Agenda Package - 11-19-12 Reg. Meeting

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l� 7 J P < INSTRUCTIONS— Listings due by January 31. Commonfy Asked Questions other costs incurred. The $10,600 should be added in group (1) to the 2011 current year's cost column, Group (2) Construction In Progress (CIP) Who must file a listing, and what do I list? Any individual(s) or business(es) owning or possessing personal property used or connected with a business or other income producing purpose on January 1. Temporary absence of personal property from the place at which it is normally taxable shall not affect this rule. For example.,a lawn tractor used for personal use, to mow the lawn at your hone is not listed. However, !r town tractor used as part of a landscaping business in this county must be listed if the lawn tractor is normally in this county, even if it happens to be in another state or county on January 1. NCGS §105 -308 reads ..'any person whose duty it is to list any property who willfully fails or refuses to list the same within the time prescribed by law shall be guilty of a Class 2 misdemeanor. The failure to list shall be prima facie evidence that the failure was willful." A Class 2 Misdemeanor is punishable by imprisonment of up to 60 days. When and where to list? Listings are due on or before January 31 . They must be filed with the County Tax Department. DO NOT FILE THIS FORM WITH THE NORTH CAROLINA DEPARTMENT OF REVENUE. This torte will not be accepted by the NC Department of Revenue. A list of county tax office addresses can be found at the NC Department of Revenue's Websile. http: /twww.dor. state. nc .us /publicafions4wopedy.htmi, As required by state law, late listings will receive a penalty. An extension of time to list may be obtained by sending a written request showing "good cause" to the County Assessor by January 31. How do I list? —Three important rules: (1) Read these INSTRUCTIONS for each schedule or group. (2) H a Schedule or Group does not apply to you, indicate so on the listing form, DO NOT LEAVE A SECTION BLANK, DO NOT WRITE "SAME AS LAST YEAR ". A listing form may be rejected for these reasons and could resuft in late listing penalties. (3) Listings must be filed based on the lax district where the property is physically located. If you have received multiple listing forms, each form must be completed separately. INFORMATION SECTION Complete all sections at the top of the form, whether or not they are specifically addressed in these INSTRUCTIONS. Attach additional sheets if necessary. (1) Other N.C. Counties where personal property is located: h your business has property normally located in other counties, list those counties here. (2) Contact person for audit: In case the county lax department needs additional information, or to verify the information listed, list the person to be contacted here. (3) Physical address: Please note here the location of the property. The actual physical location may be different from the mailing address. Post Office Boxes are not acceptable. (4) Social Security Number. The disclosure of this number is voluntary. This number is needed to establish the identification of individuals. The authority to require this number for the administration of a tax is given by United Slates Code Title 42, Section 405(c)(2)(C)(i) abd N.C.G.S. 105.309. (5) Principal Business in this County: What does the listed business do? For example: Tobacco Farmer. Manufacture electrical appliances. Laundromat, Restaurant. (6) Complete other requested business information. Make any address changes. (7) If out of business: If the business we have sent this form to has closed, complete this section and attach any additional information regarding the sale of the property. Schedule A The year acquired column: The rows which begin '2011 are the rows in which you report property acquired during the calendar year 2011. Other years follow the same format. Schedule A is divided into eight (8) groups. Each is addressed below. Some counties may have the column "Prior Years Cost" pre - printed. This column should contain the cost information from Iasi year's listing. If 4 does riot, please complete this column, refenfng back to your last year's fisting. List under "Current Years Cost' the 100% cost of all depreciable personal property in your possession on January 1. Include all fully depredated assets as wed. Round amounts to the nearest dollar. Use the 'Additions" and "Deletions' column to explain changes from "Prior Yr. Cost" to "Current Yr. Cost ". The 'Prior Year's Cost" plus 'Addifions' minus "Deletions" should equal 'Current Years Cost ". if there are any additions and/or deletions, please note those under schedule G, Acquisitions and Disposals Detail. N the deletion is a transferred or paid out lease. please note this, and to whom the property was transferred. COST - Note that the cost information you provide must include fill costs associated with the acquisition as well as the costs associated with bringing that property into operation These costs may include, but are not limited to invoice cost, trade -in allowances, freight, installation costs, sales tax, expensed costs, and construction period inleresL The cost figures reported should be historical cost, that is the original cost of an item when fast purchased, even If it was first purchased by someone other than the current owner. For example, you, the current owner, may have purchased equipment in 2000 for $100, but the individual you purchased the equipment from acquired the equipment in 1995 for $1000. You, the current owner, should report the property as acquired in 1995 for $1000. Property Should be reported at its actual cost at the retail level of trade. For example, a manufacturer of computers can make a certain model for $1000 total cost It is typically available to any retail customer for $2000. If the manufacturer uses the model for business purposes, he should report the computer at it's market cost at the retail level of trade, which is $2000, not the $1000 it actually cost the manufacturer. Manufacturer /lessor businesses which lease the equipment that they manufacture must list their equipment at the retail level of trade rather than their manufacturing cost. Group (1) MACHINERY & EQUIPMENT This is the group used for