Businesses - Business Tangible Personal Property
Most persons or corporations owning tangible personal property
(other than motor vehicles, trailers, boats, or aircraft) that
is used or available for use in a trade or business ( including
processing businesses, but not manufacturing *) and located within
Chesterfield County as of January 1 must file the Return
of Business Tangible Personal Property (“BPP”) by March 1 to avoid
a 10% late filing penalty. Business personal property tax, unlike
that of vehicles, is NOT pro-rated.
The property is assessed at various percentages of the total capitalized
cost, depending on the year of acquisition. All such property must
be reported annually, including that which has been expensed or
fully depreciated, and items that once were (or still are) used
for personal use while still available to business use.
Unlike the business license process, payments for the business
tangible personal property tax do not need
to accompany the return. Tax bills are mailed by the Treasurer’s
Office after the return is processed by the Commissioner’s
Office, and are due to be paid on or before June 5 to avoid 10%
late payment penalties and interest (10% per year, accrued monthly).
[* Note: Manufacturers file the Return of Machinery and
Tools in lieu of the BPP return, but processors must file both
returns. Click here for more information
on the M&T tax and
who must file, including information on qualifying as a manufacturer
or processor.]
Forms to download
Frequently Asked Questions
Business Tangible Personal Property |
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What is business tangible personal
property?
It is any furniture, fixtures, tools,
or equipment that is used or available for use in a business.
It includes fixed assets, but does not include supplies
(such as pens and paper) or real estate. For a more detailed
list of applicable assets, see Sections One and Two of
the BPP return form.
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What is the due date
for the business tangible personal property tax return?
March
1
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Can I get an extension of time to file the return?
Yes,
but your request must come in writing and be faxed
or postmarked by March 1. An extension will be granted
for no longer than 60 days.
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What is the tax
rate?
The current tax rate is $3.60 per $100
of assessed value (that is, 3.6% of the value). The rate
is set each year by the board of supervisors.
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What if I went of
business?
You must notify our office in
writing that you went out of business. If your BPP
is on commercial property and is still available for
use in business after you went out of business,
you are responsible to continue to report it until it
is removed or made unavailable for use in the business.
Note that BPP is NOT pro-rated.
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What if I purchased
or recapitalized an item on January 1?
Report
the item on the form and use a 90% assessment factor.
Include a note on the “Total” line
that these assets are included there.
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What if I am a sole
proprietor and I own the equipment personally?
You
must still report any tangible equipment that is used
or available for use in your business.
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What if I own no
equipment?
Then you must write “None” on
the return and still send it in, along with an
explanation of owning no equipment. You are required
to file the return no matter how much equipment you have.
If you lease equipment, then report it in Section Three
of the return.You may be asked to provide a
copy of the lease agreement.
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Do you allow for
technological obsolescence?
Yes, for certain
computer equipment and peripherals, as described
in Section Two of the return. Computers and peripherals
are assessed using a more progressive schedule
of assessment factors, found in Section Two. Please note
that “computerized” equipment
is not the same as a computer or peripheral and
would usually be reported along with all other equipment
(in Section One), not with computer equipment in
Section Two.
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What if I do not
depreciate anything?
You must still file the
form and report all equipment used or available for use
in the business. You must include an itemized list of
all equipment; and you may be asked to provide a copy
of your federal Schedule C or Form 1120 in lieu of the
required copy of your federal depreciation schedule.
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| What
do I need to attach to my form?
An itemized
list of all property reported, and a copy of your
most recent federal depreciation schedule (Form 4562),
if you filed one. If you did not file a federal depreciation
schedule, you may be asked to provide other supporting
documents, including federal Schedule C or Form 1120
in lieu of the Form 4562.
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