Tangible Personal Property

What is Tangible Personal Property?

Tangible Personal Property (TPP) is everything other than real estate that has value by itself. It includes such things as furniture, fixtures, tools, machinery, rental household appliances, signs, equipment, leasehold improvements, supplies, leased equipment, and any other equipment used in a business or to earn an income. It does not include motor vehicles, inventory, boats, or trailers.

The 2008 Constitutional Amendment 1 provides a
$25,000 Exemption to taxpayers who file their TPP returns by April 1.

Who must file?

Anyone in possession of assets on January 1, who has a proprietorship, partnership, corporation, or is a self-employed agent or contractor, must file each year unless returns have been filed in prior years and the Just/Market Value of the Tangible Personal Property is $25,000 or less.

All first time filers must file an initial return to receive the exemption. The return serves as your application for the exemption. If the Just/Market Value of your Tangible Personal Property is $25,000 or less, you will not be required to file a return in future years unless the value exceeds that amount.

By February 1 of each year, all taxpayers whose requirement for filing an annual TPP tax return form was waived for the previous year will receive by mail a Waiver card that automatically renews the exemption. If there are newly purchased assets, which cause the total value to exceed $25,000, then a new return will have to be filed.

Penalties will be applied to any non-filer whose TPP Just/Market Value exceeds the $25,000 exemption received in prior years. The penalty includes the taxes exempted as a result of wrongfully claiming the exemption plus 15% per annum and a penalty of 50% of the taxes exempted.


Why must I file a return?

Florida Statute 193.052 requires that all Tangible Personal Property be reported each year to the Property Appraiser's Office. If you receive a return, it is because our office has determined that you may have property to report. If you feel the form is not applicable, return it with an explanation. Either way, the form must be returned. If you do not receive a Tangible Personal Property Tax Return (DR-405), you are still required to submit a return if you have assets to report.

How can I obtain a DR-405 form?

By February 1, a return is mailed to Tangible Personal Property owners of record whose Fair Market Value in the prior year was greater than $25,000. If you do not receive one, call the Property Appraiser’s Office at (352) 754-4190. DR-405 forms are available at the Westside Office in Spring Hill and in the Brooksville Office. A copy of the form can also be printed from the Forms section on our website.


AM I REQUIRED TO OBTAIN AND FILE A TANGIBLE PERSONAL PROPERTY TAX RETURN ON MY MOBILE HOME AND ITS ATTACHMENTS?

Hernando County does not require tax returns to be filed for mobile homes. The Property Appraiser’s Office goes out to measure and assess mobile homes and attachments to insure uniformity in value.


What if I receive more than one DR-405 form?

All returns must be sent back. If you have more than one location, the assets of each location should be listed separately on each return.

HOW DO I QUALIFY FOR THE $25,000 TANGIBLE PERSONAL PROPERTY TAX EXEMPTION?

To qualify and obtain the $25,000 Tangible Personal Property Tax Exemption a DR-405 return must be filed and sent to the Property Appraiser’s office. If the Assessed Value is determined to be less than $25,000, you will not be required to file a return in subsequent years unless newly purchase assets cause the total value to exceed $25,000. If that happens, then you will need to file a new return. However, new businesses are required to file in order to qualify.


What is an office or field review assessment?

When a tax return is not filed by April 1, we are required to make an assessment of the property. This assessment represents an estimate based on information from like businesses with similar equipment and assets. Being assessed does not alleviate your responsibility to file an accurate return.

What if I don't agree with the assessed value that appears on the NOTICE OF PROPOSED TAXES (TRIM) I receive in August of each year?

Call this office or come in and discuss the matter with us. If you have valid evidence that the Assessed Value is more than the actual Fair Market Value of your property, we will review that evidence. If you do not agree with our final assessment after talking with us, you may file a petition to be heard before the Value Adjustment Board.

Do I still have to file a return if I have no assets to report?

Yes. If you feel you do not have anything to report, complete Items 1 thru 9 on the DR-405 return and attach an explanation of why nothing was reported. However, almost all businesses and rental units have some assets to report even if only supplies, rented equipment or household goods.

If I am no longer in business, should I still file the return?

Yes. If you were not in business on January 1 of the taxing year, follow this procedure:

1. On your DR-405 form, indicate the date you went out of business and the manner in which you disposed of your business assets (i.e. Sold, Personal Use, Junked, Salvage, Parts, etc.)

2. Sign, date and mail the return to this office.

What if I have old equipment that has been fully depreciated and written off the books?

Whether fully depreciated in your accounting records or not, all property still in use or in your possession must be reported. Additionally, all assets expensed under Section 179 of the Internal Revenue Service Code must be listed on the Fixed Asset list of your Depreciation Worksheet, IRS Form 4562.

Do I have to report assets that I lease, loan, rent, borrow or are provided in the rent?

Yes. There is a section on the return specifically for those assets. Even though the assets are assessed to the owner, they must be listed for informational purposes to avoid duplication.

Is there a minimum value that I do not have to report?

No. There is no minimum value. A Tangible Personal Property Tax Return (DR-405) must be filed on all assets by April 1.

if I sold some equipment last year, Do I still have to report it?

Yes. There is a specific section on the form where all assets that are no longer in your possession and have been "Physically Removed" either by being traded in, stolen or sold. If you have an accountant or C.P.A. prepare your return, make sure he or she is informed of this. This does not include assets that have been fully depreciated or are being used as spare parts or salvage.

Are there deadlines and penalties?

The deadline for filing your DR-405 return is April 1 . After April 1, Florida Statutes provide that late penalties be applied at 5% per month, but not to exceed 25%. A 15% penalty is required for unreported property and a 25% penalty if no return is filed.

What if I buy or sell an existing business during the year. Who is responsible for the taxes?

The owner is responsible. Tangible taxes should be pro-rated at the time of closing as are the taxes on real estate. However, there are some title companies that do not perform a search of the tangible assets of a business. Therefore, be sure to consult your Realtor, attorney or closing agent to avoid problems.

What if I don't have enough value to report?

Some taxpayers may feel that they do not have enough value to worry about filing a return. However, if you receive a Tangible Personal Property Tax Return (DR-405), it must be filed with this office by April 1 . If a return is not filed, pursuant to the Florida Statutes, this office has the authority to place a value against your account along with a 25% penalty for "Failure To File" .

Helpful Hints For Filing DR-405 Forms

• File the original return (form with the pre-printed name, account number and bar code) received from this office no later than April 1 to avoid late filing penalties.
• Work with your Accountant or CPA to identify any equipment that may have been "physically removed". List those items in the appropriate space on your return.
• If you have an asset listing or depreciation schedule that identifies each piece of equipment, attach it to your completed form.
• Do not use vague terms such as "various" or "same as last year".
• It is to your advantage to provide a breakdown of assets since depreciation on each item may vary.
• Please include your estimate of the fair market value and original cost of the assets listed on your return. They are important considerations in determining an accurate assessment.
• If you sell your business please provide the new owner's name and address.
• If you close your business or move to a new location, please inform this office. It will enable us to keep timely, accurate records.