reporting the cost of all machinery and equipment. This includes all warehouse and packaging equipment, as well as manufacturing equipment, production lines, hi -tech or low -tech. List the total cost by year of acquisition, including fully depredated assets that are still connected with the business. For example, a manufacturer of textiles purchased a knitting machine in October 2011 for $10,000. The sales tax was $200, shipping charges were $200, and installation costs were $200 The total cost that the manufacturer should report is $10,600 H there were no CIP is business personal property which is under construction on January 1 The accountant will typically not capitalize the assets under construction until all of the costs associated with the asset are known. In the interim period, the accountant will typically maintain the costs of the asset in a CIP account. The total of this account represents investment in tangible personal property, and is to be listed with the other capital assets of the business during the listing period. List in detail. If you have no CIP, write 'none'. Group (3) Office Furniture & Fixtures This group is for reporting the costs of all furniture & fixtures and small office machines used in the business operation. This includes, but is not limited to, file cabinets, desks, chairs, adding machines, curtains, Winds, ceiling fans, window air conditioners, telephones. intercom systems, and burglar alarm systems. Group (4) Computer Equipment This group is for reporting the costs of non- production computers & peripherals. This includes, but is not limited to, personal computers, midrange, or mainframes, as well as the monitors, printers, scanners, magnetic storage devices, cables, & other peripherals associated with those computers. This category also includes software mat is capitalized and purchased from an unrelated business entity. This does not include high tech equipment such as proprietary computerized point of sale equipment or high tech medical equipment, or computer cortrolled equipment, or the high -tech computer components that control the equipment. This type of equipment would be included in Group (1) or 'other'. Group (5) Leasehold Improvements This group includes real estate improvements to leased property contracted for, installed, and paid for by the lessee which may remain with the real estate, thereby becoming an integral part of the leased fee real estate upon expiration or termination of the current lease, but which are the property of the current lessee who installed it. (Examples are lavatories installed by lessee in a barbershop, special lighting. or dropped ceiling if you have no leasehold improvements write "rime". Contact the appropriate county to determine it you question it leasehold improvements have already been appraised as real property. Group (6) Expensed hems This group is for reporting any assets which would typically be capitalized, but due to the business' capitalization threshold, they have been expensed. Section 179 expensed items should be included in the appropriate group (1) through (4). Fill in the blank which asks for your business' - Capitalization Threshold." If you have no expensed items write 'none'. Group (7) Supplies Almost all businesses have supplies. These include normal business operating supplies. List the cost on hand as of January 1. Remember, the temporary absence of property on January 1 does not mean it should not be listed if that property 'is normal ry present. Supplies that are immediately consumed in the manufacturing process or that become a part of the property being sold, such as packaging materials, or raw materials, for a manufacturer, do not have to be listed. Even though inventory is exempt, supplies are not. Even if a business tames supplies in an inventory account, they remain taxable. Group (8) Other This group will not be used unless instructed by authorized county tax personnel SCHEDULE 8 VEHICULAR EQUIPMENT - ATTACH ADDITIONAL SCHEDULES IF NECESSARY. Motor vehicles registered with the NC Department of Motor Vehicles as of January 1 do not have to be listed. Please answer the questions on the form to determine if you should complete and attach separate schedules B -1 for certain other motor vehicles, B -2 for Watercraft or Watercraft engines, B-3 for Mobile Horns or Mobile Offices, or B-4 for Aircraft. SCHEDULE C PROPERTY IN YOUR POSSESSION, BUT OWNED BY OTHERS If on January 1, you have in your possession any business machines, machinery, furniture, vending equipment, game machines, postage meters, or any other eguioment which is loaned, leased, or otherwise held and not owned by you, a complete description and ownership of the property should be reported in this section. This information is for office use only. Assessments will be made to the owner/lessor. If you have already filed the January 15th report required by §105 -315, so indicate. If you have crone, write "none' in this section. If property is held by a lessee under a 'capital lease" where there is a conditional sales contract, or if title to the property will transfer at the end of the lease due to a nominal 'purchase upon termination" fee, then the lessee Is responsible for tisling under the appropriate group. SCHEDULE D, E, F. G AND H. please answer the questions provided on the form to determine if you need to complete and attach separate schedules E -1, G -1 or H -1 to the main business personal property listing form. AFFIRMATION If the form is not signed by an authorized person, it will be rejected and could be subject to penalties. Please read the information on this section of the form regarding who may sign the listing form. Listings submitted by mail shall be deemed to be filed as of the date shown on the postmark affixed by the U.S. Postal Service. Any other indication of the date mailed (such as your own postage meter) is not considered and the listing shall be deemed to be filed when received in the office of the lax assessor. Any person who willfully attempts, or who willfully aids or abets any person to attempt, in any manner to evade or defeat the taxes imposed under this Subchapter (of the Revenue Laws), whether by removal or concealment of properly or otherwise, shall be guilty of a Gass 2 Misdemeanor. (Punishable by Imprisonment of up to 60 days)