Burkland Brief:

  • Business personal property tax applies to equipment, furniture, and tools—not buildings.
  • Deadlines vary by state and county, usually in the first half of the year.
  • Exemptions differ: $0 in WA to $100K in CA.
  • Missed filings can lead to penalties and reduced valuation.
  • Clean records and knowledgeable tax professionals keep you compliant.

If you pay property taxes on your home, you might be surprised to learn that a similar tax applies to the equipment and furniture your business uses every day. That office chair you’re sitting in, the laptop on your desk, even the copier down the hall—they may all be taxable. Business personal property tax is one of the most overlooked obligations for small and mid-sizes businesses, but states are cracking down.

Most business owners keep a close eye on income taxes, payroll taxes, and sales tax. But BPP tax often flies under the radar—until it doesn’t. In 2025, counties and states are actively auditing and penalizing businesses that never filed required BPP statements during or after the pandemic. If your filings aren’t up to date, you could face unexpected bills, penalties, or headaches during an audit.

This article provides an overview of what BPP tax is, why it matters, and the key steps every business should take to stay compliant.

What is Business Personal Property Tax?

Business personal property tax is assessed on movable assets your business uses to operate. It’s different from real property tax, which covers land and buildings. Instead, BPP tax applies to items like:

  • Office furniture (desks, chairs, filing cabinets)
  • Computers, servers, and other IT equipment
  • Manufacturing machinery
  • Leased property
  • Tools and equipment used in day-to-day operations

Why Should I Care About BPP Compliance?

Avoid Penalties

Late or missing BPP filings can trigger penalties, interest charges, and audits from state or local tax authorities.

Maintain Good Standing

Staying current with filings helps maintain compliance and reduces the risk of operational disruptions.

Improve Financial Planning

Accurate reporting makes it easier to budget and plan for the year without surprise tax bills.

Supporting M&A and Business Sales

If you ever plan to sell your business or merge with another, property tax compliance will come up in due diligence. Buyers want to see clean records and confirmed valuations. Missed filings can create a liability for the buyer and reduce your sale price as the seller.

Do All States Tax Business Personal Property?

Only eight states—Delaware, Hawaii, Illinois, Iowa, New Hampshire, New York, Ohio, and Pennsylvania—do not tax business personal property. Every other state imposes some form of tax on personal property used in business.

Business personal property tax is most often assessed at the county level, though the rules are tied to state law. In many states, counties act as the administrator—collecting the tax, setting reporting requirements, and enforcing compliance. This doesn’t mean businesses are paying twice (once to the state and once to the county). Instead, the county administers the tax on behalf of the state system. For example, in California and Texas, local county assessors handle BPP filings and collections, even though the obligation is rooted in state law.

When Are BPP Filings Due?

In most states, annual BPP filings are due sometime between January and May. For example:

  • California: Due April 1, automatic extension to May 7
  • Texas: Due April 15, 30-day extension available
  • Florida: Due April 1, 30-day extension available
  • Maryland: Due April 15, 60-day extension available
  • Washington: Due April 30, no extension available

Due dates vary by state and county. Always confirm with your local tax authority, and consider working with a tax professional who knows the rules in your area to avoid missing a deadline.

Could Any Exemptions Apply to My Business?

Yes, some states allow exemptions based on asset value, while others exclude inventory. Examples include:

  • California: $100,000 exemption
  • Texas: $2,500 exemption
  • Florida: $25,000 exemption
  • Maryland: $20,000 exemption
  • Washington: No exemption

What Steps Should I Take to Stay Compliant?

1. Maintain Accurate Asset Records

  • Keep detailed records of all business assets including purchase dates, costs, depreciation schedules, and locations.

2. File Timely and Accurate Returns

  • Mark your calendar with filing deadlines and ensure all required forms are completed accurately.
  • If you need more time, file for an extension before the due date.

3. Work with a Tax Professional Who Knows BPP Rules

  • Work with a tax professional or CPA who specializes in business personal property tax to ensure compliance and identify potential tax-saving opportunities.
  • Research the specific requirements in your state and locality.

4. Review Exemptions Regularly

  • Identify any exemptions or deductions your business may qualify for, such as small business exemptions or inventory exclusions.
  • Regularly review and reconcile financial records to ensure accuracy.

5. Stay on Top of Tax Law Changes

Monitor changes in tax laws and regulations that may impact your business personal property tax obligations. Some states will update their exemption thresholds, for example:

  • Colorado: Increased from $52,000 to $56,000 for 2025
  • Arizona: Increased from $248,691 to $569,905 for 2024

Final Word

Business personal property tax may not grab headlines, but it’s a serious compliance responsibility. By staying organized, filing on time, and leaning on professional advice, you’ll protect your business from penalties, reduce your tax burden, and keep your operations running smoothly.

Stay Ahead of Business Tax Risks

Business personal property tax is just one piece of the compliance puzzle. Burkland’s tax experts help small and mid-sized businesses navigate multi-state filing requirements, uncover exemptions, and avoid costly mistakes. Ready to simplify your taxes and stay compliant? Talk to our team today.