Business Personal Property: The tax I did not know

Property tax is a tax I appreciate. It is not based on your income bracket or what u know. In 2007 I considered myself well-versed in taxes for businesses due to earning a masters in accounting. However, when I was offered a position as a Personal Property Auditor for the local government, I did not know I would enter into a new realm of taxation. Personal Property seemed as unfamiliar as the extraterrestrials in Men in Black, blending in unnoticed. The more I learned, the more intrigued I became. This new arena of taxation changed my perception of businesses. Gone were the days of walking into a store and focus on the merchandise. Now, my attention was drawn to marquee signs, shelving, endcaps, counters, cash registers, mirrors, security camera, conveyor belts... I found myself thinking about breakrooms, storage spaces, and offices... If you are a new business, new to the personal property tax profession, or just have no clue what I am writing about, I will explain.

PSA - business personal property taxes can be a complex and overwhelming process for both business owners and tax professionals alike. However, with the right guidance and resources, navigating this realm of property tax can become much more manageable.

Imagine walking into a grocery store. The table of baked goods, gondolas full of food, coolers near checkout with beverages, and the cash register... all of these items are business personal property. Briefly stated, business personal property consists of tangible assets such as machinery, furniture, fixtures, equipment, supplies, and inventory owned by a business and is used in its operations. The assets owned by the business are reported to the local government, usually the county assessors' office, on a yearly return or listing form. The assessors' office assess the fair market value of the assets and the assessment is used to calculate the tax bill. Each state have their own rules and regulations and each taxing jurisdiction may have their own procedure to develop the assessment.

Sometimes filling out the return or listing form may calculate a fair market value that the business owner does not agree with. In these instances, a business can report their opinion of value. And this is where things get interesting, but I will keep it light. As a personal property auditor, I was trained to verify the assets were reported on the return correctly. But did the return calculate the fair market value? Certain obsolescence, functional and economic, are typically not factored in on a listing form. The complexity of business personal property tax is one reason business owners hire tax consultants. The limited information available to assist business owners with this tax is one reason this platform was created.

The goal of this platform is to create a resource hub for all stakeholders. Everyone involved in property tax wants the same thing - to get to the fair market value. A key feature of this site will be online course integration, which will allow access to access training materials and resources at the users convenience. This flexibility will enable interest parties to enhance their expertise in property taxation while juggling their busy schedules. Additional features to come will include appointment scheduling feature to make it easy to book consultations with experts in the field. Whether you have specific questions or need guidance on a particular issue, having access to experienced professionals can make all the difference. We also plan to have bi-annual workshops to assist with completing returns and/or understanding assessment notices. We are here to serve and help you learn.

I truly appreciate you reading my first blog and look forward to working with you!