Understanding Form DR-405

Tangible personal property (TPP) taxes are a hidden cost of owning property. If you own a business or properties that have tangible personal property, such as equipment, machinery, or computers, you must file taxes on this property. This is what Form DR-405 is for.

While it may appear to be an added expense on top of your normal taxes and mortgage payments, TPP taxes actually save you money in the long run by preventing businesses from underreporting their property values. 

These taxes also help fund services like fire protection and libraries that are funded in part by local taxes on personal property. If you own commercial buildings or other properties with TPP inside them, you need to file taxes on that specific piece of property. 

The taxing authority for these properties is usually different than the one for residential or agricultural properties. They may even require separate ownership documents to prove that you own the tangible personal property within their jurisdiction.

What Is Form DR-405?

Form DR-405 is the form you must use to claim certain tax refunds from the Florida Department of Revenue. This form must be filed in order to receive your refund. The form is relatively simple and can be found online or at any Florida Department of Revenue office.

What Is Tangible Personal Property?

Tangible personal property refers to items that are physically attached to land or buildings like equipment and inventory. These are different than intangible assets like patents and copyrights. While intangible assets don’t have any physical presence in a given area, they can be taxed through the use of the gross receipts tax. 

TPP is generally made up of things like inventory, machinery, computers, and furniture. If a business owns any of these items, it must file taxes on them. Local taxing authorities require businesses to pay taxes based on the value of the TPP inside their buildings. 

This means that businesses have an incentive to report accurate values for TPP because underreporting the value can lead to stiff penalties. Typically, the local tax authority will assess a business’s TPP property value by conducting an appraisal. 

Moreover, this gives the owner the chance to provide evidence for a lower value, but doesn’t give them the option to increase the value. If a business wants to challenge an appraisal, they will have to provide a different valuation. If a business doesn’t want to challenge the appraisal, they can accept the value and pay the assessed taxes.

What Taxes Apply to Form DR-405?

Form DR-405 is used for claiming tangible personal property tax refunds, as well as certain other types of tax refunds. Tangible personal property taxes are levied on items like furniture, machinery, and vehicles.

What Information Do I Need to File Form DR-405?

In order to file Form DR-405, you will need the following information:

1. Your Social Security Number

2. Your date of birth

3. The tax year for which you are claiming a refund

4. Your mailing address

5. A description of the taxes for which you are claiming a refund

6. The amount of the refund you are claiming

Most local governments accept regular taxes on a calendar year basis. If your normal taxes are due in January, TPP taxes will be due the following year in January. You may need to make two payments every year. Your TPP taxes will be due in addition to your normal taxes. 

If you own large amounts of tangible personal property, you may also need to make quarterly payments. If you don’t pay your TPP taxes on time, you may be charged a penalty. Make sure to check with your local government to find out how much and when your payment is due.

How to File Form DR-405?

Form DR-405 can be filed online or by mail. If you are filing online, you will need to create an account with the Florida Department of Revenue. Once you have created an account, you can log in and begin the process of filing your return.

What Happens After I File Form DR-405?

Once you have filed Form DR-405, the Florida Department of Revenue will process your claim and issue a refund, if applicable. You should receive your refund within 4-6 weeks from the date you filed your return.

Who Pays for TPP Taxes?

The owner of the property where the TPP is located is responsible for paying the TPP taxes. This doesn’t always mean that the business owner has to pay the taxes. If the business owner is an individual, they may be able to claim the TPP taxes as a deduction against their personal income tax. 

If the owner is a corporation, they will likely have to pay the taxes through their corporate income tax. Corporate taxes are paid by shareholders. This means that if you own stock in a corporation that has to pay TPP taxes, you will be responsible for paying the taxes out of your dividends.

How an Attorney Can Help You with Your Tangible Personal Property

If you own property in Florida, you are required to file a Tangible Personal Property Tax Return, or Form DR-405. This return must be filed by April 1st each year, and it is used to report the value of your personal property, such as furniture, appliances, electronics, and vehicles. If you do not file this return, you may be subject to a late filing fee or other penalties.

An attorney can help you ensure that your tax return is filed on time and that you are complying with all of the requirements. They can also help you if you have questions about how to value your personal property or if you have been audited by the Florida Department of Revenue.

Call The Law Offices of Mary King Today

If you are required to file a Tangible Personal Property Tax Return, contact experienced tax attorney Mary King today. She can help you understand the process and make sure that your return is filed correctly. Call her office today at 941-906-7585 to schedule a consultation.

The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.