💡 The Filing Waiver: Escaping the Annual DR-405 Headache

For the compliant small business, there is a path to skipping the annual filing obligation—but you must jump through a hoop first.

The Exemption Waiver Process:

- You must file the first DR-405 on time (by April 1st).

- The Property Appraiser assesses the value of your assets.

- If your TPP is assessed at $25,000 or less (meaning the $25,000 exemption fully covers your value), the Property Appraiser may grant you a waiver from filing in subsequent years.

If granted, you will receive a Notice of Waiver (DR-405W). This notice means you are relieved of the annual filing requirement as long as your value stays under $25,000. If you purchase significant new equipment (e.g., a $15,000 piece of machinery), you must file the return again in that year, even if you received the waiver the previous year.