get Hearing Rescheduled if Missed for Good Cause

Unlimited Changes for Good Cause for Individual Owner or Agent

ARB Panels Must be Assigned Randomly - Property Tax Law Changes 2013

2 Hour Rule for Individual Property Owners for an ARB Meeting - Property Tax Law Changes 2013




Corporate Office
2200 North Loop West, Suite 200
Houston, TX 77018
driving directions to all locations
(t) 713.686.9955 / 1.800.856.REAL
(f) 713.686.3377
For general questions not related to property tax, e-mail us.
For property tax questions e-mail the Property Tax Department.
Office Locations
Houston, TX (corporate)
Dallas, TX
San Antonio, TX
Austin, TX
Los Angeles, CA
Services: Cost Segregation | Property Tax | Appraisals | Research & Consulting
Copyright 2014 O'Connor & Associates. All Rights Reserved. Industry Links | Sitemap |  Privacy Policy | Legal Notice