Tangible Personal Property
Definition
Tangible Personal Property includes any equipment, furniture, fixtures, tools, signs, machinery
or supplies used in a business or for a commercial purpose, other than inventory, real estate and
most licensed vehicles. Exceptions to the licensed vehicle category that are
taxable include equipment mounted on licensed vehicles or vehicles that have a
primary use as a tool rather than as a hauling device. Examples include items
such as rubber-tired cranes, tree spades, cooking and cooling equipment on ice
cream trucks and snack wagons, well drilling equipment, and carpet cleaning equipment.
Furnishings and appliances [stoves and dishwashers (including built-ins), drapes, blinds,
ceiling fans, window air conditioners, etc.] in a rental property, owned by the real
property owner are also subject to the tangible personal property assessment.
Manufactured Homes
Any attachments made to manufactured homes including skirting in rental parks are
also assessed as tangible personal property. The manufactured home may also be considered
tangible personal property if it does not have a current decal indicating payment of the
vehicle registration fee.
Who is required to file and when?
Any property owner, firm or corporation owning tangible personal property is required
to file a tangible personal property tax return
Form VC-405
with the Property Appraiser's Office. The Property Appraiser also requires that
all personal property used be shown on the return, even if someone owns it
other than the business. This information should be provided in the leased,
loaned, and rented equipment section of the tangible personal property tax
return. All tangible personal property must be reported on or before April 1st
each and every year to avoid penalties. In the absence of a return, an estimate must be made.
Why do I have to file?
Section 193.052, Florida Statutes, requires that all tangible personal property
be reported each year to the Property Appraiser's Office. If you receive a
return by mail, it is because our office has determined that you have
property to report. If you think the form is not applicable, please return it with an explanation.
Either way, the form MUST be returned. Failure to receive a Personal Property Tax Return
Form VC-405
does not relieve you of your obligation to file.
How do I obtain this form?
In addition to being available at our offices and on our website, a return is
mailed to tangible personal property owners of record at the beginning of
each year. If you do not receive one, contact the Property Appraiser's Office.
Click here for the Tangible Personal Property Form Instructions
Click here for the Tangible Personal Property Form
$25,000 Exemption (Amendment 1)
(1) Each tangible personal property
tax return is eligible for an exemption from ad valorem taxation of up to
$25,000 of assessed value. A single return must be filed for each site in the
county where the owner of tangible personal property transacts business. Owners
of freestanding property placed at multiple sites, other than sites where the
owner transacts business, must file a single return, including all such
property located in the county. Freestanding property placed at multiple sites
includes vending and amusement machines, LP/propane tanks, utility and cable
company property, billboards, leased equipment, and similar property that is
not customarily located in the offices, stores, or plants of the owner, but is
placed throughout the county. Railroads, private carriers, and other companies
assessed pursuant to s. 193.085 shall be allowed one $25,000 exemption for each
county to which the value of their property is allocated. The $25,000 exemption
for freestanding property placed at multiple locations and for centrally
assessed property shall be allocated to each taxing authority based on the
proportion of just value of such property located in the taxing authority;
however, the amount of the exemption allocated to each taxing authority may not
change following the extension of the tax roll pursuant to s. 193.122
(2) For purposes of this section, a
site where the owner of tangible personal property transacts
business includes facilities where the business ships or receives goods,
employees of the business are located, goods or equipment of the business are
stored, or goods or services of the business are produced, manufactured, or
developed, or similar facilities located in offices, stores, warehouses,
plants, or other locations of the business. Sites where only the freestanding
property of the owner is located shall not be considered sites where the owner
of tangible personal property transacts business.
(3) The requirement that an annual
tangible personal property tax return pursuant to s. 193.052 be filed for
taxpayers owning taxable property the value of which, as listed on the return,
does not exceed the exemption provided in this section is waived. In order to
qualify for this waiver, a taxpayer must file an initial return on which the
exemption is taken. If, in subsequent years, the taxpayer owns taxable property
the value of which, as listed on the return, exceeds the exemption, the
taxpayer is obligated to file a return. The taxpayer may again qualify for the
waiver only after filing a return on which the value as listed on the return
does not exceed the exemption. A return filed or required to be filed shall be
considered an application filed or required to be filed for the exemption under
this section.
(4) Owners of property previously
assessed by the Property Appraiser without a return being filed may, at the
option of the Property Appraiser, qualify for the exemption under this section
without filing an initial return.
(5) The exemption provided in this
section does not apply in any year a taxpayer fails to timely file a return
that is not waived pursuant to subsection (3) or subsection (4). Any taxpayer
who received a waiver pursuant to subsection (3) or subsection (4) and who owns
taxable property the value of which, as listed on the return, exceeds the
exemption in a subsequent year and who fails to file a return with the Property
Appraiser is subject to the penalty contained in s. 193.072(1)(a) calculated
without the benefit of the exemption pursuant to this section. Any taxpayer
claiming more exemptions than allowed pursuant to subsection (1) is subject to
the taxes exempted as a result of wrongfully claiming the additional exemptions
plus 15 percent interest per annum and a penalty of 50 percent of the taxes
exempted. By February 1 of each year, the Property Appraiser shall notify by
mail all taxpayers whose requirement for filing an annual tangible personal
property tax return was waived in the previous year. The notification shall
state that a return must be filed if the value of the taxpayer's tangible
personal property exceeds the exemption and include the penalties for failure
to file such a return.
