If you’re a business owner…
Did You Know You Can Reduce Your Business Personal
Property Tax (BPP) by 40 to 50% and Save Thousands?
You can obtain a Free BPP Evaluation that will show your potential tax savings… but you must act now.
Your rendition submittal deadline has changed to April 2, 2018! *
As a business property owner, you’re probably facing three major issues.
First, the Texas property tax code defines the method of valuation for business and personal property (BPP) as “market value.” However, most appraisal districts still render your property on a “depreciated cost” basis. This means you can be overpaying on property taxes every year.
Second, over the past 25 years, we’ve found the appraisal districts make 3 major mistakes in valuing your bpp:
- Using inaccurate depreciation tables
Appraisal districts use a physical-life depreciation schedule that grossly overvalues personal property. For example, district tables would value a 1-year old chair at 86 to 90% of its cost. Hence, a $300 chair would be valued at $252-$270, when its true value is likely $20-$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.
- Encouraging property owners to include inappropriate costs
Freight, setup costs, and specialized buildings to house equipment, while included in depreciation tables (appropriate for the IRS) are dead wrong for personal property taxation
Third, and probably most important, starting in 2018, the rendition deadline is April 1st (changed from April 15th in previous years), with a 30-day extension to May 1st.
We know from our 25 years’ history in appraising BPP and commercial real estate that rendering an opinion of value can reduce the amount rendered by 50% or more. This means your market value will result in lowering your bpp taxes.
Rendering an opinion of value can reduce the amount rendered by 50 to 70% or even more in some cases.
All you need to do is have O’Connor prepare a complimentary evaluation of your BPP and see what your savings can be.
*You can apply for a 30-day extension to May 1st by written request, but you must file this request by April 2, 2018.