News & Interest
Business Personal Property Rendition Deadlines
Beginning tax year 2018, the Texas Legislature has moved up the dealine for
filing rendition statements and property reports from April 15 to April 1,
if the property is located in an appraisal district where one or more taxing
entities offer or grant exemptions for freeport property. This new April 1
rendition deadline applies to all property subject to rendition, not just
freeport property. On written request by the property owner, the chief appraiser
shall extend the deadline by 30 days (to May 1). The chief appraiser may further
extend this deadline an additional 15 days upon good cause shown in writing by
the property owner.
Is your property subject to this new April 1 rendition deadline? Pritchard &
Abbott is compiling a list of appraisal districts where the answer is "yes."
Please see this <<link>> (Coming soon)
Also, the Texas Legislature moved the rendition deadline for many types of
regulated Utility property (pipelines, electric, railroad, telecom, etc.) to
April 30. The chief appraiser may further extend this deadline an additional 15
days upon good cause shown in writing by the property owner.
Is your property subject to this new April 30 deadline? The answer is "yes" if
the property is regulated by the Public Utility Commission of Texas (PUC), the
Railroad Commission of Texas (RRC), the federal Surface Transportation Board
(STB), or the Federal Energy Regulatory Commission (FERC).
All these deadlines apply equally to renditions or 22.01(h) or (i) property
reports provided to either appraisal districts or their contracted appraisal
firms in lieu of renditions.
Each year the comptroller and each chief appraiser shall publicize in a manner reasonably
designed to notify all property owners the requirements of the law relating to filing
rendition statements and property reports and of the availability of forms. A person
required to render property or to file a report as provided by this chapter shall
use a form that substantially complies with the appropriate form prescribed or approved
by the comptroller.
Appraisal districts are not obligated to mail rendition forms to property owners,
although many do only as a courtesy. Property owners can find and print approved
rendition forms directly from the Comptroller’s website:
Which form to use depends on the type of property being rendered. Each form requires
a property owner to furnish the information necessary to identify the property and
to determine its ownership, taxability, and situs. A property owner can (but is
not required to) furnish additional information on the form, including a good faith
estimate of value. A tax agent (but not the property owner) is required to swear
that the information provided in the rendition is true and accurate to the best
of their knowledge and belief.
Substantial tax penalties can accrue for failure to timely file a rendition or if
the property owner or agent is found to have committed fraudulent conduct in an
inspection, determination, or other proceeding before the appraisal district.
More information is available in the Texas Property Tax Code, Chapter 22 (Renditions
and Other Reports), such as what persons and which property is covered by this business
personal property rendition law.
Oil and Gas Price Escalation Factors per Property Tax Code, Section
P&A has finalized the
Section 23.175 calculation required to derive the oil and gas price
escalation scenarios for the 2018 tax year.
It should be noted the EIA has published a current Annual Energy Outlook (AEO)
which can be used to calculate the Price Adjustment Factors (that are a part of
the derivation of the year 1 price in our discounted cashflow appraisals of
mineral interests) referencing prices published in Tables 13 and 13. The EIA's
most recent version of their AEO can be found at
In addition, see how these factors produce P&A's
reference price forecasts for oil and gas, with a
comparison to the previous tax year's oil and gas price forecasts. The oil and
gas price forecasts for tax year 2018 are more optimistic than for the previous
tax year, particularly for oil. However, it should be noted that the valuation
of mineral interests depends on more than price alone. Forecasts of oil and gas
production and expense levels as of January 1 also figure prominently into the
calculations. Expenses levels tend to follow price movement in a lagging (less
volatile) fashion, while production tends to decline over time as a natural
result of changing reservoir conditions (pressure loss, recovery percentage,
etc.). Therefore a price difference by itself does not fully indicate how
current valuations will compare with valuations performed for any previous tax
As always, we welcome any thoughts or suggestions you have regarding our
appraisal work, etc. We are here to serve the taxpayers in the most efficient,
timely and fair manner possible.
Economic Obsolescence Appraisal Policy for Pipelines
P&A is committed to the uniform and accurate appraisal of all pipelines.
Beginning tax year 2015 we’ve instituted a new policy regarding pipelines we
appraise using the Cost Approach. Specifically, we’re amending the way we
provide for Economic Obsolescence (a form of depreciation) based on
“utilization” (throughput versus capacity of the pipeline). Although we’re
not amending the formula itself we’ve used for many years now (a variation of
the Chilton equation), we are striving for more clarity in the throughput and
capacity figures required in the formula. Please see this
throughput appraisal policy memo
for details. Thank you for your understanding
and cooperation. Please feel free to contact any of our utility appraisers
if you have any questions.
New Hyperbolic Production Forecast Feature in P&A Mineral Appraisals
We've improved our production forecast abilities by incorporating a hyperbolic
formula using parameters from Aries decline curve software. See this
for more details.
From time to time we get questions from clients (or potential clients) who want to know the functions or purpose of a private consulting firm like Pritchard & Abbott, Inc. What role(s) do appraisal and software firms have regarding ad valorem tax in Texas, when Appraisal Districts and taxing entities were specifically created by the Texas legislature to handle these matters? See this
for more details.