(6) The exemption provided in this
section does not apply to a mobile home that is presumed to be tangible
personal property pursuant to s. 193.075(2).
What is a waiver of TPP?
If, as of January 1 of each year,
the value of your tangible personal property is $25,000 or less, you will be exempt
from filing a return. This will remain in effect as long as your value remains
at $25,000 or less. If your value is more than $25,000,
Form VC-405
must be filed by April 1st. Value
increases may be due to the addition of newly acquired tangible personal
property during the prior year.
Failure to file a return will result
in the loss of your tangible exemption and a 25% penalty will be assessed
pursuant to section 193.072, F.S. If you claim more exemptions than allowed,
you will be assessed for the amount of taxes exempted, plus 15% interest and a
50% penalty of the taxes exempted.
What if I receive more than one tax return?
All returns must be sent back. If
you have more than one location, the assets of each should be listed separately
on each return.
What if I have no assets to report?
Even if you think you have nothing
to report, fill out items 1 through 10a on the return, attach an explanation
about why nothing was reported and file it with the Property Appraiser's
Office.
Almost all businesses and rental
units have some assets to report even if it is only supplies, rented equipment
or household goods.
Do I still have to file if I'm no longer in business?
Yes. If you were in business on January 1 of the tax year, follow these steps:
-
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 these items.
-
Sign and date the return.
-
Mail the return to this office.
Click here for the Tangible Personal Property
Affidavit of Termination of Business
What if I
have old equipment that has been fully depreciated and written off the books?
Whether fully depreciated in your
accounting records or not, all property still in use or in your possession
should be reported.
Do I have to
report assets that I lease, loan, rent, borrow or are provided as part of the
rent?
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.
What are
the penalties associated with failure to file tangible personal property
returns?
Section 193.072, Florida Statutes
provides for the following penalties for failing to file, or improper or late
filing of a tangible personal property return:
-
Failure To File: 25% Penalty
-
Filing after due date: 5% per late month, up to 25%
-
Failing to properly file: 15% of corrected value
This failure to file a return or to
otherwise properly submit the tangible personal property for taxation does not
relieve the taxpayer of any requirement to pay all tax assessed against the
tangible personal property.
Can I get
an extension to file my Tangible Personal Property Tax Return?
Yes, Section 193.063, Florida
Statutes, provides for an extension of the date for filing tangible personal
property tax returns. The Property Appraiser shall grant a 30-day extension for
the filing of tangible personal property tax returns and may, at her or his
discretion, grant an additional 15-day extension for the filing of tangible personal
property tax returns. Due to a reduction in workforce, no extensions beyond 30
days will be granted. A request for extension must be made in time for the
Property Appraiser to consider the request and act on it before the
regular due date of the return. However, a Property Appraiser may not require
that a request for extension be made more than 10 days before the due date of
the return. A request for extension, at the option of the Property Appraiser,
shall include any or all of the following: the name of the taxable entity, the
tax identification number of the taxable entity, and the reason a discretionary
extension should be granted.
Click here for the Extension Request Policy
Click here for the Request Extension Form
What is an
office or field review assessment?
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 upon the value of businesses with
similar equipment and assets. Being assessed does not alleviate you of your
responsibility to file an accurate return.
What if I
do not agree with the assessed value that appears on my notice of proposed
property tax?
In mid-August, the owner of record
will receive a notice of proposed property tax covering tangible personal
property. If you disagree with our assessment, call this office or come in and
discuss the matter with us. If you have evidence that the appraised value is
more that the actual fair market value of your property, we will welcome the
opportunity to review all the pertinent facts. After talking with us, if you
still think the same, you may file a petition to have the matter reviewed by
the Value Adjustment Board.
Click here for the Tangible Personal
Property Value Adjustment Board Petition
Important
Dates to Remember
January 1:
Date of assessment - Personal property returns mailed
January 1 to March 1:
Widow, widower and disability
applications taken for tangible manufactured home improvements (You must reside
in the State of Florida as of January 1 of the tax year to qualify.)
April 1:
Filing deadline for personal
property returns to avoid penalties
Mid August:
Notices of proposed property tax mailed
Mid September:
Deadline to file Value Adjustment Board petition
November 1:
Tax bills sent by Finance Department
Helpful Hints and Suggestions
File the original return furnished by this office (with name, account number and bar code preprinted) as soon as possible before April 1st.
Work with your accountant or C.P.A. to identify any equipment that may have been "Physically Removed."
List those items in the appropriate space on your return.
If you have an asset listing or
depreciation schedule that identifies each piece of equipment, attach it to the
completed return.
Do not use vague terms such as
"various" or "same as last year".
It is to your advantage to provide a
breakdown of assets since depreciation on each item may vary.
Please include your estimate of fair
market value and the original cost of the item on your return. These are
important considerations in determining an accurate assessment. Look for additional information
concerning filing within the instructional section of the return itself.
If you sell your business, go out of
business, or move to a new location, please inform this office promptly. This
will enable us to keep timely, accurate records.
To inquire
about Tangible Personal Property, please contact:
Volusia County Property Appraiser
Tangible Personal Property Dept.
123 W. Indiana Ave, Room 102
DeLand, Fl 32720
Phone: 386-254-4621
