FOR FILING A REPORTED STATUS SCHEDULE B HAS PASSED.
ALL FILINGS SUBMITTED UNTIL APRIL 27, 2012,
WILL RECEIVE A FORCED STATUS.
The deadline for reported account status was March 1, 2012.
The law requires that the Schedule B forms be mailed by February 1, 2012, and that returns be filed "on or before" March 1, 2012. However, since this represents such a short turnaround time, and because our primary interest is in getting all appraisals correct, we consider all information made available to us for review before we complete the appraisals and send the required assessment change notices in May.
Please understand that if you did not file on or before the March 1, 2012, deadline, the law requires your assessment for 2012 to be "forced." Filings prior to the deadline are considered "reported" accounts.
If you are now submitting information, please be aware that we must have the information as soon as possible no later than April 27, 2012. We have a responsibility to review all 24,000-plus accounts in a short period of time.
Also, please note that we may change any assets which appear inconsistent with prior returns or general business practices.
We encourage businesses to submit their returns as early as possible so that we may discuss any discrepancies and possibly avoid the need for an appeal.
We recommend that you utilize our online filing method. Consistently, most businesses are able to complete their Schedule B, file it, print a confirmation page indicating that they have submitted the form, and send our office any asset lists needed for reference, all within minutes.
We prefer to receive asset lists as electronic files in spreadsheet or database formats, such as Microsoft™ Excel or Access. However, we also will accept files in a graphic format, such as JPG, TIFF, GIF, or PDF. If you have a different format to submit, please call our office to ensure its compatibility.
NOTE: Please let us know if you experience a problem by calling us at: (615) 862-6073.
Benefits of filing the online form:
- It is convenient and easy for the taxpayers.
- It saves time and effort, plus the postage needed to return the printed Schedule B and asset lists.
- It eliminates some of the paperwork that has to be scanned into an imaging system, thereby saving time which can be better used on quality control and auditing of returns.
- It offers a more secure way to handle information, some of which may be confidential in nature. The data you submit online is imported into our servers, which operate behind a robust firewall. Access to this information is limited to only those employees who require it.
- Businesses that report non-standard depreciation will not be able to file online.
- Once the form is submitted to our database, you be unable to change it without contacting our office. So, please check your work as you enter it. Also, you should PRINT the summary page after it is reviewed prior to submission and save a copy for your records.
- It would be prudent to file your return as early as possible, in order to avoid possible network congestion near the filing deadline,
- Please do not file both online and by mail. If you file online and also file a printed Schedule B return, the earliest file received will be considered your official return.
Tangible Personal Property (better known as Personalty) is all property owned or held by a business that is required to operate that business, including but not limited to, furniture, fixtures, vehicles, tools, machinery, equipment, raw materials, and supplies. One of the most common components used to differentiate "personal property" from "real property" is whether it is moveable (personal) or affixed (real).
In Tennessee, personal property is assessed at 30% of its value for commercial and industrial property and 55% of its value for public utility property.
No later than February 1 of each year, the Assessor of Property is required to furnish each applicable business in the county with a Schedule B to list all of their tangible personal property. Those business owners (or agents) must then complete and return those forms to the assessor's office on or before March 1.
In many cases, this simply requires an existing business to list all the equipment acquired or disposed of during the previous year, so that items may be added to or removed from the schedule already on file. It is basically a "self declaring" system, but it is subject to audit for verification.
Unlike the system for assessing real property in which the appraisal is based on fair market value and equalized across the entire jurisdiction, the appraisal of personal property is based on the actual cost of the property less depreciation. Personal property is categorized in 10 groups for reporting. Each of those groups has its own depreciation schedule that is outlined in state statutes.
In Tennessee, leased personal property used by a business is assessed to the lessee (user) and must also be reported on a company's reporting schedule. For smaller accounts, the system allows an alternate method for reporting personal property.
If you believe the depreciated value of your business's personal property is $1,000 or less, you can declare so in the reporting schedule and you do not have to itemize or report detailed costs. With this certification, subject to audit, your assessment will be set at $300.
Again, the deadline for filing Personal Property Reporting Schedules is March 1 each year. Failure to return the schedule by that date will result in a forced assessment of the business's personal property using information about the quantity and value of personal property held for use by businesses of similar size and function.
As with "real property", property owners have the right to appeal their personal property assessment, beginning with the Metro Board of Equalization and continuing until satisfied or their appeals are exhausted. For the initial appeal to be heard, however, the taxpayer must first file a completed schedule.
For more information on tangible personal property, reporting procedures, and your rights and responsibilities as a property owner, please contact our office.
67-5-903. Schedules - Property used for business, professions, manufacturing
- All partnerships, corporations, other business associations not issuing stock and individuals operating for profit as a business or profession, including manufacturers, except those whose property is entirely assessable by the comptroller of the treasury, shall be furnished by the assessor not later than February 1 of each year, a schedule requiring the taxpayer to list in detail all tangible personal property owned by the taxpayer and used or held for use in such business or profession including, but not limited to, furniture, fixtures, machinery and equipment, all raw materials, supplies, but excluding all finished goods in the hands of the manufacturer and the inventories of merchandise held for sale or exchange, such schedule to be approved by the director of property assessments.
