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Business Personal Property Frequently Asked Questions
Index of Topics:
THE BUSINESS PROPERTY
STATEMENT AND FILING REQUIREMENTS
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Why did I receive a Business Property
Statement (BPS) - Form BOE-571-L (or F)? |
You were sent a statement because our records indicate that
you were in business on the Lien Date, January 1, and the Assessor
is required to assess any taxable business personal property
in your possession on that date.
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What is the purpose of the Business Property Statement (BPS)? |
The BPS collects information regarding business equipment,
supplies and fixtures for each business location. The
information an owner provides on the statement is then
used to assess and tax property in accordance with California
State Law. The owner reports the acquisition costs of
business equipment, supplies and fixtures that were owned
on the lien date relating to that business. All 58 California
County Assessors mail out similar statements that enable
businesses to report the cost of their equipment, supplies,
leased equipment, real property and improvements.
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Who must file a Business Property Statement (BPS)? |
If the Assessor sends you a BPS, the law requires that you
complete, sign and return the statement to the Assessor's Office
in the time period specified. Any business that owns Personal
Property and/or Fixtures having a total combined cost of $100,000
or more is required to file a BPS even if the Assessor does not
request that you file one.
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What is business personal property? |
Business Personal Property includes all supplies, equipment
and any fixtures used in the operation of a business (see Page
3 of the 571-L instructions for an explanation of what specifically
constitutes a business fixture). Business inventory and licensed
vehicles (except Special Equipment, 'SE' tagged, off-road vehicles)
owned by the business are exempt from reporting (note: SE tagged
and other off-road vehicles and equipment are taxable personal
property and must be reported).
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Why do I have to pay taxes on my Business Property? |
That's because the California Constitution states in part
that, 'Unless otherwise provided by this Constitution or the
laws of the US, (a) All property is taxable....' That is, unless
otherwise exempted, all forms of tangible property are taxable
in California and the Assessor must assess business personal
property because the law requires he or she do so.
Some forms of personal property are exempt from taxation
under the Constitution. For example, household furnishings,
personal effects and business inventory are exempt under
the law. However, Business Personal Property is not
exempt under the law and neither are privately or business-owned
vessels or aircraft. Click here for assessment information
on vessels and aircraft.
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Where can I obtain assistance in completing the BPS? |
See the end of this page for the contact information
you will need in order to obtain assistance.
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What is the 'Lien Date'? |
The Lien Date* is January 1 every year, and is also the date
property taxes for any fiscal year become a lien against a business
property owner. Where personal property is concerned, the lien
is placed on the owner of the property (not the property), and
owners who allow their personal property taxes to become delinquent
may have a Summary Judgment recorded against them personally
(see 'Judgments & Liens' section for more detail). (*NOTE:
for all years prior to January 1, 1997, the lien date was March
1).
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What if the printed information on the BPS is incorrect? |
If the business has moved or changed its mailing address,
then draw a single line through the incorrect information (Please
DO NOT make the preprinted information unreadable). Then legibly
print or type the new information on the form and also indicate
the effective date of the move or when the change became effective.
When reporting a sale, include the new owner's name and mailing
address. When reporting that the business has been closed, provide
the date(s) and information relating to the disposition of any
taxable personal property. Complete the BPS, sign and return
it to the Assessor's Office.
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I do not own the real property. Do I still need to fill out
the BPS? |
Yes. Even if you don't own the real property where your business
is located, you must still file the BPS because it is
used to report business personal property (equipment,
supplies, etc.) you do own. You must also complete any
related schedules that apply to your particular business.
If you do not own the real property, you may not need
to complete Schedule B, columns 1, 3, and 4. If you own
or have added any tenant-owned improvements, you will
need to report their costs in column B-2 (see official
instructions for the 571-L).
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What does the Assessor's Office do with the BPS after I mail
it in? |
We review the form for completeness and accuracy and then
employ a number of methods to convert reported costs to an estimate
of their lien date, fair market value equivalent. After the Assessor
has assessed your property and has finished processing your BPS,
the form is then filed with your property tax records. By law,
your BPS is NOT a public document and it is not open to public
inspection in any case. The assessment itself is then forwarded
to the County Auditor, who computes the taxes owed and then forwards
that information on to the Tax Collector, who in turn creates
the bill and collects the tax.
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How is the assessed value of my business property determined? |
The Assessor is required to annually assess most taxable personal
property at 100% of its lien date, fair market value. In order
to determine that fair market value, the assessor employs a number
of methodologies. For example:
The Assessor often relies on various trade publications
and 'Blue Books' that provide current, open market sales
price and/or cost data for various types of both new
and used equipment, vehicles, aircraft and vessels.
