** File the original
DR-405 TPP tax return received from this office (with the preprinted name
and account number), as soon as possible before April 1. Insure items 1
- 9 are filled in. Sign and date your return.
** Work with your accountant
or CPA to identify any equipment that may have been physically removed.
List those items in the appropriate space on your return.
** Carefully review the asset listing included with your return.
** Provide an itemized
listing to include year purchased, age, original cost, and a description
of the TPP assets of your business since depreciation on each item may
** Read the additional
information regarding filing in the instructional section of the return.
** Inform this office
if you sell your business, go out of business, change the name of your
business, or move to a new location.
** PLEASE DO NOT use vague terms
such as "various" or "same as last year".
** For more information
about Tangible Personal Property please contact:
Personal Property Department
Okaloosa County Administrative Building
Okaloosa County Property
1250 Eglin Pkwy N, Suite 201
Tel: (850) 651-7779 or (850) 651-7625
Fax: (850) 651-7241
Tangible personal property (TPP) is everything other than real estate that is used in a business or rental property. Examples of tangible personal property are computers, furniture, tools, machinery, signs, equipment, leasehold improvements, supplies, and leased equipment..
Anyone owning tangible personal property on January 1 must file a tax return by April 1 each year unless you were notified by our office that the filing requirement has been waived. Every new business owning tangible personal property on January 1 must file an initial tax return. In any year the assessed value of your tangible personal property exceeds $25,000, you are required to file a return. Taxpayers who lease, lend or rent property must also file a return.
Section 193.052, Florida Statutes, requires that all tangible personal property be reported each year to the Property Appraiser's office. If you receive a return by mail, it is because our office has determined that you may have property to report. If you feel the form is not applicable, return it with an explanation. Either way, the form MUST be returned. Failure to receive a Personal Property Tax Return (Form DR-405) does not relieve you of your obligation to file.
At the beginning of each year a tangible personal property tax return is mailed to all property owners for all accounts with a value more than $25,000 in the previous year, new businesses, or purchased a business. Failure to receive a return does not excuse a person from filing or the penalties on late returns. If you own tangible personal property that exceeds $25,000 in value, you must file a return even if you did not receive a return from our office. You may also download a return from our website.
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5. What if I receive more than one tax return?
All returns must be sent back. If you have more than one location where you transact business, the assets at each location should be listed on a separate return.
Even if you feel you have nothing to report, fill out items 1 through 9 on the return, attach an explanation about why nothing was reported and file it with the Property Appraiser's Office. Almost all businesses and rental condominium units have some assets to report even if it is only supplies, rented equipment or household goods.
7. I went out of business PRIOR to January 1. Should I still file a return?
Yes. On the return, indicate the date you went out of business. Let us know if you sold or transferred the business to someone else who is operating at the same location or a different location. If you shut the business down, did you sell, scrap, or abandon some or all of the assets. Any assets that you retained which were not converted to personal use should be reported. If you have been waived from the filing requirement, please contact our office as soon as possible.
8. I went out of business AFTER January 1. Should I still file a return?
Yes, since you were still in business on January 1, you are required to file a tangible personal property tax return. Report all business tangible personal property as of January 1. On the return, indicate the date you went out of business. Let us know if you sold or transferred the business to someone else who is operating it at the same location or a different location. If you shut the business down, indicate on the return whether some or all of the equipment was sold, scrapped, or abandoned. Any assets that you retain which are not converted to personal use should be reported next year.
10. Do I have to report assets that I lease, loan, rent, borrow or are provided as part of the rent?
Yes, both the lessor and the lessee should report this equipment on the return. If the lease is a true/operating lease, complete section LEASED, LOANED, AND RENTAL EQUIPMENT on the back of the return. Capital leases should be filed in the same section as similar assets on your depreciation schedule are filed. The lease agreement may need to be reviewed in order to determine leased equipment filing requirements.
