- Who handles it
- Miami-Dade County Property Appraiser
- What you file
- Tangible Personal Property Return, Florida form DR-405
- When
- Due April 1 each year, based on what you owned on January 1
Easy to miss: A timely return is also how the first $25,000 exemption is applied. A late or missing return can bring penalties up to 25 percent.
What Counts as Business Property
Florida taxes tangible personal property held for business use. That means furniture, computers, tools, machinery, kitchen equipment, signs, leased equipment you control and leasehold improvements in some cases.
It is separate from real estate tax. A company that rents its space can still owe tax on everything inside.
Who Must File
The Property Appraiser asks owners whose business assets exceed $25,000 to file a return by April 1.
The return doubles as the application for the $25,000 exemption, so filing on time protects it. Some owners with lower values can be excused, and a new business must file.
Values are set as of January 1. A company sold in July still has a January 1 ownership, which is why the seller's name may be on the bill.
What a Sale Changes
If you sell after January 1, the tax for that year was already measured against you. Many purchase agreements split the year's bill between buyer and seller at closing, the same way real estate tax is split. Decide this in writing.
The following year, the buyer files in its own name. In an asset sale, the buyer should list the assets it acquired, and the seller should be sure its own account is closed or updated so notices stop.
What to Do Before Closing
- Pull the last two returns and the most recent bill
- Make an asset list that matches the one in the sale agreement
- Agree who pays the current year bill and by what date
- Ask the Property Appraiser how a mid year sale should be reported
Why Mistakes Cost Money
An unpaid bill becomes a lien on the property, which can cause trouble for a buyer who thought the tax belonged to the seller. Buyers often ask for proof that the bills are paid. Missing returns can bring penalties and audits.
Holding back part of the price until bills are settled is common when records are unclear.
How Buyers Handle It
Buyers who pay close attention often ask for a schedule of assets and a copy of the last return, then compare them with what is actually in the shop. Items that are gone, sold or leased from someone else can change the bill.
If you sell the company's stock instead of its assets, the company keeps filing under the same account. The returns continue as before, and the buyer inherits any past problem, so it is smart to check that earlier years were filed.
Sources and Related Pages
The Miami-Dade Property Appraiser explains the return and the exemption, and the Florida Department of Revenue publishes the form instructions.
This page is general information, not tax or legal advice, so your CPA or attorney should confirm details for your own sale.
Related reading: business tax receipt transfer and the certificate of compliance. Ask for a private estimate when you want a range.