Business Personal Property Tax Filings are Due December 31

It’s that time of year again and Business Personal Property Tax Returns are quickly approaching!

What is the Business Personal Property Tax (Ad Valorem)?

The Business Personal Property tax is an Ad Valorem tax that is assessed at the county level in Alabama based on the assessed value of an item (the personal property) and, in the case of Alabama, calculated annually. Businesses must report assets owned as of the beginning of the tax year (Oct 1 in Alabama). The County takes the cost basis of the asset (the original price), and its age (the purchase date), and uses this information in conjunction with tax rates to determine the amount of Business Personal Property Tax owed for that tax year.

Key dates

•  October 1: Assessment date (first day of the new tax year).
• December 31: Tax returns are due for the upcoming year, tax payments are due for the current year.
• January-October: Tax notices are mailed. Appeals are due 30 days from the notice date.

What should I do?

The Business Personal Property Tax Year ended September 30, so now is the time to review personal property assets. Did you replace some furniture in your office? Do you have an old printer you replaced? Did you buy extra monitors for your staff to support work from home or a hybrid work environment? Did your employees begin working remotely so your business went fully virtual, and you sold off your lobby furniture?

If you have any business personal property you sold or disposed of before September 30, 2022, you can mark it as sold/disposed of on your 2023 Business Personal Property Return, and the County will not assess tax on its’ value.

Bills for the returns that were due December 31, 2021 should be arriving soon, along with a blank return for the 2023 tax year.

Don’t forget!

Remember, even items below your capitalization policy threshold for depreciation must be included on this return. Common items below the IRS threshold include desks, furniture, monitors, computers, small electronics, even the art on your walls! It may seem small compared to your IRS Capitalization Policy, but the County still wants you to report it.

BMSS can help

Do you have questions about your Business Personal Property Tax Return, or want help with filing? Give us a call! We can assist you with filing Business Personal Property Tax Returns in a variety of counties across the state. Even if you don’t have a capitalization policy in place, we can help with that too. Contact us at (833) CPA-BMSS or visit our website.