Tangible Personal Property

Tangible Personal Property is all property owned or held by a business to operate that business, including but not limited to, furniture, fixtures, vehicles, tools, machinery, equipment, raw materials, and supplies. One of the most common tests used to differentiate "personal property" from "real property" is whether it is moveable (personal) or affixed (real). In Tennessee, personal property is assessed at 30% of its value for commercial and industrial property and 55% of its value for public utility property.

Download Personal Property Brochure

 

Online Filing

The Montgomery County Assessor of Property will be offering an online filing option for Personal Property schedules beginning in 2020. Online filing is not mandatory, so you may still file a paper schedule if you prefer. If you choose to file your Personal Property schedule online, you will find your unique business login information in the upper right hand corner of the printed schedule that was mailed to you.

Reporting

Not later than 1 February each year, the Assessor of Property is required to furnish each applicable business in the county with a schedule for listing all of their tangible personal property. Those business owners (or agents) must then complete and return those forms to the assessor’s office prior to 1 March. In many cases, for an existing business, this simply involves listing the equipment acquired or disposed of during the previous year, so that it may be added to or removed from the schedule already on file. It is basically a “self declaring” system, but is subject to audit for verification. Unlike the system for assessing real property, where the appraisal is based on fair market value and equalized across the entire jurisdiction, the appraisal of personal property is based on the actual cost of the property plus depreciation. Personal property is categorized in 10 groups for reporting. Each of those groups has its own depreciation schedule that is outlined in state statutes. In Tennessee, leased personal property used by a business is assessed to the lessee (user) and must also be reported on a company's reporting schedule. For smaller accounts, the system allows an alternate method for reporting personal property. If you believe the depreciated value of your business's personal property is $1,000 or less, you can declare so in the reporting schedule and you do not have to itemize or report detailed costs. With this certification, subject to audit, your assessment will be set at $300. Again, the deadline for filing Personal Property Reporting Schedules is March 1 each year. Failure to return the schedule by that date may result in a forced assessment of the business's personal property using information about the quantity and value of personal property held for use by businesses of similar size and function.

Tangible Personal Property Schedule (Due March 1 each year)

Tangible Personal Property Asset Listing

Appeal

As with “real property”, a property owner has the right to appeal their personal property assessment, beginning with the County Board of Equalization and continuing until satisfied or their appeals are exhausted. For the initial appeal to be heard, however, the taxpayer must first file a completed schedule.

For more information on tangible personal property, reporting procedures, and your rights and responsibilities as a property owner please contact the Assessor of Property Office.

Frequently Asked Questions

Tangible Personal Property is all property owned or held by a business to operate that business, including but not limited to, furniture, fixtures, vehicles, tools, machinery, equipment, raw materials, and supplies. The tangible personal property reporting schedule and its accompanying instructions contain a good, but not all inclusive list of the items that make up personal property. Finished goods in the hands of the manufacturer and inventories of merchandise held for sale or exchange are not considered tangible personal property.

Not later than 1 February each year, the Assessor of Property is required to furnish each applicable business in the county with a schedule for listing all of their tangible personal property. Those business owners (or agents) must then complete and return those forms to the assessor’s office prior to 1 March. In many cases, for an existing business, this simply involves listing the equipment acquired or disposed of during the previous year, so that it may be added to or removed from the schedule already on file. It is basically a “self declaring” system, but is subject to audit for verification.

If you have closed your business, but are still receiving Tangible Personal Property schedules, you probably have not closed out your business license. You will need to state that your business is closed in the “notes” section on the back of the schedule, then sign, date, and return the schedule to the Assessor’s Office.

To close out your County business license you must go to the County Clerk’s office. To close out your City business license you must go to the City Finance and Revenue Office. A copy of the final paperwork you receive must be turned into the Assessor’s Office.

County property taxes are paid at the Trustee’s Office. 931-648-5711. City property taxes are paid at the City Finance and Revenue Office. 931-645-7436. Current year taxes can be paid beginning October 1 st each year.

If a business owner fails to complete and file a schedule, the Assessor of Property must make a “forced assessment” regarding the quantity and value of the personal property held by that business by using information available on businesses of similar size and function.

Yes, if you use the vehicle for business it must be reported.

Yes, under Tennessee Law leased or rented equipment is assessed to the lessee and you are required to list it on your schedule.

No, if you believe that the depreciated value of all your personal property is $1,000 or less, you can check that box on the reverse side of the schedule and there is no requirement to itemize.

As with “real property”, a property owner has the right to appeal their personal property assessment, beginning with the County Board of Equalization and continuing until satisfied or their appeals are exhausted. For the initial appeal to be heard, however, the taxpayer must first file a completed schedule.