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Discussion Starter · #1 ·
I got my first Business Tangible Personal Property Return this year and assumed since I just incorporated this year with no assets that the business owned (Tools, truck, etc.) that I would claim 0. I did not fully understand the tax until now that I've gotten it for the second time and called the Commissioner of the Revenue's office for details.

Basically, no matter if the business owns it or not, if I use it for my business to make money then it is tangible personal property and is subject to a tax. So I asked, isn't that what sales tax was for?????

I asked that if I did not have the receipt of original purchase or got it for free what do I do. Just estimate the worth and date of purchase. Well if I got it for free, then it's not worth anything, and what I think something is worth might not be worth nothing to the next person. For example: There is a lady that makes sculptures out of human feces and sells them for thousands of dollars to the people who think that is what it is worth to them. To me it would be worth absolutely nothing, you see.

My question to you guys is. How do you handle this tax and basically what do you consider should be included? Office equipment, furniture, equipment, tools, etc. I have contacted my accountant for some guidance. Just wondering how yall handle this.

Thanks in advanced!
 

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Discussion Starter · #3 ·
Yeah, that is what I'm afraid of, haha. Supposedly in my jurisdiction they take the whole number of property value and tax 30% and $4.5 on each $100 of that value.
 

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I use to have to mess with that, but they , the state have eliminated it for small businesses, or should I say I am under the starting limit when they tax. Which is fairly high. When was paying it I had boughten a Genie lift for a good price, they said it did not matter how good of price I got it for I was taxed on book value of it
 

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Discussion Starter · #5 ·
Well, do any of yall use a program that helps aid you with the list of tangible assets and depreciation, etc?
 

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That doesn't make sense. You mean if you rent equipment and it is on your property you pay a personal tangible tax.

I'm a rebel. If I don't think I should pay tax on something I am not going to put it on my list (if we had such a tax). California used to have a Shelf Tax and they did away with it about 30 or 40 years ago. That meant all stores and vendors had to pay a tax for every product sitting on a shelf and in a warehouse because the products were considered an asset.

I'm not sure if California still has a Business Property Tax. I think they do, but I don't pay any attention to it. I think my CPA writes down the same numbers every year. For the Business Property Tax we have to pay tax based on the value of our tools, copy machine, fax, computer, etc. (if the tax still exists).

We are taxed to death. For multi-unit rental properties we have to pay a property tax ( of course), business license tax for the property, business license tax for the coin washers & dryers, Hud Inspection tax and Fire Department Inspection Tax. The number of taxes on telephone and utility bills is astounding. It is time for a tax rebellion, but who will we rebel against?

For my plumbing company, we have to pay a business license tax up to $350 for every city we work in and then we have to pay a $3,000 lead tax every year because some plumbing parts require the use of lead for their manufacturing. These type of taxes, in addition to all the other taxes, make me sick.

Why did you get me started on taxes?

What type of program could you use to make a list of your tangible assets? I would probably use MS Word with and create a two column table.
 
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