What is the Appraisal of Business Personal Property
Sections 11.01 and 11.14 of the Tax Code require that property taxes be levied on all tangible personal property that is used for the production of income in Texas. These items include such things as furniture, fixtures, inventories, equipment, motor vehicles, vessels, aircraft, stored chemical or petroleum products, and oil and gas reserves. Most tax officials refer to tangible personal property subject to property taxation as business personal property. Section 22 of the Tax Code requires every owner of business personal property used or located in Texas to report that property annually. The report is called a rendition. The rendition must be filed with the chief appraiser of the appraisal district in which the property is located. The rendition requirement also applies to property your business manages or controls as a fiduciary. The rendition requirement applies to all types of businesses, including sole proprietorships, partnerships, and corporations. The law requires the appraisal district to determine the market value of business personal property, even if the business owner fails to render it. Rendition helps ensure an accurate appraisal. Failure to render could cause additional assessments for property that may have been omitted from the appraisal roll. For this reason, it is extremely important that rendition be filed annually.
Pursuant to Sec. 11.1825(r) of the Texas Property Tax Code, The Montgomery County Appraisal District gives public notice of the capitalization rate to be used for the 2022 Tax Year to value properties receiving exemptions under this section. Rent restricted properties vary widely. These variations can have an effect on the valuation of the property. A basic capitalization rate of 7.5% (Unloaded) will be used to value these properties; although adjustments may be made on the individual property characteristics and the information provided to the chief appraiser as required under Sections 11.182(d) and (g) of the Property Tax Code.
Conroe, TX 77305
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