▼

Assessor - Business Property

Show All Answers

1. Why do I have to pay taxes on my business personal property?

California Constitution Article XIII and Revenue and Taxation Code section 201 state that all property is taxable unless it is stated that it is exempt. Business personal property is not exempt.

2. I paid sales tax when I purchased this equipment. Why am I paying taxes again?

Sales tax and property tax are two different types of taxes.

• Sales tax is paid at the time of purchase.
• Personal property taxes are paid annually.

3. What is unsecured property?

Unsecured property is a personal liability of an Assessee, generally the owner of a business, which has not had the tax payment secured by the ownership of real property.

4. Why do I have to file a Business Property Statement?

An annual filing of a Business Property Statement (PDF) is a requirement of section 441(d) of the California Revenue and Taxation Code. Statements are sent in order to gather the most up to date information on the business property so that an accurate value can be determined.

5. What is this BOE 571 Business Property Statement form used for?

This is a requirement of section 441(d) of the California Revenue and Taxation Code. An Assessor’s request for the filing of an annual statement is sent in order to gather the most up to date information on the business property so that an accurate value can be determined.

6. What will happen if I do not file the Business Property Statement form?

It is important that the statement be returned even if you no longer own the business property. If a statement is not returned, an estimated assessment will be made using the best information available, and a 10% penalty on the assessed value will be added for failure to file as mandated by the California Revenue and Taxation Code section 463.

7. What if the due date to file a Business Property Statement falls on a Saturday, Sunday, or legal holiday?

Whenever the due date for filing a Business Property Statement falls on a Saturday, Sunday, or legal holiday, the statement may be filed by the close of business (5 p.m.) on the next regular business day with the same effect as if it had been filed on the specified due date.

8. How do I fill out the form?

Refer to the instructions provided. If you still have questions, please contact the Assessor’s Office at 530-889-4300 or visit our office.

9. Can I file my form electronically?

For your convenience, the Assessor’s Office offers access to a free online filing program (E-File) from mid-January until May 7th at 5 p.m. annually. E-Filing is quick and secure, with an immediate confirmation that your filing has been accepted. The E-Filing program replaces the need for a printed submission of the Business Property Statement to be mailed to the Assessor’s Office.

10. I tried to E-File but I can’t find the link mentioned in my letter?

The E-Filing program is not available after May 7th at 5:01 p.m. All statements filed after May 7th at 5 p.m. must be submitted by mail.

11. I found the E-Filing link, but it is asking for a Business Identification Number (BIN)? What is this and how do I obtain one?

The Business Identification Number (BIN) is a unique access code that provides private and secure access to your property statement through the E-File program. A new BIN is issued each year and is included with the Notice and Assessor’s Request to File a Business Property Statement letter sent in January. Because the BIN is unique each year, the BIN you received last year will not work to grant you future access to the E-Filing program. If you require a new BIN, you will need to email the Assessor’s Office.

12. Can I return my completed Business Property Statement by fax or as an email attachment?

Statements returned to the Assessor by fax or email must be accompanied by a cover letter on company letterhead. This cover letter must include a description of the information being submitted, contact name and telephone number, email address, and be signed and dated by the taxpayer or taxpayer’s authorized agent. All emailed statements must be in a PDF format and emailed to the Assessor's Office.

13. I have a home-based business and all my equipment is my own personal equipment. Do I have to report it?

Yes. If you are using the equipment for business purposes, it is reportable, assessable, and taxable as business personal property.

14. My business property is moveable and goes in and out of the County depending on the job. Which county should I report it to?

Movable property has situs where it is located on the lien date of January 1 if it has been in the county for more than 6 of the 12 months before the lien date and is expected that it will remain or return to the county for:

• Any substantial period (6 months)
• For a committed use of an undetermined or unspecified period during the 12 months after the lien date

If the property does not meet the qualifications, the location of the property is the location where it normally returns or is stored when not in use, such as a construction or rental yard, or the principal place of business of the owner if no such location exists.

15. What if I lease all my equipment? Do I still have to report it?

Yes. All True Leases, Capitalized Leased Equipment, and Lease to Purchase Option Equipment, where the final payment has not yet been made, are reported in Part III on the front of the property statement, or as an attached listing if more space is required.

Capitalized or Purchase Option Leased Equipment, where the final payment has been made, must be reported in Schedule A at the original cost and original year acquired, not the buyout cost or year the final payment was made.

16. I closed my business and the business assets are not being used. Why do I have to file a property statement or pay taxes?

Business property not in use but located within the county is still assessable. If you have received a Business Property Statement you should complete it for the remaining property and add a letter of explanation as to where and what the remaining assets are.

If you have not received a Business Property Statement, you should complete and return a Business Property Affidavit (PDF) to the Placer County Assessor’s Office. There is a section regarding property remaining after a business closure. Based upon the information you provide, a review of your assessment will be completed.

17. What do I include in supplies?

Examples of reportable supplies are:

• Chemical
• Fuel
• Fuel, insecticides and fertilizer used by agricultural taxpayers
• Janitorial
• Manufacturing
• Medical supplies held by a doctor’s office to be given to patients, incidental to service, even if the samples were provided at no charge
• Ordinary office

Put in the total amount of the retail value of supplies you had on hand on January 1. If you are not sure, make an estimate of the amount you normally keep on hand.

