Frequently Asked Questions ( FAQ )

NEW $25,000 EXEMPTION
(Amendment 1)

Effective 2008 all Tangible Personal Property accounts such as businesses, rentals, and mobile homes will receive a $25,000 exemption. A DR-405, or if your value is less than $25,000, a DR-405EZ Tangible Personal Property tax return must be filed in the initial year of application to be eligible. Exception: mobile home appurtenances will automatically receive exemption.

What is Tangible Personal Property?

Why must I file a return?

How can I obtain this form?

Is there a deadline and penalties?

What if my assets have been fully depreciated, written off the books, personally owned, old, or purchased second hand?

What if I have no assets to report?

If I am no longer in business, should I still file the return?

Do I have to report assets that I lease, loan, rent, borrow, or are provided in the rental agreement?

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

What if I don’t have enough value to report?

Is my manufactured home considered real property or tangible personal property?

What is an Office Assessment?

What if I receive more than one return?

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

What if I don’t agree with the assessed value that appears on the Notice of Proposed Property Taxes that I receive in mid-August?

If my business or rental value is under $25,000, do I have to file?

WHAT IS TANGIBLE PERSONAL PROPERTY?

Simply put, Tangible Personal Property refers to ALL assets used in a business or rental activity that are subject to an Ad Valorem assessment. More specifically, it is furniture, fixtures, tools, machinery, household appliances, equipment, signs, computers, leased equipment, leasehold improvements, and supplies - whatever is used to generate income for the business or rental.
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WHY MUST I FILE A RETURN?

Florida Statute 193.052 requires that all tangible personal property be reported each year to the Property Appraiser’s Office.
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HOW CAN I OBTAIN THIS FORM?

The Property Appraiser mails out this form every year to existing accounts. If you are filing for your rental unit, you may file electronically. On-line filing and all forms are available at our web-site www.leepa.org.
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IS THERE A DEAD LINE OR PENALTIES?

Deadline for filing a timely return is April 1 of each taxing year. Florida Statute 193.072 provides the guidelines for the penalties that may be applied: 5% for each month the return is filed late up to a maximum 25% penalty. There is a 15% penalty for unreported property. if no return is filed, a 25% penalty will be assessed and the $25,000 exemption is not applicable.
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What if my assets have been fully depreciated, writted off the books, personally owned, old, or purchased second hand?

Whether fully depreciated or expensed in your accounting records, all property still on site and in use must be reported on your return and includes all of above.
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What if I have no assets to report?

All businesses and rental units have some assets to report, even if it is only a phone, supplies, leased equipment, or household items.
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If I am no longer in business or no longer renting my unit, should I still file a return?

1. Business closed or no longer renting:
   You can call the Tangible Department and have a disposition letter send to you or you can download one on our web-site Disposition of Assets Form and mail it to this office.
2. Sold business or rental:
   If you sold your business you must fill out a disposition letter and send a copy of your sales agreement or contract to this office.
   If you sold your rental unit you must fill out a disposition letter and provide the name and address of the new owners.

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Do I have to report assets that I lease, loan, rent, borrow, or are provided in the rental agreement?

Yes, on the back of the DR-405 second section you report name and address of owner or lessor, description, year acquired, rent, and retail installed cost.
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If I buy or sell an existing business during the year, who is responsible for the taxes?

Per Florida Statute 197.412, the owner of the property on the date the taxes become due is responsible. However, some title companies do not perform a title search on the tangible assets of a business. Therefore, we suggest you consult your realtor, attorney, closing agent, or title company to avoid any problems in this area.
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WHAT if I don’t have enough value to report?

If you receive a Tangible Personal Property Tax Return, it must be filed with this office before April 1 of the taxing year regardless of the value you report. However, the Tax Collector's Office may then determine that no tax liability exists.
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Is my manufactured home considered real property or tangible personal property?

If you own both the land and the manufactured home it is considered Real Property. If you do not own the land, but do own the manufactured home and added improvements such as a carport, screen porch, or air conditioner, it is Tangible Personal Property. Under Amendment 1, Lee County is exempting your improvements if their value is under $25,000. However, you must buy an annual mobile home registration sticker for the manufactured home from the Tax Collector’s Office.
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What is an Office Assessment?

Florida Statute 193.073(2) authorizes the Property Appraiser to assess any business that does not file with an average cost of similar businesses. These averages are based on businesses in the same NAICS (North American Industry Classification System) here in Lee County. However, being office assessed does not alleviate your responsibility to file an accurate return. To insure the proper reporting and valuation of your assets, and thus an accurate tax bill, you must file a return annually.
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What if I receive more than one return?

If you have more than one location you have to file a separate return for each location. If you only have one business location and receive more than one, contact this office.
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If I rent my furnished home or condo for a few months, do I have to file a tangible personal property tax return?

Yes, since rental activity is of an income-producing nature, you must file a return which lists your personal property. Items that should be listed include: appliances, beds, draperies, lamps, ceiling fans, equipment, and any other furniture or furnishings included in the rental unit. This form can be electronically filed on our website. Tangible Rental Tax Return Form Tangible Rental Online Filing or file a DR-405, or DR-405EZ.
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What if I don’t agree with the assessed value that appears on the Notice of Proposed Property Taxes that I receive in mid- august?

First, we would like you to contact or visit our office to discuss your assessment. You can submit any documents or pertinent facts for our review. If you believe your concern is unresolved, you may file a Value Adjustment Board petition with the Minutes Department of the Clerk of Courts for a $15.00 filing fee. These forms are available at the Property Appraiser’s Office, Clerk of Courts, or on our web-site www.leepa.org.
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If my business or rental value is under $25,000, do I have to file?

Yes, in order to receive the exemption, you must file a return the first year you are eligible. After your initial filing, you will not be required to file again until you acquire additional assets that bring your total value to 25,000.
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