Tangible personal property includes: furniture, fixtures, tools, machinery, signs, equipment, leasehold improvements, supplies, leased equipment and any other equipment used in a business or to earn an income.
Tangible personal property returns (DR-405) are made available January 1 of each year s.193.052. Fla. Stat. (2012). The return must be postmarked no later than April 1 to avoid penalties s.193.062. Fla. Stat. (2012).
The penalties are 5% for each month or part thereof that they are received late up to a maximum of a 25% penalty. s.193.072. Fla. Stat. (2012).
If an additional 15 day extension is needed, it must be requested in writing and postmarked by May 1. The additional extension is granted at the discretion of the property appraiser s.193.063. Fla. Stat. (2012).
Each tangible personal property return (DR-405) is eligible for an exemption from ad valorem taxation up to $25,000 of assessed value. To qualify for the $25,000 exemption, an initial return must be filed. If, in subsequent years, your assessed value is greater than $25,000, the taxpayer is obligated to file a tangible return as prescribed in s.196.183, Fla. Stat. (2012). The return (DR-405) 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. Failure to timely file a return (DR-405) constitutes a failure to apply for the exemption as prescribed in s.196.183, Fla. Stat. (2012).
Freestanding personal property placed at multiple sites, other than where the owner transacts business, will file a single return and receive one $25,000 exemption (examples: vending and amusement machines, LP propane tanks, billboards, utility and cable company equipment and leased equipment).
Extension Request for filing Tangible Personal Property Return
In order for the Tangible office to process the address change request, the Address Change Request form must be completed, signed and submitted by mail to our office. Please specify if the requested change is a mailing address change only or a mailing and physical location change.
In order to properly file a return, we need the following:
Leasing Company Excel Template Instructions: Employing this template will assist the Tangible Personal Property department in the efficient and accurate processing of your personal property tax return. The Excel Tangible Template requests that the lessor provide a description of the property, the year acquired, original installed cost of the property and the lessee's name or the address of the property. The lessor must use the Excel Tangible Template if they would like to have their lessees' separated by name or individual asset location.
Once you have completed the Excel Tangible Template, please email it to the HCPA, at TPPLeasing@hcpafl.org. You will also need to submit the signature page of the DR-405 with all applicable information including your signature and any additional correspondence such as LOA, Change of Address, and Bill of Sale. Your tangible personal property tax return and template will be considered timely filed based upon the received date of your email. We suggest that you maintain a copy of your email for your records.
What is tangible personal property? Tangible Personal Property is everything other than real estate. It includes furniture, fixtures, tools, machinery, signs, equipment, leasehold improvements, supplies, leased equipment and any other equipment used in a business or to earn an income.
Who must file a tangible tax return? Anyone in possession of assets on January 1 who has a proprietorship, partnership, corporation, company, self-employed agent or contractor must file an initial return. Agricultural property owners receiving a Greenbelt classification, anyone who leases, loans or rents tangible personal property to another person or business must also file an initial return.
When must I file a tangible tax return? The Tangible Personal Tax Return (DR-405) must be filed by April 1st each year to avoid penalties.
Why did I receive a Tangible Personal Property return if I was previously exempt?Periodically, previously exempt businesses will receive a return from the Hillsborough County Property Appraiser’s office. This is the Property Appraiser’s method of updating our records and valuations. If you received a return, you will be required to complete the return and submit by April 1, subject to the extension periods set forth below.
What is the filing deadline? Late penalty? The Tangible Personal Property Tax Return shall be filed by April 1, as required by s.193.052, Fla. Stat. (2012). If a Tangible Personal Property Tax Return (DR-405) is received by the Property Appraiser after April 1st, and a filing extension has not been granted, s.193.072, Fla. Stat. prescribes that a late penalty of 5% be applied to the total tax levied against the property covered by that return for each month or portion thereof that a return is filed after the due date, but not to exceed 25% of the total tax. For property discovered by the Property Appraiser and unlisted on the tangible property tax return, a 15% penalty is applied to the omitted property. A 25% penalty is levied against the property for each year that no tangible return is filed.
Why must I file a tangible tax return? Florida Statute 193.052 requires that all tangible personal property be reported each year to the Property Appraiser's Office. If you receive a tangible tax return, it is because the Property Appraiser has determined that you may have tangible property to report. Exempt and partially exempt entities are not immune from the requirement to file. If you feel the tax return is not applicable to you or your business, please return it to the Property Appraiser’s Office with a written explanation. Regardless, the tangible tax return must be submitted. If you do not receive a TANGIBLE PERSONAL PROPERTY RETURN (DR-405), you are still required to submit a return if you have tangible property to report. Failure to receive a tangible tax return from the Property Appraiser’s Office does not relieve you of your obligation to file a tangible return.
How can I obtain a tangible personal property return form?You may DOWNLOAD A TANGIBLE PERSONAL PROPERTY RETURN (DR-405) from our website or you can obtain the form from any one of our locations.
What if I receive more than one tangible personal property tax return? All tangible tax returns should be returned to the Property Appraiser’s Office. A separate tangible tax return should be filed for each business location you operate within Hillsborough County.
What if I have no assets to report? Complete lines 1 through 9 on the Tangible Personal Property Tax Return (DR-405). Attach a signed, written explanation to the return detailing why you have no assets to report. Examples would be "Never started business", "Employee only", "Closed", "Sold", and "Moved out of the County". Timely submit the tangible tax return to the Property Appraiser's Office.
Should I file a tangible tax return if I am out of business? Yes. If you are not in business on January 1st., please detail on the tangible return the date you closed the business and describe specifically how the tangible personal property was disposed of.
Is there a minimum original installed cost of tangible personal? No. There is no minimum original installed cost. All tangible property sited at the business location regardless of original installed cost must be reported on the tangible return.
What if I have old equipment that has been fully depreciated and written off my books?All tangible property must be reported, regardless of age and depreciated value, sometimes referred to as “book value.” The IRS or your accountant may employ depreciation that does not necessarily reflect current market value. All IRS Section 179 assets must be reported.
What if my equipment is in poor condition? Broken? Idle?You should attach documentation to the tangible return describing the poor, broken, or idle condition of your tangible property. If requested, staff members of the tangible department will visit your business location and conduct a physical inspection of the poor, broken, or idle tangible property.
Do I report tangible property that I no longer have because I sold it? Yes. On page 2, the section titled “ASSETS PHYSICALLY REMOVED DURING THE LAST YEAR,” provides you space to describe and explain what tangible property was physically removed during the last year by being traded in, sold, donated, or stolen. Fully depreciated property still in use and equipment being used as spare parts should not be included in this section.
Should I report tangible property that is leased, loaned, rented, or provided by the landlord? Yes. The section titled “LEASED, LOANED, OR RENTED EQUIPMENT” on page 2 of the tangible property tax return should be used to list and describe leased, loaned, and rented furniture and equipment. Typically, the lessee is not assessed by the Property Appraiser for their leased equipment. Usually, the Property Appraiser assesses the owner (lessor) of the tangible property. Be aware that a leasing company (lessor) may bill the lessee for their (lessor’s) tax liability. Consult your individual lease or contract for more information.
Who is responsible for filing a tangible personal property return if I buy or sell an existing business during the year? The owner of record as of January 1 of the year the transaction took place is responsible for filing a tangible personal property return. The Property Appraiser’s office requests a copy of the Sales Purchase Agreement, including a schedule of fixed assets transferred, to ensure the new ownership is properly recorded. Be aware that tangible taxes should be pro-rated at the time ownership transfers. Should the assessed owner not satisfy the tax debt, the assessed property may be seized and sold to discharge the lien.