The Assessor often trends forward actual owner-reported costs
to a present replacement cost estimate using trending tables
provided by the State Board of Equalization (or developed in-house).
We then reduce the trended costs to reflect normal or actual
depreciation and derive a market value estimate.
Unlike most real property, which is assessed under Proposition
13, most personal property does not fall under Prop 13's umbrella
(although it does enjoy the same, maximum 1% tax rate). The only
exception is personal property 'fixtures,' which are defined
as real property for property tax purposes and are subject to
Proposition 13 restrictions. Fixtures are not subject to Supplemental
Assessment.
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I want to appeal my assessed value. What do I do first? |
Click here for more information
about assessment appeals.
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What happens if I do not return the BPS or return an Incomplete
BPS? |
Failure to File: Where a BPS is not filed as required
by law or requested by the Assessor, we must then rely on the
best information available in order to estimate the value of
any personal property owned by the non-reporting business. In
the absence of a BPS, an 'average' assessed value (based upon
businesses of a similar size and use) may be used to derive such
an estimate. Our office may also perform a field inspection of
your business property, during which an estimate of the lien-date,
fair market value of the business personal property discovered
there will be made. Additionally, a 10% penalty must also be
added to any assessment made as a result of a failure to file
the BPS.
Incomplete Filing: If you file an incomplete BPS, the
Assessor may return it to you for proper completion. In that
case, penalties may be assessed if the Assessor's Office does
not receive a properly completed BPS by the normal due date.
An incomplete filing is treated the same as a 'failure to file'
and a 10% penalty must be added in that circumstance.
COMPLETING THE
BUSINESS PROPERTY STATEMENT
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All the equipment I use is my own personal equipment; must
I report it? |
If you are using any 'personal' equipment in your business,
then yes, it must be reported. For example, persons working out
of their homes must report personal desks, computers, calculators
and etc., if those items are used in their business. Other examples
include:
Example 1: Someone operating an auto repair shop is
using their own 'personal' tools in the business. In this case,
such tools become assessable as business personal property and
must be reported.
Example 2: A home business or auto repair shop goes out
of business prior to January 1. In this case, any equipment previously
used in the business that could revert back to 'personal' use
is no longer taxable. Such items become nontaxable because they
can revert to being 'Household Furnishings or Personal Effects,'
which are exempt.
Example 3: A grocery store goes out of business prior
to January 1st but equipment such as freezer boxes and store
shelving remains in the building on that date. In this case,
such items would still be taxable and must be reported even though
the business was closed on the Lien Date. That is because in
this instance the equipment could not revert to or be used as
'Household Furnishings or Personal Effects'.
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All the equipment I use was given
to me, and I don't know what to report. |
Where the equipment you use in your business was acquired
as a gift, you may report your estimate of its current market
value on the BPS (that is, what you think it would sell for in
the open market place). Enter that estimated value in the most
current year's cost line and add a note indicating that the entry
is an estimate.
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Most of the equipment I use
does not belong to me; a friend is letting me use it
and I have no idea what it cost. Must I report their
equipment on my BPS? |
Yes. The BPS must show all taxable property owned, claimed,
possessed, controlled or managed by the person filing the form.
If you are responsible for paying the tax on the equipment, then
you may estimate its value and report it on the BPS. On the other
hand, if you are not responsible for its tax, then you should
declare the equipment in Part III of the BPS (Equipment belonging
to others). Where equipment is declared in Part III of the BPS,
the Assessor will also send a BPS to the person reported as the
equipment's actual owner.
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I only rent an office and all of the furniture and equipment
belongs to the landlord. Do I still have to complete the BPS? |
Yes. In this case, you need to write a remark about that circumstance
on the BPS, or on an attachment to it. Also fill out Part III
(Equipment Belonging To Others) of the form, and then sign and
return it to the Assessor's Office. If you own any small equipment,
such as a printer, copier, supplies, etc., that you are using
in the business, you should report these costs under Part II
of the BPS.
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What is a supply item? |
Any item that you are consuming in your business, such as
office supplies, pencils, paper, calculator tape, stationary,
envelopes, cleaning supplies, fuel and etc. is a supply item.
If you are a manufacturer, 'supplies' would not include anything
that becomes part of the finished product. Materials or supplies
that are integrated into the products you market are exempt because
they become business inventory once in the products, and business
inventory is exempt from property taxation.
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Can I just write 'Same as Last Year' on the BPS and return
it? |
No. You must report personal property holdings in detail and
as requested or mandated.
If nothing has changed from the prior year (no equipment was
purchased or sold), then you may refer to your prior year's BPS
filing in order to be consistent in completing the current BPS.
