Tangible Personal Property (T P P)
Tangible Personal Property is everything other
than real estate that has value by itself. It includes such items as furniture,
fixtures, tools, machinery, household appliances, signs, equipment, leasehold
improvements, supplies, leased equipment and any other equipment used in a
business or to earn income.
Anyone in possession of assets on January 1, who
has either a sole proprietorship, partnership, company, a corporation or is a
self - employed agent or contractor must file each year. Property owners who lease, lend or rent
property must also file. Churches and other non-profit organizations that are
subject to receive exemptions must also file a DR-405 each year, regardless of changes.
Florida Statute 193.052 requires that all
Tangible Personal Property be reported each year to the Property Appraiser's
Office. If you receive a return, our
office has determined that you may have personal property to report. If you feel the form is not applicable,
return it with an explanation and a way to contact you. Regardless, the form MUST be
returned. Failure to receive a Personal Property Tax Return (DR-405) does not relieve you of your obligation to file.
At the beginning of each year, a return is mailed to Tangible Personal Property owners. An equipment listing is enclosed with the return. Please review the list, note any assets which have been removed and add any new assets. Return the list with your signed form by April 1. It is not necessary to copy the list onto the form. If you do not receive a return, contact the Property Appraiser's Office.
All returns must be mailed back. If you have more than one location, the assets of each should be listed separately on the appropriate return.
If you feel you do not have anything to report, fill out items 1 - 9a on the return and attach an explanation of why nothing was reported. However, most businesses and rental units have some assets to report even if they are only such items as supplies, rented equipment or household goods.
If you were not in business on January 1 of the tax year; indicate the date your business closed and the manner in which you disposed of your business assets. Remember, if you still hold or control the assets, you must file a return on them. Sign, date and mail the return back to this office by April 1.
Even if you feel your equipment is fully depreciated, if it is still in use, or in your possession, it should be reported. There is no minimum vaule to report. A tangible tax return must be filed on all assets by April 1.
There is an area on the return specifically for assets which are leased, loaned, rented or borrowed. Although those assets are assessed to the owner, they are still listed for informational purposes.
Since rental activity is of an income producing nature, if you rent a furnished home or condo for even a few months, you must file a return which lists your personal property. Items that should be listed include: draperies, furniture, appliances, and any other personal property in the rental unit.
The deadline for filing a timely return is April 1. After April 1, Florida Statutes provide that penalties be applied at 5% per month or a portion thereof that the return is late. A 15% penalty is required for unreported property, and a 25% penalty if no return is filed. When a return is not filed by April 1, we are required to place an assessment on the property. This assessment represents an estimate based on the value of businesses with similar equipment and assets. Being assessed in this manner does not alleviate your responsibility to file an accurate return nor abate penalties.
The owner of record on January 1 is responsible for that year's taxes. However, if you buy an existing business and the taxes are not paid, the Tax Collector will seize and sell enough of the purchased property to satisfy the tax lien. Most title companies do not address the tangible assets of a business. You shoud consult your Realtor, attorney, or closing agent to avoid problems in this area.
If you do not agree with the assessed value that appears on the notice of proposed property taxes that you receive in August, please call or come in and discuss the matter. If you have evidence that the assessed value is more than the actual fair market value of your property, we will welcome the opportunity to review all the pertinent facts. If after talking with us, you still disagree with the assessed value, you may file a petition to be heard by the Value Adjustment Board. However, to be heard by the Value Adjustment Board, you must file a return.
HINTS AND SUGGESTIONS
File the original return from this office with name and account number preprinted, as soon as possible before April 1st
Use the equipment listing provided to make any necessary changes.
Be sure to sign and date your return.
Provide a breakdown of assets for depreciation purposes. (depreciation varies on asset type)
Include the age and original installed cost of each item.
If you have an accountant or CPA, work with him to identify any equipment that may have been physically removed, placing an explanation beside the asset on the list. Verify the remaining assets, and list new purchases not previously reported.
Do not use vague terms such as "various" to describe assets or a year purchased.
If you sell your business, go out of business, or move to a new location, please inform this office. This will enable us to keep timely, accurate records and to be cost efficient. In doing so, it helps to prevent the property appraiser's office from sending returns and tax bills repeatedly to a business that has closed or moved to another county.
