This video is a step-by-step guide to assist business owners in filling out the Business Personal Property Rendition Form 22.15. Appraiser Osaretin Osague explains each part and each step of the rendition form and what is required. He also discusses several shortcuts that may be available to business owners to save time. (07:48)
Hi, I’m Osaretin Osague with the Harris County Appraisal District.
Do you need to render your business personal property? This video is designed to help you do just that. I’m going to go through the general rendition form, step by step. Whenever possible, I’ll show you a shortcut.
Let’s look at Part 1 – this part is required. Enter the business name, the business owner, business mailing address, City, State, and Zip code. Next enter the property address where the business is located, City, State, Zip code for the physical location. Lastly enter the phone number here.
In this box enter the account number associated with the property. Also enter your iFile number, the name of your agent, and the agent I.D. number, if you have an agent representing you.
If you closed or sold your business within the last year, or if you moved recently, it’s important to complete Part 2, Business Information. Your Sales Tax Permit number goes here. The date you went into business at this location goes here. If you closed your business, put the date the business closed here and check “Yes” or “No” based on if you had assets at your old location on January first of this year. Enter the square feet - put the amount of square feet your business occupies, or did occupy, here. The business description goes here. If you sold your business, enter the sale date here, and new owner’s name here. If you moved, give the date you moved and your new location here. On ownership type, check one of these boxes. Check a box for the type of business you have, or had. If the business had no taxable assets in Harris County as of January 1, check this box. If this is a new business or location for the above tax year, check this box.
Part 3. Affirmation of Prior Year Rendition. You may be wondering, “Why do I need to render? Nothing’s changed from last year.” OK, if that’s the case, then here’s a quick shortcut: check the box in Part 3. In other words, if your assets on January 1 of last year are still the same on January 1of this year, check the box by this statement: “By checking this box, I affirm that the information contained in the most recent rendition statement filed for a prior tax year (the tax year) continues to be complete and accurate for the current tax year.” If you check the box, you can now go directly to part 6 Sign and Date Form at the bottom of Page 1. Fill it out, you’re all done!
Please note: unless you checked the box in Part 3, you are required to fill out both Parts 4 and 5.
Part 4. Description of Assets. Check as many boxes as apply. You may check just one box, or you may need to check all boxes. On this line enter the location of the assets, if their location differs from the business address you entered earlier. On this next line describe any assets you listed as “Miscellaneous.”
Part 5. Market Value Are your assets under or over $20,000? If they are under $20,000, as long as you filled out Part 4, HCAD can estimate your property value and you won’t need to fill out Page 2. If you want us to do an estimate, complete the signature box at the bottom of Page 1. But if you prefer to fill out Page 2, you still can. In fact, it’s better for you to complete Page 2 because you’ll have the benefit of contributing to the most accurate value determination possible, instead of just depending on an estimate. Now, if your assets are over $20,000, then Page 2 is required.
If you do fill out Page 2, please put your name and account number at the top of the page.
Part 6. Sign and Date Form This is the place where you will sign and date this form attesting that the contained information is correct to the best of your knowledge. In the boxes on the left, check one of these to show your association to the business described above. Enter the name of your company and your title. Also enter your phone number and date. You can also give us your email address, if you want to.
At the top of page 2, you can check yes or no for these questions. Answering these questions is optional.
In general, Part 7 is where you’ll list your assets such as inventory, raw materials, work in process, and supplies. Part 8 is for your fixed assets. Notice that both Part 7 and Part 8 asks for a “Good Faith Estimate of Market Value”.
You may ask, “How do I estimate market value?” One helpful tool would be a publication that provides value information for assets. For example, there are numerous publications on vehicles and computer equipment. If you use one, keep in mind you must choose a value that reflects what the assets are worth near January first.
One of the easiest ways to estimate market value would be to use the guidelines published by HCAD called, Business Personal Property Value Calculation Guidelines. This is posted on our web site at www.hcad.org.
An alternate method to estimating value is for you to provide “Historical Cost When New.” You can refer to your accounting records or use original purchase orders and invoices. You can add in all costs for getting the assets up and running, such as freight and set-up costs.
A rendition should include both fully depreciated assets on your books as well as any assets that were expensed for income tax purposes. Even if the asset has been depreciated, it could still sell for something and this is the amount you would use.
If you use Historical Cost When New for Part 7, put the cost of the asset on this line under the category where it belongs. In Part 8 - put the figure in the column where it belongs across from the year you acquired it. In other words, tell us what year you bought the item and how much you paid for it.
Lastly, Part 9 is where you list any business personal property that is not yours because it is borrowed or leased, on consignment or other arrangement has been made for you to posses the property. Here you would put down the name of the owner, the owner’s address and the description of the item that is borrowed or leased.
When you finish all of Page 2, you’re ready to go back and complete Part 6 Sign and Date Form on Page 1. You’re finished!
I hope I have helped to clear up some of the mystery behind filing a rendition. For more information, please call (713) 957-7800 and ask for the Business Assistance Center. Thanks for watching!