Differentiating Real Estate and Business Personal Property Taxes

Many of our clients come to us confused and even misinformed about property taxes and what different terms mean. The County Assessor’s Office and others use confusing lingo that throws everyone off, forcing average individuals to do their own research that ultimately still leaves them lost. We wanted to share with you the definition and the differences between real estate property tax and business personal property tax.

What are Real Estate Property Taxes?

Property Taxes and Real Estate taxes are, for the most part, interchangeable terms. The taxing authorities most often uses the term “real estate tax” to refer to property tax. Real estate property taxes for businesses and individuals may include the building and land if they own the real estate. If you believe the assessed value on the real estate is incorrect, then you can file an appeal and present your opinion of the property’s value. A lower value will reduce the real estate property taxes.

Recently, the Dallas/Fort Worth area has seen an increase in property taxes that many people and business owners are protesting through the appeals process. At the Hegwood Group, we provide tax appeal assistance to our clients to help them save money every year.

What are Business Personal Property Taxes?

In addition to real estate property taxes, businesses also pay property taxes on their business’ personal property. Business Personal property taxes are applied to machinery, office furniture, tools, phone lines, computers and printers, and other supplies. In general, you can consider all physical property excluding the real estate to be taxable. A professional property tax consultant will be able to ensure the correct depreciation on the assets and discover any potential exemption savings.

Understanding the Difference

To recap what we just talked about, property taxes are applied to immovable property while business personal property taxes are applied to tangible, mobile property. It’s essential for businesses to have a property tax consultant help them prepare and even appeal their taxes every year to avoid costly mistakes. Businesses can save a lot of money by simply going through the appeals process.

Trust the Hegwood Group

We’ve been helping businesses like yours for years. Our tax experts handle everything for you from filing paperwork to representing you during the appeals process. We understand how important it is for you to save as much money as you can on your taxes each year. Contact us today to learn more about our services or to schedule an appointment.


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