If you failed to keep a copy of the prior year's filing, you
may request a copy of it from the Assessor's Office. See the
end of this page for contact information you will need in order
to request a copy.
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The BPS shows my home address, but my office is located elsewhere.
Do I still need to complete the BPS? |
Yes. Note that circumstance in a remark on the BPS, or on
attachment to it, and also include the proper location and mailing
address of your main office. Then sign and return the BPS to
the Assessor's Office.
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As a store owner, do I report the actual cost of my video
tapes? |
No. You should only report the number of tapes that were out
on rent the night of December 31, and you should report their
cost as the approximate cost of a blank, commercial quality tape.
You only report the equivalent cost of a blank tape because the
material or movie recorded on the tape is considered an intangible
and is also not taxable.
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I do not own anything and lease all my equipment. Must I still
complete a BPS? |
Yes. You are required to report this information in Part III
of the BPS so that the Assessor can properly locate and assess
the actual owner for the equipment.
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I have a business in my home. Do I still have to complete
the BPS? |
Yes. Any equipment used for a home business is considered
to be business personal property and must be reported on the
BPS.
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I am a hairdresser and rent space from the Salon Owner? Do
I still need to complete the BPS? |
Yes. Note these facts on the BPS, or on an attachment to it,
and include the name and address of the business that actually
owns the equipment. Then sign the BPS and return it. You also
need to report any equipment you might own in Part II of the
BPS.
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My business/organization is exempt. Do I still need to complete
the BPS? |
Yes. You still are required to complete the BPS even if you
are an exempt organization. You may contact the Assessor's Office
Exemption Section at (559) 675-7710 to verify your exempt status
or to file an exemption claim.
Click here for more information
on exemptions.
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What happens if I simply refuse to file a Property Statement? |
In such a circumstance, you need to be aware that a number
of potentially quite severe penalties may apply:
If a property owner refuses to comply with a lawful, written
request for information from the Assessor, then R&T 501 requires
the Assessor to estimate the value of their taxable property
and then promptly assess it with whatever information is available.
If the refusal also includes a failure to file or incomplete
filing of the BPS, then the Assessor must also add a 10% penalty
under R&T 463.
If an owner willfully conceals, fails to disclose or misrepresents
tangible personal property, an additional 25% penalty may be
added under R&T 502 & 504.
Under R&T 503, a 75% penalty may also be added to an assessment
for any fraudulent acts or omissions committed by the owner or
their agent.
R&T 462 also tells us that any person who refuses to make
available to the Assessor information lawfully requested in writing
by the Assessor pursuant to R&T 441 is guilty of a misdemeanor
punishable by up to six-months in the county jail and a fine
of up to $1,000.
FILING THE BUSINESS PROPERTY STATEMENT USING SDR
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What is SDR? |
SDR (Standard Data Record) is an application developed by California County Assessors (SDR/NG) that allows businesses required to file in multiple Counties and locations the ability to file all of the necessary statements as a bundle. The data supplied is then separated out into the various property statements and made available to the appropriate County for download and use. In order to use SDR a user must register. Please click HERE to go to the SDR website for more information.
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Who would benefit from filing using SDR? |
Given the current level of investment/effort required to use SDR it is unlikely that single statement filers would benefit from using SDR.
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How do I get more information about or register for SDR? |
Please go to https://www.calbpsfile.org for more information or to register to use SDR.
REQUESTING COPIES, ADDITIONAL
FORMS, OR FILING AN EXTENSION
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How do I request copies of prior year filings? |
The owner or their agent may request copies either in person
or in writing. The cost for prior year copies is $2.00 per page.
Enclose a check with your order for the proper amount made out
to Madera County Assessor's Office.
Note: If an agent is requesting copies or other information
about a taxpayer's account, they must first file a letter of
authorization appointing them as the owner's agent. That letter
must be an original copy bearing the original signature of the
owner and the owner's phone number. If the owner is a corporation
or business, the letter of agency must be on the company's official
stationery and signed by an officer of the corporation.
Click here for more information
about access to Assessor's Records.
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How do I request additional forms? |
See the end of this page for contact information you will
need in order to request additional forms.
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How do I obtain a copy of the current year's BPS after it
has been processed by the Assessor and shows the assessed values? |
When requesting current value information, please include
the request with your completed BPS, a copy of the completed
BPS, and enclose a self-addressed stamped return envelope. Otherwise,
you must send a separate request. See the end of this page for
contact information you will need in order to do so.
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How do I request a filing date extension? |
All requests for a filing date extension must be made
in writing and accompanied by a self-addressed stamped
envelope. Address your request to: Assessor's Office,
Personal Property Division, 209 W. Yosemite Ave. Madera,
CA 93637.
