As the deadline for filing your business personal property statement approaches, it’s important to know exactly what you need to do in order to prepare and submit the statement accurately. In this article, we will walk you through the entire process, provide helpful tips, and answer some common questions you may have. Our goal is to help you navigate this sometimes complex world of property tax and property assessment administration.
Key Points to Remember:
- The business personal property statement, also known as Form 571-L, is required for any business that owns personal property, fixtures, and equipment valued at $100,000 or more.
- The deadline for filing the statement is April 1st, and a 10% penalty will be applied if the statement is received after May 7th.
- Businesses with personal property and fixtures valued at less than $100,000 do not need to file the statement annually unless requested by the office.
- Registered vehicles through the DMV are not included in the business statement, as they pay a vehicle license fee instead of personal property tax.
- If your business has closed, make sure to notify the assessor’s office and provide documentation to support the closure. This will help cancel the 2021 tax bill.
- When reporting fixtures, include anything related to special processes, plumbing, high voltage electricity, or special electrical connections.
- Report the acquisition cost of assets, not their current value. These items are reported only once, in the year of acquisition.
- Start-up costs are reported in the year they were acquired, even if subsequent costs were lower.
- Watch the “How to Prepare a Business Property Statement” video available on the Los Angeles County Office of the Assessor website.
- Gather all the necessary information and documentation needed for the statement, such as invoices, receipts, and asset records.
- Determine if your business meets the $100,000 threshold and needs to file the statement annually.
- If your business has closed, inform the assessor’s office and provide supporting documents such as a letter from your landlord or a closing utility statement.
- Fill out the Form 571-L accurately, including the acquisition cost of each asset and any fixtures related to special processes or electrical connections.
- Include a brief description of each asset, its quantity, and its acquisition date.
- Sign and date the form, and make a copy for your records.
- Submit the completed form to the assessor’s office by the April 1st deadline.
Frequently Asked Questions:
Q: Are registered vehicles through the DMV included in the business property statement?
A: No, registered vehicles pay a vehicle license fee instead of personal property tax. However, special vehicles with unique plates may be included.
Q: How do I close out my business property tax if my business has permanently closed?
A: If your business was closed prior to the lien date (January 1st, 2022), return the statement received from the assessor’s office and indicate the date of closure. For previous years’ bills, provide documentation to show the business was not operational during that time.
Q: What should I include as fixtures on the business property statement for my powder coating company?
A: Fixtures related to special processes, plumbing, high voltage electricity, and any special electrical connections should be included. Examples may include pits, plumbing fixtures, power wiring, and switch gear.
Q: Do I need to report the current value or the acquisition cost of assets on the business property statement?
A: You need to report the acquisition cost of assets, not their current value. The cost should reflect the year of acquisition, even if subsequent costs were lower.
Preparing and filing your business personal property statement may seem daunting, but with the right guidance, it can be done accurately and efficiently. Remember to gather all necessary information, report the acquisition cost of assets, and submit the completed form by the April 1st deadline. If you have any further questions or need assistance, consult with your financial and legal advisors or reach out to the assessor’s office for expert help.