Why did I receive a business property statement (571-L)?
Our records indicate that you were doing business at this location on January 1. (Revenue & Taxation Code, Section 441)
Who must file a 571-L?
All individual and/or business entities must file. e-Filing allows businesses to file electronically to fulfill this legal obligation. (R&T Code 441)
Do I have to file this return?
Yes. Failure to complete and file this form (571-L) will result in the Assessor estimating the value of your business property and adding a 10% penalty to the assessment. (R&T Code 441, 463 & 501)
Can I amend a filing after it is mailed?
Yes. There is a four (4) year statute of limitations, within which you can file an amended return subject to audit. Be sure to contact the Assessor's office and discuss your case with a deputy.
Are taxes prorated between buyer and seller when a business is sold?
No. Any arrangement regarding property tax liability must be worked out contractually, between the buyer and seller.
What is business personal property?
Business personal property includes all property, except inventory items held for sale or short-term rental and real estate owned and/or used by a business. Examples of business personal property include office furniture, computers, machinery, drill presses, and hand tools. (SBE Assessors' Handbook, Section 501)
What is the difference between inventory and supplies?
Basically, inventory are items subject to sale, rent or lease. Supplies are things consumed in your normal course of business. (AH 501)
How does the Assessor arrive at the taxable value for personal property assessments?
For most property, the Assessor uses the cost reported by the current owner and applies a depreciation/market price factor in order to estimate market value.
Why must sales tax be included in the reported cost?
Sales tax is part of the original cost to the buyer, just like freight and installation costs, it must be reported as part of your total cost. (SBE Assessor Handbook AH 501)
What if I don't agree with the taxable values?
Between the time you submit your property's cost information on the form 571-L, and July 1st, you will normally receive a tax statement from the Tax Collector which includes a notation of the amount of value calculated by the Assessor. If you disagree with this value, you are encouraged to file an appeal. See the Clerk of the Board's Web Page at www.ocgov.com/cob for instructions and forms.
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