To file a Business Statement of Assets (Form 901) with the County Assessor's office, the taxpayer completes the form listing the original cost of the assets of the business and the year the assets were acquired. Assets include:
- Computer equipment
- Furniture and fixtures
- Leasehold improvements
- Machinery and equipment
- Schedule of monthly inventories for the past year
The 901 form must be prepared by an owner, partner, officer or other bona fide agent.
According to Oklahoma State Statutes, all personal property associated with businesses, corporations, partnerships, and professionals is required to be indexed to the County Assessor's office between January 1 and March 15 of every year.
Personal Property Tax Return
A Personal Property Tax Return, which is a property assets list, will be mailed at the first of the year to all those who are on file. For help completing this form please call the County Assessor's office. Failure to receive a form 901 does not relieve you of your obligation to file. After March 15, a 20% of assessed valuation is added. There is no provision in the statutes for an extension.
Who, Why & What if I Don't?
All businesses, corporations, partnerships and professionals are required to file a 901 form who are in business as of January 1 of each year. Title 68, Section 2832, Oklahoma Statutes, requires that all personal property must be reported each year to the County Assessor's office.
If a business does not file, the County Assessor's office is required to prepare an assessment from the best information available in the absence of a return by the taxpayer. This is called an arbitrary assessment. An arbitrary assessment must be protested within ten days of the date of the invoice.
If the Business Sold or Closed
Contact the County Assessor's office in writing with the business name, date of sale, and new owners contact information or closure. If the business is closed or sold in the middle of the year the taxes are not prorated. The owner as of January 1 is responsible for filing the personal property return.
Business Personal Tax Exemptions
This is a five year manufacturing exemption for new or expanded facilities.
Facilities which qualify engage in mechanical or chemical transformation of materials or substances into new products. Establishments which typically meet these requirements:
- Establishments classified under Division D of the Standard Industrial Classification (SIC) manual
- Repair and replacement facilities primarily engaged in aircraft repair, building or rebuilding
- Establishments engaged in computer services and data processing with a larger percentage of annual gross revenues from the sale of their product or service to an out-of-state buyer
- Establishments primarily engaged in distribution with a capital investment of $5 million or more and at least one hundred 100 full time equivalent employees
- Any new, acquired, or expanded automotive final assembly manufacturing facility which meets certain expansion requirements
Requirements Necessary to Qualify
Manufacturing facilities must have a net increase of $250,000 or more in payroll, or a net increase of $500,000 or more in capital improvements while maintaining or increasing payroll. Improvements include land, building structure improvements, machinery and equipment and other personal property used directly and exclusively in the manufacturing process. The construction, acquisition or expansion results in a net increase of 15 or more full time equivalent employees.
How to File for This Exemption
Any person, firm or corporation claiming the exemption shall file each year for which the exemption is claimed, an application with the County Assessor of the county in which the facility is located. The application shall be on a form or forms prescribed by the Oklahoma Tax Commission. The forms must be filed by March 15 each year.
The State of Oklahoma will approve or reject the exemption. If the application is approved, those assets will be exempt for 5 years.
Review & Appeal
The taxpayer has the right to review and appeal with the County Board of Equalization.
Freeport Exemption on Business Personal Inventory
Article 10 Section 6A of the Oklahoma Constitution, allows an exemption from Ad Valorem taxes on inventory that meets the following requirements:
- Inventory which can be exempt includes goods, wares and merchandise that is held for assembly, storage, manufacturing, processing or fabricating purposes
- In order to be exempt, the inventory must have a final destination outside the State of Oklahoma, while being in the state for less than 9 months. The burden of providing entitlement to the exemption is on the taxpayer.
Inventory that does not qualify includes inventory which remains in the state for more than 9 months, inventory sold in the state, or inventory which is wholesaled from one company to another within the State of Oklahoma, which is then sold outside the state.
How to File for This Exemption
The Freeport Exemption will only be considered if the Statement of Business Assets (form 901) is accompanied by a Freeport Declaration, obtained from the County Assessor's office. This form is not mailed with form 901, it must be requested. The Assessor's office, upon receiving this Freeport Declaration, may require proof of inside and outside the state sale and purchases, as well as a completed vendor list.