Business personal property is routinely valued at 150 to 200% of fair market value, with the exception of inventory and vehicles. Inaccurate appraisal district straight-line depreciation schedules and inclusion of intangible personal property (which is not taxable) are the primary causes of gross over-assessment.

Learn about the solutions available to owners of business personal property (BPP). These solutions will include rendering based on market value instead of rendering cost (as allowed by state law), excluding the value of the intangible personal property, and appealing excessive assessments using market value evidence.What You'll Learn:Types of Property

• Real
  
• Personal Property
  
• Intangible Personal Property

Options to Render

• Cost/Year of Acquisition
  
• Opinion of Value
  
• No Rendition

How Assessors Value

• Prefer to Start With Cost and Year of Acquisition by Property Type
  
• Use Straight-Line Depreciation
  
• Don't Consider Obsolescence

Problem With Assessor Valuation

• BPP Is Grossly Over-Valued by Straight-Line Depreciation
  
• Does Not Consider Market Value
  
• Does Not Consider Intangible Personal Property Embedded in Personal Property
  
• Often Values Ghost Property
  
• Overstates Value Throughout Ownership Period

Recommended Approach

• Render Opinion of Value If Possible
  
• Exclude the Value of Intangible Personal Property
  
• If Not Possible to Render Opinion of Value, Appeal If the Assessed Value Is Excessive
  
• Continue the Appeal After the Administrative Hearings If the Value Is Excessive