| Filed by | The owner of the business property on January 1 files; the buyer files for its own property later |
|---|---|
| Agency | Your county property appraiser, using form DR-405 or the county's online filing |
| Timing | By April 1 each year, with extensions available if requested before then |
Watch for: Ask the property appraiser, in writing, how to report property you sold or removed after January 1.
What This Tax Covers
Florida counties tax real estate and also tangible personal property. For a business that means the equipment, furniture, fixtures, tools and similar items it owns. Inventory for sale is generally not taxed this way.
The county property appraiser sets the value, and the county and other local bodies set the tax bill. You file with the appraiser, not with the Department of Revenue.
Who Has to File
Anyone who owns tangible personal property for business use on January 1 files a return by April 1 of that year. That includes corporations, partnerships, sole owners and some landlords of furnished rentals.
A first $25,000 of value is exempt, but you must file a timely return to receive it. Miss the deadline and you can lose the exemption, along with facing penalties.
Form DR-405
The state's form, DR-405, asks you to list property by year acquired and original cost. It also has a section for property removed from the county or disposed of during the last year, where you list what was sold or traded and to whom.
Many counties let you file online. Look at your appraiser's site for the current method.
Why the Year of Sale Is Different
The January 1 date is what counts. If you owned the equipment then, you owe the return even if you sell the business in February. If you buy a business in March, the buyer files the next January.
That timing creates a gap. The bill for the year of sale comes later, usually in the fall, and it is based on January ownership.
Prorating in the Contract
Property tax bills are often shared in the purchase agreement. The seller pays for the part of the year it owned the business and the buyer pays for the rest, with the money adjusted at closing or held back.
Ask your attorney how the agreement handles a bill that has not arrived yet. Vague language starts disputes.
If You Sell Before April 1
If you close in January, February or March, the return for that year is still due from the January 1 owner, which is you. Many counties will want to know about the sale. Contact the appraiser and ask how they want it reported.
Do not assume the buyer will file it. The buyer's first duty is the next January.
Extensions
Property appraisers can give an extension of 30 days, and sometimes another 15 days after that, if you ask in time for them to act before April 1. Ask early and keep the written answer.
Closed Locations and Removed Property
If you moved or closed a location and sold equipment during the year, list it on the removal section of the return. If you closed a business and kept nothing, tell the appraiser so they stop sending notices.
Records to Keep
- Your filed returns for at least the period your CPA recommends
- A fixed asset list showing what was sold and when
- The bill of sale showing what the buyer took
- Any letter from the appraiser about the year of sale
Related Steps
Property tax is one of several filings after closing. Also see closing your Florida sales tax account after a business sale and Sunbiz dissolution after an asset sale of a Florida business.
An Example
You sell your company on March 15. You owned the equipment on January 1, so the return for that year is yours, due April 1. The buyer files its own return the next January.
The property tax bill for that year arrives in the fall. If the contract does not say who pays it, you and the buyer will have to argue. A single line in the agreement avoids that.
Read Florida reemployment tax transfer when a buyer takes over for the payroll side of the same closing.
When to Call the Appraiser
Call before you list the company, not after closing. The appraiser's office can tell you how it treats a sale, what it wants in writing and which deadline applies to you this year.
Sources and a Caution
This page draws on the Florida Department of Revenue's tangible personal property page and several county property appraiser guides. Counties differ.
It is general information, not tax or legal advice. Confirm details with your CPA, attorney and county property appraiser.
To see what a buyer might pay, use the valuation form above or call (305) 555-0147 on a weekday.