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COVID-19 BUSINESS PERSONAL PROPERTY TAX IMPACTS

May 13, 2020 | Specialty Tax, Tax

"Property Tax" spelled out in blocks
In response to the COVID-19 outbreak, California along with numerous other states and other filing jurisdictions, have extended the filing period for Business Personal Property Taxes including extension of time to pay without imposing any additional penalties nor interest. On the State / County / Local levels, there are many resources available to taxpayers given that action is taken in a timely manner.

 

CALIFORNIA BUSINESS PERSONAL PROPERTY TAX FILING / PAYMENT EXTENSIONS

By law, all businesses in California are required to file their Business Personal Property Statement (571-L Form) with their County Assessor by May 7th every year.Businesses face a 10% penalty if they were unable to file by the annual May 7th deadline. However, due to the Governor of California’s Executive Order N-61-20, Assessors have moved the filing deadline to May 31st, 2020. As May 31st falls on a Sunday, based on Revenue & Taxation Code Section 441(b), a property statement that is electronically filed, mailed and postmarked on the next business day shall be deemed to have been filed timely. This executive order states that no penalty will be imposed upon a taxpayer if the taxpayer files a personal property tax statement as required by law on or before May 31, 2020.

In addition to California, many other states and localities have followed lead and have adopted similar extensions. As the extensions to file may vary per filing jurisdiction, it is important to assess how your business is impacted. Currently, there are no additional business personal property payment filing extensions.

 

Due to the rapidly changing nature of state guidance related to the COVID-19 virus, this Alert addresses updates as of May 8th 2020.

QUESTIONS?

Please contact our Specialty Tax Group for additional guidance on how your company or your client’s company may be impacted by Business Personal Property Filing Deadlines on a state-level or local-level.
Name:            Javier Ramirez
Office:            Irvine, CA
Phone:           (949) 261-8600
Email:            [email protected]

 

Name:            Peter Seidel
Office:            Los Angeles, CA
Phone:           (310) 477-3924
Email:            [email protected]

 

Name:            Tatyana Lirtsman
Office:            South San Francisco, CA
Phone:           (628) 221-0716
Email:            [email protected]