Navigating Business Personal Property Taxes in Bexar County, Texas: What You Need to Know

As a business owner in Texas, particularly in Bexar County, understanding personal property taxes is crucial for staying compliant and managing your finances effectively. Business personal property (BPP) tax is an ad valorem tax assessed on tangible assets your business uses to generate income, such as furniture, fixtures, equipment, machinery, computers, vehicles, and inventory. Unlike real property taxes on land and buildings, BPP focuses on movable items essential to your operations.

Why Do Businesses Pay Personal Property Taxes?

The primary purpose of BPP taxes is to generate revenue for local governments, including counties, cities, school districts, and other taxing entities. In Texas, there's no statewide property tax; instead, it's administered locally through county appraisal districts. This funding supports essential services like public education, roads, public safety, and infrastructure. For businesses in Bexar County, the Bexar Appraisal District (BCAD) handles appraisals and ensures fair taxation based on the market value of your assets as of January 1 each year. Failure to report or pay can lead to penalties, so compliance is key to avoiding unnecessary costs.

The Recent Increase in Texas's Personal Property Exemption

In a significant win for small and medium-sized businesses, Texas passed new legislation in June 2025 that boosts the exemption threshold for BPP. House Bill 9, signed into law by Governor Greg Abbott, increases the exemption from $2,500 to $125,000 starting with the 2025 tax year. This means if the total appraised value of your business's tangible personal property is under $125,000, you won't owe any BPP tax on it, and in many cases, you may not even need to file a rendition form.

This change aims to provide relief amid rising costs and economic pressures, potentially exempting thousands of smaller operations from the tax altogether. However, if your assets exceed this amount, you'll still need to report and pay on the value above $125,000. Keep in mind that this exemption applies per taxing unit, so consult BCAD for how it impacts your specific situation.

How to File the Rendition Form

Filing a rendition is mandatory for businesses with taxable BPP, as it allows you to report the cost, description, and location of your assets to the appraisal district. This helps ensure accurate valuations and can even lead to lower taxes if you provide depreciation details or other supporting information.

Step-by-Step Guide to Filing:

1. Gather Your Information: Compile records of all BPP owned as of January 1, including original cost, acquisition date, and any depreciation. Use schedules or inventories from your accounting system.

2. Obtain the Form: Download Form 50-144 (Business Personal Property Rendition of Taxable Property) from the Texas Comptroller's website or BCAD's site. This form is standardized across Texas.

3. Complete the Form: Provide details on your business type, assets, and any exemptions (like the new $125,000 threshold). If you're managing property for others (e.g., as a fiduciary), note that too.

4. Submit to BCAD: File electronically via BCAD's online portal for faster processing, or mail/deliver it to the Bexar Appraisal District office. Electronic filing is encouraged for accuracy and convenience.

If your BPP value is below the exemption, you might skip filing, but it's wise to confirm with BCAD to avoid penalties.

Key Deadlines

• Standard Filing Deadline: Renditions must be filed after January 1 and no later than April 15.

• Extension Request: Submit a written request by April 15 to extend to May 15. Late filings incur a 10% penalty, which can't be waived.

• Property Tax Bills: Issued around October 1, with payments due by January 31 of the following year (e.g., for 2025 taxes, due January 31, 2026). Delinquent after February 1, with escalating penalties and interest.

These dates are consistent annually, but always check BCAD's website for any updates.

The 50/50 Payment Plan Option

Texas offers flexibility for paying property taxes through a split-payment or "50/50" plan, which can ease cash flow for businesses. Under Texas Property Tax Code Section 31.03, if your account isn't delinquent from prior years, you can pay at least half of your current tax bill by the January 31 delinquency date, and the remaining balance by July 1, without accruing penalty or interest on the split amount.

Note that this isn't a full installment plan; for more extended options (like quarterly payments for certain qualified homeowners), other rules apply, but businesses typically use the 50/50 for simplicity. If you're facing hardships, discuss deferral options with the tax office.

Final Thoughts

Business personal property taxes in Bexar County and Texas don't have to be overwhelming. With the new $125,000 exemption providing substantial relief, many smaller businesses can breathe easier. Stay proactive by filing your rendition on time, leveraging the 50/50 payment plan if needed, and consulting professionals like tax advisors or BCAD for personalized guidance. Keeping good records year-round will make the process smoother and help minimize your tax liability. For the latest details, visit the Bexar Appraisal District website or the Texas Comptroller's office—staying informed is your best defense against surprises.