Completing the Business Property Statement

​Frequently Asked Questions

If you are using any 'personal' equipment in your business, then yes, it must be reported. For example, persons working out of their homes must report personal desks, computers, calculators etc, if those items are used in their business. Other examples include: 

  • Someone operating an auto repair shop is using their own 'personal' tools in the business. In this case, such tools become assessable as business personal property and must be reported.
  • A home business or auto repair shop goes out of business prior to January 1. In this case, any equipment previously used in the business that could revert back to 'personal' use is no longer taxable. Such items become nontaxable because they revert to being 'Household Furnishings or Personal Effects,' which are exempt.
  • A grocery store goes out of business prior to January 1st but equipment such as freezer boxes and store shelving remains in the building on that date. In this case, such items would still be taxable and must be reported even though the business was closed on the lien date. That is because the equipment could not be used as 'Household Furnishings or Personal Effects.'

Where the equipment you use in your business was acquired as a gift, you may report your estimate of its current market value on the BPS (that is, what you think it would sell for in the open market place). Enter that estimated value in the most current year's cost line and add a note indicating that the entry is an estimate.

Yes. The BPS must show all taxable property owned, claimed, possessed, controlled or managed by the person filing the form. If you are responsible for paying the tax on the equipment, then you may estimate its value (see question #22) and report it on the BPS. On the other hand, if you are not responsible for its tax, then you should declare the equipment in Part III of the BPS (Equipment belonging to others). Where equipment is declared in Part III of the BPS, the Assessor will also send a BPS to the person reported as the equipment's actual owner.​

Any item that you are consuming in your business, such as office supplies, pencils, paper, calculator tape, stationary, envelopes, cleaning supplies, fuel etc. is a supply item. If you are a manufacturer, 'supplies' would not include anything that becomes part of the finished product. Materials or supplies that are integrated into the products you market are exempt because they become business inventory once in the products, and business inventory is exempt from property taxation.

Any item that you are consuming in your business, such as office supplies, pencils, paper, calculator tape, stationary, envelopes, cleaning supplies, fuel etc. is a supply item. If you are a manufacturer, 'supplies' would not include anything that becomes part of the finished product. Materials or supplies that are integrated into the products you market are exempt because they become business inventory once in the products, and business inventory is exempt from property taxation.

No. You must report personal property holdings in detail and as requested or mandated. If nothing has changed from the prior year (no equipment was purchased or sold), then you may refer to your prior year's BPS filing in order to be consistent in completing the current BPS. If you failed to keep a copy of the prior year's filing, you may request a copy of it from the Assessor's Office (see the last entry of this document for contact information).

Yes. Note that circumstance in a remark on the BPS, or on an attachment to it, and also include the proper location and mailing address of your main office. Then sign and return the BPS to the Assessor's Office.

Yes. You are required to report this information in Part III of the BPS so that the Assessor can properly locate and assess the actual owner for the equipment.

Yes. Any equipment used for a home business is considered to be business personal property and must be reported on the BPS.

Do I still need to complete the BPS? Yes. Note these facts on the BPS, or on an attachment to it, and include the name and address of the business that actually owns the equipment. Then sign the BPS and return it. You also need to report any equipment you might own in Part II of the BPS.

Yes. You still are required to complete the BPS even if you are an exempt organization. You may contact the Exemption Section at (916) 875-0720 to verify your exempt status or to file an exemption claim.

In such a circumstance, you need to be aware that a number of penalties may apply: 

  • If a property owner refuses to comply with a lawful, written request for information from the Assessor, then R&T 501 requires the Assessor to estimate the value of their taxable property and then promptly assess it with whatever information is available.
  • If the refusal also includes a failure to file or incomplete filing of the BPS, then the Assessor must also add a 10% penalty under R&T 463.
  • If an owner willfully conceals, fails to disclose or misrepresents tangible personal property, an additional 25% penalty may be added under R&T 502 & 504.
  • Under R&T 503, a 75% penalty may also be added to an assessment for any fraudulent acts or omissions committed by the owner or their agent.
  • R&T 462 also tells us that any person who refuses to make available to the Assessor information lawfully requested in writing by the Assessor pursuant to R&T 441 is guilty of a misdemeanor punishable by up to six-months in the county jail and a fine of up to $1,000.

3636 American River Dr, Suite 200, Sacramento, CA 95864-5952, between the hours of 8 A.M. and 5 P.M.
Telephone: (916) 875-0730, Monday through Friday, 9 A.M. to 4 P.M.
Fax: (916) 875-0705​
E-mail: PPDutyApr@SacCounty.gov​
Internet: https://assessor.saccounty.gov
US Mail: Personal Property Division, Sacramento County Assessor's Office, 3636 American River Dr, Suite 200, Sacramento, CA 95864-5952​

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