Business Tangible Personal Property
Business tangible personal property values for ad valorem tax purposes are based on a self-reporting system in the state of Tennessee. Values are determined by the Tangible Personal Property Schedule.
The Tangible Personal Property Schedule is furnished annually on or before February 1 by the Wilson County Assessor of Property to every business owner operating within Wilson County. Every business owner operating within Wilson County is required to complete, sign and file the Tangible Personal Property Schedule with the Wilson County Assessor of Property annually on or before March 1 as provided by T.C.A. § 67-5-903.
If a business neglects to complete and return a Tangible Personal Property Schedule to the Wilson County Assessor of Property by March 1, the Assessor is required by law to place a value (forced assessment) on that business, using the best information available. Failure to file a completed schedule will subject the taxpayer to a penalty as provided by T.C.A. § 67-5-903 (c).
A review is performed on all schedules by the Assessor of Property. Audits are performed on selected local businesses on an annual basis, using either a statistical sample selected by the Tennessee Division of Property Assessments (DPA) or a plan to audit all businesses over a maximum six-year cycle.
(Due March 1st)
(This form must be signed before application can be processed)
Questions & Answers
What is tangible personal property?
Tangible personal property is movable, touchable property used in a business. It includes furniture, computers, machinery, tools, supplies, raw materials, vehicles, scrap and other property not listed as real estate. Tanks, billboards and pipelines are tangible personal property unless classified as real property.
If my tangible personal property is damaged, is there still an assessment?
If after January 1 and before September 1 of any year, commercial and industrial tangible personal property is destroyed, demolished or substantially damaged by fire, flood, wind or any disaster certified by the Federal Emergency Management Agency (FEMA) and is not restored, and no commercial and industrial tangible personal property is operated in its place before September 1 of that year, the assessor of property shall prorate the assessment of the commercial and industrial tangible personal property for the portion of the year to the date of such destruction, demolition or substantial damage. The assessor will need documentation to support any proration due to destruction.
What is a Tangible Personal Property Schedule?
The Tangible Personal Property Schedule is the form used by business owners to report purchases and leases of tangible personal property at a location. A schedule must be filed for each business location.
Who has to file a Tangible Personal Property Schedule?
Every business owner, incorporated as well as unincorporated, operating within the state of Tennessee is required to file a schedule with their county's Assessor of Property no later than March 1 of each calendar year. If a business owner believes the depreciated value of all tangible personal property used or held for use in the business is $1,000 or less, the owner may so indicate by marking the box on the back of the schedule. The owner who marks this box need not complete the front of the schedule, and the assessment (may be subject to audit) will be based on a presumed value of $1,000. The depreciated value includes leased equipment or nonstandard equipment.
What do I do if I do not receive a Tangible Personal Property Schedule?
If you do not receive a Tangible Personal Property Schedule, contact the Wilson County Assessor of Property to obtain one. All schedules are mailed by February 1.
What happens if I do not file a Tangible Personal Property Schedule?
A forced assessment is placed on all businesses who fail to file. Forced assessments are done by the Assessor's Office using the best available information. Forced assessments cannot be amended. Forced assessments can be appealed to the County Board of Equalization only after filing a Tangible Personal Property Schedule.
How will the Assessor of Property notify me if my assessment changes?
If your assessment changes, you will receive an Assessment Change Notice. You should contact the Assessor of Property's Office if you disagree with your assessment. You may also appeal to the County Board of Equalization, which begins meeting on June 1.
Will I be audited?
A representative from the Assessor's Office confirms totals for completeness by working the business owner. Audit methods vary based on the size of the business. The size of the business will not only determine the procedure used to audit, it will also determine the amount of resources needed to complete the audit. The representative may walk through the business. He/she may review the recording of business purchases for original cost, ask for a detailed listing of all assets, and cross reference these listings to the schedule totals by group and by year.
Can my personal property tax be credited against any other state tax?
Yes. Personal property taxes paid may be credited toward the business tax. You should contact the Tennessee Department of Revenue, your county clerk or your accountant for more information on this credit. Tangible Personal Property taxes stay within the county and/or city and/or school district to which they are paid.
Who should I call if I have a question?
You should contact the personal property section of the Wilson County Assessor's Office at 615-444-8661 with questions