Business Personal Property

Filing Form 571-L Business Property Statement

Businesses are required by law to file an annual Business Property Statement (BPS) if their aggregate cost of business personal property is $100,000 or greater, or if the Assessor requests the information in writing. Separate filings are required for each business location.

Statements are due April 1st. A 10% penalty will be applied if a BPS is received after May 7th. If May 7th falls on a weekend or a legal holiday, the statement can be submitted on the next business day.

Business Property Statements are confidential documents and are held secret by the Assessor. Filing can be done by mailing the paper statement or by filing electronically.

Option 1: Electronic Filing (Recommended)

Most business owners can take full advantage of e-filing. Unfortunately at this time, owners of apartments, aircraft, or commercial agricultural property will need to file with a paper form.

e-SDR (Small Business Owners)
e-SDR is the system designed with the small business owner in mind. Statements are filed through an interactive system with instructions and no special software or programming is required. e-SDR is recommended for businesses with fewer than five locations, as each location requires a separate statement.

The process to file electronically is secure and fast. When you or your authorized representative has completed the form you will receive an immediate, on-line confirmation of your filing. You will also have the ability to print a copy for your records.

Start Your e-SDR Filing Session

SDR (Large Businesses)
SDR (Standard Data Record) is designed for large businesses with multiple locations in one or more California counties. SDR simplifies the process of filing annual statements by bundling a group of statements into a single file. The SDR system only accepts statements filed electronically in the approved XML format. Special programming and/or software is required to create SDR files. SDR is not generally recommended for the small business owner.

Option 2: Paper Filing

If you are unable to file electronically, please call our office at (510) 272-3848 and a BPS will be mailed to you.

e-SDR Frequently Asked Questions

Can anyone electronically file the 571-L form?
Most general businesses can. At this time, owners of apartment buildings, aircraft, and business property related to commercial agriculture must file on paper.

Do I have to print a copy of my e-SDR electronic filing?
You do not need to print a copy of the e-SDR filing, nor send a copy back to the Assessor’s Office. However, you may want to print and keep a copy for your own records.

Do I have to send back the paper 571-L form also?
Do not send back the paper 571-L form if you electronically filed using e-SDR and received a confirmation number. Keep a copy of the confirmation number as proof of your filing date.

Do I need special software to use e-SDR?
Yes, you will need Adobe Reader, which most computers already have. If you do not have Adobe Reader, it can be downloaded from Adobe for free.

I cannot log on to my account on the e-SDR website.
1. Go to calbpsfile.org
2. Click on the pink e-SDR button
3. On the log-in screen, enter your Account# and BIN (Business Identification Number)
4. Type your account number exactly as it appears on the “Notice to File” mailed to you in February (include preceding zeros)
5. Type your BIN number as indicated on your notice

I lost my “Notice to File.” How do I get my Account Number and BIN?
For assistance, please call our office at (510) 272-3848, Monday through Friday, 9:00 AM to 4:30 PM.

Will the costs I reported last year appear on the e-SDR statement?
Last year’s costs will not appear if this is your first year filing electronically through e-SDR. If you file using e-SDR in the current year, your prior year’s costs will appear next year.

Completing the Business Property Statement (Form 571-L)

What if the printed information on the BPS is incorrect?
If your business has moved or changed its mailing address, draw a single line through the incorrect information (please DO NOT make the preprinted information unreadable). Then legibly print or type the new information on the form and indicate the effective date of the move or change. When reporting a sale, include the new owner’s name and mailing address. When reporting that the business has been closed, provide the date(s) and information relating to the disposition of any taxable personal property. Complete the BPS, sign, and return it to the Assessor’s Office.

What records do I need to complete the BPS?
The most useful item is an accurate and up-to-date asset listing, which should include:

• The date of acquisition of the equipment
• The total cost (purchase price plus sales tax, freight, and installation charges)
• Location of the equipment if you have multiple locations
• Disposal dates of equipment removed

Other helpful records include the Federal Income Tax Depreciation Form 4562 with depreciation schedule, California State Tax Depreciation Form FTB 3885A, General Ledger or Trial Balance, Balance Sheet, and Income Statement. If you purchased an existing business, the purchase agreement or escrow papers showing the breakdown of equipment, fixtures, and leasehold improvements would also be needed.

All the equipment I use is my own personal equipment. Must I report it?
If you are using any personal equipment in your business, then yes, it must be reported. For example, persons working out of their homes must report personal desks, computers, etc.

I have a business in my home. Do I still have to complete the BPS?
Yes. Any equipment used for a home business is considered business personal property and must be reported on the BPS.

All the equipment I use was given to me. What should I report on the BPS?
Where the equipment was acquired as a gift, you may report your estimate of its current market value on the BPS (what you think it would sell for in the open market). Enter that estimated value in the most current year’s cost line and add a note indicating that the entry is a value estimate.

What is the difference between inventory and supplies?
Basically, inventory is an item subject to sale, rent, or lease. If you are manufacturing a product, then the parts that go into the product are also inventory items. Supplies are things consumed in your normal course of business.

Should sales tax be included in the reported cost?
Sales tax is part of the original cost to the buyer, just like freight and installation costs, and must be reported as part of your total cost.

Can I just write “Same as Last Year” on the BPS and return it?
No. You must report personal property holdings in detail as requested or mandated. If nothing has changed, refer to your prior year’s BPS filing to be consistent. If you electronically filed using SDR or e-SDR last year and choose to file electronically this year, all the prior year’s entries will be carried forward.

My business is a 501(c)(3) exempt organization. Do I still need to complete the BPS?
Yes. You still are required to complete the BPS even if you are an exempt organization. Contact the Exemption Section at (510) 272-6587 to verify your exempt status or to file an exemption claim.

