Instructions for Application for Interstate Allocation of Value for Vessels or Other Watercraft
General Instructions: This form is for use in claiming an allocation of value for vessels and other watercraft used outside of Texas, according to
Tax Code Sections 21.031 and 21.09(a) and as required by Comptroller Rule 9.4033(b)(2). For interstate allocation application forms for Commercial
or Business aircraft, personal property used in Interstate commerce, or rolling stock not owned or leased by a railroad used outside of Texas,
see www.hcad.org/forms
Special Instructions: Determine what type of vessel or other watercraft describes your property: (a) one used as an instrumentality of commerce,
as dened by Tax Code Section 21.03(b)(1) , for which the number of miles that the property was operated within the state during the preceding
year and the total number of miles must be determined; or (b) a special purpose vessel not used as an instrumentality of commerce, as dened in
Tax Code Section 21.031(b)(2), for which the number of days the vessel was physically located within this state during the preceding year must be
determined. Provide a description for each vessel or other watercraft and provide information according to miles or days as described above,
depending on the type of vessel or other watercraft, in Step 2.
Rendition of value: The ling of a rendition of value under Tax Code Chapter 22 is not a condition of qualication 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 (50-145). Failure to le a
rendition timely or at all will subject the property owner to monetary penalties provided by Tax Code Sections 22.28 and 22.29; however, failure to
le a rendition will not cause the property to be disqualied from allocation of value, if the property otherwise qualies and the ling 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 claim-
ing 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 roll 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 ling if the application is led 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.
Verication 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.
