Since the passing of the new property tax reform bill, which is the Texas Property Tax Reform and Transparency Act of 2019, property owners can expect to enjoy paying a lower tax rate. However, the new changes in the law can bring with it uncertainty and confusion as well. This is especially true when the season to submit rendition statements or property reports comes around.
Property owners are required by law to file their rendition statements or property reports to the chief appraiser of their district. Under the new tax code, property owners or taxpayers have to deliver these documents after January 1. The old filing date, January 1, no longer applies.
A taxpayer then has until April 1, rather than April 15, to finish filing all the required documents for appraisal. Exceptions to the filing date are provided in Section 22.02 (Rendition of Property Losing Exemption during Tax Year or for which Exemption Application Is Denied). The two exceptions apply as follows:
- When the person who owns the property on the date applicability of the exemption terminates shall render the four (4) property for taxation within thirty (30) days after the date of termination, provided that an exemption applicable to a property on January 1 terminates during the tax year
- At the point when the main appraiser refuses an application for an exclusion for property depicted by Section 22.01(a), the individual who owns the property—on the date the application is denied—will render the property for tax assessment in the way given by Section 22.01 within 30 days after the date of refusal.
However, people who are unfamiliar or unaware of the new filing dates might end up missing it altogether. Especially when they assume they still have until April 15 to file their rendition statement or property report. Good thing the new tax reform code has a solution for that.
Taxpayers still have leeway to avoid paying the penalty. A taxpayer can request for an extension to the deadline. According to Section 22.23(d) of the new code, a taxpayer can write to the chief appraiser asking for an extension to the filing deadline. When the written request is granted, the taxpayer is given until May 1 to complete the rendition statement or property report.
Failure to file their rendition statements or property report within these dates will result in paying the penalty. According to the code, the chief appraiser will impose an amount that is equal to 10 percent of the total amount of taxes imposed on the property for that year by taxing units participating in the appraisal district.
So who are these people or taxpayers who are required to render information about the property that they own? They are the following:
- Owners of tangible personal property that is used to produce an income
- Owners of property on which an exemption has been cancelled or denied
- Owners who have been formally notified by the chief appraiser that they must render
- A person who manages and controls personal property in trust
The property the owner has to render is classified as real property (land, buildings, and items attached to the land) or as personal property, which are items owned but are not attached to the land. This includes a personal property with a total value of $500 or more that used to make an income (e.g., computers, equipment, machinery, fixture, finished goods).
After the new year, make sure to get those rendition statement forms filed, or be sure to write a letter of extension to the deadline in a timely manner.
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