Frequently Asked Questions About Business Personal Property
Any individuals(s) or business(es) owning or possessing personal property used or connected with a business or other income producing purpose on January 1. Temporary absence of personal property from the place at which it is normally taxable shall not affect this requirement. For example, a lawn tractor used for personal use, to mow the lawn at your home is not listed. However, a lawn tractor used as part of a landscaping business in this county must be listed if the lawn tractor is normally in this county, even if it happens to be in another state or county on January 1.
NCGS 105-308 reads that ..."any person whose duty is to list any property who willfully fails or refuses to list the same within the time prescribed by law shall be guilty of a Class 2 misdemeanor. The failure to list shall be prima facie evidence that the failure was willful." Pursuant to NCGS 14-3, a class 2 misdemeanor is punishable by imprisonment for up to six months.
Listings are due on or before January 31. They must be filed with the Henderson County Assessor's Office at:
Henderson County Assessor, 200 N. Grove Street, Suite 102, Hendersonville, NC 28792.
As required by state law, late listings will receive a penalty. An extension of time to list may be obtained by sending a written request showing "good cause" to Henderson County Assessor by January 31. The maximum extension granted is until March 15th.
(1) Read these instructions for each schedule or group.
(2) If a Schedule or Group does not apply to you, indicate so on the listing form, DO NOT LEAVE A SECTION BLANK, DO NOT WRITE "SAME AS LAST YEAR." A listing form may be rejected for these reasons and could result in late listing penalties.
Complete all sections at the top of the form, whether or not they are specifically addressed in these instructions. Make any changes/corrections to the information section as required. Attach additional sheets, if necessary.
1. Physical address: Please note here the location of the property. The physical location may be different from the mailing address. Post Office Boxes are not acceptable.
2. Principal Business in the County: What does the listed business do?
3. Other NC Counties where personal property is located: If your business has property normally located in other counties, list the counties here.
4. Contact person for audit: In case the Assessor's Office needs information, or to verify information listed, list the person to be contacted here.
5. If out of business: If the business we have sent this form to has closed, please complete this section and attach any additional information regarding the sale of the property.
6. Make any necessary address changes.
Schedule A is divided into eight groups. Each is addressed below. Some records may have the column "Prior Year's Cost" pre-printed. This column should contain the cost information from last year's listing. If it does not, please complete this column. Referring to your last year's listing.
Acquisitions made during the previous twelve months are to be reported in the middle column titled "Acquisitions" as a line item for the current year just ended. Equipment transferred in from other locations should be reported at its historic cost, the year of original acquisition, not the year of transfer.
Removals are to be reported in the column titled "Removals" and matched to the original year of acquisition of the asset removed, not the year of disposal.
COST - Note that the cost information you provide must include all costs associated with the acquisition as well as the costs associated with bringing that property into operation. These costs may include, but are not limited to invoice cost, trade-in allowances, freight, installation costs, sales tax, and construction period interest.
The cost figures reported should be historical cost, that is the original cost of an item when first purchased, even if someone first purchased it other than the current owner. For example, you, the current owner, may have purchased equipment in 2014 for $100, but the individual you purchased the equipment from acquired the equipment in 2013 for $1000. You, the current owner, should report the property as acquired in 2013 for $1000.
Property should be reported at its market cost at the retail level or trade. For example, a manufacturer of computers can make a certain model for $1000 total cost. It is typically available to any retail customer for $2000. If the manufacturer uses the model for business purposes, he should report the computer at its market cost at the retail level or trade, which is $2000, not the $1000 it actually cost the manufacturer. Manufacturer/lessor businesses that lease the equipment that they manufacture must list their equipment at the retail level of trade rather than their manufacturing cost.
This is the group used for reporting the cost of all the machinery and equipment. This includes all warehouse and packaging equipment, as well as manufacturing equipment, production lines, hi-tech or low-tech. List the total cost by year of acquisition, including fully depreciated assets that are still connected with the business. For example, a manufacturer of textiles purchased a knitting machine in October 2000 for $10,000. The sales tax was $200, shipping charges were $200, and installation costs were $200. The total cost that the manufacturer should report is $10,600, if there were no other costs incurred. The $10,600 should be added in group (1) to the 2000 current year's cost column.
