Tangible Personal Property (TPP) refers to everything other than real estate, that is used in a business or rental property, and whose chief value is intrinsic to the article itself. Generally they are your business assets, desk, chairs, computers, tables, chairs, warehousing equipment, etc. It also includes personal owned property used in the business, leases, loans, or rental properties. Most automobiles, trucks, and other licensed vehicles are excluded.
Anyone who has a proprietorship, partnership, corporation, or anyone who is self-employed or a contractor owning tangible personal property on January 1, 2017; must file a tangible personal property tax return by April 1, 2017. Any return filed after the due date will incur on a penalty based on the total taxes levied against the property, for each year that do fail to file a return. The rate for the penalty will vary depending on the date the return is filed as follows:
|
Filed or postmarked after Due Date till
|
Penalty
|
|
April 30
|
5% |
|
May 1
|
10% |
| June 1 | 15% |
| July 1 | 20% |
| August 1 | 25% |
When filing the return, it is requested to include the year of purchase, the original cost of the property, and the taxpayer’s estimated value. Additionally, failure to list all TPP on the return will incur in a penalty of 15% of the tax attributable to the omitted property.
If you file your TPP by April 1, you will be eligible for a property tax exemption of up to $25,000 of assessed value, unless you have been waived to file because the assessed value on last year’s return was less than the exemption or if the property appraiser had “previously assessed” the taxpayer without a filed return.
Do you have a lot to do and little time to get it done? Give us a call today. Make sure you report all your tangible personal property on time. We are experts on filing taxes, we aim to file all of our clients tax returns on time.