BPP or Business Personal Property is the movable items that a business or company owns. It can include office essentials like computers, furniture, machinery, and everything required to run an office, except the building or property in which the office is established. Also known as business contents, purchasing BPP tax is a kind of business expense exempted from tax. Similarly, the cost attached to it for ensuring it is also given the same benefit.
The items included in the business personal property or BPP tax are stated below:
· Computers (laptop and desktop)
· Each and every tangible item that is used by the business
· Electronics (smartphones, CCTV, tablets)
· Furnishings (carpet, rugs, curtains)
· Furniture (desks, chairs, cupboards)
· Heavy equipment (excavators and forklifts)
· Machinery (printers)
· Office supplies (pens, papers, important documents)
Phases of BPP tax
Here is an overview of the life cycle of BPP tax in details:
Stage 1: Preparation and file returns
If a company has several accounts, getting the business personal property tax return can be challenging as it is entirely based on asset information. To gather comprehensive asset information, one has first to figure out the value of individual assets. Here, the age of the asset is vital as this will determine the correct depreciated value. Next, the value of the assets should be calculated. For this, one can take the help of software. Now, find out the correct form for filling out information related to business personal property tax and finally, file via mail or online.
Stage 2: Manage and track the assessment
Now is the time to wait to hear from the assessor and keep track of the incoming assets. Make sure there is plenty of time to make preparations for a protest. Also, do not forget to track the deadlines of the protest. Each assessment notice will contain the necessary information recorded in the books. Now, analyze the return values and compare them with those assessed in the previous year. This will determine whether one wants to protest or move on to the next stage.
Stage 3: Protest the valuation
Most companies avoid protesting as they believe that they have other important works that need more attention. However, if any company feels like protesting the valuation, it should know that this stage requires a lot of paperwork. However, if this stage is performed correctly, a lot of the company’s money can be saved. Here, the first step is to notify the assessor about the desire of the concerned company to appeal.
Stage 4: Track and pay tax bills
After the protest, both parties came to a mutual understanding, and now it is time to finalize the value and make the payments. First, the county presents a detailed description of all the taxes to show the total tax amount. Then, depending on the cashflow requirements of the company and the payment options of the county, the payment can be made either in instalments or in whole.
To ensure that nothing is left out, it is advised to keep a constant track of the due dates of the tax bills and the payment receipts. Then, to clear all queries, take the help of reliable property tax software.