|
General Definitions/Explanations
|
|
Overview
|
|
All non-exempt tangible personal property is valued and assessed annually by the Personal Property Division of the Assessor's Office. Taxable personal property is primarily that which is used in the operation of a business, mobile homes, aircraft, and motor vehicles. Registered vehicles are assessed an age-based fee at the time of registration. All businesses are required to declare their taxable property to the Assessor annually by way of a self-assessing statement. The statements are mailed to all businesses on the tax rolls during February. The taxpayer will need to complete the statement and return it with the payment of the tax by May 15th. Statutory citations regarding the assessment of personal property are contained in Title 59, Chapter 2 of the Utah Code. New businesses should register with the Assessor when taking out a business license to avoid assessment of escaped property taxes. Certain types of property and some entities are exempt from property taxes.The personal property tax is collected and apportioned to the county, cities, school districts, and other taxing entities to pay for local governmental services.
|
|
|
(TOP)
|
|
|
|
Valuation Methodology
|
|
|
The Utah State Tax Commission provides all county assessors with recommended percent-good schedules each year. These schedules are used to equalize the valuation of personal property statewide. Personal property is classified according to its economic life, an appropriate depreciation table is generated and then trended to replacement cost new using Marshall-Swift cost indexes. Applying the appropriate percent-good rate for the age and class of the property to the original cost will yield an approximate fair market value for the subject property. Assessors may deviate from the recommended schedules on an individual item of property when provided sufficient documentation to establish an alternative fair market value.
|
|
|
(TOP)
|
|
|
|
Appeals
|
|
|
A taxpayer may appeal their personal property valuation to the Davis County Board of Equalization. The appeal must be filed within 30 days of notification of assessment and must include a description of the property, documentation of an alternative value and the methodology used to arrive at that value or a legal brief, if the appeal relates to a legal interpretation of the assessment statutes. All appeals must be in writing and addressed to the Clerk of the Board of Equalization, c/o Davis County Auditor, P.O. Box. 618 Farmington UT 84025. Decisions of the county board of equalization may be appealed to the Utah State Tax Commission.
|
|
|
(TOP)
|
|
|
|
Audits
|
|
|
In order to insure compliance with the self-assessing program, random and/or referred audits may be performed by the Utah State Tax Commission Personal Property Auditing Division. The Utah State personal property auditing division performs detailed reviews of financial records and on-site inspections of taxpayers' facilities and compares those results to the statements submitted by the taxpayer. Escaped property, when discovered, may be assessed as far back as five years from the date of discovery. Property willfully concealed, misrepresented, or moved, in order to escape taxation is subject to a penalty equal to the tax on its value.
|
|
|
(TOP)
|
|
|
|
Exemptions
|
|
|
All tangible property, unless exemption is provided for by the Utah Constitution and enacted by the legislature, is taxable.
Property owned and used exclusively by a non-profit religious, charitable, or educational institution may be exempted upon application and approval by the Davis County Board of Equalization. Until the exemption is approved by the board, the entity is deemed taxable.
Property owned by the Federal, State, or local government is exempt by virtue of its ownership. Property leased to an exempt entity is not considered exempt.
Up to the first $82,500 of taxable value on the real and/or tangible personal property of a disabled veteran or their un-remarried surviving spouse and minor orphans may be exempted, depending on the percent of disability.
Household furnishings used exclusively at the owner's place of abode are exempt. The first $11,500 of taxable value of real and tangible personal property owned by blind persons, their unremarried surviving spouses, or their minor children is exempt. Certain conditions must be met to qualify for this exemption.
Additionally, the following types of tangible property are exempt: Livestock, farm machinery and equipment, and inventory held for resale in the normal course of business. See Personal Property Forms: Personal Property Legislative Changes — Re:Legislative changes for 2009.
|
|
|
(TOP)
|
|
|
|
Definitions (Statutory Reference: 59-2-102)
|
|
|
Property
"Property" means property which is subject to assessment and taxation according to its value, but does not include moneys, credits, bonds, stocks, representative property, franchises, goodwill, copyrights, patents, or other intangibles.
Personal Property
Every class of property defined as property which is the subject of ownership and not included within the meaning of the terms "real estate" and "improvements".
Percent Good Schedule
A schedule used to calculate the approximate remaining value of an item of personal property. Multiplying the appropriate percentage from the table, based on the class of property and its age, by the historical cost will yield the Apercent good, or remaining value.
Escaped Property
"Escaped property" means any property, whether personal, land, or any improvements to the property, subject to taxation and is: - Inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed to the wrong taxpayer by the assessing authority;
- Undervalued or omitted from the tax rolls because of the failure of the taxpayer to comply with the reporting requirements of this chapter; or
- Undervalued because of errors made by the assessing authority based upon incomplete or erroneous information furnished by the taxpayer.
- Property which is undervalued because of the use of a different valuation methodology or because of a different application of the same valuation methodology is not "escaped property."
Property Willfully Concealed
Any property found to be willfully concealed, removed, transferred, or misrepresented by its owner or agent in order to evade taxation is subject to a penalty equal to the tax on its value, and neither the penalty nor assessment may be reduced or waived by the assessor, county, county Board of Equalization, or the commission, except pursuant to a procedure for the review and approval of waivers adopted by county ordinance, or by administrative rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
Penalties
A penalty of $100 or 10% of the estimated tax due, whichever is greater, is assessed when a taxpayer fails to file a statement of personal property by the due date (Utah Code 59-2-306(2)(a) 59-2-307). Property willfully concealed, misrepresented, or moved, in order to escape texation is subject to a penalty equal to the tax, and commercial mover may be charged with a Class B misdemeanor.
Intrest
Personal Property taxes become deliquent 30 days after billing and the assessor is required to charge intrest at a rate which is 6% over the Federal Discount Rate as of January 1 of each year.
|
|
|
(TOP)
|
|
|
|
|
