Personal Property Nuts & Bolts – Under $80,000 in Value Exempt (Due by Feb 10)

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January 10, 2017
//   Jack Aylsworth

Personal Property Nuts & Bolts – Under $80,000 in Value Exempt (Due by Feb 10)

Your personal property statement (form 632) is supposed to be mailed by the Assessor by January 10th, and it is due by February 20th. However, if your personal property is under $80,000 in market value, you must file the form 5076 (which can be found here) to be exempt from taxation via the Small Business Taxpayer Exemption. Below is a review of personal property rules and the exemption.

 

What Exactly is Personal Property?

Personal Property is defined as “all property that is not real property”. Real property is considered land and the improvements attached permanently. Personal property is tangible, with no permanent intent. Can the owner remove the personal property easily and without damage if they decide to relocate? If so, this would be an indication of personal property.

 

If You Don’t File a Personal Property Statement or the Exemption Form… This Happens

The Assessor is required by law to make an estimate of the assessment / value of the personal property if a personal property statement isn’t filed. If the Assessor is aware that a personal property statement is incorrect, they can utilize an estimated assessment instead of the filed statement.

 

The Under $80,000 Exemption

To qualify for the Small Business Taxpayer Exemption, the form 5076 must be filed with the Assessor by February 10th. The combined true cash value (or market value) of all industrial and commercial personal property owned or leased by the owner or entity claiming the exemption must be less than $80,000. If you have multiple locations in the same jurisdiction or tax collecting unit – you would combine the value and determine if you fall below $80,000.

 

Late Filings / Incorrect Filings

If you don’t file a timely Form 632 (personal property statement), you can submit one to the March Board of Review. This would be a request, and not guaranteed, but the Board of Review has the authority to revise your estimated statement to match your late statement. In the event that a statement was filed with incorrect values that led to an inaccurate assessment, the State Tax Commission can be petitioned to make a change.

 

Most small businesses will fall into the bucket that is eligible for the under $80,000 exemption. It is imperative that you timely file the form 5076 by February 10th! There is no mechanism for this exemption to be granted retroactively – so get your form in and save some money!

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