TANGIBLE PERSONAL PROPERTY
INFORMATION
Q. What is Tangible Personal
Property?
A. Tangible
Personal property is everything other than real estate that
has value by itself. It would include things such 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.
Q. Who must
file?
A. Anyone in possession of assets on
January 1 who has either a proprietorship, partnership,
corporation or is a self - employed agent or contractor, must
file each year. Property owners who lease, lend or rent
property must also file.
Q. Why
must I file a return?
A. Florida Statutes
193.052 requires that all tangible personal property be
reported each year to the Property Appraisers office. If you
receive a return, its because our office has determined that
you may have property to report. If you feel the form is not
applicable, return it with an explanation. Either way, the
form MUST be returned. Failure to receive a Personal Property
Tax Return (DR-405) does not relieve you of your obligation to
file.
Q. How can I obtain this
form?
A. At the beginning of the year a return
is mailed to Tangible Personal Property owners. If you do not
get one, contact the Property Appraisers
office.
Q. What if I receive
more than one tax return?
A. All returns must be
sent back. If you have more than one location, the assets of
each should be listed separately on each
return.
Q. What if I have no
assets to report? Do I still have to file a
return?
A. Yes. If you feel you do not have
anything to report, fill out items 1 through 9 on the return,
and attach an explanation of why nothing was reported.
However, almost all businesses and rental units have some
assets to report even if it is only supplies, rented equipment
or household goods.
Q. If I am
no longer in business, should I still file the
return?
A. Yes. If you were not in business on
January 1 of the taxing year, follow this procedure:
- On your return,
indicate the date you went out of business and the manner in
which you disposed of your business assets. Remember, if you
still have the assets, you must file on them.
- Sign and date
the return.
- Mail the return
back to this office.
Q. What if I have old equipment that has been
fully depreciated and written off the
books?
A. Whether
fully depreciated in your accounting records or not, all
property still in use or in your possession should be
reported.
Q. Do I have to report
assets that I lease, loan, rent, borrow or are provided in the
rent?
A. Yes. There is an area on the return
specifically for those assets. Even though the assets are
assessed to the owner, they must be listed for informational
purposes.
Q. Is there a minimum
value that I do not have to report?
A. No, there
is no minimum value. A tangible tax return must be filed on
all assets by April 1. If, however, the taxes amount to less
than $5.00, you will not receive a tax bill.
Q. If I rent my furnished home or condo for a
few months, do I have to file a tangible personal property tax
return?
A. Yes. Since rental activity is of an
income producing nature, you must file a return which lists
your personal property. Items that should be listed include:
draperies, furniture, appliances, and any other personal
property included in the rental unit.
Q. Are there deadlines and
penalties?
A. 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 portion of a month
that the return is late. A 15% penalty is required for
unreported property, and a 25% penalty if no return if
filed.
Q. What if I buy or sell
an existing business during the year - Who is responsible for
the taxes?
A. The new owner is responsible,
however, if there is insufficient property to satisfy the
taxes due, the owner on January 1 would be responsible for the
difference. Most title companies do not do a search of the
tangible assets of a business. You should therefore consult
your realtor, attorney or closing agent to avoid problems in
this area.
Q. Is my mobile home
considered real or tangible personal
property?
A. If you own both the land and the
mobile home, and it is permanently set up, it is considered
real property. If you do not own the land but do own the
mobile home you are required to purchase a sticker for your
mobile home. The sticker takes the place of taxes. Any
attachments to the mobile home would be considered personal
property. If no sticker is purchased for the mobile home then
both the home and attachments are considered personal
property.
Q. What is an office
or field review assessment?
A. When a tax 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 an assets.
Being assessed does not alleviate your responsibility to file
an accurate return.
Q. What if I
don't agree with the assessed value that appears on the notice
of proposed property taxes that I receive in August of each
year?
A. Call this office or come in and discuss
the matter with us. If you have evidence that the appraised
value is more than the actual fair market value of your
property, we will welcome the opportunity to review all the
pertinent facts. After talking with us, and if you still feel
the same, you may file a petition to be heard at the Value
Adjustment Board.
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