Tangible Personal Property Tax
The Florida Tangible Personal Property tax is due from the following types of property owners on personal property owned as of January 1:
- Sole proprietors
- Self-employed agents or contractors
- Anyone who leases or rents property
Tangible Personal Property (TPP) is moveable personal property (i.e. chattels), inventory held for lease, and equipment on some vehicles, and includes fully depreciated items. TPP does not include intangible property, household goods, most vehicles or inventory held for sale.
Taxpayers must file a Florida Tangible Personal Property Tax Return (Form DR-405) with the local county property appraiser’s office by April 1. See the tangible personal property web page on the Pinellas County Property Appraiser’s Office website, for example. Separate returns are filed for each site where business is transacted and another for freestanding property held elsewhere. If property is owned in multiple counties, then a return is filed with each county’s property appraiser, respectively.
Taxpayers that file on time are eligible for a property tax exemption of up to $25,000. Failure to file, filing late, and unlisted property will result in penalties up to 25% of the total tax.
Be prepared to file your DR-405 so it does not become yet another burden during tax season. Keep a running list of the property you use in your business activities including original cost and your estimate of current fair market value. Each year, update the list with property acquired and property retired or sold in the past year and enlist your tax accountant to help you get your return filed on time.