I just got a call from my local town assessor who said that he was walking down my street and saw my business sign. He asked if we had been in town long. He then informed me that we are supposed to be sending in a yearly declaration stating all of the tangible assets purchased each year as well as any lease improvements to our space. At the end he slipped in that there may be a "tax consideration" based on how large our business is (ie. number of employees) and the amount of our declaration.
My accountant and lawyer had never informed us of this. It seems that the town basically is trying to make the purchasing of tangible assets and capital improvements a taxable event at the town level on top of the sales taxes we pay to the state.
Yes, I've not only heard of that but am affected by such a tax in my own city. Is your accountant local? If so I'd seriously consider getting a new accountant since he/she should be fully aware of this. Different cities and towns have their own tables and rules about depreciation of equipment and such - so visit town hall and ask for all applicable paperwork.
This just took me by suprise since we have worked on the same street (in Downtown, 1 block from Town Hall) for a couple of years. I had never heard of such a thing. The accountant may have told my partner for all I know. Anyway, nice to know that it is not just a local practice.
iF YOU ARE REGISTERED AS A BUSINESS WITH THE TOWN NORMALLY THE ASSESSOR WILL JUMP ON PERSONNEL PROPERTY TAX ( FOR THE DESIGN FIRM THIS MIGHT INCLUDE OFFICE FURNISHINGS, COMPUTERS, PRINT MACHINES MODEL SHOP EQUIPMENT ETC.)
It doesn't actually happen everywhere. It's more common in a city that doesn't collect income taxes - though some cities collect both types of taxes and others collect neither.
Sep 17, 04 6:38 pm ·
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Town Assessor's Call
I just got a call from my local town assessor who said that he was walking down my street and saw my business sign. He asked if we had been in town long. He then informed me that we are supposed to be sending in a yearly declaration stating all of the tangible assets purchased each year as well as any lease improvements to our space. At the end he slipped in that there may be a "tax consideration" based on how large our business is (ie. number of employees) and the amount of our declaration.
My accountant and lawyer had never informed us of this. It seems that the town basically is trying to make the purchasing of tangible assets and capital improvements a taxable event at the town level on top of the sales taxes we pay to the state.
Has anyone else heard of this?
Yes, I've not only heard of that but am affected by such a tax in my own city. Is your accountant local? If so I'd seriously consider getting a new accountant since he/she should be fully aware of this. Different cities and towns have their own tables and rules about depreciation of equipment and such - so visit town hall and ask for all applicable paperwork.
Thanks Ormolu,
This just took me by suprise since we have worked on the same street (in Downtown, 1 block from Town Hall) for a couple of years. I had never heard of such a thing. The accountant may have told my partner for all I know. Anyway, nice to know that it is not just a local practice.
iF YOU ARE REGISTERED AS A BUSINESS WITH THE TOWN NORMALLY THE ASSESSOR WILL JUMP ON PERSONNEL PROPERTY TAX ( FOR THE DESIGN FIRM THIS MIGHT INCLUDE OFFICE FURNISHINGS, COMPUTERS, PRINT MACHINES MODEL SHOP EQUIPMENT ETC.)
It doesn't actually happen everywhere. It's more common in a city that doesn't collect income taxes - though some cities collect both types of taxes and others collect neither.
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