Small business owners are faced with many taxes that they may not have been aware of when they started their business.  Income taxes from profits on the business, employment taxes that have to be matched by the business or taxes imposed on the business because they have employees they are paying wages are taxes required of business owners.Another tax that may not be expected by a business owner is the business personal property tax required to be reported and rendered by the business to their local county assessor.

Business Personal Property Tax

Oklahoma Business Personal Property Tax is reported on form 901 sent by the county assessor in January and is due by March 15. This tax is levied on assets of the business and includes furniture and fixtures, machinery and equipment, computer equipment, leasehold improvements and average inventory of the business if applicable.  Titled vehicles are not included in the tax calculation.  Business Personal Property Tax is separate from Oklahoma Property Tax on real estate which is also determined by the local county assessors.

The tax is figured on the original cost of the assets, county other than inventory, and the taxable portion of the costs are determined by the depreciation of the original costs over a 5 to 10 year period based on the classification of the costs incurred. The rate of taxation is generally from $86 to $134 per thousand depending on the county. The tax rates are set by procedures established in the state constitution and voted on directly by the taxpayers. There are, for example, 75 different rates in Oklahoma county and they vary across the county depending on which school district, city limit and vocational-technical school district the property is located.

The county assessor does not collect the tax, that is done by the local county treasurer.

Check out the PATH Tax Law Changes for 2015

Filing Deadline

As mentioned earlier, the rendition is required to be filed by March 15 of each year, if the return is late a penalty of 10% is assessed for late returns and a penalty of 20% of assessed valuation is added after April 15. There are no provisions in the statutes for extending the due date of the report. Once the assessor determines the valuation of the assets and the tax due, you have 30 days to review and protest the calculation

We Are Here To Help

Business personal property tax reporting is a part of the services we provide our clients at Core Business and Financial Services to help you make and keep more of your money. Our Oklahoma City CPAs and Tulsa CPAs help your lower your small business taxes. Contact or call our offices in Oklahoma City: 405-720-1244 or Tulsa: 918-477-7650 to find out more today!