Businesses beware: A tax deadline is coming – one that could prove quite costly if it is missed.
January 31 marks the final day to submit an annual city assessor tax return that reports all tangible property – furniture, fixtures and equipment – for business tax purposes.
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William Piccerelli, partner at Piccerelli, Gilstein and Co. accountants in Providence, said it is easy to get an extension by sending a letter to the city or town requesting the extra time. However, if the deadline is missed, a company loses the right to appeal the assessment by the city or town pursuant to Rhode Island state laws.
The final form must be submitted by the corporate tax return date of March 15.
“The important thing is to go back to your property plant equipment schedules and make sure that those schedules are updated when you get a new item and then determine if that is a replacement for an old item,” he said.
Each town varies slightly in the tax that is applied to depreciating items.
In Barrington, all property – except computers – bought in 2004 are assessed at 95 percent of their value with 10 percent reductions for each additional year the product is owned until the lowest level of 30 percent reached after nine years.
Computer equipment bought in 2005 is taxed at 85 percent of the value, 2004 is 65 percent, 2003 is 50 percent, 2002 is 30 percent and all computer equipment bought in 2001 or prior is taxed at 20 percent of the value.
Companies must also tally inventory and supply amounts along with wholesale and retail inventory. Leased equipment, rented real estate and the owner of the equipment or land must be reported to insure someone pays the appropriate taxes, said Piccerelli.
Rebecca J. Lefebvre, Barrington’s tax assessor, said about 70 percent of the 400 businesses in the town file the necessary forms on time. The R.I. Assessors Association is working to institute a uniform assessor form to be put in place for next year, she said.
