Valuation Methodologies: Special Inventory Considerations

In previous articles, we have addressed the standard three methodologies for appraisal of property: the sales comparison approach, the cost approach, and the income approach. Under Section 23.0101 of the Texas Tax Code, these approaches are supposed to be considered to determine the value of all forms of taxable property (real and personal). However, there is a category of personal property that is subject to separate consideration under the Tax Code.

Under the Tax Code, the valuation of inventory receives special treatment in three ways: (1) it has its own appraisal methodology; (2) it potentially has an alternative valuation date; and, (3) in some cases, it has its value based on sales rather than existent property as of a particular date.

This month we look at special considerations regarding the valuation of inventory.

Read the article.

PROPERTY TAX TIP

Proposed legislation and summary available

The Texas Legislature is currently in session. Legislation proposing changes in the Property Tax Code (as well as other selected tax issues) is summarized on the GPD Property Tax website. GPD will attempt to keep readers informed of the status of those bills during the current legislative session.

Read the summary of proposed legislation.

Upcoming deadlines

February 28, 2005
Deadline for owners of interests in cooperative housing corporation to request separate interest appraisals

March 31, 2005
Second of four installments due for senior or disabled homestead taxpayers

March 31, 2005
Deadline for qualifying CHoDO to file list of property acquired or sold in 2004

April 15, 2005
Deadline to file business personal property rendition