Overstated depreciation tables
Many districts apply a physical-life schedule that keeps assets near their original cost for years — a one-year-old $300 chair can be carried at $250–$270 when its real resale value is only $20–$50.
BPP asset scan Tangible vs. intangible
▤Furniture & fixturesTaxable
⚙MachineryTaxable
▭Computers & serversTaxable
▦InventoryTaxable
✂Tools & suppliesTaxable
◍Software licensesNot taxable
§Service agreementsNot taxable
◈GoodwillNot taxable
⇢Freight & setupNot taxable
✓ Non-taxable value separated Only tangible income-producing property stays in the taxable total.
Texas business owner resource
Business Personal Property Tax Services
Most Texas businesses overpay their business personal property tax — frequently by 40% to 50% — and never realize it. Here is why: appraisal districts usually value your equipment, furniture, and machinery on a depreciated-cost basis, even though Texas law requires market value. That single mismatch quietly inflates your bill, year after year, on assets that are worth far less than the district’s number suggests.
O’Connor’s business personal property tax services exist to close that gap. Rather than accept the appraisal district’s guesstimate, we examine how your taxable personal property was rendered, remove non-taxable intangibles such as software and service agreements, and rebuild the value around what your assets are genuinely worth today. When your taxable personal property is over-stated, that overstatement is exactly where your savings live — and a professional business personal property tax review is built to find it.
See where your business personal property tax really stands in just a few minutes. Search your property to begin, and under O’Connor’s current contingency terms, you pay only when we reduce property taxes — never a flat fee.
Quick answer
Business personal property tax is an annual Texas tax on the tangible assets a business uses to produce income — furniture, fixtures, equipment, machinery, computers, and inventory. Appraisal districts often value these assets on a depreciated-cost basis, which can exceed market value, the standard the Texas Property Tax Code requires. A business personal property evaluation reviews what was rendered, separates taxable tangible property from non-taxable intangibles such as software and service agreements, and builds a market-value opinion that can lower the taxable amount — subject to exemptions, tax rates, and appraisal review board (ARB) approval.
Where the overpayment hides
Why a business personal property evaluation may lower your tax
Texas taxes only taxable personal property — the tangible assets a business uses to produce income — and each item must be valued at market value, not original cost. In practice, several things push a business’s taxable personal property assessment too high. Common reasons an evaluation finds savings include:
Intangibles swept into the taxable total
Only property you can see, touch, and move is taxable. Software licenses, service agreements, trade secrets, and goodwill are intangible and generally not taxable, yet they are often rendered inside a single equipment cost.
Inappropriate costs added to the base
Freight, installation, setup, and special-purpose construction belong in IRS depreciation but not in a personal-property market value.
Ghost assets
Equipment that was scrapped, sold, or retired is frequently still being taxed year after year.
Obsolete or fully depreciated equipment
Assets carried at an arbitrary floor value instead of true market value.
A rendition filed at total cost
Reporting total cost rather than market value can lock in an inflated number for the year.
High-cost basis alone is not proof of market value. Appraisal districts value property while local taxing units set the rates, so the aim of an evaluation is a defensible market-value figure — not simply a complaint about the property tax bill.
Eight stages, start to result
How O’Connor’s business personal property evaluation works
01
Account review
Identify the BPP account, business type, asset mix, and appraisal history.
02
Enrollment and authorization
Confirm service terms and execute the required agent-authorization documents.
03
Rendition and asset analysis
Review what was (or should be) rendered and flag ghost assets, retired equipment, and misclassified items.
04
Tangible vs. intangible split
Separate taxable tangible property from non-taxable intangibles such as software and service agreements.
05
Market-value development
Build an opinion of value using appropriate depreciation, condition, and obsolescence rather than cost-only schedules.
06
Appeal filing
Submit a timely notice of protest on the authorized grounds — market value and, where applicable, unequal appraisal.
07
Informal and ARB representation
Negotiate with the appraisal district and, when needed, present evidence at the ARB hearing.
08
Result and next steps
Report the outcome and explain any applicable post-ARB options within the service scope.
The split that drives the savings
What is taxable — and what is not
A large share of BPP savings comes from correctly separating taxable personal property from non-taxable intangibles. Only tangible items used to produce income are taxable in Texas.
Taxable tangible personal property
- Furniture, fixtures, and office equipment
- Machinery, tools, and production equipment
- Computers, servers, and network hardware
- Inventory held for sale (unless exempt, e.g. Freeport)
- Supplies on hand and leasehold improvements (personalty)
Generally NOT taxable
- Software licenses and SaaS subscriptions
- Service and maintenance agreements
- Goodwill, trade secrets, and know-how
- Franchise value and customer lists
- Freight, installation, and setup costs
Reporting your assets this year?
The rendition tool walks through BPP reporting field by field.
Your options
Can I handle my business personal property tax myself?
Yes. A Texas business owner may render assets, file a protest, and present a BPP case without an agent — or appoint an authorized representative. A do-it-yourself approach means tracking the rendition and protest deadlines, choosing grounds, requesting and reviewing the district’s evidence, assembling an accurate asset list, separating intangibles, and presenting a market-value argument at the hearing.
O’Connor’s business personal property tax services may help owners who lack time, hold assets across multiple accounts or counties, own complex or high-value equipment, or prefer an experienced representative to build the property tax valuation and manage the process. Representation does not guarantee a reduction; it provides analysis and advocacy.
Small-account note: Texas exempts income-producing tangible personal property if its total taxable value in a taxing unit is below the statutory threshold ($2,500 under current law). Thresholds can change, so verify the current amount.
