Vehicles, Trailers, and Special Equipment are different types of conveyances used in the course of operating a business to transport people, equipment, parts, raw material, etc. and can be used for the operation of the owner’s business or leased to customers.
When appraising business personal property (BPP) as described above, the appraisal district uses one or a combination of one of the following methodologies: Year of Acquisition, Book Value to Market Value Conversion, Net Book Value and New Age Mix, plus the use of standardized depreciation tables to determine the property tax value of a BPP account.
If used in the production of income, these assets are to be rendered each year. Depending on travel destinations, a portion of these otherwise 100% taxable assets may qualify for a mileage allocation for miles driven outside Texas.
Examples such as Interstate Mileage Allocation may also be applicable.
Contact Bettencourt Tax Advisors, LLC for more information on how BTA can help you lower your property tax values.