Business Personal Property

Taxscribe for North Carolina Business Owners & CPAs

Experience the future of business tax filing in North Carolina with Taxscribe. Tailored for businesses and CPAs ready for online tax filing, Taxscribe offers advanced features to streamline filing across multiple jurisdictions.

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What is Business Personal Property tax?

Business Personal Property (BPP) tax is a local tax levied on the tangible property a business owns or uses for its day-to-day operations. This property can be anything with a physical form and includes a wider range of items than you might initially expect. Here's a breakdown:

Machinery & Equipment: Manufacturing equipment, generators, computers, printers, tools, etc.
Furniture & Fixtures: Desks, chairs, filing cabinets, leasehold improvements (built-in shelving, security systems, etc.).
Inventory: This is typically exempt, but there are exceptions. Check with your county for details. (Durham County exempts inventories for manufacturers, retailers, and contractors.)
Supplies: Spare parts, office supplies, etc. (Durham County includes these)

Vehicles: Motor vehicles registered with the NC Division of Motor Vehicles are generally exempt, but there are exceptions for trailers, special vehicle bodies, and certain IRP-plated vehicles. You'll also need to report non-NC registered vehicles, boats & motors, aircraft, and mobile homes.

Who should file Business Personal Property?

All businesses operating within a county in North Carolina are required to file a Business Personal Property tax filing in North Carolina annually. This applies to businesses of all sizes, from home-based operations to large corporations. Here are some specific examples:

Retail stores
Restaurants
Manufacturing companies
Service providers (e.g., landscapers, cleaners)
Professional offices (e.g., law firms, accounting firms)

It's important to note that some counties may exempt certain types of property from Business Personal Property tax. Be sure to check with your county's tax office for details on any exemptions that might apply to your business (e.g., Durham exempts property used for religious, educational, charitable, or certain scientific or literary purposes).

Filing deadline: January 1–31 annually
Late penalty: 10%

When you should file:

The filing window for Business Personal Property tax is typically from January 1st to January 31st of each year. Missing this deadline will result in a late filing penalty (typically 10%). Here's a breakdown of the filing process:

Receive your Business Personal Property tax form: Most counties will mail the form to your business address in early January.
Complete the form: The form will ask you to list and value all of your taxable Business Personal Property. Depreciation will be factored in based on the type of property and North Carolina Department of Revenue guidelines.

Submit the form: You can submit the form electronically (many counties offer online filing systems like Taxscribe in Mecklenburg County), by mail, or in person (depending on your county's procedures).

Extensions:

The tax filing in North Carolina deadline of January 31st is strict, but some counties offer extensions until April 15th. However, to qualify for an extension, you must submit a written request to your county's tax office by January 31st. The request can be mailed or submitted electronically in some counties.

Important Notes About Business Personal Property:

Business Personal Property tax is county-specific. While the general principles outlined above apply in most counties, there may be variations in filing deadlines, exemptions, and procedures. Always refer to your county's tax office website or contact them directly for the most up-to-date and accurate information regarding Business Personal Property tax in your area.
If you are closing or selling your business, be sure to notify the county Assessor's Office and Tax Collector's Office at least 48 hours prior to the closure or sale.

E-File Coverage

North Carolina Counties with E-File Compatibility

Mecklenburg
Guilford
Durham
Henderson
Orange
Wayne