Applying TPP in Palm Beach County
If you own business assets—furniture, equipment, computers, tools, leasehold improvements, or even rental‑unit furnishings—in Palm Beach County, Florida, you may qualify for a $25,000 tangible personal property tax exemption. Here’s a step‑by‑step overview of how to apply and maintain it annually.
Determine If You Must File
- Any individual or entity (proprietorship, partnership, corporation, self‑employed person, or property lessor) with TPP in Palm Beach County on January 1 is required to file a Form DR‑405 (Tangible Personal Property Tax Return) by April 1 each year.
- If your TPP value on January 1 is $25,000 or less, you must file the initial DR‑405 to qualify for the exemption. In subsequent years, as long as your assessed value remains at or below $25K and you receive a “filing waiver” postcard, you can skip filing.
Gather Required Information
- Prepare a detailed inventory of assets including: purchase date, original cost (including sales tax and installation charges), and description (e.g., “2019 Dell laptop”). For item categories, use the form’s defined lines (e.g., leasehold improvements, supplies).
- Estimate current fair-market value for each asset class, as required on DR‑405.
File the Initial Return
- First‑time filers must email a signed DR‑405 PDF and supporting schedule to [email protected] or mail it to the Property Appraiser’s Office.
- You’ll then receive a PIN and account number enabling e-filing in future years via the county’s online portal.
Meet the Filing Deadline or Request an Extension
- The standard due date is April 1 (5 p.m.). Request any filing extension online (via “Request Filing Extension”) before 5 p.m. on the last working day of March.
- If granted, you have until May 15 to file electronically. After that, returns must be mailed or hand‑delivered.
Claim the $25,000 Exemption
- By filing on time, your return automatically makes you eligible for the $25,000 TPP exemption, which reduces your taxable assessed value.
- Miss the deadline and you forfeit the exemption and may incur penalties (5% per month up to 25%).
Future Filing or Exemption Waiver
- If your account received a waiver postcard (meaning last year’s value was ≤ $25K), and your current TPP value has not exceeded the threshold by January 1, you are not required to file this year.
- If your values exceed $25K, or you didn’t waive, you must file DR‑405 by April 1.
Avoid Penalties
- Late filing triggers a 5% penalty per month (up to 25%). Non-filing could lead to a 25% penalty.
- Omitting items may result in a 15% penalty on those omitted assets.
If you require professional support, Dimov Tax stands ready to present 360-degree solutions. Contact us today for financial clarity.