Business Tangible Personal Property FAQ's
1. What is Business Tangible Personal Property?
2. What is the tax rate?
3. What is the due date for filing?
4.
Will an extension be granted for the filing deadline?
5.
Who must file a Business Tangible Personal Property Tax Return?
6.
How do I file a Business Tangible Personal Property Return?
7. Do
I have to file if I have no equipment to report?
8. Do
I have to file a new business property return each year?
9. If
my business ended after January 1, do I still need to file a return?
10. How is business property assessed?
11. Some
of my tangible personal property is fully depreciated. Do I have to report
these items?
12. What
is meant by "original capitalized cost"?
13. I own
personal property that I lease to others for their business use, but my
agreement with them
requires them to pay any local taxes that might be assessed.
Do I have to report leased property
on this form?
14. I
lease tangible personal property from others. Do I have to report these
items if the lessor is
also reporting them to you?
15. What
if I am a sole proprietor and I own the equipment personally?
1. What is Business Tangible Personal Property? Virginia State Code Section 58.1-3503(17) defines business personal property as all tangible personal property employed in a trade or a business. Businesses are assessed on, but not limited to, office furniture, fixtures, equipment, machinery and tools, and computer equipment.
2. What is the tax rate? For 2007 the rate is $2.20 per $100 of assessed value. The Board of Supervisors sets this rate annually.
3. What is the due date for filing? Starting in 2006 the Returns must be filed on or before March 1. The tax bills will be due on June 30th and December 5th.
4. Will an extension be granted for the filing deadline? A fifteen-day extension may be granted if the request is submitted in writing prior to the March 1 deadline.
5. Who must file a Business Tangible Personal Property Tax Return? All businesses in Gloucester County must file a return on or before March 1 of each year. Businesses need to report tangible personal property owned, leased, or in their possession in Gloucester County as of January 1 of each year.
6. How do I file a Business Tangible Personal Property Return? You may complete the 2008 Tax Return of Business Tangible Personal Property form and mail it to the Commissioner of the Revenue's Office.
7. Do I have to file if I have no equipment to report? If you have a business in Gloucester County and you do not own , lease, or possess personal property, you are required to sign and return the form with an attached statement confirming you have no personal property and explaining how you conduct business.
8. Do I have to file a new business property return each year? Yes. In order to keep our records accurate, the information needs to be updated each year to reflect any changes that may have occurred.
9. If my business ended after January 1, do I still need to file a return? Yes. If you were in business on January 1, you must file the return on or before the due date. You will be responsible for the tax for the remainder of the year. Gloucester County does not prorate.
10. How is business property assessed? Gloucester County values business tangible personal property used in a trade or business at a percentage of original cost based on the year of purchase. Property purchased in 1997 and older is valued at 10% of original cost and property purchased in 1998 and newer is valued at 30% of original cost. Virginia law requires all property to be assessed, regardless of whether or not the taxpayer files on such property.
11. Some of my tangible personal property is fully depreciated. Do I have to report these items? Yes. All business property must be reported, even items that are fully depreciated or expensed for IRS purposes. If the IRS does not require you to file a depreciation schedule, attach a list of all your business personal property to the return. Remember to include the date of purchase and the original cost of the property.
12. What is meant by "original capitalized cost"? This is the actual cost of the business tangible personal property before any allowance for depreciation. It includes all costs associated with putting an asset into use (such as sales tax, delivery and freight charges, installation, labor, etc.).
13. I own personal property that I lease to others for their business use, but my agreement with them requires them to pay any local taxes that might be assessed. Do I have to report leased property on this form? Yes. As the owner of the property, you are required to file the return and pay the tax assessment, even if you have a private agreement with your lessee.
14. I lease tangible personal property from others. Do I have to report these items if the lessor is also reporting them to you? Yes. By law, you are required to report all property in your possession, including leased property. This information allows us to ascertain that the lessor has reported the property and is properly assessed.
15. 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.
Back to Business & Excise Tax Division
Updated By:
Kristin Powell
Last Update:
05/09/2008