Have a question about Personal Property? These past Tony’s Tips will help!
February 5, 2019
INDIANA PERSONAL PROPERTY COMPLIANCE
The completed personal property return must be filed with your local assessor no later than May 15, 2019. Taxes on those reported values are due in two installments, on May 10 and November 10, of the following year.
BE SURE YOU REMEMBER THE FOLLOWING:
- File Form 103-ERA for personal property located in an economic revitalization area (ERA).
- Remove equipment costs associated with industrial waste control facilities, and file those on a Form 103-P.
- Remove costs associated with special tooling, and file those on a Form 103-T
- All equipment you’ve identified that qualifies for special adjustments (equipment not yet placed in service; special tooling; permanently retired equipment; equipment that qualifies for abnormal obsolescence) should be reported on Form 103-Long.
- If you are anticipating spending a substantial amount of money in the current year, you must apply for an economic revitalization zone prior to December 31! This ensures you realize property tax reductions on your investment.
FINALLY, IF YOU HAVE DIFFICULTY IN DECIDING WHAT FORM TO USE OR ARE UNCERTAIN WHAT QUALIFIES FOR REPORTING ON THEM, CONTACT A LOCAL EXPERT TO ASSIST YOU. DON’T WAIT UNTIL THE LAST MINUTE TO GET THIS DONE!
November 13, 2018
FREEPORT EXEMPTIONS IN GEORGIA
Freeport exemptions are a type of personal property tax abatement for property located in Georgia. There are two distinct levels of exemption, based on the type or use of property that is a part of the exemption.
Level 1 Freeport
The governing authority of any county or municipality may elect, with the approval of the voters, to exempt specific types of tangible personal property.
The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory’s value. Over 60% of Georgia counties and cities have adopted a Freeport Exemption at some level.
Application for Freeport Exemption should be made with the Board of Tax Assessor’s within the same time period that returns are due in the county. Applications filed after that time can receive a partial exemption for that year up to June 1.
Level 2 Freeport
The governing authority of any county or municipality may elect, with the approval of the voters, to exempt goods, wares, and merchandise of every character and kind constituting a business’s inventory which would not otherwise qualify for a Level 1 Freeport Exemption.
The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory’s value.
Application for Freeport Exemption should be made with the Board of Tax Assessor’s within the same time period that returns are due in the county. Applications filed after that time can receive a partial exemption for that year up to June 1.
October 9, 2018
PLANNING FOR LOWER MICHIGAN PROPERTY TAXES IN 2019
Completing your company’s personal property return can be a time-consuming process, if you want to realize all of the savings that are built into filing form #5278 and supporting documents.
There is plenty of work you can complete before the filing deadline in February. By planning ahead, you can rest assured knowing your company is set up for success. We suggest beginning with these four steps:
- Verify that you are taking advantage of the manufacturing personal property tax phase-out which began in 2016.
- Contact your lessor(s), and ensure you both complete the necessary paperwork to claim your leased personal property under the lower tax rate mentioned in #1.
- Familiarize yourself with what qualifies as “Direct Integrated Support” as well as “Industrial Processing”.
- Use a skilled, professional property tax firm that has experience in this area, as a single parcel’s return can be composed of up to four separate forms.
It is never too early to schedule a consultation with Valu Tec, to ensure your company successfully navigates Michigan’s personal property phase-out to lower your property taxes in 2019.
July 9, 2018
MAKING YOUR ESA PAYMENT
August 15th is the last date that you can make your ESA payment online without penalty.
This is the third year since Michigan enacted their personal property tax phase out and they will not accept late payments.
You must certify your statement through Michigan Treasury Online (MTO) or e-file AND pay your full ESA liability electronically – no checks – by the August 15 deadline.
March 12, 2018
INDIANA PERSONAL PROPERTY FORMS
The State of Indiana has various forms that are required to be attached to your annual Form 103-Long so that you benefit from various exemptions and abatements (See 103-Long and various other forms, located HERE). You need a Form 103-T to file your Tooling, a Form 103-P for items that should be considered pollution control assets, and a Form 106 to report Idle or obsolete assets EVERY year. Is your equipment used by an integrated steel mill? Consider using a Form 103-P5 to claim additional depreciation, therefore reducing your tax bill.Don’t assume that because information was reported in previous years, the assessor will pick it up for this year’s return. If not reported each year, you may well lose any benefits that go with each individual Form.VERIFY
MICHIGAN ASSESSMENT NOTICES
You should have received your 2018 real and personal property assessment notices by now. Just like other notices or invoices that you receive, you shouldn’t assume they are always correct.Unless you added building area to your facility or there was a change in ownership in 2017, your taxable assessment should not have increased more than .021 or 2.1%. If it did, you should contact your local assessor’s office and schedule an appointment with their Board of Review that meets in March.The filing of Form 5278 and its required attachments have resulted in numerous errors – both in filing by the taxpayer, as well as in entering the data that’s submitted to the State of Michigan. This can easily result in over-assessed personal property.Verify, verify, verify!
February 19, 2018
INDIANA PERSONAL PROPERTY COMPLIANCE
It’s time to take a few minutes and plan out this year’s personal property tax compliance strategy. Don’t let it pile up like last year and end up filing your returns by the “copy & paste” method. Take a fresh look, and allow someone that specializes in filing all of the forms to do so for you. We pride ourselves on being both timely and accurate – the first time, every time!
* ERA compliance can be an additional burden which includes supplemental forms and timelines.
* Valu Tec has the knowledge and experience to prepare all the attachments to your Form 103 to ensure all your assets receive a fair and equitable assessment.
* Valu Tec can project your 2019 personal property taxes and ensure the assessment produced from this year’s filing is correct.
Send a quick email to info@valutec.com and a Valu Tec representative will contact you to schedule a free personal property filing evaluation. Yes, this will more than likely save you money, but just as important, it will save you time!
December 7, 2017
PREPARING YOUR MICHIGAN PERSONAL PROPERTY RETURN
In order to benefit from the phase out of personal property taxes in 2018, you must file your return timely! The deadline to file Forms #5278, #3966, and #5467 is Tuesday, February 20, 2018. There is a chance that a change in law will allow for a postmark of February 20 to be acceptable, but it is never too early to plan ahead.
Don’t get caught unawares! Be sure that you have all of your Form 5467s lined up with your leasing companies, as well as tracking your new used equipment purchases on a Form 3966. Include copies of your abatement certificates with your Form 5278s, and make certain they are extended if all of the abated personal property is not yet eligible for ESA. Do not miss out on this tremendous tax savings opportunity by not maximizing your benefit!
August 7, 2017
TIME TO CERTIFY AND PAY ESA STATEMENTS
Recently, I attended a conference of state tax and assessing officials. It was noted by David Buick, Administrator, Essential Services Assessment (ESA) that:
- IN 2017 there were 11,471 parcels that filed Form 5278. This is an increase of 4.4% from 2016.
- This represented 5,530 taxpayers which was a 9.1% increase from 2016.
- The most current records indicate that 44% of the EMPP filers have not certified and paid their statements.
- The Department of Treasury has indicated by statute that there will be NO waivers of late payment penalty in 2017 for companies that filed Form 5278 in 2016!
- The penalty is 1% per week with a maximum 5% penalty.
You must certify your statement through MTO or e-file and pay your full ESA liability electronically – no checks – by the August 15 deadline.
