I have finished my lease, and now own the equipment. Shouldn't I report my 'buyout' cost as my acquisition cost?
The best way to report any equipment that has been previously assessed by another business entity, is to maintain the Historical Acquisition Costs and Dates. By reporting the historical information, you will maintain the depreciation already applied to the assets. Once you report used equipment, at a reduced purchase cost, it is now Non-Qualified, and the depreciation starts over from your purchase date. Also, if Market Value (which is the per-depreciated value) is reported, then no additional depreciation will be applied.
I understand why my leasing company is billing me for Personal Property Taxes, but they are also charging an additional Sales Tax. Isn't that double taxation?
No. The Counties are solely responsible to value and to collect the Personal Property Taxes for the equipment. Separately, the Arizona Department of Revenue charges "Sales Tax", (technically labeled "Transaction Privilege Tax"). The Arizona Department of Revenue charges these taxes on every invoice your leasing company bills to customers in Arizona.
I am leasing equipment, and the leasing company is billing me for Personal Property Taxes. Is this legal?
The tax on Business Personal Property is a debt against the owner. Typically the Leasing Company will pay the taxes directly to the County Treasurer and then issue their own billing to the lessee for reimbursement. Please review your lease agreement for details.
I operate several locations throughout the state. Does the 'Exemption' apply to each location?
The 'Exemption' applies only once throughout the state for each legal Business entity. If multiple location's have a combined Full Cash Value less than the Statutory amount then the 'Exemption' would cover all of those locations.
My Business Property Statement makes reference to "Important Exemption Information." Is my business exempt?
No, this "exemption"refers to the deduction provided by A.R.S
and appears on your statement that reduces your Full Cash Value (Replacement Cost New Less Depreciation). This amount is determined annually by the Arizona Department of Revenue. The remaining Full Cash Value will be Assessed.
What if I don't agree with the Valuation Notice?
By statute, you have 30 days from the notice's mailing date to file a Personal Property Petition for Review (DOR form 82530
) with the Assessor's Office. The Assessor's Office then has 20 days to respond to your petition. If the disputed value has not been settled by that time, you may file an appeal with the Arizona State Board of Equalization within 20 days of the mailing date of the Assessor's Decision. A court appeal can be filed if you are outside of the 20 day window to appeal or if you are not in agreement with the determination of the State Board of Equalization.
How and when will I know if my account has been processed?
The Assessor's Office mails out Valuation Notices by August. The Valuation Notice will identify your Full Cash Value, Assessed Value and appeal deadlines.
Our business closed, how do I close my Business Personal Property Account?
You may write on any open space on the front of the Business Property Statement, or attach a separate letter, identifying the Account Number, stating that the business closed, date of closing and what happened to the equipment.
In regard to the deadline of April 1st, does the Business Property Statement need to physically be in your office, or can it be post marked April 1st?
Your return must be postmarked on or before April 1st by the United States Postal Service, or certified mail only. No internal, company postal meters postmarks are valid or accepted.
We did not receive our Business Property Statement. How do I obtain a duplicate form to file?
You must submit a written request (identifying the Account Number) for a duplicate form to be mailed out. You may email your request to email@example.com
or call 602-506-3406. Due to the April 1st filing deadline duplicates will not be mailed after March 15th.