Renditions Of Business Personal Property Still Required
Senate Bill 771, which takes effect Jan. 1, 2010, amended Tax Code Section 23.24 to add the following language:
In determining the market value of the real property appraised on the basis of rental income, the chief appraiser may not separately appraise or take into account any personal property valued as a portion of the income of the real property, and the market value of the real property must include the combined value of the real property and the personal property.
The bill did not change the rendition requirements under Chapter 22 of the Code or the appraisal record requirements of Section 25.02. Personal property must still be rendered in accordance with Chapter 22, and appraisal records must still be prepared and maintained.
Even though a separate account may not be necessary for business personal property that is used with the realty where it is located and that is appraised using the income approach, its existence and value should remain part of the appraisal records. This record is needed for identification, location and tax collection purposes.
If you have concerns about the interpretation of this new law, please contact your attorney.