Business Property Taxation Assistance
Our office is here to inform you about and assist you with business property taxation matters. Please contact us if you're unsure whether you have assessable business assets and should receive a Business Property Statement (Form 571-L) for the current year.
Businesses owning taxable property with an aggregate cost exceeding $100,000 are required to file a Business Property Statement (Form 571-L) annually. This statement identifies the acquisition cost of business personal property (e.g., equipment, furniture, computers) and improvements (e.g., leasehold/tenant improvements, trade fixtures). Filing this statement is essential, as businesses are responsible for the potential taxes on these assets. According to the California Constitution, all property is taxable unless exempted.
Business personal property is appraised annually. If you own a registered business in Tulare County and have received a Business Property Statement, you must complete and submit it by the indicated due date. If the statement is not returned on time, the Assessor will make an estimated assessment based on available information and a 10% penalty will be added, as mandated by California Revenue and Taxation Code § 463.
Additionally, the Assessor is required by law to conduct audits of taxpayers' books and records, specifically those engaged in a profession, trade, or business who own, claim, possess, or control locally assessable trade fixtures and tangible personal property. These audits ensure accurate and proper reporting of property.
Business personal property is all property owned or leased by a business except real property. Tangible personal property owned, claimed, possessed, or controlled in the conduct of a profession, trade, or business may be subject to property taxes. Business personal property and fixtures are valued annually as of the January 1 lien date. Business inventory is personal property but is exempt from taxation.
The California Constitution states, "Unless otherwise provided by this Constitution or the laws of the United States, (a) All property is taxable...." Unless otherwise exempted, all forms of tangible property are taxable in California and the Assessor must assess business personal property because the law requires it. Some forms of personal property are exempt from taxation under the Constitution. For example, household furnishings, personal effects and business inventory are exempt under the law. However, business personal property is not exempt under the law and neither are privately or business-owned boats or aircraft.
The Assessor is required to annually assess most taxable personal property at fair market value as of January 1 (lien date). In order to determine fair market value, the assessor employs a number of methods. For example:
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The Assessor often relies on various trade publications and 'blue books' that provide current, open market sales price and/or cost data for various types of both new and used equipment, vehicles, aircraft and boats.
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The Assessor trends actual owner-reported costs to a present replacement cost estimate using trending tables provided by the State Board of Equalization. We then reduce the trended costs to reflect normal or actual depreciation and derive a market value estimate.
Unlike real property, most personal property is not assessed according to the requirements of Prop. 13. Although, personal property is taxed at the same 1% tax rate. The only exception is personal property 'fixtures,' which are defined as real property for property tax purposes and are subject to Prop. 13 restrictions. Unlike other real property, fixtures are not subject to supplemental assessment.
No. The Assessor must annually assess all property in the county to the person owning, possessing, or controlling it on the lien date (January 1). There is no provision in the law that allows the Assessor to prorate assessments between the buyer and seller of taxable personal property that is sold in the ensuing fiscal year.
Even though you may no longer own the property, you are still liable for the taxes because you owned it on the January 1 lien date. When taxable personal property is sold subsequent to the lien date, it is the duty of the seller to pay the taxes on the property for the ensuing fiscal year.
January 1 is known as lien date and is the date property taxes for any fiscal year become a lien against a business property owner. Where personal property is concerned, the lien is placed on the owner of the property, not the property. Owners who allow their personal property taxes to become delinquent may have a summary judgment recorded against them personally.
Click here to download a blank statement
You may request a blank statement by calling (559) 636-5159 or sending an email to AssessorBPP@tularecounty.ca.gov.
If you are filing for the first time, please write “first-time file” at the top of your statement so we know a new assessment needs to be created.
