Q: Can you give some background on tangible personal property?
A: Tangible personal property taxes are confusing to a lot of business owners who either don’t know they exist or don’t understand them. If you own a business in St. Johns County, you are required to file a tangible personal property tax return. This is an ad valorem tax and applied to the value of your business assets like equipment, furniture and computers. It doesn’t matter how large or small your business is, whether it is a lawn care business or hair salon or major manufacturer. It also doesn’t matter if you own or rent the real estate that houses your business.
Q: What are some business assets that are exempt from tangible personal property tax?
A: If the assets of a business are tagged motor vehicles, they are not subject to the tax. Inventory held for sale is also not subject to the tax. So, if your business sells widgets to the public, the widgets are not subject to tangible personal property tax, but the shelves that hold them are subject.
On the other hand, if you are in the business of renting furnished residential property, the furniture inside the property is subject to the tax.
Q: What is the deadline to file the tangible personal property tax return?
A: We send out a postcard reminding business owners about the deadline, which is April 1. If you notify our office in advance, we can give an extension until May 1. If you didn’t notify us prior to April 1, we cannot give the extension.
You can file your tangible personal property tax on paper or online on our website.
Q: What happens if a business doesn’t file a tangible personal property tax return?
A: We are required by the state of Florida to estimate the value of your assets and you will be taxed on that value with no opportunity for appeal.
Q: How much is the tax?
A: If the value of your business’ assets are $25,000 or less, you are exempt from tangible personal property taxes, but you must still file one time. When you file the first time, you will be exempted and not have to file again, unless your business assets grow to more than $25,000. It’s very important to file because if you don’t file, or file late, there are penalties.
If your business assets are valued at more than $25,000, the tangible personal property tax is applied the same millage as real property.
Q: What are the penalties for filing late?
A: There is a 5 percent penalty per month until you file, up to a total of 25 percent.
Q: What is the best way for our readers to contact you?
A: Our office is located at 4030 Lewis Speedway Ste. 203, (904) 827-5500. It is open Monday – Friday, 8:30 a.m. – 5 p.m. Also, readers can email me at Eddie@sjcpa.us or call me at (904) 827-5500.
