If you are a business owner, you most likely received a form from the County Assessor’s office shortly after the first of the year. This is the 2020 Arizona Business Property Statement, an annual reporting form that lists out all tangible personal property which is then used by the County Assessor to compute personal property tax for a business. The 2020 Arizona Business Property Statement is due April 1, 2020.
The Arizona personal property tax is an integral part of the Arizona tax system. Failure to file will result in penalties and interest, in addition to the tax. A business owner needs to file if they have more than $185,811 in “value” of business personal property. All personal property in Arizona is subject to property tax unless it is exempt. Property is taxed on its “full cash value” which is also known as market value. As property gets older it’s “full cash value” decreases along with the tax attached to it.
In order to complete the 2020 Arizona Business Property Statement a listing of the fixed asset activity from 2019 is needed. Additions during 2019 are added to the statement and deletions are listed on the second page of the statement. There are a few nuances to know. It is important to note that software is not valued as personal property and is not subject to property tax. The cost of supplies on hand on December 31, 2019 needs to be included.
The instructions that accompany the Arizona business property statement are easy to follow, but it never hurts to reach out to a tax professional to assist in answering questions for completing the form.
Kelly Lynch, CPA