Who must file a Personal Property Tax Return (form FP-31)?
An individual or entity engaged in business with a location in the District of Columbia must file a Personal Property tax return and report the current value of the tangible personal property as of July 1st of each year.
What is the definition of tangible personal property?
Tangible personal property means tangible goods and chattels, including computer software, used, or held in any business, activity, or occupation, whether operated for profit or not.
What is the definition of "goods” and ”chattel”?
OTR defines goods and chattel as tangible, movable, or immovable items except real estate and things (such as buildings) connected with real property.
How do I report the current value of my tangible personal property?
(Original Cost-Straight Line Depreciation = Current Value)
Please see the depreciation chart after page 5 in the instructions book to determine the depreciation per year on each item. Personal Property Tax Instructions
What is the meaning of straight-line depreciation?
The straight-line depreciation method reduces the value of an asset uniformly over each period until it reaches its salvage value.
How do I calculate the value using the straight-line depreciation method?
To calculate the current value, you must first determine three things.
- Purchase Price - The amount you paid for an item.
- Salvage Value - The estimated resale value of an asset at the end of its useful life.
- Useful Life - The estimated period for the asset to be functional and used for the company’s core operations.
(Please see page 5 of the instructions book to determine the useful life of each item). Personal Property Tax Instructions
How do I file a Personal Property Tax (form FP-31) return?
For tax years 2017 and forward, please file the return electronically via MyTax.DC.gov. Please use the following link to access step-by-step instructions on How to File a Personal Property Tax Return.
Can I file a paper Personal Property Tax (form FP-31) return?
For the tax year 2016 and prior, a paper return is required. Please use the following link to access Prior Year Personal Property Business Tax Forms.
For tax years 2017 and forward, please file the return electronically via MyTax.DC.gov.
When is the filing due date for Personal Property Tax (form FP-31) returns?
The filing due date is July 31st of each year.
When does the tax year begin and end?
“Tax year” means the 12 months beginning July 1st and ending June 30th of the following year.
Can I request an extension to file a Personal Property Tax (form FP-31) return?
Taxpayers must complete Form FP-129A to request a 3-month extension to file a Personal Property Tax return. The extension request is electronic only.
What is the tax rate for Personal Property Tax?
Personal Property Tax has a flat tax rate of 3.4% over $225,000. There is no tax due if the value of your personal property is $225,000 or less; however, you must still file the return.
I live outside of DC but have a rental property in DC Am I required to file a Personal Property Tax (form FP-31) return?
Yes; you are required to file if you have a rental property in D.C. You must report the value of all the tangible property you own inside the property.
I sold my rental property in Washington, D.C. Am I required to file a Personal Property Tax (form FP-31) return?
Yes; you must file a final return for the last activity period.
I am exempt from paying Personal Property taxes. Why did I receive a Notice of Delinquency?
Please review your records to verify that your exemption did not expire. If the exemption is active, please email [email protected] or call the Collection Call Center at (202)724-5045.
If the exemption expired, please complete FR-164 to renew your exemption. Instructions on requesting an exemption can be found here: How to Request an Exemption to File.
Please allow 7-10 business days for the exemption request to be processed.
If you are re-approved for an exemption, please email [email protected] or call the Collection Call Center at (202)724-5045.
My business is now closed. How do I resolve the Notice of Delinquency?
You must file a final return for the period of the last activity.
I received a Notice of Delinquency for prior years. Why am I just now receiving the notice?
The Office of Tax and Revenue (OTR) recently added Personal Property Tax to its initiative to notify taxpayers of their missing Personal Property Tax returns.
I created the Personal Property Tax account in error. How do I close the account?
Please email [email protected] and request that the account be closed. Alternatively, you may file a final return for the quarter that the account was opened to close the account.
I have a business but do not have a location inside DC. How do I resolve the Notice of Delinquency?
Please log in to MyTax, review the addresses on your account, and ensure that a DC address is not listed. Please contact the Office of Tax and Revenue (OTR) by email at [email protected] or call the Collection Call Center at (202) 724-5045.
I have multiple locations. Should I file a Personal Property Tax (form FP-31) return for each location?
No; only one return should be filed. A separate schedule should be completed for each location.
Can I file a combined Personal Property Tax (form FP-31) return?
A subsidiary or disregarded entity may file a Personal Property Tax return under its parent company.
I filed my Personal Property Tax return under my parent company. How do I resolve the Notice of Delinquency?
Please contact the Office of Tax and Revenue (OTR) by email at [email protected] or call the Collection Call Center at (202) 724-5045.
Reminder: The parent company must complete a separate schedule for each location.
I use a motor vehicle in conjunction with my business. Am I required to report the current value of the vehicle?
Yes; DC residents or nonresidents who utilize a motor vehicle in conjunction with their business in DC must report the current value of the motor vehicle.