Who Must File a Florida Tangible Personal Property Tax Return?

In Florida, businesses and individuals engaged in income-producing activities are subject to a tax on their tangible personal property. This tax is separate from the property tax levied on real estate. Tangible Personal Property (TPP) encompasses all physical assets other than land and buildings that have value. The obligation to file a TPP tax return is determined by the type and value of the property a business owns on January 1st of each year.

Determining Your Filing Requirement

Any individual or entity that owns TPP on January 1st and uses it for an income-producing venture must file a return, including proprietorships, partnerships, corporations, and self-employed contractors. Property owners who lease, lend, or rent TPP to others are also required to file. Examples of taxable TPP include office furniture, computers, machinery, and tools. For owners of furnished rental properties, items like refrigerators, stoves, and furniture are considered taxable TPP because they are used to produce income.

A primary factor in the filing requirement is the $25,000 TPP exemption. If the total market value of a business’s TPP is $25,000 or less, the owner is exempt from the tax. To claim this exemption for the first time, a business must file an initial Tangible Personal Property Tax Return (Form DR-405). After this initial filing, the property appraiser’s office may waive the annual filing requirement for subsequent years, sending a renewal postcard instead of a full return.

It remains the property owner’s responsibility to track the value of their assets. If the TPP value exceeds the $25,000 threshold on January 1 of any future year, the owner must file a new DR-405, even if they do not receive a form from the county.

Information and Documentation for the TPP Return

To complete the Tangible Personal Property Tax Return (Form DR-405), filers must gather specific information about their business assets. The form can be downloaded from the property appraiser’s website in the county where the property is located. The return requires a detailed listing of all tangible assets, including those fully depreciated for federal income tax purposes.

For each asset, you must report its original cost, the year it was acquired, and a specific description. Vague descriptions like “various equipment” are not sufficient and may lead to improper valuation. Filers should be prepared to provide a comprehensive asset listing, which can be attached to the DR-405. Many businesses use their federal depreciation schedules as a starting point for this list, but must ensure all tangible assets are included.

The form also requires you to list any property you lease or rent from other companies, including the name and address of the owner. If you purchased an existing business, you must report the assets at your acquisition cost, not the seller’s original cost. Supporting documentation, such as IRS Form 8594 (Asset Acquisition Statement), which details the allocation of the purchase price, may be requested.

The Filing Process and Deadlines

The return must be submitted to the property appraiser’s office in the county where the tangible property was physically located on January 1st. The statutory deadline for filing is April 1 of each year. Timely filing is necessary to avoid penalties and secure any applicable exemptions.

Submission methods vary by county. Filers can mail the signed, original return or deliver it in person. Many counties now offer an e-filing portal, which is often the most efficient method for existing businesses that have filed in prior years. New businesses may be permitted to submit their initial return via email, but unsigned returns are not considered filed.

After the return is processed, the property appraiser will assess the value of the property and the information will be used to calculate tax liability. Later in the year, property owners receive a Notice of Proposed Property Taxes, known as a TRIM notice, which shows the assessed value and proposed taxes. The final tax bill is sent subsequently.

Failing to file a return by the April 1 deadline can result in penalties. These include a late-filing penalty of 5% per month, capped at 25% of the total tax levied, and the loss of the $25,000 exemption for that year.