Tarrant County Personal Property Rendition When You Sell
Texas taxes the equipment, furniture and inventory a business owns on January 1. If you sell during the year, that tax bill still has your name on it until the deal says otherwise.
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What a Rendition Is
A rendition is the yearly report a Texas business files with its county appraisal district. It lists the taxable personal property the business owns or controls.
In Fort Worth and the rest of the county, that is the Tarrant Appraisal District, or TAD.
The district uses it to set the taxable value of your equipment, furniture, inventory and supplies. The cities, county, school district and other local taxing units then bill you on that value.
At Fort Worth Business Brokers HQ, we connect owners with an experienced broker who has seen how this small filing turns into a line item at closing.
January 1 Sets the Owner
TAD says a rendition reports the property a business had in its control or possession on January 1, citing section 22.01 of the Texas Property Tax Code.
That date drives everything in a sale. If your company owned the equipment on January 1, the rendition for that year is yours to file, even if the buyer owns the business by summer.
The tax bill for that year goes out in the fall and is due early the next year. So the buyer is usually running the business when a bill for property you rendered arrives.
The April 15 Deadline and the Penalty
Renditions are due April 15. TAD reminds owners each spring to file by then to avoid a 10% penalty, and the Tarrant County Tax Office notes that state law requires that penalty when an owner doesn't render on time.
A business that needs more time can ask for an extension in writing, by mail or through its TAD online account, but the request itself has to be in by April 15.
If a sale is closing in the spring, put the rendition on the closing list. It's an easy item to drop when everyone is focused on the purchase agreement.
The Larger Exemption Starting in 2026
Texas raised its business personal property exemption for 2026. TAD's current guidance describes a $125,000 exemption per location, with rules that group related businesses together.
Many service companies with modest equipment may now owe little or nothing. Heavier operations, like trucking, oilfield services and manufacturing, can still be well over the line.
TAD says businesses under the threshold should still file a rendition to certify they qualify. Your CPA can tell you whether yours does.
Who Pays the Sale Year's Tax
Since the tax follows January 1 ownership, the purchase agreement normally decides who pays it in the end. Splitting the year's tax by days of ownership is a common approach.
Because the final bill isn't known at closing, the split often uses last year's tax as an estimate, with a true up later. Your attorney should write that down plainly.
Inventory adds a wrinkle. If the buyer pays you for inventory at closing, ask your CPA how the inventory value on your rendition lines up with what you're being paid.
What Buyers Look For
A buyer's diligence team often asks for recent renditions and tax statements. They want to see that you filed on time and that no penalties or unpaid bills follow the equipment.
Your rendition also acts as an equipment list. If it doesn't match the asset schedule in the deal, expect questions during valuation and diligence.
Unpaid property tax can attach to the property itself, so a buyer will want it settled. Most of the time escrow pays any balance out of your proceeds at closing.
After the Sale
Once your company no longer owns property in Tarrant County, tell TAD so next year's rendition is expected from the buyer instead. Keep copies of what you filed for the sale year.
Then watch your mail in the fall. Pay or forward the bill according to your purchase agreement, and keep proof, since the buyer may need it if anyone asks later.
Property tax is one of several state and local items in a Texas sale. The Comptroller step is covered in our guide to the Texas Certificate of No Tax Due.
Confirm With Your CPA or Attorney
This page is a general overview, not tax or legal advice. Deadlines, exemption rules and TAD procedures can change, and how they apply depends on your property and your deal.
Confirm your filing status and any open balances with TAD, the Tarrant County Tax Office and a Texas CPA before you close.
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