- It is the duty of the taxpayer to list fully such tangible personal property used, or held for use, in the taxpayer's business or profession on such schedule, including such other information relating thereto as may be required by the assessor, place its correct value thereon, sign same, and return it to the assessor prior to March 1 of each year. In lieu of detailing acquisition cost on the reporting schedule, the taxpayer may certify that the depreciated value of tangible personal property otherwise reportable on the form is one thousand dollars ($1,000) or less. The assessor shall accept the certification, subject to audit, and fix the value of tangible personal property assessable to the taxpayer pursuant to the schedule, at one thousand dollars ($1,000). This value shall be subject to equalization pursuant to § 67-5-1509. The certification stated on the schedule shall warn the taxpayer that it is made subject to penalties for perjury and subject to statutory penalty and costs if proven false.
- A taxpayer who fails, refuses or neglects to complete, sign and file such schedule with the assessor of property, as provided in subsection (b), commits a Class A misdemeanor, punishable by a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500), and the assessor shall assess the tangible personal property of the taxpayer which is used, or held for use, in the taxpayer's business or profession, and shall give the taxpayer notice of such assessment by United States mail, addressed to the last known address of the taxpayer, or the taxpayer's agent, at least five (5) calendar days before the local board of equalization commences its annual session.
- The remedy of a taxpayer against whom a forced assessment is made as provided in this section shall be the same as provided in § 67-5-1407, but such remedy shall be conditioned upon the taxpayer filing with the board of equalization a complete listing or schedule of all the tangible personal property owned or used by the taxpayer in the operation of the taxpayer's business on the same form as required to be filed with the assessor.
- The taxpayer may amend a personal property schedule previously filed with the assessor at any time until September 1 following the tax year. If the assessor agrees with the amended schedule, the assessor shall thereupon revise the assessment and certify the revised assessment to the trustee. If the assessor believes the assessment should be otherwise than claimed in the amended schedule, the assessor shall adjust the assessment and give written notice to the taxpayer of the adjusted assessment. The taxpayer may appeal the assessor's adjustment of or refusal to accept an amended assessment schedule to the local and state boards of equalization in the manner otherwise provided by law. Additional taxes due as the result of an amended schedule shall not be deemed delinquent until sixty (60) days after the date notice of the amended assessment was sent to the taxpayer. Amendment of a personal property schedule shall not be permitted once suit has been filed to collect delinquent taxes related to the original assessment.
- The schedule approved by the
director of property assessments and
supplied to taxpayers shall contain
schedules reflecting the following
rates of allowable depreciated cost
for the listed categories of
property, as well as spaces for
general data on the particular
GROUP 1 (eight-year life)
GROUP 1 - Furniture, Fixtures, General Equipment, and All Other Property Not Listed in Another Group
Year Cost on file Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .88 2 .75 3 .63 4 .50 5 .38 6 .25 7 .20 Prior
GROUP 2 - Computers, Copiers, Peripherals, and Tools (three-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .67 2 .33 Prior .20 Total
GROUP 3 - Molds, Dies, and Jigs (four-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .75 2 .50 3 .25 Prior .20 Total
GROUP 4 - Aircraft, Boats and Towers (not classified as real property) (13-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .92 2 .85 3 .77 4 .69 5 .62 6 .54 7 .46 8 .38 9 .31 10 .23 11 .20 Prior .20 Total nbsp;
GROUP 5 - Manufacturing Machinery (eight-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .88 2 .75 3 .63 4 .50 5 .38 6 .25 7 .20 Prior .20 Total
GROUP 6 - Billboards, Tanks, and Pipelines (unless classified as real property) (16-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .94 2 .88 3 .81 4 .75 5 .69 6 .63 7 .56 8 .50 9 .44 10 .38 11 .31 12 .25 13 .20 Prior .20 Total
GROUP 7 - Scrap Property
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- All .02
GROUP 8 - Raw Materials and Supplies
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- All .10
GROUP 9 - Vehicles (five-year life)
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- 1 .80 2 .60 3 .40 4 .20 Prior .20 Total
GROUP 10 - Construction in Progress
Year Cost on File Revised Cost Depr. ---------- ---------- ---------- ---------- All .15
- (1) Tangible personal property
which the taxpayer treats as
"CIP") for federal income tax
purposes as of the assessment date
may be reported in the taxpayer's
schedule filed with the assessor at
fifteen percent (15%) of its cost as
reported for federal income tax
purposes. Qualified pollution
control property shall be valued as
provided in § 67-5-604,
notwithstanding its state of
(2) No back assessments of CIP, as the term is used in subdivision (g)(1), shall occur prior to January 1, 1994. If back assessments have occurred involving CIP, those assessments shall be voided and all taxes paid shall be refunded to those taxpayers who have an action or claim pending before an assessing authority or court on the CIP issue.
67-5-904. Schedules - Leased Property.
- (1) For the purpose of assessing leased property, it is the further duty of the taxpayer to list fully on a schedule provided by the assessor all tangible personal property which is leased by the taxpayer for the conduct of the taxpayer's business.
- (2) Leased property shall
include equipment, machinery and all
tangible personal property used in
the conduct of, or as a part of, the
taxpayer's business including, but
not limited to, the following:
- Equipment that is leased only, not sold;
- Equipment that is leased at nominal rent or loaned under certain circumstances;
- Equipment that is leased and not permitted to be sold;
- Leased coin-operated machines and devices;
- Equipment that is placed on location;
- Vehicles, automobiles, trucks;
- Furniture; and
- Electronic equipment.
- The lessor, or owner of leased tangible personal property, shall provide such information as the assessor may request regarding the location, valuation or use of such property.