Business Personal Property Tax

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Business Personal Property Taxes for Rental Properties

What is Business Personal Property?

Tangible personal property is everything other than real estate that is used in a business or rental property. Examples of tangible personal property are computers, furniture, tools, machinery, signs, equipment, leasehold improvements, supplies, and leased equipment.

California requires Form 571-L to be filed each year if your aggregate cost of business personal property exceeds $100,000 or if the Assessor requests the information. Each business location (or rental property) must file its own return. The forms are due April1 each year, and there is a 10% late filing penalty that can be assessed.

Leased Equipment

Both the Lessor and the Lessee should report equipment that is on lease on January 1 to the Assessor. Not all leased equipment is assessed in the same manner. Several factors determine how leased equipment is assessed, including:

  • Assessability
  • Assessee
  • Leases with exempt entities
  • Situs (Street Address)
  • Type of Lease

In 2001, the California Assessors’ Association adopted a standardized leased equipment reporting format leasing companies can file with their annual Business Property Statement.

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