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 

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Online Filing

The Montgomery County Assessor of Property began 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.  

Click Here to file your Personal Property Schedule online. (link disabled until 2025 Tangible Personal Property Schedule season)

Click Here for “how to” online filing guide.

Reporting

Not later than February 1st 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 complete and return those forms to the Assessor of Property Office no later than March 1st.

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. This is a self-reporting process and 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 Tenn. Code Ann. allows an alternate method for reporting personal property. In lieu of detailing acquisition costs on your reporting schedule, you may certify that the depreciated value of tangible personal property otherwise reportable is $1,000 or less. Our office will accept the certification, subject to audit, and fix the value, pursuant to schedule, to $1,000. 

The deadline for filing Tangible Personal Property Schedules is March 1st each year. Failure to timely file your tangible personal property schedule will generate a forced assessment. If filing late, your business will not receive the equalization rate. If you do not file your tangible personal property schedule, your account will be forced assessed using “like” businesses and penalized 25% for non-compliance as required in Tenn. Code Ann. §67-5-903.

Tangible Personal Property Schedule (Due March 1 each year)

Tangible Personal Property Asset Listing 

Instructions for Completing the Personal Property Schedule 

Click Here for “how to” paper filing guide.

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

What is 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. 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.

How is Tangible Personal Property reported and assessed in Tennessee?

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 complete and return those forms to the Assessor of Property'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. This is a self-reporting process, but is subject to audit for verification.

I no longer operate a business, why do I still receive a schedule?

If you have closed your business, but are still receiving Tangible Personal Property schedules, you will need to notify the Assessor of Property Office and complete the business closure paperwork. You may also note that your business is closed in the “notes” section on the back of the schedule, then sign, date, and return the schedule to the our office.

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

County property taxes are paid at the Trustee’s Office. 931-648-5717. City property taxes are paid at the City Finance and Revenue Office. 931-645-7436. Current year taxes can be paid beginning October 1st each year.

What happens if I fail to return your tangible personal property schedule?

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, plus apply a 25% penalty for non-compliance. 

I have a personal vehicle that I use for business purposes, do I have to list that vehicle as business property?

Yes. Vehicles must be listed if more than 50% of their use is for business purposes; or you claim the vehicle on your business's income taxes; or it is titled in the business name; or the vehicle has a commercial license plate.

Some of the equipment or machinery that I use to run my business is leased, do I report that property on my schedule?

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

I run a small business out of my home that uses very little equipment or supplies, do I have to individually list those items?

In lieu of detailing acquisition costs on your reporting schedule, you may certify that the depreciated value of tangible personal property otherwise reportable is $1,000 or less. Our office will accept the certification, subject to audit, and fix the value, pursuant to your schedule, to $1,000. All schedules are subject to audit and, as part of an audit, a taxpayer may be required to list and document total acquisition cost for equipment used or held for use in the business. 

What if I disagree with the value assigned to my personal property by the Assessor?

As with “real property”, a property owner has the right to appeal their tangible 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. With minimal exceptions, the depreciations schedule applied to your assets is established in Tennessee Code and cannot be altered.