The due date for filing a 2017 Form 571-L, Business Property Statement (BPS), is April 1, 2017, but May 8, 2017 is the last day to file and avoid a late penalty. The BPS declares cost information of all personal property owned or leased by a business in California. All property that is not real property is considered personal property.
Business owners with personal property having an aggregate cost of at least $100,000 on December 31, 2016, must file a BPS with the county assessor, detailing costs of all supplies, machinery, equipment, and fixtures at each business location. Multiple locations will file a statement for each location. Business owners with personal property having an aggregate cost below the $100,000 threshold are required to file only if requested by the county assessor. Certain types of property are exempt from personal property tax, such as business inventory, licensed vehicles, and intangible assets.
Late filings are assessed a 10% penalty. If a business is required to file and fails to do so, the county assessor will estimate a value and add a penalty of 10% of the estimated assessed value of the unreported property.
Once the BPT statements are filed, the county assessor establishes the assessed value of all personal property and delivers the assessment roll to the treasurer-tax collector to prepare and mail personal property tax bills (also known as unsecured property tax bill), which are due by August 31, 2017.
For more information about this article, please contact our tax professionals at firstname.lastname@example.org or toll free at 844.4WINDES (844.494.6337).