Frequently Asked Questions For TPP
WHAT IS TANGIBLE PERSONAL PROPERTY (TPP)?
Tangible Personal Property is everything that is not real estate (land, buildings and improvements). It includes furniture, fixtures, tools, computer equipment, machinery, office equipment, supplies, leasehold improvements, leased equipment, signage, and any other equipment used in a business. Furniture and fixtures used in a rental unit (condo, apt, house) are taxable.
WHO MUST FILE A RETURN?
Any business owner or self-employed contractor owning tangible personal property on January 1st must file a return each year as required by Florida Statutes 193.052 and 193.062. Property owners that loan, lease or rent tangible property to others must also report such property. Rental Unit Owners: Furniture and fixtures in rental condominiums and apartments must be reported.
WHY MUST A RETURN BE FILED?
Florida Statutes require that all TPP be reported to the Property Appraiser’s Office annually. It is the duty of the Property Appraiser to assess all tangible personal property in Nassau County. To facilitate this process, return forms are mailed to all taxpayers determined by this office to have property to report. If you receive a return form and feel that the form does not apply to you, return it with an explanation so that we can properly review your situation and, if necessary, remove you from the TPP roll. All forms should be returned.
MUST AN EXEMPT ORGANIZATION FILE A RETURN?
Yes, Florida Statute 193.057 requires that all personal property be reported each year to the Property Appraiser’s Office. Although an ad valorem tax exemption application is submitted by March 1, and all qualifications are met under Chapter 196 of the Florida Statutes, the Property Appraiser must still determine a value of the assets. You should remember to include all leased equipment in the appropriate section of the return.
WHAT IF I RECEIVE MORE THAN ONE TAX RETURN?
You may have property at more than one location. If you have more than one location, the assets of each should be listed separately on the appropriate return.
IS THERE A MINIMUM VALUE THAT I DO NOT HAVE TO REPORT?
No. If you are required to file there is no minimum value. A tangible 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.
WHAT IF I HAVE NO ASSETS TO REPORT? DO I STILL HAVE TO FILE A RETURN?
If you feel you do not have anything to report, fill out items 1 through 9a on the return and attach an explanation as to why nothing was reported. However, most businesses will have some reportable assets like furniture, and basic office equipment. If you have received a waiver letter and you have not added property that would cause the total value to exceed $25,000, you are not required to file a return. If the location of your business has changed, or if there has been a change in ownership, you must file a return.
HOW CAN I OBTAIN THE TPP RETURN FORM?
Return forms are mailed in early January to all property owners of record. If you do not receive a return form at that time, please contact our office. Failure to receive a return form does not relieve you of the obligation to file. You can download the DR-405 Tangible Personal Property Tax Return from our website under the Forms tab.
WHAT ABOUT OLD EQUIPMENT THAT IS FULLY DEPRECIATED AND NO LONGER ON MY BOOKS?
All property in your possession on January 1 must be reported even if fully depreciated on the books for accounting purposes. As prescribed by state law governing the ad valorem appraisal process, tangible personal property is allowed depreciation over time but as long as it is being used in an income-producing venture, it never depreciates to a zero value. Additionally, property that has been expensed under IRS Section 179 must be reported.
AM I REQUIRED TO REPORT SUPPLIES USED IN MY BUSINESS?
Yes. All supplies used in the business, but not for sale to the public, should be reported. Examples are office supplies, tools and dyes, restaurant supplies, brochures and other consumables.
DO I HAVE TO REPORT ASSETS THAT I LEASE, RENT, OR BORROW FROM SOME ONE ELSE?
Yes. There is a section on the page two of return form specifically for such items. These assets are normally assessed to their owner, unless capitalized by the lessee, however, you should list the name, address and other required information of the person or firm from whom you lease the equipment.
IF I RENT MY FURNISHED HOME OR CONDO FOR A PERIOD DURING THE YEAR, DO I HAVE TO FILE A TANGIBLE PROPERTY RETURN?
Yes. You should report household furnishings such as furniture, window treatments, fans, art work, bedding, and appliances (excluding refrigerator, dishwasher, water heater and range/oven).
WHAT HAPPENS IF I DO NOT FILE MY TANGIBLE PROPERTY RETURN?
The Property Appraiser’s office is required to place an assessed value on all tangible personal property regardless of whether or not a tax return is filed (FLORIDA STATUTE 193.073). In the absence of owner input, we will be forced to estimate a value based on the best available information. Additionally, per statute, a penalty of 25% will be applied for failure to file and you waive your right to a Value Adjustment Board appeal (see below).
ARE THERE DEADLINES AND PENALTIES?
The deadline for filing a timely return is April 1. After April 1, Florida Statutes 193.072 provide that penalties be applied at 5% per month that the return is late, up to 25%. A 15% penalty is required for unreported property, and a 25% penalty if no return is filed.
IF I AM NO LONGER IN BUSINESS, BUT I RECEIVE A RETURN FORM, WHAT SHOULD I DO?
All return forms should be filed with the Property Appraiser’s Office. If you were not in business on January 1st of the tax year, please indicate on the form the date you went out of business, the manner in which the assets were disposed of, sign and date the return form, and send it to this office. If the business was sold, provide the name of the new owner, date sold, and how the assets were disposed of.
WHAT IF I BUY OR SELL AN EXISTING BUSINESS DURING THE YEAR; WHO IS RESPONSIBLE FOR THE TAXES?
The owner of record on January 1 is responsible. However, if 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 should consult your attorney or closing agent to avoid problems in this area.
ARE TANGIBLE PERSONAL PROPERTY AND REAL ESTATE TAXED AT THE SAME RATE?
Yes, both are taxed at the same millage rates if they are in the same taxing jurisdictions.
WHAT IF I DO NOT AGREE WITH THE ASSESSED VALUE STATED IN THE NOTICE OF PROPOSED TAXES (TRIM) THAT I RECEIVE IN AUGUST?
Pursuant to FLORIDA STATUTE 194.011, you are encouraged to call or visit the Property Appraiser’s office to discuss your assessment, providing any information you have to support your position BY THE DEADLINE PERIOD STATED ON THE TRIM NOTICE. If you and the Property Appraiser continue to disagree with the assessed value after discussion, you may file a petition BY THE DEADLINE PERIOD STATED ON THE TRIM NOTICE to be heard by the Value Adjustment Board. If you do not file a petition by the deadline, you waive your right to such an appeal. Additionally, in order for the Value Adjustment Board to consider your appeal, you must have filed a return (FLORIDA STATUTE 194.034).
CAN I GET AN EXTENSION BEYOND THE APRIL 1ST FILING DEADLINE?
Yes. FLORIDA STATUTE 193.063 provides that an extension of up to 30 days may be granted by the Property Appraiser. The extension request must be made in writing prior to the normal filing deadline. The name and tax parcel number must be stated in the request. At the discretion of the Property Appraiser, an additional 15-day extension beyond 30 days may be granted upon written request explaining why the additional time is needed.
Additional Tangible Personal Property Filing Tips
- Your original DR-405 form contains your parcel number and a bar code. Please use this form to file your return, or attach it to your computer prepared form.
- Please provide the physical address where the property is located, and indicate if address has changed.
- Attach a list of assets or your depreciation schedule.
- Indicate any assets physically removed or added prior to January 1st.
- Please sign and date form, and provide a telephone number.
- Economic lives differ for various assets, so the more detail provided with the return, the more accurate we can be in the application of depreciation factors.