How to file your Form 571-L Business Property Statement (BPS) For

How to file your Form 571-L
Business Property Statement (BPS)
For Small Business Owners
What is a Form 571L Business Property Statement (BPS)?
•
A property tax form that is required for declaring business personal property (assets owned)
as of 12:01 a.m. January 1st
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This is an annual filing that is required by each California county where your business is located.
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The 571L Form is used to declare cost information regarding supplies, business equipment
and leasehold improvements for each business location.
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The cost information the business owner provides is then used to assess and tax property
in accordance with California State Law.
What is the Lien Date?
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January 1st of every year
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“Lien Date” is the date on which property becomes assessable.
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The date property taxes become a lien against a business property owner.
Who must file a BPS?
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Anyone who was sent a form by the Assessor’s Office.
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Any business that owns business property (supplies, business equipment and leasehold
improvements) having a total combined cost of $100,000 or more is required to file the form
even if the Assessor does not request that you file one.
What is Business Personal Property?
All property used in the course of doing business that is not otherwise exempt.
Examples: (not limited to this list)
Computers
Manufacturing Equipment
Office Furniture
Copiers
Fax Machines
Lab Equipment
Video Equipment
Printing Equipment
Shop Equipment
Restaurant Equipment
What equipment is not taxable or exempt?
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Business Inventory (equipment held for sale or rent)
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Application Software (examples: Microsoft Excel, Word)
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Licensed Vehicles (DMV licensed vehicles)
What is the deadline for filing the BPS?
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The form is due on April 1st.
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The form is considered delinquent if filed after May 7th at 5:00 p.m. (If mailed, the form
must be postmarked May 7th) If May 7th, falls on the weekend or a holiday, then the form
is due on the next business day.
Books and records you will need to file your BPS
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California State Tax Returns
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Balance Sheet or General Ledger
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Fixed Asset Listing or Depreciation Schedule
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Income Statement or Profit & Loss Statement
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Purchase price of equipment (if purchased an existing business)
NOTE: Use your records as of 12/31 for the year immediately preceding the filing year. For example, if filing
for 2008, records needed would be as of 12/31/07
FORM 571-L
Click here to download Form 571-L
The BPS form has 3 sections
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Part I: General Information
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Part II: Declaration of Property Belonging to You
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Part III: Declaration of Property Belonging to Others
Part I: General Information
Part I: General Information
BASIC INFORMATION ABOUT THE BUSINESS:
a. Type of business
b. Telephone number, fax & email
c. Whether or not you own the land?
d. When you started doing business at your current location?
e. Location of accounting records
f. Name and phone number of business owner or authorized representative
Part II: Declaration of Property Belonging to You
Part II: Declaration of Property Belonging to You:
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Supplies
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Equipment
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Equipment out on rent or lease
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Building or building Improvements
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Construction in Progress
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Alternative Schedule A
Part II: Supplies
What are Supplies?
SUPPLIES ARE THE ITEMS THAT YOU USE IN THE ORDINARY COURSE OF DOING BUSINESS.
Examples:
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Office supplies (pencils, paper)
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Stationary (envelopes)
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Cleaning supplies
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Fuel
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Computer supplies
How do I report “Supplies”?
REPORT WHAT YOU HAVE ON HAND AS OF JANUARY 1 st
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Take a physical inventory
OR
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Estimate the average of 12 months of all your operating supplies accounts.
(Example: Total Supplies for the year = $12,000/12 = report $1,000)
Schedule A: Cost Detail: Equipment
Equipment (Schedule A)
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REPORT BY YEAR OF ACQUISITION
(Example: Restaurant Equipment acquired on 4/06 for $20,000) Report 2006= $20,000
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REPORT BY CATEGORY (TYPE OF EQUIPMENT)
1.
Machinery & Equipment (Equipment particular to your type of business)
2.
Office Furniture & Equipment (desks, chairs)
3.
Other Equipment (if it does not fit in category 1 or 2). Describe the equipment
(Ex., telephones, forklift)
4.
Tools
5.
Computer Equipment – PCs
Schedule B: Leasehold Improvements
Leasehold Improvements – (Schedule B)
1.
STRUCTURES - Tenant Improvements to the real estate (Ex. , buildings, walls, bathrooms)
2.
FIXTURES – Improvements that relate to the business (Ex. , cabling, signs, plumbing fixtures)
Part III: Declaration of Property Belonging to Others
Part III: Declaration of Property Belonging to Others
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LEASED EQUIPMENT (Complete the following information)
1.
Name of Lessor
2.
Address of Lessor
3.
Year Lease Started
4.
Description of Lease
5.
Cost to Purchase New
6.
Annual Rent
Declaration By Assessee:
(Must be completed and signed)
Contact information for obtaining assistance
in filing the BPS:
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Telephone the Assessor’s Office at (650) 363-4501 Monday – Friday, 8 a.m. - 5 p.m.
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Fax: (650) 363-7456
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In person at 555 County Center, 3rd Flr. Redwood City, CA 94063 hours 8 a.m. - 5 p.m.
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Internet site: www.smcare.org
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E-File on SDR (Business Identification Number (BIN) and Account Number required):
www.calbpsfile.org