Is the BPS form subject to audit?
Yes. The statement is subject to audit by the Assessor as provided by the statutes and regulations in the California Revenue and Taxation Code. The Assessor is required to audit a significant number of all businesses who own, claim, possess, or control assessable trade fixtures and business personal property.

How can I obtain assistance in completing the BPS?
By phone: Call (510) 272-3848, Monday through Friday, 9:00 AM to 4:30 PM, except holidays.
In person: 125 12th Street, Suite 320, Oakland. Located on the corner of Oak St. and 12th St., across from the County Administration Building.

Frequently Asked Questions

Business Personal Property and Filing 571-L

Why do I have to pay taxes on my business personal property?
The California Constitution states in part that, unless otherwise exempted by law, all tangible property is taxable in California and the Assessor has the legal responsibility to assess it.

What is the definition of “Business Personal Property”?
Tangible property owned, claimed, possessed, or controlled in the conduct of a profession, trade, or business may be subject to property tax. Business property includes such items as supplies, machinery, equipment, furnishing, and computers. Business inventory and vehicles owned by the business and licensed with the Dept. of Motor Vehicles are not subject to business personal property tax.

Why did I receive a “Notice to File the Business Property Statement”?
You received a “Notice to File” letter because our records indicate that you were in business on or before the lien date, January 1st. Property in your possession on January 1st must be reported on the Business Property Statement (BPS). In an on-going effort to increase efficiency, reduce costs, and be environmentally responsible, all business owners are encouraged to take full advantage of electronic filing by using SDR or e-SDR. To learn more, see the Filing Form 571-L tab above. If you are unable to file electronically, please call our office at (510) 272-3848 and a BPS will be mailed to you.

Who must file the Form 571-L, Business Property Statement (BPS)?
If the Assessor sends a “Notice to File,” then you are required to file the BPS for the current year. However, any business that owns business personal property with a combined cost or current fair market value of $100,000 or more must file annually, even if the Assessor does not make a formal request to do so.

How is the assessed value of my property determined?
The Assessor is required to annually assess most taxable business personal property at 100% of fair market value. The Assessor employs a number of methodologies, including trade publications and trending tables provided by the State Board of Equalization. Unlike real property assessed under Proposition 13, most personal property does not fall under Prop 13 (although it does enjoy the same maximum 1% tax rate).

Is my Business Property Statement (BPS) a confidential document?
Yes, it is confidential and not open to public inspection.

What is the filing deadline?
The BPS is due on April 1st and is considered delinquent if it is postmarked after 5:00 PM on May 7th (or the next business day if May 7th falls on a weekend or holiday).

Can I amend a filing after it is mailed?
Yes. You can amend your property statement until May 31st to correct errors and omissions, as long as the original BPS was filed timely. Be sure to contact our office and discuss your situation with a supervisor.

What would happen if I did not file the BPS or I filed after the deadline?

Failure to File: The Assessor must rely on the best information available to estimate the value, and a 10% penalty must be added to any assessment made as a result of a failure to file.

Incomplete Filing: If you file an incomplete BPS before May 7th and the Assessor returns it for completion, you must file the corrected BPS on or before May 31st to avoid the 10% penalty. The penalty is prescribed by law and the Assessor is statutorily required to apply it.

Appealing an Assessment

What if I disagree with my assessment?
If you have questions about your business personal property assessment, we recommend that you call our office at (510) 272-3848 and speak with an auditor-appraiser (Monday through Friday, 9:00 AM to 4:30 PM), or visit in person at 125 12th Street, Suite 320, Oakland.

If you believe the assessed value is incorrect, you must file a timely “Application for Changed Assessment” (assessment appeal) with the Assessment Appeals Board (AAB). The AAB is an independent agency representing the Board of Supervisors and is not connected with, nor under the control of, the Assessor’s Office.

Can the Assessor review the value informally, without an Assessment Appeal?
No. Once the assessed value is established and surrendered to the Auditor-Controller’s Office, the Assessor has no legal jurisdiction to change the value without a timely assessment appeal filed.

How do I file an Assessment Appeal?
All appeal applications must be filed with the Clerk of the Board, Administration Bldg. 5th Floor, 1221 Oak Street, Oakland, 94612. Filing information and the form may be obtained by calling (510) 272-6352 or visiting the Clerk of the Board website.

Out of Business, Sold Business, or Do Not Own a Business

I was not yet open for business on January 1. Do I still have to complete the BPS?
Yes. A business does not have to be open for its taxable personal property to be subject to assessment. Even if a business was not open on the lien date, taxable business personal property in the owner’s possession on the lien date must be assessed.

All I have is a fictitious name and business phone number. Must I still file the BPS?
Yes, if you received a “Notice to File.” Please note those facts on the BPS and return the signed BPS to the Assessor’s Office. The Assessor needs to know these facts to prevent an improper assessment from being issued.

I went out of business prior to January 1. Do I still have to complete the BPS?
Yes. Anytime a person receives a “Notice to File” or BPS and their business is no longer in operation, the BPS must still be signed and returned with a note indicating the business has closed. Include the date you went out of business, the status and disposition of any equipment owned, and the buyer’s name and address if any property was sold.

Note: Where a business has closed but you still own equipment previously used in the business, it may still be taxable unless the equipment has been converted to household personal use.

I closed my business on February 1st. Do I have to complete the BPS and pay taxes for the entire next fiscal year?
Yes. The law specifies that all taxable business personal property must be assessed as of 12:01 AM January 1st (lien date), regardless of what happens afterwards. Even if closed shortly after January 1st, a business must still file a BPS and pay taxes for the coming fiscal year.

I sold my business between January 1st and July 1st. Will the Tax Collector prorate the taxes?
No. Any arrangement to share the property tax liability should be worked out between the buyer and seller. The County does not prorate the taxes.