This video is a step-by-step guide to assist business owners in filling out the Business Personal Property Rendition Form 22.15. Appraiser Sylvia Coronado explains each part and each step of the rendition form and what is required. She also discusses several shortcuts that may be available to business owners to save time. (06:50)
Hi, I'm Sylvia Coronado 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: Business name, business mailing address, second line of the mailing address (if there is one), City, State, Zip. On the right side: Business owner, the property address where the business is located, City, State, Zip for the physical location. Ownership Type: check one of these boxes.
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. Check a box for the type of business you have (or had) and include the description. "SQFT" stands for square feet - put the amount of square feet your business occupies (or did occupy) here.
The date you went into business at this location goes here; Sales Tax Permit number - here. If you recently moved, check this box. Give the date you moved and your new location. If you closed a business, check here. Give the date you closed it, check "Yes" or "No" based on if you had any assets at your old location on January 1 of this year. If the business had no assets January 1st, check this box. Business sold, check this box. The date goes here, the phone number here, new owner here and mailing address, City, State and Zip here.
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 1 of this year, check the box by this statement: "I affirm that the information contained in the most recent rendition statement filed by the property owner in a prior tax year is accurate with respect to the current tax year in accordance with Section 22.01 (l) of the Texas Property Tax Code." Now go directly to the Signature and Affirmation Box 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 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. If you made arrangements with the district for a September 1st Inventory Appraisal, check this box.
In general, Part 6 is where you'll list your assets such as inventory, supplies, raw materials, work in process, and consigned goods. Part 7 is for your fixed assets. Notice that the first line in both Part 6 and Part 7 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 1st.
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 "Original Cost". You can refer to your accounting records or use original purchase orders and invoices. You can add in all costs for getting the asset 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 Original Cost for Part 6, put the cost of the asset on this line under the category where it belongs. In Part 7 - 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. When you finish all of Page 2, you're ready to go back and complete the Signature Box on Page 1. You're finished!
I hope I have helped to clear up some of the mysteries about filing a rendition. For more information, please call (713) 957-7800 and ask for the Business Assistance Center. Thanks for watching!