iCare Community Magazine
Tax Savings Exemption for Business Owners – Important April 1st filing deadline
By Jenny Fields, CFA, Martin County Property Appraiser
As a business owner in Florida, you are required to file a Tangible Personal Property (TPP) tax return with our office by April 1st. On the TPP return, you should report all your tangible assets that help you run your business. Filing this return qualifies you for a $25,000 exemption, which is an average of a $400 tax savings each year. Following are a few common questions asked about TPP. Please call our office with questions at (772) 288- 5608, or email at firstname.lastname@example.org.
What is tangible personal property?
Tangible personal property is everything used in a business other than inventory and items of real estate. Known also as business personal property, it includes machinery, equipment, furniture, fixtures, signs, window air conditioners, supplies, leased equipment and furnishings in rental units.
Who is required to file a tangible personal property tax return with the Martin County Property Appraiser?
Anyone in possession (owner or lessee) of assets on January 1, who has a proprietorship, partnership, corporation, or is a self-employed agent or contractor, must file each year.
What if I file after the April 1 deadline?
After April 1, Florida Statutes require penalties be applied at 5% per month or portion of a month that the return is late. A 15% penalty is required for unreported property and a 25% penalty if no return is filed. If you file late, please attach a letter with your return explaining why and the penalty may be waived.
What happens if I do not file?
The Property Appraiser’s office is required by law to place an assessment on the tax roll. An estimated assessment, based on the best information available, will determine the value. In addition, failure to file a return may result in a maximum 25% penalty fee. The exemption does not apply in any year that a taxpayer fails to timely file a return.
What is the Tangible Personal Property Exemption?
It is a $25,000 exemption off the value for tangible personal property. The tangible personal property return is your application for the exemption.
Please be aware that failure to file a return constitutes a failure to apply for the exemption and the account will not be eligible for the exemption. Once you file your initial return, and if the value of your tangible personal property remains less than $25,000 in subsequent years, you are not required to file another return because your exemption will be automatically renewed by our office.