11. Is there a minimum value that I do not have to report?
If this is your initial year you are filing there is not a minimum value. In subsequent years, if the assessed value based on the return is less than $25,000, the requirement to file a return is waived. If the assessed value based on the return is greater than $25,000, a return must be filed each year.
12. What are the deadlines and penalties for filing?
The deadline for filing a timely return is April 1. After that date, state law provides that penalties be applied at 5% per month or portion of a month that the return is late. A 15% penalty is imposed for unreported property; there is a 25% penalty when no return is filed.
13. If I buy an existing business during the year, how do TPP taxes apply to me?
If the business you buy was in business on January 1 and had tangible personal property, the Okaloosa County Tax Collector will issue a tax bill in November for taxes levied against that property. Most title companies do not do a search of the tangible assets of a business; therefore, you should consult your broker, attorney, or closing agent to avoid any problems.
When a tax return is not filed by April 1 and the filing requirement has not been waived, we are required to place an assessment on the property. Section 193.073(2), Florida Statute, authorizes the property appraiser to estimate from the best information available the assessment of the tangible personal property of a taxpayer who has not properly and timely filed his or her tax return. The assessment represents an estimate based upon the value of businesses with similar assets. Being assessed does not alleviate you of your responsibility to file an accurate return.
15. What if I don't agree with the assessed value that appears on my notice of proposed property tax?
In mid-August, the owner of record will receive a notice of proposed property tax covering tangible personal property. If you disagree with the assessment, call or visit our office to discuss the matter with us. If you have evidence that the appraised value is more than the fair market value of the property, we will welcome the opportunity to review this information. If you are still not satisfied, you may file a petition to have the matter reviewed by the Value Adjustment Board.
Helpful Hints and Suggestions
File the original return received from this office (with name, account number, and bar coded preprinted) or file a return as soon as possible before April 1. Be sure to sign and date the return. Unsigned returns cannot be accepted.
If an agent files a tax return on your behalf, a signed letter of authorization must be included with the tax return. We cannot accept the return without the authorization letter.
Work with your accountant or CPA to identify any assets that may have been "Physically Removed". List those items in the appropriate space on your return.
Do not use vague terms such as "various" or "same as last year."
Provide a detail asset listing since depreciation on each item may vary.
Review the instruction sheet included with the tax return.
If you sell your business, go out of business, or move to a new location please contact our office as soon as possible.
A timely return in the initial year must be filed to receive the $25,000 exemption. Filing a return after the April 1 deadline will result in penalties.
The return shall be considered the application for the $25,000 tangible personal property exemption and will be applied to the first $25,000 of assessed value for the tangible personal property account. Failure to file a return constitutes a failure to apply for the exemption.
In subsequent years, if the assessed value based on the return is less than $25,000, the requirement to file a return is waived. If the assessed value based on the return is greater than $25,000, a return must be filed each year.
Freestanding property placed at multiple sites, other than where the owner transacts business, will receive one single $25,000 exemption for all the locations.
17. How do I file a Freestanding Property account?
Provide the following information in excel format:
Physical location of equipment
original cost of equipment
Type/description of equipment. Examples include ATMs, pay phones, LP/propane tanks, billboards, signs, utility and telecomm equipment/cell towers, drop boxes, satellite dishes, security equipment, amusement machines, video games, snack or soda machines, candy machines, and leased equipment.
Year acquired for each unit of equipment located in Okaloosa County
18. How do I file a Lease Equipment Property account?
Provide the following information in excel format:
Physical location of leased equipment
original cost of equipment
Type/description of equipment
Year acquired for each unit of leased equipment located in Okaloosa County
In order for us to provide you with the assessed values, you must file this information either on a computer compact disc or through email. Excel is the preferred spreadsheet format. If you send this information via email, please contact our office at 850-651-7240 (ask for the TPP Department) to obtain the appropriate email address.
In addition to your excel filing, you must still provide by mail the original signed and dated tax return.