TANGIBLE PERSONAL PROPERTY (TPP)
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).
Filing extensions may be granted up to May 15 s.193.063. Fla. Stat. (2012).
$25,000 Tangible Personal Property Exemption
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).
TPP Forms and other information
- The extension request is a 30 day extension only.
- The request must be postmarked by April 1 or submitted by 5:00pm EST on April 1.
- If an additional 15 day extension is needed, it must be requested in writing and postmarked by April 30, 2014. The additional extension is granted at the discretion of the property appraiser s.193.063. Fla. Stat. (2012).
- The Property Appraiser’s Office prefers requests for 30 day extensions of time to be submitted online.
- A written request for extension of time shall include all of the following: business name, physical location, tangible folio number, tax identification number, and a reason an extension should be granted. Omission of any of the items listed above may result in the denial of the request.
CHANGE OF MAILING ADDRESS FORM
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 or emailed (firstname.lastname@example.org) to our office. Please specify if the requested change is a mailing address change only or a mailing and physical location change.
Tangible Personal Property Tax Form ( DR-405 )
In order to properly file a return, we need the following:
- For existing businesses: Folio number (located on Trim notice and tax bill) or you can search our Tangible database by "Owner Name" or "Owner Address".
- For new businesses: Place the word "NEW" next to Folio Number on your tangible tax return (for initial, first time filers only)
- If you list the condition of your property as "poor" we must have further documentation or request a site inspection.
- If you have any questions, please call (813) 272-6988.
Frequently Asked Questions
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.
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?
If you do not receive a Tangible Personal Property Tax Return (DR-405) by February 1st, you may DOWNLOAD A TANGIBLE PERSONAL PROPERTY RETURN (DR-405) from our website.
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 or 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?
Yes. 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?
Yes. 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.