FREQUENTLY ASKED QUESTIONS 

1. What is Tangible Personal Property (TPP)?

TPP can be defined as all goods other than real estate that has value by itself.

2. Why must I file a return?

Florida Statute 193.052 requires that all TPP be reported each year to the Property Appraiser's Office. If you receive a return, it is because our office has determined that you may have property to report. If you feel the form is not applicable, return it with an explanation and ensure you sign, date, and list the contact phone number on the return. All DR-405 returns should and must be returned. Failure to receive a TPP Tax Return does not relieve you of your obligation to file a yearly return. 

3. Who must file a Tangible Personal Property (TPP) tax return DR- 405)?

Anyone in business as of January 1 must file a TPP DR-405 tax return yearly. The Franklin County $25,000 Waiver form may be use by business owners who meet all the waiver requirements. The business could be established as a corporation, partnership, or a self-employed individual, etc. Property owners’ and business who lease and/or rent equipment must also file.

4. If I file a Tangible Personal Property (TPP) return (DR- 405) do I have to file one each year?

Yes. Anyone in business is required to file a yearly TPP return. Franklin County has a $25,000 Waiver which can be used, if ALL the requirements are meet. Special attention, if you file the $25,000 Waiver and do not meet the requirements, it will be returned to you and a DR-405 return will be required.

5. What are examples of TPP that must be reported? 

Examples of TPP include appliances, computers, communications towers, copiers, equipment, faxes, file cabinets, fixtures, furniture, leasehold improvements, machinery, phones, radios, cameras, safes, scanners, security systems, signs, billboards, tools, TV's, underground tanks, utility wires and poles, supplies and leased equipment, etc. Property owned by others but is located at your business and/or used in your business must be reported. Property that you personally own and use in your business must be reported. Licensed vehicles designated as a tool rather than a hauling vehicle must be reported. Examples are towing equipment, cranes, pump trucks, loaders forklifts, and excavators. 

6. Are leasehold improvements tangible personal property? 

If an improvement is of a permanent nature that cannot be readily replaced, or if removing the improvement would cause substantial damage to itself or the real estate, it is NOT considered Tangible Personal Property. If the improvement can be easily removed without damaging itself or the real estate, then it is considered Tangible Personal Property. 

7. What if I have old equipment that has been fully depreciated and written off the books? 

All property still in use or physically located at your business must be reported, even if it is fully depreciated in your accounting records.

8. Do I have to report assets that I lease or rent? 

Yes. There is an area on the return specifically for those assets on page 2 of the DR-405 form. Even though the assets are assessed to the owner and/or the leasing company, they must be reported for informational purposes. List the name and address of the owner or lessor and fill in the required information.

9. If I rent my furnished home or condo for a few months, do I have to file a tangible personal property tax return? 

Yes, on the rental contents/furnishings. In Franklin County you are required to file a TPP tax return if you own and rent one or more rental units, condo, townhouse, and/or home, etc. 

10. What is an office assessment? 

When a TPP tax return is not filed by April 1, we are required and can place an assessment on the property. This assessment represents the typical value of a similar business. Receiving an office assessment because you did not file does not alleviate your responsibility to file an accurate return to the Property Appraisers office each year.

11. Do I still have to file the return if I have no assets to report? 

Yes. All businesses must file a TPP tax return. Even if you feel you do not have anything to report, fill out items 1 through 9a on the return, and attach an explanation of why nothing was reported. Be sure you date, sign and list the contact phone number before mailing the return to the Property Appraisers’ Office.

12. Is there a minimum value that I do not have to report? 

No. A TPP DR-405 tax return must be filed on all assets by April 1. After filing a DR-405 the first year in business, if the business meets all the requirements of the Franklin County $25,000 Waiver form, the waiver can be filed.

13. If I'm no longer in business, should I still file a return? 

Yes. If you were NOT in business on January 1, you MUST file a final TPP return to close your account. On your final return, indicate the date you went out of business (line 9a) noting if the business was sold or closed. Also list the manner in which you disposed of your business assets (e.g., sold, disposed, or retained for personal use). Sign, date, list the contact phone number on the final return and clearly write ''FINAL RETURN'' across the top of the form. Mail the final return back to the Property Appraisers office.

14. If I buy or sell an existing business during the year, who is responsible for the taxes? 

The owner of the equipment on January 1 is responsible for filing a TPP tax return for the current/present year. The person(s) responsible for paying taxes should be addressed at the time of closing. A search for outstanding or back TPP taxes should also be made. You should consult your realtor, attorney, or closing agent to avoid problems in this area.

15. How can I obtain a TPP tax return (DR-405)?

TPP tax returns are mailed to businesses that are currently on the tax roll on January 1. A tax return is available on the Franklin County website at www.qpublic.net/franklin under DR-405 filing form and instructions or you can call our office and one will be mailed to you. CPA’s and accountants usually have the tax forms available also.

16. What if I receive more than one tax return? 

If you have more than one location and/or business, the assets of each location should be listed on a separate return. Complete each form making sure to sign, date, list a contact phone number and return each TPP tax return received to the Property Appraisers office.

17. What if I cannot meet the April 1 deadline for filing my TPP tax return, can I file an extension? 

Yes. A letter requesting a 30-day extension must be received in the Property Appraiser's Office on or before April 1 to be granted an extension. 

18. Are there deadlines and penalties? 

The deadline for filing a TPP return is April 1, Florida Statute 193.062. After April 1, Florida Statues 193.072 requires that penalties be applied. For failure to file a return, 25% of the total tax levied against the property for each year that no return is filed; for filing after the due date, 5% of the total tax levied against the property covered by that return for each year, for each month, or portion thereof, that a return is filed after the due date, but not to exceed 25% of the total tax; for unlisted property, 15% of the tax attributable to the omitted property. This information is listed on the DR-405(I) which list this and other Florida Tax Laws referring TPP.