Instructions for Application for Allocation of Value for Personal Property Used as Motor Vehicle(s) or Rolling Stock Not
Owned or Leased by a Railroad
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 personal property used in Interstate commerce 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 file 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: Motor Vehicle(s) or Rolling Stock Not Owned or Leased by a Railroad “Other situs state” is one in which the motor vehicle or
rolling stock 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 motor vehicle or rolling stock for this year.