Group(2) Construction in Progress
CIP is business personal property which is under construction on January 1. The accountant will typically not capitalize the assets under construction until all of the costs associated with the asset are known. In the interim period, the accountant will typically maintain the costs of the asset in a CIP account. The total of this account represents investment in tangible personal property, and is to be listed with the other capital assets of the business during the listing period. List in detail. If you have no CIP, write "none".
This group is for reporting the costs of all furniture and fixtures and small office machines used in the business operation. This includes, but is not limited to, file cabinets, desks, chairs, adding machines, curtains, blinds, decorative accessories, ceiling fans, window air conditioners, telephones, intercom systems, and burglar alarm systems.
Group(4) Computer Equipment
This group is for reporting the costs of non-production computer and peripherals. This includes, but is not limited to, personal computer, midrange, or mainframes, as well as the monitors, printers, scanners, magnetic storage drives, cables, and other peripherals associated with those computers. This category also includes software that is capitalized and purchased from an unrelated business entity. This does not include high-tech equipment such as computerized point of sale equipment or high-tech medical equipment, or computer controlled equipment, or the high-tech computer components that control the equipment. This type of equipment would be included in Group (1).
This group includes real estate improvements to leased property contracted for, installed, and paid for by the lessee which may remain with the real estate, thereby becoming an integral part of the leased fee real estate upon expiration or termination of the current lease, but which are the property of the current lessee who installed, it. (Examples are lavatories installed by lessee in a barber shop, special lighting, or dropped ceiling.) If you have no leasehold improvements, write "none."
Group(6) Expensed Items
This group is for reporting any assets which would typically be capitalized, but due to the business capitalization threshold, have been expensed. Section 179 expensed items should be included in the appropriate group (1) through (4). Fill in the blank which asks for your business' "Capitalization Threshold." If you have no expensed items write "none".
Group(7) - Supplies
All businesses have supplies. These include normal business operating supplies. Schedule C lists some of the various types of supplies but is not limited to these mentioned. Remember, the temporary absence of property on January 1 does not mean it should not be listed if that property is normally present. Supplies that are immediately consumed in the manufacturing process or that become a part of the property being sold, such as packaging materials, or raw materials, for a manufacturer, do not have to be listed. Even though inventory is exempt, supplies are not. Even if a business carries supplies in an inventory account, they remain taxable.
This group will be used for all other types of equipment not included in the groups referenced above.
Motor Vehicles registered with the NC Department of Motor Vehicles as of January 1 do not have to be listed. If you own Unregistered Vehicles, Multi-year tagged trailers, mobile offices, manufactured homes, boats, aircraft, or special bodies attached they must be listed.
If on January 1, you have in your possession any business machines, machinery, furniture, vending equipment, game machines, postage meters, or any other equipment which is loaned, leased, or otherwise held and not owned by you, a complete description and ownership of the property should be reported in this section. This information is for office use only. Assessments will be made to the owner/lessor. If you have none, write "none" in this section. If property is held by a lessee under a "capital lease" where there is a conditional sales contract, or if title to the property will transfer at the end of the lease due to a nominal "purchase upon termination" fee, then the lessee is responsible for listing under the appropriate group.
Schedule D - Workspace
This schedule is to be used to identify, in detail, the acquisition and/or disposal activity in Schedule A, Groups 1-8 for the twelve months prior January 1. Attach an additional list, if necessary.
If the form is not signed by an authorized person, it may be rejected and could be subject to penalties. This section describes who may sign the listing form. Listings submitted by mail shall be deemed to be filed as of the date shown on the postmark affixed by the U.S. Postal Service. Any other indication of the date mailed (such as your own postage meter) is not considered and the listing shall be deemed to be filed when received in the office of the tax assessor. Any person who willfully attempts, or who willfully aids or abets any person to attempt, in any manner to evade or defeat the taxes imposed under this Subchapter (of the Revenue Laws), whether by removal or concealment of property or otherwise, shall be guilty of a Class 2 misdemeanor. (Punishable by imprisonment up to 60 days)
|Kevin Hensley||Personal Property Administratorfirstname.lastname@example.org||828-698-3007|
|Marty Haney||Business-Personal Appraiseremail@example.com||828-698-3009|
|Peggy Novotny||Business-Personal Appraiserfirstname.lastname@example.org||828-698-3011|
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200 North Grove St,
Hendersonville NC, 28792
Phone: (828) 697-4870
Fax: (828) 697-4578