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Hotel business personal property can be taxed separately from the real estate, together with the real estate, or not at all.

Business personal property is exempt from property tax in 12 states. Texas is one of the 38 states that tax business personal property. In Texas, since hotels are typically appraised using the income approach, Section 23.24 (b) of the Texas property tax code allows appraisal districts to combine the business personal property value with the real estate value on one account. And § 22.01 (m) states that renditions are not required if the business personal property is appraised with the real estate.

However, some appraisal districts may appraise newly constructed hotels with the cost approach rather than the income approach. In these instances, a business personal property rendition usually needs to be submitted to the appraisal district. Also, outside of Texas, many states value a hotel’s real estate and business personal property separately – and require renditions to be submitted.

Hotel Tax Consultants, LLC’s staff have prepared many business personal property renditions over the years. We charge a flat fee for the preparation of the business personal property return plus an hourly rate if the return requires more work than normal. We charge a contingency fee for any subsequent negotiations required. We handle the entire process. Depending on the property, the process may include researching asset values, classifying assets into the appraisal district’s accepted categories, applying applicable depreciation, preparing the state rendition form, submitting the rendition before the state deadline, discussing the rendered value with a district assessor, appealing the notice of value, and presenting the case before the ARB.