BPPBookByPatrickO’Connor
Whatyouneedtoknowabout“PersonalPropertyValuation”ByPatrickC.O’connor
DidyouknowthatTexasAppraisalDistrictscommit3majormistakesinvaluingyourBPP? Ourrecentsurveyshowsthatmanybusinessesarepaying2to5timesthecorrectamountoftheBusiness PersonalPropertyTax.Andinalmosteverycaseit’sduetothe3majormistakes.
Whatarethey?
UsingInaccurateDepreciationTables: Appraisaldistrictsuseaphysical-lifedepreciationschedulethat grossly over-values personal property For example, district tables would value a one-year-old chair at 86 to 90% of its original cost. Hence, a $300 chair would be valued at $252 to $270, when its true valueislikely$20to$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 rendertheTOTALcost,whichisnotcorrect.
Encouraging Property Owners To Include Inappropriate Costs: Incorporating freight, setup costs, and specialized buildings to houseequipment,whileincludedindepreciationtables(appropriatefortheIRS),isdeadwrongforpersonalpropertytaxation. GetaFREEcopyofPatO’Connor’slatestbook, “WhatYouNeedToKnowAboutPersonalPropertyValuation”. Itprovidesdetailedexplanationsoftheabove3issues.
SinceO’Connorhasa25year-plushistoryinappraisingBPPandcommercialrealestate,ithasdevelopedaproprietarysetofvaluation tablestoaddressthe3majormistakesnotedabove.Thetablesvarydependinguponthetypeofproperty.
ByPatrickC.O'connor
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