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David Lenoir
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Shelby County Trustee
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Personalty taxes are levied on business furnishings and
equipment that are reported to the Shelby County Assessor each year.
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The Assessor furnishes a schedule to each business owner no
later than February 1 of each year. Included on this schedule is a detailed list of all
tangible personal property owned by the business. The Assessor determines the value of
the personal property based on information supplied.
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It is the duty of the taxpayer to fully list tangible
personal property, including other information required by the Assessor, to place a
correct value on the property, and to sign and return the schedule by March 1, of
the same year. If the schedule is not returned to the Assessor by the due date a forced
assessment is given*.
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Anyone in business on January 1st of
any given year is responsible for the entire year's tax, even if they ceased operations prior
to December 31st of that same year.
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If a business is no longer operating in Shelby County, all of the
following steps must be taken:
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- Contact the County Clerkâs office at (901) 545-4249 to
ensure that the business license (for those businesses requiring one) has been canceled.
- Contact the County Assessor at (901) 379-7333, as to the
disposition of the equipment, so your account can be removed from the next tax year.
- Contact the County Trustee at (901) 432-4829 concerning your
tax liability.
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*REMEDY FOR EXCESSIVE FORCED ASSESSMENTS
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Relief is available for taxpayers with forced assessments of business tangible personal property.
Taxpayers with forced assessments exceeding a threshold of 25% or more higher than the standard
value otherwise applicable, may have their assessment reduced to the threshold amount by direct
request to the Assessor. The remedy is only applicable back to the 2007 tax year.
Examples of thresholds and relief assessments:
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A)
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If the forced assessment is $25,000, and the standard value assessment would
have been $5,000, the threshold is $6,250 (25% higher than the standard value),
and the relief assessment would be $6,250.
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B) |
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If the forced assessment is $25,000, and the standard value assessment would have
been $22,000, the threshold would be $27,500 (25% higher than the standard
value), and no relief would be due.
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Deadline for filing:
The deadline for filing a request for forced assessment relief with the Assessor is March 1 of the second
year following the year of the forced assessment, or earlier if the city or county has filed suit to collect
tax. Contact Trustee Customer Service for lawsuit information for the year of the forced assessment: (901)432-4829.
For information regarding City of Memphis lawsuits, call (901)522-1111.
Other requirements:
If you are requesting relief, you will be required to complete a tangible personal property schedule
listing cost of equipment (including vehicles) used in the business as of January 1 of the year of the
forced assessment, grouped by year acquired for each item. A copy of your federal income tax return
may be helpful in supplying this information.
Delinquent personalty taxes based on forced assessments:
If taxes are just now being paid on a forced assessment, and an appeal of the forced assessment has not
previously been filed with the State Board of Equalization, then 1.5% interest and penalty will be owed
on the tax due, computed from the original delinquency date.
If the forced assessment was under
appeal, and the undisputed portion of the tax (based on the value claimed on the appeal form) was paid before the delinquency date,
and there is a remaining balance after the
Board decision, then interest will be added to the unpaid balance. Interest is
calculated at prime less 2% from the tax year's delinquent date. The rate
used is the prime rate as of the date taxes became delinquent.
Likewise, if the undisputed portion was paid timely, and the Board decision
results in a refund to the taxpayer, the taxpayer is paid interest on the
refund amount. Interest is calculated at prime less 2% from the date the
undisputed payment was made. The rate used is the prime rate as of the date
taxes became delinquent.
For questions regarding delinquent Shelby County property taxes, contact Trustee Customer Service at
(901)432-4829.
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Official Website of Shelby County Trustee
© 2010 Shelby County Trustee. All Rights Reserved. |
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