Today I received a "return of business fangible personal property and machinery and tools for local taxation only" form in the mail from my local county commissioner of the revenue. It wants me to list any "tangible personal property", "disposals", "automobiles, trucks and trailors" and any "tangible personal property leased, rented, or borrolwed form other" for the purspose of my paying taxes on these items. Has anyone else received a similar "request" from their local government? I alrady pay Occupancy Taxes every month, as required by the local authorities.
Just by doing a simple web search, this doesn't appear to have anything to do with Airbnb and more with your personal taxes. Consult your accountant.
I received a similar letter from my Commissioner of the Revenue too just the other day. Since registering with my town to legally rent our home, the county apparently now considers me a "business owner." I called their office yesterday for clarification and was told that because I am a business owner that I need to register with the county, and provide a list of all personal property (and an "assessed value") that is used in the "business", of which we will be expected to pay a personal property tax on. She said I should include things like the beds, furniture, kitchen appliances, TV (ie. anything our guests use) plus my computer since I use it to create the airbnb listing. This sounds a bit absurd to me, especially considering that we only rent our house out about 10 days a year. However, I have no issue with paying the lodging tax from Airbnb income we receive. But this business personal property tax is a bit much.
I think we will get out of the Airbnb business if I have to write a mile long list of every single item our guests use in our home for 10 days out fo the year.
It is the cost of operating a business. Thankfully the County changed that requirement for us about 10 years ago, but for years we listed every item in our rentals, and paid a property tax on those items on an annual basis. We're licensed and registered with the State, County, and Town. There are annual fees to renew those licenses. Each of these entities inspects us on an annual basis. One of the requirements is that we pay a Fire Extinguisher Service Company to inspect our fire extinguishers. A nice man comes out and looks at our extinguishers. He reads the guages, acknowledges that they are fully charged, and puts a new sticker on the extinguishers. Then he presents us with a bill for $50. The Town sends The Fire Marshall to our property to look at our extinguishers, and make sure that we have a sticker on them certifying that a nice man has looked at them and determined that the guages show they are fully charged. The Fire Marshall goes back to Town Hall and writes a report, certifying that we are in compliance with local ordinances. The Town Clerk then sends us a bill for $75 for the Fire Marshalls Inspection.
It's a cost of doing business.
We received a confidential business personal prppoerty rendition of taxable property from Llano County Texas, if we register as a business, we cannot rent out our property per our HOA. There are 20 owners in our neighborhood alone that are affected by this. They are saying that we are no different than a bed and breakfast. Has there been any ruling on this? We only rent out our property 25% of the time. do we really need to declare every piece of furniture and dishes in our 2nd home to be taxed?
We got this same 4 page, doubled sided tangible property tax return from our local county government. They have decided that we are a business because we rent out a 134 sq ft tiny house in our backyard AND they want us to pay taxes and keep an inventory and depreciation schedule of all items involved in this "business".
It's evidently not enough that our property taxes went up $1300 a year because of the added tinyhouse and deck... I guess they want more of my airbnb income too!
My spouse is an enrolled agent so he will figure it out I'm sure.
I agree with @Mark0 in melborne that it's just the cost of "doing business".
Did anyone get clarity on this? We got one of these property tax notices in Utah. We bought a house and the tiny house came with it, we didnt pay additional cost, and all the furnishings came with it when we bought the house, it was all included. Then I was told to fill out a Schedule A, which asks when we bought each item and for how much? We didnt, that was yrs ago the other owners bought it all. She even tried looking up the previous owners list, and said "They didnt do one" so... uhhh... this is confusing, anyone do theres and can report back?