The Assessor is required by State law to assess business equipment. Tangible personal property is property “that is used, produced, manufactured, held for sale, leased or maintained by a person for purpose of the person’s profession, business or occupation; and for which the owner has claimed a deduction for depreciation for federal income tax purposes during any federal income taxable year occurring in whole or in part during the twelve months immediately preceding the first day of the property tax year” (NMSA 7-36- 8), and is not permanently affixed to, or part of real estate. Please note that if a taxpayer is not reporting for federal tax income purposes, but should be, the fact that he/she is not claiming a deduction for depreciation for federal tax purposes does not dismiss him/her from property tax responsibilities. A 5% penalty may be applied if personal property reporting is not completed by the end of February.
WHEN MUST BUSINESS PERSONAL PROPERTY BE REPORTED?
Businesses must report by the last day of February, each year.
WHAT TYPES OF ITEMS SHOULD BE REPORTED? (The following is a partial list only)
- Office furniture and fixtures, including file cabinets, books and bookcases, desks and decorative items.
- Store equipment such as racks, shelves, shopping carts, equipment, typewriters, time clocks and ATM’s.
- Restaurant equipment including tables, booths chairs, drinks dispersers, freezers, appliances. Sinks and cookware.
- Apartment, motel and hotel equipment including furniture, exercise equipment, appliances, lighting and decorative items.
- Machinery and heavy equipment as well as shop tools, dental tools, drilling equipment, portable sheds, dumpsters, golf carts.
- Forklifts, engraving machines, welding equipment, and mortuary equipment.
- Electronic equipment, such as sound systems, alarm systems, musical instruments, fax machines, computers, camera equipment
- Equipment, postage scales, vending machines, radios, televisions
- Small tools and video recorders.
- Leased equipment is also assessable.
- Any other tangible personal property used in business.
WHAT TYPE OF PERSONAL PROPERTY IS EXEMPT FROM TAXATION?
Inventories that are for sale or resale at wholesale, retail or consignment, leasehold improvements, motor vehicles that are registered under the Provisions of the Motor Vehicle Code (except for manufactured homes), and aircraft registered under the Aircraft Registration Act, act. (NMSA 7-36- 8).