Ad Valorem Tax? I am in Texas and am not familiar with this tax, but the county is requesting that my business pay this.?

I am a new business owner and I filed my business taxes and have had office equipment deductions, but now I am being asked to pay taxes on that same office equipment. What is that about? Isn’t this something my accountant should handle? I am confused at how they arrived at the dollar amount owed and it feels as though they are coming after me personally, even though that business is part of an LLC. I am trying to figure out if I am exempt from anything, but this is really confusing me and I am trying to avoid trouble, as well as paying twice.  I really need help with this. 

2 Answers

  • 1 month ago
    Favourite answer

    Texas has a Business Personal Property Tax.

    That is an annual (ie every year) tax based on the personal property (furniture, tools, computers, equipment, etc.) that your business uses in the operation of your business.

    If you do not file a return with your Central Appraisal District, they will estimate a value and they will probably estimate quite high.

    It is normally due by 4/15 each year and the bills normally come out in November/December. 

    This tax has nothing to do with income taxes or sales taxes.  It is solely a tax on the value of the property.  Many states have a tax like this.  However, in Texas, it happens to be quite high.

    EDIT:  Texas, like most states uses a January 1st assessment date.  If you were in business on January 1st of any given year, you would owe personal property taxes for that year.

  • 1 month ago

    It is personal property tax based on the value of the asset.

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