Business Property Statement and Filing Requirements

Frequently Asked Questions

You were sent a statement because our records indicate that you were in business on the lien date, January 1, and the Assessor is required to assess any taxable business personal property in your possession on that date.

The BPS collects information regarding business equipment, supplies and fixtures for each business location. The information an owner provides on the statement is then used to assess and tax property in accordance with California state law. The owner reports the acquisition costs of business equipment, supplies and fixtures that were owned on lien date at the address shown (location of the property). All 58 California county Assessors mail out similar statements that enable businesses to report the cost of their equipment, supplies, leased equipment, real property and improvements.

If the Assessor sends you a BPS, the law requires that you complete, sign and return the statement to the Assessor's Office in the time period specified. Any business that owns Personal Property and/or Fixtures having a total combined cost of $100,000 or more is required to file a BPS even if the Assessor does not request that you file one.

Yes, Business Property Statements may be filed electronically by using the Standard Data Record filing system either SDR or E-SDR. Learn more about using electronic filing.

Business Personal Property includes all supplies, equipment and any fixtures used in the operation of a business (see Page 3 of the 571-L instructions for an explanation of what specifically constitutes a business fixture). Business inventory and licensed vehicles (except Special Equipment, 'SE' tagged, off-road vehicles) owned by the business are exempt from reporting (note: SE tagged and other off-road vehicles and equipment are taxable personal property and must be reported). ​

That's because the California Constitution states in part that, 'Unless otherwise provided by this Constitution or the laws of the United States, (a) All property is taxable....' That is, unless otherwise exempted, all forms of tangible property are taxable in California and the Assessor must assess business personal property because the law requires him or her to do so. Some forms of personal property are exempt from taxation under the Constitution. For example, household furnishings, personal effects and business inventory are exempt under the law. However, Business Personal Property is not exempt under the law and neither are privately or business-owned boats or aircraft.

You may obtain assistance in completing the form using any of the following:

  • Telephone: You may call the Assessor's Office at (916) 875-0730, Monday through Friday, 9 A.M. to 4 P.M., where an Auditor-Appraiser is on duty to help you.
  • FAX: Our FAX number is (916) 875-0705.
  • In Person: 3636 American River Dr, Suite 200, Sacramento, CA 95864-5952. Office hours are 8 A.M. and 5 P.M.
  • e-mail: PPDutyApr@SacCounty.gov​
  • Internet Site: https://assessor.saccounty.gov

The Lien Date is January 1 every year, and is also the date property taxes for any fiscal year become a lien against a business property owner. Where personal property is concerned, the lien is placed on the owner of the property (not the property), and owners who allow their personal property taxes to become delinquent may have a Summary Judgment recorded against them personally (see Judgments & Liens for more detail).

Approximately 50% of the property tax dollar is used to support K-12 grades and junior colleges, 32% is allocated to city government and other special districts, while 18% is allocated to support county government. 

Throughout California, the property tax rate is 1% of assessed value (also applies to real property) plus any bonded indebtedness approved by the taxpayers. In Sacramento County, the average overall tax rate including bond debt averages perhaps 1.1%.

The amount of taxes you will owe will depend on the amount of the assessment and the specific tax rate in your area. The average rate in our county is approximately 1.1% (.011) of assessed value (the 1% tax rate plus bond debt). For example, if your personal property was assessed for $10,000, your personal property tax bill should be roughly $110.00.

If the business has moved or changed its mailing address, then draw a single line through the incorrect information (Please DO NOT make the preprinted information unreadable). Then legibly print or type the new information on the form and also indicate the effective date of the move or when the change became effective. When reporting a sale, include the new owner's name and mailing address. When reporting that the business has been closed, provide the date(s) and information relating to the disposition of any taxable personal property. Complete the BPS, sign and return it to the Assessor's Office.

Yes. Even if you don't own the real property where your business is located, you must still file the BPS because it is used to report business personal property (equipment, supplies, etc.) you do own. You must also complete any related schedules that apply to your particular business. If you do not own the real property, you may not need to complete Schedule B, columns 1, 3, and 4. If you own or have added any tenant-owned improvements, you will need to report their costs in column B-2 (see official instructions for the 571-L).

We review the form for completeness and accuracy and then employ a number of methods to convert reported costs to an estimate of their lien date, fair market value (see question #15). After the Assessor has assessed your property and has finished processing your BPS, the form is then filed with your property tax records. By law, your BPS is NOT a public document and it is not open to public inspection. The assessment is forwarded to the County Auditor, who computes the taxes owed and then forwards that information to the Tax Collector, who in turn creates the bill and collects the tax.

