Business Personal Property Frequently Asked Questions (FAQs)
Q: What is a business?
A: A business is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.
For example: buying and selling goods , making products, or providing services. The basic forms of business ownership are: sole proprietorship, corporation, limited liability company and cooperative.
Q: What is Business Personal Property?
A: Business Personal Property are items that are used in the course of conducting business. It includes the following: machinery and equipment, office furniture, fixtures, computer equipment, leasehold improvements, construction in progress (CIP), spare parts, supplies, untagged vehicles, multi-year/permanent tagged trailers, IRP plated vehicles, watercraft, aircraft, mobile homes, and office trailers. Information on leased property must also be provided.
Q: How is Business Personal Property assessed?
A: The taxpayer provides the original purchase price of each item as well as the year in which it was purchased. Using this information, Tax office staff then applies depreciation factors made available by the NC Department of Revenue to the items.
Q: When is the Business Personal Property listing due?
A: Business Personal Property listings are due during the month of January. If not filed by January 31 due date, a 10% late listing penalty will be assessed according to NC General Statutes.
Q: May I file for an extension of time to list?
A: You may request an extension for good cause by January 31. You may request the extension by letter or online at https://egov.gastongov.com/TaxListingExtension/.
Q: Can I file my business listing online?
A: Online listing is not currently available. You may mail your listing to us or drop it off at the Tax Office, Room 117.
Q: How should I fill out the supplies section of the listing form?
A: In this section, list the cost of the supplies that you have on hand on January 1. This includes such items as: office, maintenance, janitorial, medical, dental and professional supplies; beauty and barber supplies; fuel; equipment spare parts; and hotel/motel supplies. If no inventory of supplies is maintained, the NC Department of Revenue recommends that you report 1/12 of the total supplies you purchased during the year.
Q: I do not have any changes from last year, so do I still have to list?
A: Yes, it is required by NC General Statutes that you file a complete listing form each year during the month of January.
Q: Do I have to list used assets that were purchased?
A: Yes, you must list all assets used in the business. If available, the original cost and purchase date by the original owner should be used when listing used assets. If not, list in the year acquired for the cost that you paid.
Q: What is CIP?
A: CIP stands for Construction in Progress. It is business personal property located in Gaston County on January 1 which is under construction or has been acquired but not yet installed or operational.
Q: I received a Discovery Notice in the mail. What does this mean?
A: A Discovery Notice means that business personal property was not listed during the listing period of the year in which it should have been filed. If you have any questions about the notice, contact the Tax Office.
Q: Do I have to list leased equipment?
A: Leased equipment is required to be listed each year along with the contact information of the business or entity from which you are leasing. This is listed on Schedule C on page 2 of the listing form.
Q: My equipment is fully depreciated for income tax purposes, so do I still need to list it?
A: Yes, you must list all business personal property as long as you own and use it in the operation of your business.
Q: Do I have to list my personal items that I use in my business?
A: Yes, all items used in a business activity, including a home based business, must be listed. This includes items you were or are still using personally.
Q: What do I do if my business has closed or been sold?
A: If your business has closed or been sold, you may provide the Tax Office with a letter identifying the business assets were sold, you should provide the contact information for the new owner. There is also a section on the Business Personal Property Listing form for you to notify us of the sale or closure.
Q: If I do not agree with my tax bill, may I appeal?
A: A taxpayer who owns taxable personal property may appeal the value, situs or taxability of the property within 30 days from the date of the bill.