Contributed by San Juan County Assessor Charles Zalmanek

All business owners and all farmers are required to file an annual listing of their taxable personal property with the Assessor’s Office by April 30 of each year. Taxable personal property includes all property used for business or farm purposes such as machinery, equipment, furniture, fixtures and supplies. It does not include licensed vehicles, but it does include farm exempt vehicles. The listing form must identify all taxable property located in San Juan County as of January 1, 2011. The list should indicate the cost and acquisition date for each item.

Property tax applies not only to real property, but also to property used in a business or on a farm. Many business owners wonder why they have to pay tax on tools, furniture, and fixtures used in their business since they paid tax on these items when they purchased them. Personal Property Tax is the mirror image of Real Property Tax. When a house is built, sales tax is paid on the wood, stone, brick, drywall and other materials used to build that house, then tax is paid on the appraised value of that house every year. Personal Property Tax is a tax based on the appraised value of items used in a business and is subject to the same levy rate as real property. The Assessor’s primary duty is to determine the value of all taxable real and personal property for the purposes of equitable tax distribution for the various taxing districts.

Listing forms are available at the San Juan County Assessor’s Office or at www.sanjuanco/assessor/personalproperty.aspx. If the assessor does not receive your form, the assessor will estimate the value of the property based on the best information available. A maximum penalty of 100% can be levied on non-reporting or under-reporting businesses (WAC 458-12-105). Any accounts audited by the Department of Revenue that are found to have omitted property will be sent a new tax statement for unpaid taxes due. Accounts audited by the Department of Revenue a second or third time, and that continue to inaccurately report property, will be charged back taxes and a penalty up to 100% of the omitted property value.

To avoid a “failure to file” penalty, the assessor must receive your listing form by April 30. The penalty is five percent (5%) of the tax due per month, up to a maximum of twenty five percent (25%). Farmers must return the form for exemption for farm machinery and equipment each year, or they will not be granted the exemption. For more information, contact the Assessor’s Office at assessor@co.san-juan.wa.us or 378-2172.