The Assessor is required to annually assess most taxable personal property at 100% of its lien date, fair market value. In order to determine fair market value, the assessor employs a number of methodologies. For example:

  • The Assessor often relies on various trade publications and 'Blue Books' that provide current, open market sales price and/or cost data for various types of both new and used equipment, vehicles, aircraft and boats.
  • The Assessor trends actual owner-reported costs to a present replacement cost estimate using trending tables provided by the State Board of Equalization (or developed in-house). We then reduce the trended costs to reflect normal or actual depreciation and derive a market value estimate.

Unlike real property, which is assessed under Proposition 13, most personal property does not fall under Prop 13's umbrella (although it does enjoy the same, maximum 1% tax rate). The only exception is personal property 'fixtures,' which are defined as real property for property tax purposes and are subject to Proposition 13 restrictions. Unlike other real property Fixtures are not subject to Supplemental Assessment.

Failure to File
  • Where a BPS is not filed as required by law or requested by the Assessor, then rely on the best information available in order to estimate the value of any personal property owned by the non-reporting business. In the absence of a BPS, an 'average' assessed value (based upon businesses of a similar size and use) may be used to derive such an estimate. Our office may also perform a field inspection of your business property, during which an estimate of the lien date, fair market value of the business personal property discovered will be made. Additionally, a 10% penalty must also be added to any assessment made as a result of a failure to file the BPS.
Incomplete Filing
  • ​If you file an incomplete BPS, the Assessor may return it to you for proper completion. In that case, penalties may be assessed if the Assessor's Office does not receive a properly completed BPS by the normal due date. An incomplete filing is treated the same as a 'failure to file' and a 10% penalty must be added in that circumstance.​

If you disagree with an assessment made by the Assessor, we recommend you first discuss it with an Auditor-Appraiser at the Assessor's Office. An Auditor-Appraiser is available Monday through Friday, 9 A.M. to 4 P.M. at (916) 875-0730, or in person at 3636 American River Dr, Suite 200 Sacramento, Ca 95864-5952, from 8 A.M. and 5 P.M.

Whether or not you discuss the matter with the Assessor, you also have the right to file an assessment appeal with the Assessment Appeals Board. The Appeals Board is an independent agency representing the Board of Supervisors and is not connected with, nor is it under the control of, the Assessor's Office.

An application must be filed, in writing, with the Assessment Appeals Board at 700 H Street, Room 2450, Sacramento, CA 95814. You may request an application by calling (916) 874-7894, or by mail at the Assessment Appeals Boad ​address​.​

The normal filing period for filing an assessment appeal is July 2 to November 30* of the current fiscal year. That filing period applies to any assessment produced for the annual assessment roll. If a bill for the current assessment roll is mailed to you after the normal filing period has expired, the filing period is extended and you may then file an application within 60 days of the date of mailing of that tax bill.

*If November 30 falls on a Saturday or Sunday, mail postmarked on the next business day shall be deemed on time.  See the Assessment Appeals Board web site for exact details in any given year.

​Once a formal assessment appeal has been filed with the Appeals Board, a hearing date will be set by the Board. Before the hearing takes place, you will need to gather data and evidence to support your opinion of value and then present it during the scheduled hearing. The Assessor's Office will also prepare evidence to present to the Board. At the hearing, all evidence and argument are presented to a three-member Appeals Board panel appointed by the Board of Supervisors. Once all presentations are complete, the Appeals Board may make a determination of value on the spot, or it may defer its decision until a later date so that it has time to review all the data and make a proper determination of value. If the decision is deferred, you will be notified of the decision by US mail once it has been rendered.

For guidance on how to prepare for an appeal, you may contact the Sacramento County Assessment Appeals Board at (916) 874-7894. Additionally, an appeal guideline has been published by the State Board of Equalization and is available on their Internet site at: www.boe.ca.gov/proptaxes/pdf/pub30.pdf (although the pamphlet is entitled Residential Property Appeals, it is helpful for personal property appeals as well). If you do not have Internet access, request a free copy of Pamphlet #30 from the Board of Equalization by phone at (916) 324-4019, or by mail at: SBOE Policy Planning & Standards, PO Box 942879, Sacramento, CA 94279-0064. 

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