As both federal tax season and the property tax appeal season approach, it is easy to lose focus on other matters that are just as important. If you own a business in Texas, you must file a business personal property (BPP) rendition by April 15, 2026, with your local appraisal district (CAD). This has become even more vital in 2026, as failing to file your rendition on time can mean that you could possibly lose the new exemption intended just for BPP, which can harm your bottom line and dramatically increase your taxes. A solid rendition is also a great tool to use in a commercial property appeal, as it builds a foundation for your business’ overall value.
2025 Legislation Expands the BPP Exemption from $2,500 to $125,000
2025 was a banner year for taxpayers in Texas, both homeowners and businesses. While homeowners got some of the heftiest homestead exemptions in the nation, businesses saw a much-needed update to help with their own taxes. Business personal property, a keystone to any business, could only be exempted from taxes up to $2,500. This number had been comically small for years, and was in dire need of an update. 2025 legislation moved this cap to $125,000, allowing owners to exempt up to that amount from their taxes. Since this covers tangible property, BPP is something that almost every business has in abundance.
This expanded cap also offers another feature to business owners. If your BPP is under $125,000, you will not have to file a full rendition; rather, you can send a statement with your estimated value to the CAD. This allows you to claim the exemption just like a traditional rendition. However, your CAD may ask for a rendition anyway to prove that your BPP is under the cap. Since this is the case, it is best to be prepared with documentation to back up your claim and be ready to file a rendition if you are required.
The BPP Rendition is a Key Step in Your Property’s True Value
Despite a reputation as a business-friendly state, Texas still has some of the highest property taxes in the nation. This adds an additional cost to doing business, one that has been especially difficult for smaller businesses. Thanks to outdated appraisal techniques, businesses often find themselves being taxed for how they were doing in a thriving economy, rather than current economic realities. Therefore, proving just what your business is worth is a major factor in your tax bill, whether you pursue a tax appeal or not.
If you do not file on your BPP, then your CAD will assume its value when factoring into your assessment. This will often be based on market factors and estimates, not reality. This means that you will certainly be taxed higher than you should. You are also forfeiting your tax exemption by doing so, adding up to $125,000 in taxable value to your books. Thanks to the expansion in the cap, filing your rendition or exemption statement has never been more important.
Only Count Tangible Assets
One of the most common mistakes seen in BPP is to declare too much property, thereby raising your tax bill. While you must be accurate and truthful, you should only count assets that are eligible. You are only taxed on tangible assets, like inventory, machinery, computers, furniture, fixtures, and other physical items. You do not need to count things like software, warranties, contracts, or intellectual property. Separating the two can be quite the task, and it often requires an expert in the field to find every instance. This may take a lot of effort, but it can bring in a bounty of savings.
BPP Renditions and Statements Due April 15, 2026
Just like exemptions and tax appeals, BPP renditions and statements have a hard deadline in Texas. In this case, that is April 15, unless that day falls on a weekend, in which case, the deadline is the following business day. For 2026, it will be April 15. It is imperative that you have your rendition in by the deadline. Not only does it influence your assessment in the coming year, but you face both a penalty of 10% and the possibility of losing your new exemption. The only way to claim the exemption is to file a rendition or statement. Even if your BPP is under the threshold, you must file your exemption statement by the deadline. Since you could be forced to prepare a rendition by your CAD, you must have all information, proof, and documentation together just in case.
O’Connor Specializes in Business Personal Property
As we pointed out with tangible vs. intangible property, BPP is often misunderstood, even by veteran businesspeople. Many business owners are paying up to 40% too much on their business personal property taxes. This is especially true for small businesses, as it can take a lot of time and effort to wrangle everything together in a cohesive package. It might be the case that you never saw BPP renditions being worth the hassle when the cap was so small, but now see the opportunity that can be granted to you. We at O’Connor are here to lend a hand.
Like any other tax, BPP can be appealed. If your CAD is taxing you more than what your property is worth, then we can help you by launching a targeted property tax appeal. We can analyze your rendition and look for any errors that might have been made, including issues with intangible property, incorrect depreciation, inaccurate reporting, and ghost assets that are no longer relevant. If we do a tax appeal for your commercial property, we will also use BPP as part of the evidence to help lower your taxes. Outside of appeals, we can also be contracted to put together your rendition for you, where we will investigate your real property, assemble a rendition, and support our rendition in any hearings or audits. No matter what path you take, optimizing your BPP gives you an edge in lowering your taxes and staying competitive, especially in an uncertain economic environment. We also offer tools, such as our rendition calculator.
