Tennessee Code Annotated (TCA) 67-5-903 requires that business owners file Tangible Personal Property Schedules (TPPS) with the Assessor’s office no later than March 1st of each year. Personal property appraisals are based on these TPPS after they are reviewed by staff. TPPS can be filed online up to the March 1st deadline.
The TPPS Filing Process
By February 1st of each year, the Assessor’s office mails a schedule to each business owner in Sequatchie County. The schedule is a standardized form used to list and report the cost of various assets used in a business’ operations as of January 1st.
If a schedule has been previously filed for the business, the schedule will show Cost on File by group and year based on the previous year filing. The Cost on File should be reviewed and revised for any asset additions or deletions. Any reductions in cost must be explained.
New businesses will be provided a blank schedule to list the cost of all assets. If a schedule is not received by February 1st, the business owner should contact the Assessor’s office immediately to obtain one to prevent a Forced Assessment. All business owners are required to file a TPPS with the Assessor’s office before March 1st of each year. Failure to file by this deadline will result in a Forced Assessment.
A Forced Assessment is an assessment based on a combination of field inspections, previously reported information adjusted for growth, and/or possible estimations based on other similar businesses’ reported values. A tax bill will be generated on the Forced Assessment, and can only be corrected by filing an appeal with the Sequatchie County Board of Equalization.
If an owner disagrees with the values on their Assessment Change Notice, they may amend the TPPS filed with the Assessor’s office any time on or before September 1st following the tax year if the original schedule was accepted and timely filed. If an owner disagrees and has a Forced Assessment, the owner must appeal the assessment to the Board of Equalization and submit a personal property schedule, along with supporting documentation, to the Board.
If your business has closed during the year, you are still required to file a TPPS reporting the closure. Please notate a business closure in the “Notes” section on the back of the TPPS. You must also file a schedule if you have filed for a business license but have not yet begun operations.
The Personal Property Schedule
Before completing a TPPS, it is important to have a listing of all assets used in the operation of your business. The list should consist of all items owned, leased, and/or borrowed, and should include item descriptions, year acquired, and the purchase price/original cost. It is beneficial to assign each item listed to the corresponding Group for Part II of the TPPS based on the item descriptions.
Next, sort your listings by Group and year. For each Group, subtotal the cost based on the year of acquisition. Transfer the subtotals into the corresponding Group and year of the Personal Property Schedule – Revised Cost column. If there are values in the Cost on File column that differ from the Revised Cost values, the difference will need to be explained in writing. Explanations can be written in either the “Notes” section, or on an attached paper.
Finally, you must sign and date the back of the schedule. Schedules turned in without a signature will not be accepted.
If you have questions about filling out your schedule or need assistance, please contact the Assessor’s office.