Due to the phase-out of personal property tax in Ohio, the 2008 tax return will be the final annual personal property tax return required to be filled.

Personal property tax is a tax on tangible personal property used in business. If you are in business as of January 1 a return must be filed.

WHAT FORMS MUST BE FILED?  Form 920, County Return of Taxable Property and Form 921, Ohio Balance Sheet must be filed in duplicate. Other forms, described later, may also be required.

WHERE IS THE RETURN FILED?  The return is filed with the county auditor in the county in which the business is located. Taxpayers located in more than one county must file a combined return (Form 945) with the Tax Commissioner.

WHAT PROPERTY IS TAXED?  Tangible personal property used in business is taxed. This includes machinery and equipment, furniture and fixtures, small tools, supplies and inventory held for manufacture or resale.

WHAT IS THE $10,000 EXEMPTION?  Each taxpayer is entitled to an exemption not greater than $10,000 of listed value. This exemption is deducted from the total listed value in the taxing district with the greatest listed value. If there is an excess, the balance is deducted from the district with the next greatest listed value. To obtain the full amount of the exemption, the taxpayer must timely file a return. If the return is received late, the assessor will add a penalty which will be added to the total assessed value.  If the total assessed value is under $10,000, no filing is required.

HOW IS THE TAX CALCULATED?  The tax is based on the true or market value of the property. In the case of fixed assets, the value is the cost less an allowance for depreciation depending on age. In the case of inventory, the average of the cost of the inventory on hand at the end of each month is the value. The values are reduced to taxable or listed values and multiplied by the local tax rate. This tax rate varies according to location and is based on the tax rates for real property.

WHICH TAXING DISTRICT SHOULD I USE?  Tangible personal property is required to be listed in the taxing district where it is physically located on listing date. Refer to your real estate bills or contact your County Auditor.

WHAT IS TRUE VALUE?  The true value of depreciable tangible personal property is its book cost less book depreciation, unless the Tax Commissioner or a taxpayer using the prescribed prima facie valuation procedure finds that the depreciated book value is greater or less than the true value of such property.

WHEN ARE THE TAXES PAID?  When the return is filed, one-half of the total tax must be paid, the second-half must be paid by the first Friday in October. A bill is mailed by the County Treasurer to indicate the amount due.

IS THERE A MINIMUM AMOUNT OF TAX?  If the total tax due is less than $2.00, then no payment is required. 

WHAT IF I FILE AFTER THE DUE DATE?  If the return is received late, the assessor will add a penalty determined by when the return is received.

WHAT IF I MAKE A LATE PAYMENT?  Late paid taxes are subject to a 10% late payment penalty and also to interest charges. The interest is applied monthly and is based on the current market rate.

WHAT IF MY BUSINESS BEGAN AFTER JANUARY 1?  Those taxpayers who begin business after January 1, must file a “new taxpayer return” within 90 days of beginning business. The amount of tax is prorated according to the number of full months left in the calendar year.

WHAT IF MY BUSINESS STOPS AFTER JANUARY 1?  If business stops or property is sold after January 1, a full return is still due. However, a return will not be required for the following year.

WHERE DO I OBTAIN THE FORMS?  Those taxpayers with property in only one county must file Form 920, County Return of Taxable Business Property. Obtain Form 920 from the county auditor in whose county the property is located. If property is located in more than one county, Form 945, Inter-County Return of Taxable Property must be filed. Obtain this form from the Tax Commissioner.