Business Personal Property Information

For taxation purposes, property is classified as either real property (land, buildings, and other items attached to land) or personal property (items that can be owned but are not attached to land). Tangible personal property that is used to produce income is subject to taxation in Texas.

Tangible personal property includes furniture, fixtures, inventories, equipment, motor vehicles, vessels, stored chemicals or petroleum products and aircraft. These items are typically referred to as business personal property.

Tangible personal property used in the production of income shall be taxed, according to Section 11.01 of the Texas Property Tax Code. Section 11.14 states that a person is entitled to an exemption on property that is owned and not held or used for production of income.