How to file your Form 571-L Business Property Statement (BPS) For Small Business Owners

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1 How to file your Form 571-L Business Property Statement (BPS) For Small Business Owners

2 What is a Form 571L Business Property Statement (BPS)? A property tax form that is required for declaring business personal property (assets owned) as of 12:01 a.m. January 1 st This is an annual filing that is required by each California county where your business is located. The 571L Form is used to declare cost information regarding supplies, business equipment and leasehold improvements for each business location. The cost information the business owner provides is then used to assess and tax property in accordance with California State Law.

3 What is the Lien Date? January 1st of every year Lien Date is the date on which property becomes assessable. The date property taxes become a lien against a business property owner.

4 Who must file a BPS? Anyone who was sent a form by the Assessor s Office. Any business that owns business property (supplies, business equipment and leasehold improvements) having a total combined cost of $100,000 or more is required to file the form even if the Assessor does not request that you file one.

5 What is Business Personal Property? All property used in the course of doing business that is not otherwise exempt. Examples: (not limited to this list) Computers Manufacturing Equipment Office Furniture Copiers Fax Machines Lab Equipment Video Equipment Printing Equipment Shop Equipment Restaurant Equipment

6 What equipment is not taxable or exempt? Business Inventory (equipment held for sale or rent) Application Software (examples: Microsoft Excel, Word) Licensed Vehicles (DMV licensed vehicles)

7 What is the deadline for filing the BPS? The form is due on April 1st. The form is considered delinquent if filed after May 7th at 5:00 p.m. (If mailed, the form must be postmarked May 7th) If May 7th, falls on the weekend or a holiday, then the form is due on the next business day.

8 Books and records you will need to file your BPS California State Tax Returns Balance Sheet or General Ledger Fixed Asset Listing or Depreciation Schedule Income Statement or Profit & Loss Statement Purchase price of equipment (if purchased an existing business) NOTE: Use your records as of 12/31 for the year immediately preceding the filing year. For example, if filing for 2008, records needed would be as of 12/31/07

9 FORM 571-L Click here to download Form 571-L

10 The BPS form has 3 sections Part I: General Information Part II: Declaration of Property Belonging to You Part III: Declaration of Property Belonging to Others

11 Part I: General Information

12 Part I: General Information BASIC INFORMATION ABOUT THE BUSINESS: a. Type of business b. Telephone number, fax & c. Whether or not you own the land? d. When you started doing business at your current location? e. Location of accounting records f. Name and phone number of business owner or authorized representative

13 Part II: Declaration of Property Belonging to You

14 Part II: Declaration of Property Belonging to You: Supplies Equipment Equipment out on rent or lease Building or building Improvements Construction in Progress Alternative Schedule A

15 Part II: Supplies What are Supplies? SUPPLIES ARE THE ITEMS THAT YOU USE IN THE ORDINARY COURSE OF DOING BUSINESS. Examples: Office supplies (pencils, paper) Stationary (envelopes) Cleaning supplies Fuel Computer supplies

16 How do I report Supplies? REPORT WHAT YOU HAVE ON HAND AS OF JANUARY 1 Take a physical inventory OR Estimate the average of 12 months of all your operating supplies accounts. (Example: Total Supplies for the year = $12,000/12 = report $1,000) st

17 Schedule A: Cost Detail: Equipment

18 Equipment (Schedule A) REPORT BY YEAR OF ACQUISITION (Example: Restaurant Equipment acquired on 4/06 for $20,000) Report 2006= $20,000 REPORT BY CATEGORY (TYPE OF EQUIPMENT) 1. Machinery & Equipment (Equipment particular to your type of business) 2. Office Furniture & Equipment (desks, chairs) 3. Other Equipment (if it does not fit in category 1 or 2). Describe the equipment (Ex., telephones, forklift) 4. Tools 5. Computer Equipment PCs

19 Schedule B: Leasehold Improvements

20 Leasehold Improvements (Schedule B) 1. STRUCTURES - Tenant Improvements to the real estate (Ex., buildings, walls, bathrooms) 2. FIXTURES Improvements that relate to the business (Ex., cabling, signs, plumbing fixtures)

21 Part III: Declaration of Property Belonging to Others

22 Part III: Declaration of Property Belonging to Others LEASED EQUIPMENT (Complete the following information) 1. Name of Lessor 2. Address of Lessor 3. Year Lease Started 4. Description of Lease 5. Cost to Purchase New 6. Annual Rent

23 Declaration By Assessee: (Must be completed and signed)

24 Contact information for obtaining assistance in filing the BPS: Telephone the Assessor s Office at (650) Monday Friday, 8 a.m. - 5 p.m. Fax: (650) In person at 555 County Center, 3rd Flr. Redwood City, CA hours 8 a.m. - 5 p.m. Internet site: E-File on SDR (Business Identification Number (BIN) and Account Number required):