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Business Personal Property Rendition Deadlines Have Changed!

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 23.175

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 http://www.eia.gov/forecasts/aeo/.

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 year.

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.


New 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 explanation  for more details.

Outsourcing to Contract Appraisal / Software Firms

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 outsourcing discussion  for more details.

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