Question 1

What is Florida’s tangible personal property tax?

Accepted Answer

Florida TPP tax: tangible personal property used in business is subject to annual ad valorem taxation. Businesses must: file a DR-405 return with the county property appraiser by April 1, report all tangible personal property (furniture, fixtures, equipment, computers, leasehold improvements, and supplies), and the property is assessed at its fair market value (using depreciation schedules). The first 5,000 of assessed value is exempt (Section 196.183). The tax rate is the local millage rate (the same rate applied to real property). Failure to file: a 25% penalty on the assessed value.

Question 2

What property is subject to Florida TPP tax?

Accepted Answer

Subject property: all tangible personal property used in a trade or business, including: office furniture and equipment, computers and technology, machinery, leasehold improvements, signs, fixtures (not permanently attached to real property), and inventory (if not already subject to sales tax). Exempt property: property assessed at 5,000 or less (Section 196.183), household goods and personal effects (not used in business), motor vehicles (subject to registration fees instead), and inventory subject to sales tax at the time of sale.

Question 3

How is the DR-405 return filed?

Accepted Answer

Filing: the DR-405 is filed with the county property appraiser. The return must include: a description of each asset, the year of acquisition, the original cost, and the condition. The property appraiser uses depreciation schedules to determine the assessed value. Deadline: April 1 of each year. Extensions: available upon request (typically 30 days). Penalties: failure to file: 25% penalty, late filing: 5% per month (up to 25%), and underreporting: 15% penalty on the underreported amount. The assessed value appears on the property appraiser’s records and the tax bill is sent in November.

Personal Property Tax

Florida Tangible Personal Property Tax

What’s Taxed

Exemptions

DR-405 Filing

Related Terms

Barnes Walker Business Law

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