Tangible personal property (TPP) is all goods, property other than real estate, and other articles of value that the owner can physically possess and has intrinsic value. Inventory, household goods, and some vehicular items are excluded.
Who has to pay TPP taxes?
Anyone who has a proprietorship, partnership, or corporation; is a self-employed agent or contractor; or leases, lends, or rents property on January 1 must file a TPP return with the property appraiser by April 1 each year.
How do I file a TPP return?
Complete Form DR-405 and submit it to your
property appraiser by April 1. Report all property located in the county on January 1.
How do I obtain a TPP account number?
Contact the county property appraiser’s office in the county where your tangible personal property (TPP) is located. That office will provide information about obtaining a TPP account number and advise you whether a TPP account number will be needed when filing a Tangible Personal Property Tax Return (Form DR-405).
I sold my business. Do I still have to file a TPP return?
Yes. If you sold your business before January 1 of the tax year, indicate on the return the date and to whom you sold your business and list the business's assets with information on how you disposed of them. If you have retained any assets, you must list them as well.
I went out of business. Do I still have to file a TPP return?
If you went out of business before January 1 of the tax year, contact your
county property appraiser's office to notify them of the business's closure and to request instructions on filing a final TPP return.
I have TPP in multiple locations. How many returns should I file?
You must file a single return for each site in the county where you transact business. If you have freestanding property at multiple sites other than where you transact business, file a single return for all freestanding property located in the county in addition to the return for the site where you transact business.
Some of my TPP is no longer usable or is no longer valuable. Do I list it on the return?
I have rented some of my TPP. Do I list it on the return?
Yes. List these items in the “Leased, Loaned, or Rented Equipment” section of the form.
Do I have to file a new TPP return every year?
If you own TPP at or below $25,000 in assessed value and file an initial return, you may qualify for the filing waiver. The waiver applies in all subsequent years that the property value stays at or below $25,000.
By February 1 of each year, the property appraiser notifies TPP owners whose requirement for filing an annual TPP return was waived in the previous year.
If you received a filing waiver for the previous year and own property above $25,000 in assessed value, you must file a return on time or be subject to penalties.
Does Florida have a TPP tax exemption?
Yes. If you file your TPP return by April 1, you will be eligible for a property tax exemption of up to $25,000 of assessed value.
What happens if I don’t file a TPP return or file a late return? What is meant by “timely” in section 196.183, F.S.?
If you fail to file or submit a late TPP return, you will be subject to penalties. Failure to file will result in a penalty of 25 percent of the total tax levied against the property for each year that you do not file a return. Filing late will result in a penalty of 5 percent of the total tax levied against the property covered by that return for each year, each month, and part of a month that a return is late, but not more than 25 percent of the total tax. Failure to list all TPP on the return will result in a penalty of 15 percent of the tax attributable to the omitted property.
TPP owners must file TPP tax returns by April 1 or within any extension period. Returns filed after April 1 or after an approved extension period would not be timely. This does not apply to taxpayers who are not required to file because the property appraiser previously assessed their property without a filed return or whose requirement was waived because the value of their property is not more than the exemption.
If a TPP owner doesn’t file a return, should the property appraiser grant an exemption?
In general, all TPP taxpayers must file an initial return to receive the exemption. Exceptions include a waiver of the requirement to file because the assessed value on last year’s return was not more than the exemption or the property appraiser had “previously assessed” the taxpayer without a filed return. See
section 196.183(4), F.S. “Previously assessed” means the property appraiser assessed and required the taxpayer to pay tax, even though the property appraiser did not require the taxpayer to file a return. In this case, the property appraiser has the option to qualify the taxpayer for the exemption.
What is a business site under section 196.183(2), F.S.?
A site where the TPP owner transacts business (business site) includes the business’s offices, stores, warehouses, plants, or similar facilities where:
- The business ships or receives goods.
- Employees of the business are located.
- The business stores goods or equipment.
- The business produces, manufactures, or develops its goods or services.
What is not a business site under section 196.183(2), F.S.?
A site where only freestanding property is located is not a business site. Examples of freestanding property include vending and amusement machines, LP/propane tanks, utility and cable company property, billboards, leased equipment, and similar property not customarily located in the owner’s offices, stores, or plants.
If a business leases freestanding equipment, such as copy machines, is the place where the equipment is located a business site?
No. If it is not the business’s office, store, warehouse, plant, or similar facility where one or more of the following activities occur, it is not a business site:
- The business ships or receives goods.
- Employees of the business are located.
- The business stores goods or equipment.
- The business produces, manufactures, or develops its goods or services.
If freestanding equipment is not located at a business site, does the owner receive an exemption for it? How is the exemption allocated to the taxing authorities?
Yes. If the TPP owner must file a single return, then the property appraiser grants a single exemption for freestanding equipment not at a business site. The property appraiser will allocate the exemption to the taxing jurisdictions where the equipment is located. Allocation should be based on each jurisdiction’s proportionate share of the property’s just value. However, the amount of the exemption allocated to each taxing authority may not change following the extension of the tax roll. See
section 196.183(2), F.S.
Can the property appraiser delete exempt accounts, such as mobile home attachments, from the roll and not report them to the Department of Revenue?
If exempt accounts do not require a return, how will the property appraiser know the correct value for the account?
The property appraiser should determine the value based on previous returns and discovery. If the property appraiser believes that the TPP owner has added new property or that value has increased above the $25,000 exemption, he or she should send a return to the taxpayer.
If a cohesive operating business has multiple owners who each file separate TPP returns, how many $25,000 exemptions is the business entitled to receive?
Each TPP tax return is eligible for an exemption up to $25,000 of assessed value. If the property appraiser has determined that the property has separate and distinct owners and each files a return, each may receive a $25,000 exemption. See
section 196.183, F.S.
If a utility company has employees working at locations that are not retail or service centers, are they entitled to one exemption for each location where an employee might perform some work?
One of the criteria of a business site is that employees of the business are located at the site. An employee working at a site from time to time to repair or monitor equipment would apparently not be located at the site. However, this is a factual determination the property appraiser should make. See
section 196.183(2), F.S.
Section 196.183(4), F.S., allows an exemption for property assessed without a filed return. Does this apply only to mobile home attachment accounts previously assessed without a return, or does it apply to any account previously assessed without a return?
It applies to assessments on any account that the property appraiser has not required to file a return if the property appraiser had previously assessed the account without a filed return. “Previously assessed” means that the property appraiser assessed the taxpayer without a filed return in the prior year.
