Heavy Equipment Dealer Inventory – Reporting Requirements

What Is Heavy Equipment Dealer Inventory?

Heavy equipment dealers are taxed under Texas Property Tax Code §23.1241.

Heavy equipment generally includes equipment that:

• weighs at least 500 pounds 
• is used for agricultural, construction, industrial, mining, maritime, or forestry purposes 
• is not a titled motor vehicle
• self-propelled, self-powered, or pull-type equipment

Heavy equipment inventory value is calculated using the dealer’s sales, leases, or rentals from the prior year. 

Annual Declaration Requirement

Heavy equipment dealers must file an annual inventory declaration.

Form:  Form 50-265 – Dealer’s Heavy Equipment Inventory Declaration

Due date: February 1 each year

The declaration reports the total annual sales, leases, and rentals from the previous year. 

 Quarterly Filing Instead of Monthly Filing

Dealers will now file their Heavy Equipment Inventory Tax Statements every quarter, not every month.

Dealers must file a statement by the 20th day after the end of each quarter, even if:

• they had no sales,
• no leases, or
• no rentals during that quarter.

This means there are now four filings per year, instead of 12.

Important Notes

• Heavy equipment inventory is taxed under the Special Inventory Tax system. 
• Unit property tax is calculated using the sales price or lease payments for each item. 
• This system differs from standard BPP inventory valuation.

Need Help? 

Contact the Business Personal Property Department at:

Bexar Central Appraisal District
411 N Frio St
PO Box 839946
San Antonio, TX 78283-0248
Phone: 210-242-2432
Fax: 210-242-2454 or 210-242-2453