Instructions for Application for Allocation of Value for Personal Property Used in Interstate Commerce
General Instructions: This form is for use in claiming an allocation of value for property having taxable situs in Texas and subject to the
provisions of Tax Code Section 21.03 (interstate allocation), according to Tax Code Section 21.09(a). For interstate allocation application
forms for vessels and other watercraft, business or commercial aircraft, or rolling stock not owned or leased by a railroad used outside of
Texas, see www.hcad.org/forms
Rendition of value: The filing of a rendition of value under Tax Code Chapter 22 is not a condition of qualification for allocation of the
value of property used in interstate commerce, vessels or other watercraft, commercial aircraft, or business aircraft. Tangible personal
property used for the production of income must be rendered, according to the provisions of Tax Code Section 22.01, on a separate form.
Failure to file a rendition timely or at all will subject the property owner to monetary penalties provided by Tax Code Section 22.28 and
22.29; however, failure to file a rendition will not cause the property to be disqualified from allocation of value, if the property otherwise
qualifies and the filing deadlines are met.
Filing and Deadlines: A person claiming an allocation must apply for the allocation each year the person claims the allocation. A person
claiming an allocation must file a completed allocation application before May 1 and must provide the information required by this form. If
the property was not on the appraisal in the preceding year, the deadline for filing the allocation application form is extended to the 30th
day after the date of receipt of the notice of appraised value required by Tax Code Section 25.19(a)(3). For good cause shown, the chief
appraiser shall extend the deadline for filing an allocation application form by written order for a period not to exceed 30 days [Tax Code
Section 21.09(b)].
Late Application, Penalty and Notice: The chief appraiser shall accept and approve or deny an application for an allocation of value
after the deadline for filing if the application is filed before the date the appraisal review board approves the appraisal records. If the
application is approved, the property owner is liable to each taxing unit for a penalty in an amount equal to 10 percent of the difference
between the amount of tax imposed by the taxing unit on the property without the allocation and the amount of tax imposed on the
property with the allocation. The chief appraiser shall deliver a written notice of imposition of the penalty with an explanation to the
property owner. The amount of the penalty shall be added to the tax bill at the time and in the manner the collector collects the tax. The
penalty amount constitutes a lien against the property and accrues penalty and interest in the same manner as a delinquent tax.
Verification and Cancellation of Value Allocation: If the chief appraiser learns of any reason indicating that an allocation previously
allowed should be canceled, the chief appraiser shall investigate. If the chief appraiser determines that the property is not entitled to an
allocation, the chief appraiser shall cancel the allocation and deliver written notice of the cancellation not later than the 5th day after the
date the chief appraiser makes the cancellation.
Schedule 1: Taxable Tangible Personal Property Used in Interstate Commerce: “Other situs state” is one in which the equipment was
continually used in the past 12 months, or was present on the state’s lien date, or in which the owner was domiciled in the past 12 months,
or which levied a property tax on the equipment for this year.
