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County Tax Question
Small business question, or…..just when I thought I had it all worked out: I get a letter from the County from the TAX ASSESSOR welcoming my business and obviously informing me of impending gouging, and asking me to fill out the questionnaire. So, Anyone have any idea of what’s expected? I get from it that I have to pay taxes on my tools etc., but what I don’t know about is how they will assess the property where they get the big bucks and has me worried that it will sink the business just when I’m starting to break even. The property situation is this: The business is run out of our garage which is on our property which we already pay taxes to the county on. Question: Is the county able to re-assess the property because there’s now a business on it? And what is that re-assessment based on? Income from business? Supposed increase of land value based on business worth? I hadn’t factored in/didn’t know that the county, after getting pound of flesh for fictitious business name expenses etc., could re-assess something they already collect taxes on. Will this put me under even before I get started?
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4 Replies
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I’m not in your county so I’m not sure, but typically this has to do with tangible personal property that you use for the operation of your business. I have to do this and have to assign a value to benches, tools, etc. I get a form every year asking me to add stuff, but there is a depreciation schedule for older items listed in previous years.
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Hey Bryan, thanks for the reply. Ya, I was hoping that this is the case and not somehow tying the business into the property. I’m going to talk to them tomorrow. It was the one thing I didn’t anticipate or know about.
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Tony – Generally the Town\County will tax the percentage of the property that is used for the business at a different rate (in our town it’s lower!). And as you mentioned, the tools are set up on a depreciation schedule of X years, as is your inventory (guitars, wood, hardware, etc.).
Just a note: look very carefully at how your County\Town handles a home business as far as zoning goes. If you are in a residential area (looks like you’re in a business area), this can generate complaints from neighbors.
It looks like Bishop CA has a business development office. In our Town, these folks are a very handy resource for finding your way through the rules and regulations. They also can serve as a small business advocate. Nationwide, I am seeing this trend of small business support on the local level – so take advantage of their expertise. (Note: many times these offices can direct you to small business grants and tax relief programs that you may not have been aware of).
Good luck with this!
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Yes! Thank you for this. There is indeed a business development dept. in town. I checked the zoning first thing when deciding to open. We’re zoned for light business. The dog next door is louder than the business. The is the only issue that I was unaware of. Everything else legit. I will take your advice and go to the development dept. first. Thank You!
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