$25000 Tangible Property Exemption
If you own a business or rental property in Palm Beach County, Florida, you may be eligible for a $25,000 exemption on your tangible personal property tax—a potential savings that many small business owners overlook.
What Is Tangible Personal Property?
Tangible personal property (TPP) includes physical assets used in a business or for income-producing purposes, such as:
- Furniture
- Machinery and equipment
- Computers and peripherals
- Tools
- Signs
- Leasehold improvements
This property must be owned, leased, or borrowed as of January 1 of the tax year and used in the operation of a business or rental property (including vacation rentals).
The $25,000 Exemption: Who Qualifies?
Florida law allows for a $25,000 TPP tax exemption for each business operating in the state. In Palm Beach County, the following individuals and entities typically qualify:
- Small Business Owners: Any individual or entity operating a business in Palm Beach County with total tangible personal property valued at $25,000 or less may be completely exempt from paying tangible personal property tax, provided they file the required form.
- Short-Term Rental and Airbnb Owners: If you rent out property—such as a vacation home—you are considered to be using it for income-producing purposes. Any furnishings, appliances, or equipment used in the rental may be taxable unless exempted.
- Farm and Agricultural Operations: Agricultural property owners using equipment or machinery may qualify for the exemption if their total tangible personal property falls under the $25,000 threshold.
- Nonprofits and Religious Organizations: These entities must still file a return if they own tangible property, but may qualify for the exemption under Florida law—especially if they use assets for charitable or educational purposes.
How to Claim the Exemption
To qualify, you must file Form DR-405 (Tangible Personal Property Tax Return) with the Palm Beach County Property Appraiser’s Office by April 1 each year. If your TPP is under $25,000, you’ll still need to file at least once to receive the exemption. In subsequent years, you may be exempt from filing if the value remains below the threshold.
Final Thoughts
This exemption is a simple way to reduce your business tax liability, but it requires awareness and timely filing. Whether you’re a sole proprietor, landlord, or small business owner in Palm Beach County, this tax break is worth exploring.
If you are not sure, reach out to Dimov Tax today. Our dedicated team is ready to present expert guidance.