Tangible personal property (including inventory) stored for a certain period of time in Texas is subject to Business Personal Property Tax (BPP tax). You, as the owner of goods, will have to assess and report it to the state on a yearly basis and pay the applicable tax.
The rate of the BPP tax depends on the location of the inventory. In this case, you should use the BPP tax rate and rules of the city of Coppell, Texas, and Dallas Appraisal District, where our Warehouse is located.
The following exemptions apply to the BPP tax:
- The tangible personal property stored won’t be charged tax if it has a taxable value of less than $2500 for the tax period
- Tax won’t be charged on items that have been stocked in the Texas warehouse for under 175 days
If these exemptions don’t apply to you, you’ll have to register as a taxpayer in Texas and file a yearly BPP report. The submission deadline is typically April 15 of each calendar year. However, check with the local tax authorities or your tax advisor for the deadline that may apply to you.
We’re working on a functionality that will allow you to download a yearly inventory report to help you assess your warehouse inventory and report it to authorities. As soon as we have it, we’ll inform you.