Businesses need to file Tangible Personal Property return
By ED BRIMNER Property Appraiser
“…In this world nothing can be said to be certain, except death and taxes.” -Ben Franklin
As I hope you know by now, Florida Statutes makes the Wakulla County Property Appraiser’s Office legally responsible to report current property market values to taxing authorities. The assessment for Tangible Personal Property (TPP) is part of this process. To ensure our county commissioners and school board members can correctly set tax rates, we need Honest and Impartial Assessments.
What is Tangible Personal Property? TPP is everything, other than real estate, used to operate a business. It includes furniture, fixtures, computers, tools, machinery, signs, equipment, supplies, leased equipment, and any other equipment used in a business to earn income.
Who must file a Tangible Personal Property Tax Return? Everyone who owns a business, whether a corporation, LLC, or as a self-employed agent or contractor, has until April 1 to file a Tangible Tax Return. All businesses, including agricultural businesses, are required to file an initial TPP return, regardless of sales revenue. Luckily, for small businesses this is a relatively easy process.
Many Wakulla County businesses have never filed a TPP return. Most businesses who haven’t filed don’t know there is a requirement to file. Your Property Appraiser’s office is updating our TPP files, and we need every business owner to file a DR-405 TPP Return.
The Good News! The first $25,000 of TPP is exempt from all business taxes. This $25,000 exemption is automatic if you file your return before April 1 each year. For most small businesses, there are no taxes due. If assets are less than $25,000, no filing is required after the first year’s filing.
The Bad News. Florida Statute 193.183(3) requires you to lose your $25,000 exemption if you don’t file by April 1. You will also lose the exemption if you don’t file and this office files for you.
Also, if you don’t file your TPP return and this office files for you, you cannot challenge the value assigned by this office. Of course, I want you to get the full exemption so please don’t wait to file.
“Why file if my total TPP is less than $25,000 since this is exempted from taxes?” Because Wakulla County is a small county, the State provides additional funding to us each year. The formula for determining Wakulla County’s share of funds provided to small counties includes the total amount of exempted Tangible Personal Property. Accurate accounting of business-owned exempted TPP taxes results in additional State funds for Wakulla County. The State has given Wakulla County millions of dollars which results in lower overall taxes for everyone. Each TPP account is important!
Mr. Chuck Turner is responsible for running our TPP assessments. He is responsible to document local businesses and ensure they have filed their initial returns in accordance with Florida Statutes. He can be reached at (850) 926-0500.
Our goal remains Honest and Impartial Assessments.
Ed Brimner is Wakulla County Property Appraiser.