Personal Property
* CLICK HERE FOR THE OCTOBER 1, 2008 PRESS RELEASE
ON PERSONAL PROPERTY FILING DEADLINES *
Business Personal Property is everything other than Real Estate that has value by itself. It would include things such as furniture, fixtures, computer equipment, tools, machinery, non-registered motor vehicles, signs, leasehold improvements, video tapes, vending machines, leased equipment and any other equipment used in a business or to earn income.
Owners of Personal Property are required to file a Personal Property Declaration with the Assessor annually on or before November 1st in accordance with Section 12-41 of the Connecticut General Statutes. All owners or lessors of tangible personal property except registered automobiles, airplanes and boats are required by statute to file with the Assessor during the month of October.
The deadline for filing a timely declaration is November 1. When a declaration is not filed by November 1, the Assessor’s Office is required to place an assessment on the property as per Section 12-42 of the Connecticut General Statutes. Undeclared tangible personal property is subject to an estimation and a 25% Penalty. Public Act 96-224 allows an extension of not more than 45 days for good cause. It is necessary to request an extension in writing to the Assessor by November 1.
Manufacturing Machinery & Equipment Exemption
Connecticut General Statutes Sec. 12-81 (72) provides for a five year 100% property tax exemption for certain manufacturing machinery and equipment. New and newly-acquired used manufacturing machinery and equipment is eligible for this exemption, provided it was acquired (by purchase, lease or self-construction) on or after October 2, 1993. Such machinery and equipment must be used for manufacturing purposes. It must also be tangible personal property defined in #168(e) of the IRS Code as either five-year or seven-year property. The application for this exemption is included in the Personal Property declaration and must be filed by October 31.
Important change effective October 1, 2006. Legislation passed in 2006 (Public Act 06-186) expands on the exemptions for Manufacturing Machinery & Equipment. This legislation allows a property tax exemption for certain machinery and equipment that is six years old or older as of October 1, 2006. Requirements and instructions are included in the Personal Property declaration.
Farm Machinery Exemption
Applications for exemption of Personal Property must be filed with the Assessor prior to November 1st each year. A farming operation may be defined as an active agricultural concern from which is derived at least $15,000 in gross sales, or incur at least $15,000 in expenses related to such farming operation during the previous calendar year. Livestock will continue to be totally exempt from taxation if the required exemption application form M-28 is filed with the Assessor on or before November 1st in accordance with Section 12-91 of the Connecticut General Statutes. The applications for these exemptions are included in the Personal Property declaration.
The declarations are mailed to existing businesses in September. If you have not received a declaration and require one please contact the Assessor’s Office at (860) 871-3650.