The State Constitution says ALL property is subject to property tax. Most people are familiar with the property taxes on their home. Similarly the assets of business are subject to assessment.

Business property is any tangible property owned, claimed, used, possessed or controlled in the conduct of a trade or business. In general, business personal property is ALL property owned or leased by a business except real property and inventory. Inventory is property held for sale or lease to others in the course of your business operations.

All machinery, office furniture and equipment, non licensed vehicles, process or trade fixtures, and any inventory that is out on rent or lease on January 1. Stand alone computer programs like Excel and D-Base, business inventories, licensed vehicles and any intangible assets are exempt from assessment.

Assessment begins with the cost of the asset, including sales tax, freight and installation, but not including any trade in. This cost basis is generally the same as your tax basis. The assessor applies a depreciation factor to the assets cost and this becomes the assessed value. The depreciation schedule is different from the tax depreciation schedule your tax accountant uses. Our depreciation schedule is based on expected economic life.

The tax rate is usually a little more than 1% of the assessed value. Generally, using a rate of 1.2% will give a conservative estimate. For example, if your business assets cost basis is $15,000, and the depreciated assessed value is $12,000, your property taxes on your business assets will be about $145.

If you do not own the real property where the business is conducted, and if the business property statement was filed timely, you should receive your bill by the end of July. Payment will become delinquent and subject to penalties and interest after August 31st. If you own the real property, the assessed value of your business assets may be added to the value of the real property and you will pay the taxes in your November and March tax payments.

Yes, by law the Business Property Statements are confidential documents and are held in secret by the Assessor.