18. Can someone else file my Business Property Statement for me?

When signing, please remember that it is important to complete all the areas of the Declaration by Assessee in order to validate a signature. The declaration must be signed by either the assessee/owner, a duly appointed fiduciary, or a person authorized to sign on behalf of the assessee such as: a member of the bar, a certified public accountant, a public accountant, an enrolled agent, a partner, corporate officer, LLC manager or managing member, or other person as defined by the State of California Board of Equalization.

• In the case of a corporation: the declaration can be signed by an authorized employee or agent who has been designated to sign on behalf of the corporation, by the Board of Directors, by name or by title, only if a valid Agency Authorization has been filed with the Assessor.
• In the case of a partnership, the declaration can be signed by an authorized employee or agent who has been designated to sign on behalf of the partnership, by name or by title, only if a valid Agency Authorization has been filed with the Assessor.
• In the case of a Limited Liability Company (LLC), the declaration can be signed by an authorized employee or agent who has been designated to sign on behalf of the LLC manager or by the members, by name or by title, only if a valid Agency Authorization (eForm) has been filed with the Assessor.

Agency Authorization

When a declaration is signed by an employee or agent, other than a member of the bar, a certified public accountant, a public accountant, an enrolled agent or a duly appointed fiduciary, the assessee’s written Agency Authorization form (eForm) to authorize the employee or agent to sign the declaration on behalf of the Assessee must be filed with the Assessor. The Assessor may at any time require a person who signs a property statement and who is required to have written authorization to provide proof of authorization.

Business Property Statement

A Business Property Statement (PDF) that is not signed and executed in accordance with the foregoing instructions is not considered a valid filing. The penalty imposed by section 463 of the California Revenue and Taxation Code for failure to file is applicable to non-valid or unsigned Business Property Statements.

19. How is the assessed value determined?

Depreciation tables are set for different types of equipment and are based on the annual Equipment and Fixtures Index, Percent Good and Valuation Factors approved by the California State Board of Equalization, Assessor’s Handbook 581. Equipment is depreciated based on the equipment’s original cost and type and year of acquisition to arrive at the fair market value. View Equipment Factors and Classifications (PDF).

20. What if I do not agree with the values? Can my value be reviewed?

You may call, email, or write the Assessor’s Office to discuss the value and make a written request for an informal review. Please note that if the value was the result of an estimated assessment made by the Assessor for failure to file a property statement by May 7, of each year, you will need to complete and return a Business Property Statement (PDF) and attach a Federal Depreciation Schedule with your request for an informal review.

21. What if I do not agree with the Assessor’s value after an Informal Review?

You can file an Assessment Appeal Application online or by calling 530-889-4020. In order to appeal an assessment, you must file an Assessment Appeal Application with the Clerk of the Board between July 2 and September 15 (or the next business day if the September 15 falls on a weekend or holiday).

Should your value notice be the result of an Escape Assessment, you have 60 days from the date of the Notice of Enrollment of Escape Assessment to file an Assessment Appeal Application.

22. What should I do if I've closed, sold, or disposed of my business assets after January 1?

Please complete, sign, date, and return a Business Property Affidavit (eFile) to the Placer County Assessor’s Office. Under California Law, the owner of assessable business property at 12:01 a.m, January 1 (lien date) is responsible for taxes and must be assessed at full value. Sale, closure, or disposal of property after the lien date does not relieve the Assessee of the obligation to report and pay taxes.

23. What should I do if I've closed, sold, or disposed of my business assets before January 1?

Please complete, sign, date, and return a Business Property Affidavit (eFile) to the Placer County Assessor’s Office. Based upon that affidavit, a review of your assessment will be completed. If business property is still located within the county, it may still be assessable. Non-use or storage of a business asset is not the determining factor for its assessability.

24. Can my unsecured business property taxes be prorated?

No. Unsecured bills are never prorated regardless of the disposal date. Proration of taxes should be done between the buyer and seller at the time of sale.

25. I filed bankruptcy, why do I have to pay the tax?

Bankruptcy does not relieve the Assessor of determining a fair market value. Assessed value and payment of taxes are separate issues. Please contact the Placer County Tax Collector at 530-889-4120 for issues regarding whether payment is required after bankruptcy.

26. Why do I have a 10% penalty note on my tax bill for my business?

Either the Assessor’s request to file a valid property statement was not received by May 7th, or no statement was received. California Revenue and Taxation Code section 463 mandates that a late filing penalty of 10% of the assessed value be added for statements not timely filed by May 7th. The Assessment Appeals Board is the only authority with the ability to abate a penalty for late filing.

27. I don't own the building, I just rent the space. Why do I have a tax bill?

The bill is not for real property such as the land or building. It is for the business personal property and fixtures used in the operation of a business such as:

• Computers
• Counters
• Desks
• Racking
• Stoves
• Tables

28. Where can I find additional information on Business Personal Property?

For additional information on Business Property, please visit the California State Board of Equalization website.