Business Personal Property Taxes

Personal Property taxes (PPT) have the worst name of any type of tax in the history of taxes. PPT has nothing to do with your personal life. Well then, what is personal property? The straight up accounting definition of personal property is anything which is not real property. Makes a lot of sense right? Real property includes things like land and buildings; businesses pay real estate taxes on land and buildings. So, personal property is the remaining depreciable property of the business (office furniture, computers, and equipment). Vehicles are not included as they pay the tax with their license plates.

Businesses are required to file a PPT return by the 15th of May. The forms which most small businesses are supposed to file are the Form 103 and Form 104. There are 2 Form 103′s: a short form and a long form. In some cases, filing one form over the other will result in a lower self assessed value which will result in a lower tax bill. The assessor’s office will forward you the forms in the early spring for you to fill out. Alternatively, you can go to your local assessor’s office or find them online.

It is important to remember that Indiana businesses pay the PPT in arrears. Thus, you will receive a tax bill for the PPT form you filed on May 15, 2011 in the early spring of 2012.

You can amend a timely filed PPT form up to 6 months after the due date.

The website for the Indiana Allen County Assessor is www.allencounty.us/personal-property. Also, something that I find very amusing: there are no formal instructions on how to file the forms. Every year, our firm has discussions with the Allen County Assessor’s office regarding this and to understand the form because of the lack of formal guidance.

Our firm prepares over 100 of these tax returns every year for our clients. The rules governing what is taxable and the instructions (if there are any) themselves change every year. It is our job to file these returns appropriately.

Please call Brent today at 260-407-5000 to discuss your tangible business personal property taxes!

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