If you fail to file a Rendition before the deadline or simply don’t submit one at all, a penalty in the amount equal to 10% of the amount of taxes imposed that year will be assessed. For example, your taxes for the year are $2,135.63. 10% * $2,135.63 = $213.56, so your total tax liability for the year will be $2,349.19 ($2,135.63 + $213.56).
If a penalty is assessed, you may file a written request for a waiver of the penalty within 30 days of receiving the notice. The burden of proof lies with you, so be sure to provide documentation showing you either substantially complied with the Rendition law or made a good faith effort to do so. Documentation should also address the following:
- Compliance history with respect to paying taxes and filing statements or reports
- Type, nature, and taxability of the specific property involved
- Type, nature, size, and sophistication of the business
- Completeness of the business records
- Your reliance on advice provided by the Appraisal District that may have contributed to the failure to comply and imposition of a penalty, and
- Any other factor that may have caused your failure to file a timely Rendition statement or report.
The Chief Appraiser will make a determination based on the evidence submitted and can decide to waive the penalty if there is sufficient reason to believe you made a reasonable effort to comply with requirements.