Step by step
How to render and protest business personal property in Texas
- Render your assets. File a business personal property rendition (Comptroller Form 50-144) with your appraisal district, reporting taxable assets owned as of January 1.
- Watch the rendition deadline. The rendition is generally due April 15, with an extension to May 15 available on written request filed before April 15.
- Read your notice of appraised value and verify the protest deadline the district shows.
- File a written notice of protest with the ARB through the district’s accepted method.
- Identify all grounds — market value, unequal appraisal, exemption denial, or incorrect records.
- Request the district’s evidence and review local ARB procedures.
- Build a market-value case: asset list, purchase records, condition and obsolescence data, and the tangible/intangible split.
- Attend the informal meeting if offered, then proceed to the ARB hearing if the dispute is not resolved.
- Review the written ARB order promptly, because post-ARB appeal deadlines can be short.
According to the Texas Comptroller, BPP renditions are generally due April 15 (extendable to May 15 on timely written request), and a failure-to-render penalty of 10% of the tax can apply. The value-protest deadline is usually May 15 or 30 days after the district mails your notice, whichever is later. Special and late rules can apply. Confirm the controlling dates on your notice and with your appraisal district; O’Connor reviews these dates annually.
Build the file before the hearing
What evidence supports a business personal property evaluation
| Evidence | Best use | Important limitation |
|---|---|---|
| Fixed-asset listing / depreciation schedule | Establish what is actually owned and its age | Remove ghost assets, retired items, and non-taxable intangibles. |
| Purchase invoices and closing statements | Support original cost and acquisition date | Cost is a starting point, not market value; adjust for depreciation and obsolescence. |
| Market or auction data for used equipment | Support a market-value opinion | Match make, model, age, and condition; adjust for sale type and timing. |
| Photos and condition / repair records | Document wear, damage, or obsolescence | Tie condition to value as of January 1, the appraisal date. |
| Software and service-agreement contracts | Identify non-taxable intangible components | Separate these clearly from the tangible asset cost. |
| Inventory and disposal records | Prove assets sold, scrapped, or removed | Provide dates and documentation the district can verify. |
Search → Enroll → Sign
See where your BPP account stands
Enter your business address to start. Enrollment takes two or three minutes, and there is no fee unless we reduce your property taxes.
Search
Enroll
Sign documents
Search for your property
Enter your business address to see your BPP savings estimate.
O’Connor will match your address to the appraisal district’s BPP account.
What enrollment includes
Rendition review, tangible/intangible analysis, market-value development, protest filing, and informal and ARB representation for the accounts covered by your service agreement. Fee and scope terms are governed by the current agreement.
Potential-savings estimator
An illustration based on the figures you enter.
May be over-assessed by8.65%
Potential tax savings$216
* Illustration only. Actual results depend on your assets, how they were rendered, the appraisal district’s figures, applicable exemptions, adopted tax rates, and the ARB decision. No specific outcome is guaranteed.
Ready to enroll?
Simple online enrollment in two or three minutes — or call 713.290.9700, 8am–5pm CST.
FAQ
Frequently asked questions
What is business personal property tax?
It is an annual Texas tax on the tangible personal property a business uses to produce income — furniture, fixtures, equipment, machinery, computers, and inventory. It is assessed by the county appraisal district and billed by local taxing units.
What counts as taxable personal property in Texas?
Taxable personal property in Texas is the tangible items you can see, touch, and move that are used to generate income: furniture, fixtures, machinery, tools, computers, supplies, and inventory (unless a specific exemption such as Freeport applies).
What business personal property is not taxable?
Intangible property is generally not taxable — software licenses, service and maintenance agreements, goodwill, trade secrets, franchise value, and customer lists. Freight, installation, and setup costs also should not inflate the taxable value.
How much can a business personal property evaluation save?
Savings depend on your assets, how they were rendered, and the district’s figures. O’Connor’s materials note that rendering an opinion of value can reduce a rendered amount by 50% or more in many cases, but no specific result is guaranteed.
Do I have to render my business personal property?
Texas businesses are generally required to render taxable personal property each year. Rendering accurately — and at market value rather than total cost — is often the first opportunity to avoid an inflated assessment.
What is the rendition deadline in Texas?
The rendition is generally due April 15, with an extension to May 15 available on written request filed before April 15. A 10% penalty can apply for failure to render. Confirm your date with the appraisal district.
What is the deadline to protest my BPP value?
Usually May 15, or 30 days after the district mails your notice of appraised value, whichever is later. Special and late-protest rules can apply, so check your notice.
What happens if I don’t render?
The district may estimate your value using its own schedules — often on the high side — and a failure-to-render penalty can be added. You may still protest the value, but you lose the accuracy a proper rendition provides.
Is inventory taxable in Texas?
Inventory is generally taxable business personal property, though exemptions such as the Freeport exemption may apply to certain goods that leave the state within a set period. Eligibility depends on the facts and the taxing units involved.
How is business personal property valued?
The Texas Property Tax Code requires market value, but many districts apply depreciated-cost schedules that can overstate value. An evaluation replaces cost-only figures with a market-value opinion that reflects real depreciation, condition, and obsolescence.
How does O’Connor’s fee work?
O’Connor works on contingency — there is no fee unless your property taxes are reduced. Fee and scope terms are governed by the current service agreement.
Does an evaluation guarantee a reduction?
No. Results depend on the property, the evidence, the appraisal district, and the ARB decision. O’Connor provides valuation analysis and representation; it does not promise a specific outcome.
This page provides general educational information about Texas business personal property tax, not legal or tax advice. Deadlines, exemption thresholds, and valuation rules can change, and the county appraisal district and appraisal review board decide individual accounts.