YOU ARE OUT OF BUSINESS
OR DO NOT OWN A BUSINESS
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I went out of business on January 15th, do I still have to
complete the BPS and pay personal property taxes? |
Yes. The law specifies that all taxable personal property
must be assessed as of a specific point in time, and that point
is precisely at 12:01 A.M. January 1 (and regardless of what
transpires after that date). Even if closed shortly after the
lien date, a business must still file a BPS and pay taxes for
the coming fiscal year on any taxable property they owned on
the lien date.
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I was not open for business on January 1, do I still have
to complete the BPS? |
Yes. A business does not have to be open for its taxable personal
property to be subject to assessment. For example, let's presume
that on the lien date, January 1, a new pizza parlor is under
construction and nearly ready for its grand opening. Even though
the pizza parlor was not open for business on the lien date,
taxable business personal property (such as furniture, ovens
and supplies) was in the owner's possession on the lien date
and the Assessor is required to assess it.
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I went out of business prior to January 1, do I still have
to complete the BPS? |
Yes. Anytime a person receives a BPS from the Assessor and
their business is no longer in operation, the BPS must still
be signed and returned to the Assessor. You should also include
a note on the BPS indicating that the business has closed, because
if you don't, the Assessor will not be aware of that fact, and
may continue to assess the property despite its true circumstance.
On the BPS or an attachment to it, please write a note that
includes the date you went out of business, as well as the status
and disposition of any equipment owned or used by you at the
time the business closed. If any of the property was sold to
another person or business, please indicate the buyer's name
and address. If any of the property reverted to your own personal
use as household personal property, we need to know what property
did that as well. Please then sign and return the BPS to the
Assessor's Office.
Note: Where a business has closed but you still own
equipment previously used in the business, it may still be taxable
despite the fact the business is closed. If the equipment you
still own can be converted to household uses (that is, could
become your personal effects), then it may not be assessable.
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All I have is a business phone number. I'm no longer in business
and I'm not conducting any other business at the present time.
Must I still file the BPS? |
Yes. Please note those facts on the BPS, or attachment to
it, and return the signed BPS to the Assessor's Office. The Assessor
needs to know these facts in order to prevent an improper assessment
from being issued to you.
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Although I have a license to do business, I haven't purchased
any equipment or conducted any business as yet. Must I still
file the BPS? |
Yes. Please note those facts on the BPS, or attachment to
it, and return the signed BPS to the Assessor's Office. The Assessor
needs to know these facts in order to prevent an improper assessment
from being issued to you.
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I am only an employee of the company and I don't own any Business
Personal Property myself. Must I still file the BPS? |
Yes. Please note those facts on the BPS, or attachment to
it, and return the signed BPS to the Assessor's Office. Please
also include the name of the company you work for and its mailing
address among your notes. The Assessor needs to know these facts
in order to prevent an improper assessment from being issued
to you.
SUMMARY JUDGMENTS
& LIENS - HOW TO GET THEM RELEASED
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My Personal Property taxes went delinquent and a Summary Judgment
was recorded against me. How do I get the judgment released? |
There are two circumstances under which a Summary Judgment
may be released:
Payment of Debt: Paying the delinquent bill (including
all penalties and costs) will result in a release of the judgment.
You should first contact the Tax
Collector's Office (see below) to determine the current
amount due, and then simply pay the tax bill in full. Upon satisfaction
of all delinquent tax, penalty, and costs, the Tax Collector
will record a Satisfaction of Judgment, thereby releasing the
lien.
Invalid or Corrected Bill: If you believe the
bill or the assessment is invalid, you should contact
the Assessor (see final section of this document) to
discuss that matter. If the Assessor determines the
bill to be invalid, upon cancellation or correction
of the assessment by the Assessor, the Tax Collector
will record a Release and without fee.
Once your personal property tax obligation has been
satisfied or corrected and a release has been recorded,
a copy of the Satisfaction of Judgment or the Release
will be mailed to you by the County Clerk-Recorder's
Office. If needed, additional copies of the
Summary Judgment and/or the Release may also be purchased
from the County Clerk-Recorder. It is our understanding
that the entire process, from debt satisfaction to recordation
of the release, ordinarily takes roughly four weeks
to complete.
Back
to Assessment Information
Contacting Us  |
Madera County Assessor's Office
200 W. 4th Street
Madera, CA 93637
Telephone: (559) 675-7710
Fax: (559) 675-7654
Office Hours: 8:00 AM to 5:00 PM
Monday through Friday
Map this location for me
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