Should Your Business Be Filing a Property Tax Return?
One of the more common things I see when I pick up a new small business client who has been doing their own taxes is failure to file a property tax return.
In Kentucky, if you have tangible property that you are using in your business - anything from desks to copiers to artwork - you have a filing obligation. Form 62A500 is how this is reported and it's a bit confusing all around.
First, it's called a "Tangible Personal Property Tax Return". Personal? I thought we were talking about business property. Well, that's how a regular person would react to that, but in the tax world, there are only two kinds of tangible property - personal and real. Real property is buildings and land. You're familiar with that because the assessment comes automatically from your county PVA. Personal property is all the rest. (Your "personal property" in the common use sense of the term isn't covered by this at all.)
Second, it's a 2017 form. Aren't we filing our 2016 taxes right now? We are, but (for reasons unknown to me) property is assessed on January 1st instead of December 31st. So we are currently in the 2017 filing season.
All of this to say, your return is due in Kentucky on May 15, 2017. No tax is paid with the return. You'll receive an assessment later.
If you'd like to know more about personal property tax, Get In Touch.