Personal Property Assessments
Each year Business Property Statements, which provide a basis for determining property assessments for fixtures and equipment, are mailed by the Assessor to most commercial, industrial, and professional firms. Businesses with personal property and fixtures that cost $100,000 or more must file a Business Property Statement each year by April 1. Business inventory is exempt from taxation.
Generally, businesses with personal property and fixtures that cost less than $100,000 are not required to file a Business Property Statement annually. Instead, a value is established based on an initial Business Property Statement filing or by an on-site appraisal. That value may be adjusted by subsequent annual on-site appraisals.
What is Business Personal Property?
In general, Business Personal Property is all property owned or leased by a business except Real Property and Inventory items.
Business Personal Property includes, but is not limited to:
- Equipment (e.g. FAX machines, photocopiers)
- Furniture (e.g. desks, chairs, bookcases)
Tangible property owned, claimed, possessed or controlled in the conduct of a profession, trade or business may be subject to property taxes.
Business Personal Property is valued annually as of January 1.
Business Property Statement
- Businesses are required by law to file a Business Property Statement if the aggregate cost of business personal property is $100,000 or more or if the Assessor requests the information
- Separate filings are required for each business location
- Statements are due April 1
- A 10% penalty will be applied if a statement is received after May 7
- Business Property Statements are private documents and are held confidential by the Assessor
Both the Lessor and the Lessee should report equipment that is on lease on January 1 to the Assessor. Not all leased equipment is assessed in the same manner. Several factors determine how leased equipment is assessed, including:
- Leases with exempt entities
- Situs (Street Address)
- Type of Lease