Business Personal Property

General information

Business personal property is any tangible property owned, engaged, used, or possessed in the conduct of a trade or business.  This includes, but not limited to, machinery, equipment, furniture, fixtures, computers, software, farm equipment, Leasehold improvements, and supplies.

NOTE CHANGE ON OR AFTER JULY 1, 2014:  COMPUTER SOFTWARE IS “EXCLUDED UNDER THE NEW AMENDMENT IF THE SOFTWARE IS DEVELOPED FROM SCRATCH TO MEET THE SPECIFIED NEEDS OF THE TAXPAYER WHETHER DONE INTERNALLY BY THE TAXPAYER OR EXTERNALLY BY A THIRD PARTY.” 

Business Taxes and Licensing
In its simplest form, a business is a commercial activity operated as a means of livelihood or profit, or an entity which engages in such actions. Business personal property listing form and instructions.
 

Business Personal Property Tax Appeals
Appeals may be requested within 30 days of the billing date. You should verify the information on your bill as soon as you receive it.

Starting a Business
Durham County Register of Deeds handles this, by Filing an Assumed Name.  

Business Closings and Sales
Under NCGS 105-366, when purchasing a business asset, it is the responsibility of that purchaser to ensure that all back taxes on the property have been paid or that money has been held in escrow until such time that it has been paid in full.
If a business is closing after January 1st, the total amount of the taxes remain the responsibility of the business owner. There is no proration of the taxes allowed by statute.

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Types Of Business Personal Property

Supplies and Materials

List all supplies and materials which are not consumed in manufacturing or processing or that become a part of the sale of the property being sold. Include spare parts held for equipment maintenance and repair even though they may be carried in an inventory account. Hotels and hospitals should list the supplies that are provided in their room charge.

Inventories, for example, goods held for sale in the regular course of business by manufacturers, retail merchants and contractors are exempt from personal tax. This includes raw materials, goods in process of manufacturing, and finished goods.

Tangible Personal Property

All tangible personal property must be listed as of January 1. Taxpayers with a business year-end other than December 31 must update their records to the January 1 reporting date. Tangible personal property includes, but is not limited to, machinery, equipment, furniture, fixtures, drawings, signs, purchased software, which is treated as a capital asset, reference libraries, etc. All items must be listed at 100% cost including installation, sales tax, freight and any associated costs.

List unlicensed vehicles and special truck mounted equipment (cranes, wrecker equipment, etc.) attaching a schedule showing the year acquired, cost, description of equipment and license number of vehicle on which installed.

Personal property which you rent or lease to others is not exempt from property taxes. If you own such property, attach a schedule showing lessee’s name and address, a description of the property, the year acquired and the cost. If you manufactured this equipment, you must furnish selling price new, not manufactured cost.

Intangible Personal Property 

Intangible Personal Property has been exempted as of January 1, 1997.

Construction in Progress

Report 100% cost of all personal property carried in the CIP account as of January 1. Provide information as to the categories of property carried in this account and a detail of the expenditures for each during the preceding calendar year.

Leasehold Improvements 

Report total investment during preceding calendar year in leasehold improvements. Certain improvements are not assessed as real estate but are considered to be personal property. Examples would be security systems, telephone systems, alarm systems, kitchen equipment, millwork, shelving, furnishings attached to real estate, heating and/or air conditioning systems for special purpose areas, coolers, piping (other than normal plumbing), and any other similar items. The real estate valuation includes such items as floor covering, wall covering, ceilings, normal lighting, heating, air conditioning, sprinkler systems, paving, fencing and area lighting.

Vehicles, Boats and Motors, Aircraft, and Mobile Homes

Motor Vehicles registered with the NC Division of Motor Vehicles as of January 1 do not have to be listed, with the exception of Multi-Year or Permanently Registered Trailers, Special Bodies on Vehicles, and International Registration Plan (IRP) Plated Vehicles. You are also required to list boats and motors, aircraft, mobile homes, and vehicles which are not licensed by the North Carolina Department of Motor Vehicles.

Property Owned By Others In Possession of Taxpayer

If on January 1 you have in your possession any business machines, machinery, equipment, furniture, vending equipment, game machines, postage meters or any other equipment which is loaned, leased or otherwise held and not owned by you, a complete description, ownership, year acquired and cost of the property should be reported. This information is for office use only. Assessments will be made to the owner/lessor.
 

For more Business Personal Property related forms click HERE.