CCSF Office of Assessor-Recorder : FAQ Business

The due date for filing the Business Property Statement is April 1^st. The last day to file a statement without the 10% penalty is May 7^th. (Revenue & Taxation Code 441 (b) & 463)

What is the last date to electronically file the Business Property Statement?

The due date for filing the Business Property Statement is April 1^st. The last day to file a statement without the 10% penalty is May 7^th. The last day to e-File (penalty will apply) is June 11^th. Thereafter, the site will become unavailable for filing statements, and you must file by paper copy.

What if the Business Property Statement is filed after the filing date?

If the Business Property Statement is filed after May 7^th, a 10% penalty will be added to the assessment.

How can I get a copy of my prior year’s 571-L Business Property Statement?

To receive a copy of your prior year’s valuation, please fax or send your request on company letterhead, specifying the year you are requesting. If you are an agent of a taxpayer, include an authorization letter from the taxpayer.

If the Business Property Statement is not filed, how will my business’ assessed value be determined?

If you do not file a 571-L Business Property Statement, the Assessor’s Office, directed by state law, will arbitrarily determine an assessable value. In addition, a 10% penalty for failure to file will be added to your assessment.

How is the assessed value determined?

Assessment begins with the cost of the asset, including sales tax, freight and installation. The Assessor applies a depreciation factor to the asset cost and this becomes the assessed value. The depreciation schedule is based on expected economic life of the asset, and is different than the depreciation schedule used by tax accountants.

How much will my taxes be?

Using a tax rate of 1.107% will give a conservative estimate of what the actual tax rate will be. Proposition 13 established a tax rate of 1% of the value of assessable property. San Francisco’s tax rate is determined by the Board of Supervisors, based on property assessed value and Bond measures passed by San Francisco voters. For example, if the business depreciated assessed value is $25,000 the property taxes on the business assets will be approximately $277.

What if I don’t agree with the value on my tax bill?

The value can be corrected if a clerical error was made. However, if the disagreement is a matter of valuation, then you must file an application for changed assessment with the Assessment Appeals Board (www.sfgov.org/assessment_index.asp) no later than September 15^th. Their telephone number is (415) 554-6778.

When will I receive my bill?

When you file your business property statement in a timely manner, you should receive your bill by the end of July. Payment is due on August 31st, and becomes delinquent after that date and will be subject to penalties and interest.

Is my Business Property Statement confidential?

Yes, by law the Business Property Statement is a confidential document. It is not a public document and will be held confidential by the Assessor.

I went out of business on January 15^th. Do I need to complete the Business Property Statement?

Yes, the law specifies that all taxable personal property and fixtures you owned, possessed, or controlled as of 12:01a.m. , January 1^st, must be assessed, regardless of what transpires after that date. Even if the business is closed shortly after the lien date (January 1), a business must still file a Business Property Statement.

I was not open for business on January 1^st. Do I need to complete the Business Property Statement?

Yes, a business does not have to be open for its personal property to be subject to assessment. For example, let’s presume that on the lien date (January 1) a new pizza parlor is under construction and nearly ready for its grand opening. Even though the pizza parlor was not open for business on the lien date, taxable business personal property (such as furniture, ovens and supplies) was in the owner’s possession and the Assessor is required to assess it.

I went out of business prior to January 1^st. Do I need to complete the Business Property Statement?

Yes, if you sold your business property prior to January 1^st, make a notation in the ‘Remarks’ section when you file your statement. Please indicate the disposition of the equipment previously owned or used by you.

My business has moved to a new location within San Francisco. How do I indicate this change of location on the Business Property Statement?

If you have moved your business within San Francisco City and County, you will not be able to eFile. Please use the 571-L form mailed to you earlier. Line through the old location on the form, including the mailing address if applicable, write your new address above the old one, and mail the form to our address at the Business Personal Property Division at 875 Stevenson Street, Suite 100, San Francisco, CA 94103.

My business has moved to a new location outside of San Francisco. Do I need to complete the Business Property Statement for San Francisco County?

If you have moved out of San Francisco City and County, you will not be able to eFile. Please indicate on the 571-L form mailed to you earlier that you have moved outside of the county. Mail the form back to our address at the Business Personal Property Division at 875 Stevenson Street, Suite 100, San Francisco, CA 94103. Please call the new county to request a Business Property form from them.

Are non-profit organizations required to file the Business Property Statement?

Yes, the filing laws apply to non-profit organizations. If you are a non-profit organization and have filed for an exemption in the past, you will not be able to eFile. Please fill out the 571-L form mailed to you earlier.

What is a supply item?

Any item that you are consuming in your business, such as office supplies, pencils, paper, etc. is a supply item. If you are a manufacturer, supplies do not include anything that becomes a part of the finished product. You should report the cost of the supplies on hand as of 12:01 a.m., January 1^st. If you do not have an accurate amount, you may estimate.

How do I report disposals?

If you disposed of business personal property before 12:00 a.m., January 1^st, then do not report it. Exclude the original cost of the disposed property from its year of acquisition. For example, last year you reported a $2,000 computer you acquired in 1995 and sold it prior to January 1^st. This year, you should exclude the $2,000 cost from the cost reported for the 1995 year of acquisition. Do not report negative costs.

Is there any property that is exempt or that I do not have to report on my Business Property Statement?

The following are some common exempt items that should not be reported:

Business Inventory (Revenue & Taxation Code 129)
Application Software (Property Tax Rule 152)
Licensed Motor Vehicles (R&T Code 10751)
First $50,000 of Employee-owned Hand Tools (R&T Code 241)

Last updated: 3/2/2011 11:13:20 AM