Most people know that property tax applies to real property, such as land and buildings. However, some may not know that property tax also applies to Business Personal Property. The characteristic that distinguishes Business Personal Property from real property is mobility.Business Personal Property is property that is not affixed to, or part of, real estate.For assessment and taxation purposes, when we speak of Personal Property we are effectively referring to Business Personal Property under current Oregon law. Taxable Business Personal Property includes machinery, equipment, furniture, etc. used by a business, including any property not currently being used, placed in storage, or held for sale. However, Business Personal Property taxes are not applicable to business inventories or intangible property such as copyrights and trademarks. Business Personal Property is subject to the same levy rate as real property. By state law, the county assessor is responsible for the assessment of all taxable Business Personal Property. The Department of Revenue is also involved in the administration of property taxes and advises assessors on how to assess property to assure uniformity of assessment and taxation throughout the state.
If you are a business that owns, uses, or leases taxable Business Personal Property you must complete and file a Confidential Business Personal Property Return by March 1. With your return you must provide a listing of all your taxable Personal Property that was located in the county at 1:00 a.m. on January 1. If you have multiple business locations, you must complete a separate return for each location. As a business owner, you are responsible for filing a Personal Property return each year that you have taxable property, even if you do not receive the form by mail. Oregon law requires that Business Personal Property be valued at 100 percent of its real market value. The assessed value is allocated to the taxing district(s) based on where the property is located. If you need a blank return please refer to the forms section above.Your return will help the Assessor assess your Business Personal Property accurately. In some cases an appraiser may inspect your property. Your return will remain confidential at all times. If the return is filed late, there is a graduated late filing penalty. If the return is postmarked or received after March 1, but on or before June 1, a penalty of 5% of the tax is charged. If it is postmarked or received after June 1, but on or before August 1, the penalty is 25% of the tax. After August 1, the late filing penalty is 50% of the tax assessed. If you do not file, the penalty will be 50% of the tax.
In certain situations, taxpayers may request an extension of time to file until April 15. To do so, an extension request must be filed with the Assessor’s Office by February 15. A blank extension form can be found in the forms section above.
Personal Property is subject to the same levy rate as Real Property. The Assessor depreciates the value of your Personal Property each year based on the list of equipment you have provided, which includes cost new and the original purchase date of each individual item. All of our depreciation schedules are based on guidelines set forth by the Oregon Department of Revenue.
Taxes on Business Personal Property become delinquent whenever any installment is not paid on or before the due date. The tax collector will send a notice of delinquency showing the total amount due, including interest when any tax payment is not made. If no payment is received, the tax collector may:
Issue a warrant for the collection of the delinquent Business Personal Propety taxes
Seize and sell the assessed Business Personal Property or taxable Business Personal Property you own or control
Charge the tax against the real property you own.
Delinquent taxes become a lien on the Business Personal Property of a business. If you are buying a business, it is important that you contact the Marion County Assessor’s office to confirm there are no outstanding taxes due on the equipment you are buying. Anyone buying or starting a business should notify the County Assessor. This will allow an account to be established, and a Business Personal Property return can be sent out the following year. If the taxpayer does not receive a return, they should contact the Assessor to request one.
If you were still in business on the assessment date, January 1, you will need to file a return and indicate on your asset listing the equipment that was still in use at your business on January 1. If you went out of business prior to January 1, you will use your return to report to the Assessor’s office the disposition of your business Personal Property. The section “No Personal Property to Report” on the front of the return is designed for that purpose. Check the box “Business closed” and provide the date closed. Let us know the status of the property on January 1, whether it has been sold, stored or converted to personal use.If you sold your business prior to January 1, please file a return to notify our office of the change in ownership. Check the box “Business sold” and indicate the date sold and provide the name and mailing address of the new owner, along with your instructions as to whether or not we have your permission to forward the current asset list to the new owner.