What is Business Personal Property Tax (PPT)?
In 38 states, including Indiana, the cost of a business’s tangible personal property is taxed by the county where the property is physically located. This is a different tax than the common Income Tax, and it is a separately filed return with the county versus your common Income Tax Return filed with the state.
What is considered business personal property?
Business tangible personal property refers to the cost of all tangible assets used in the ordinary course of business. This includes signage, computers, furniture, equipment, and any physically held assets. This tax does not apply to the following types of assets:
- Real estate or land subject to Real Estate Property Tax
- Plated vehicles or road equipment subject to Excise Tax
- Inventory or assets held for resale
- Non-tangible personal property with no physical form like Goodwill or computer software
Who should file PPT?
All businesses and non-profit organizations with tangible assets must file a PPT return. In Indiana, if the cost of all your business personal property is less than $80,000, your business or organization is entitled to a business personal property exemption. You must still file to obtain this exemption.
What information do I need to file PPT?
If Storen Financial prepares your tax return, we already have the information we need to file. Otherwise, you must present a list of your tangible assets, date of purchases, and costs.
When do I need to file PPT?
PPT returns are due May 15th of each year in Indiana. If you have questions about filing, please contact us. We’re happy to guide you along this process. Click here to contact us now.
Click here to learn more about the PPT from the Indiana Department of Local Government Finance.
Or click here to learn more about our tax planning and preparations services.
Blog by Kim Storen – Senior Tax Accountant
Learn more about Kim and the rest of the Storen Financial team here.