Business Personal Property
What is Business Personal Property? Business Personal Property (BPP) is any tangible property that is owned, claimed, possessed or controlled in the conduct of a profession, trade or business. Such property may be subject to property taxes. BPP generally includes all property owned or leased by a business except real property and inventory items. Business inventory and vehicles owned by the business and licensed with the Department of Motor Vehicles are not subject to BPP tax. BPP includes, but is not limited to: · Machinery · Computers · Equipment (fax machines, photocopiers, etc.) · Telephones · Furniture (desks, chairs, bookcases, etc.) · Supplies The Assessor is required by law to annually assess most taxable BPP fair market value. In order to determine the fair market value, the Assessor employs a number of methodologies. BPP is valued annually as of January 1st. Businesses are required to file a Business Property Statement (BPS) if the aggregate cost of business personal property is $100,000 or more, or if the Assessor makes a written request that you report your property (regardless of the cost or value). Separate filings are required for each business location. The BPS should detail the acquisition costs of all supplies, machinery, equipment, fixtures, and if applicable, equipment and/or improvements under construction at your business location as of January 1st. BPSs must be filed by April 1st. A BPS will be considered delinquent if it is postmarked after May 7th. Amendments to your property statement may be made on or before May 31st if the original BPS was filed timely. If a BPS is not filed, as required by law or requested by the Assessor, an "average" assessed value that is based upon businesses of a similar size and use may be used to derive an estimated value of your BPP will be applied. Additionally, a 10% penalty will be added to any assessment made on the estimated assessed due to the failure to file. BPSs are private documents and are held confidential by the Assessor. For more information on BPP, check out the Business Personal Property FAQ page HERE. For information on filing your Business Property Statement Form 571L, check HERE. |
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