Tangible Personal Property
Unlike real estate, taxable “personal property” need not be nailed down. Mainly, the taxable personal property is owned by a business and consists of its furniture, fixtures, equipment and machinery. Also, owners of rental properties are subject to tax on furniture fixtures, appliances, non-central air conditioning, carpet, maintenance equipment, etc. The tax rate is simply computed by multiplying the assessed value by the millage rate.
Who determines the value? The property owner does by reporting information in a tangible personal property tax return filed with the Collier County Property Appraiser (NOT the Tax Collector’s Office) before April 1st of the tax year. Many factors are considered by the property appraiser in placing a value on a person’s goods. Considerations include original cost, replacement cost less depreciation, etc.
There are penalties for failure to file a return.
The millage rate is determined by dividing the approved taxing district’s budget for the tax year by the related assessed value. This millage rate is expressed as a rate per $1000. of the assessed value.
The tangible personal property tax “year” is the same as the calendar year starting January 1st. The tax becomes due in November of that year and is delinquent April 1st of the following year. We send notices (to the last reported addressee) on October 31st of the tax year. A 4% discount is offered for payment in November. The discount reduces by 1.5% each month until March when there is no discount and April when there is a 1.5% penalty.
Once the property tax becomes delinquent there are legal avenues leading to the possible auctioning off of the property in order to satisfy the tax obligation. Within 60 days, the delinquency is locally advertised. The ad announces that the overdue tax now incurs interest at 18% per annum, and if not paid before a designated date, a warrant for seizure and sale of the personal property will be issued. This designated date can vary from year to year but must be prior to April 30th of the next year. All taxpayers need to know the law and understand the mechanisms which operate to enforce the law. At the tax collector’s office, publicizing the tax calendar is an important job because so many people choose to pay their taxes early and take advantage of the discount!