News & Interest

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.

Revisions to Property Tax Code per SB 1505 (Section 23.175)

Property Tax Code Section 23.175 (Oil and Gas Interest) has been amended by the Texas Legislature (82nd Regular Session in 2011) via SB 1505, effective beginning tax year 2012. This new law specifically states that the chief appraiser, instead of the comptroller, will be making the calculations for "price adjustment factor" (terminology replacing "market condition factor" in the current law) per EIA data to be used for deriving year-1 price.  The law also gives instructions as to the maximum escalation percentage to be used for years 2-6 (one for oil, one for natural gas) per BLS data.

Business Personal Property Renditions are due by April 15!

Rendition statements and property reports must be delivered to the chief appraiser after January 1 and not later than April 15, except as provided by Tax Code §22.02. On written request by the property owner, the chief appraiser shall extend a deadline for filing a rendition statement or property report to May 15. The chief appraiser may further extend the deadline an additional 15 days upon good cause shown in writing by the property owner.

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:

http://www.window.state.tx.us/taxinfo/taxforms/02-form09.html

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.