Tenn. Comp. R. & Regs. 0600-05-.04 - REPORTING

(1) The tangible personal property schedule adopted in Rule 0600-05-.11 below shall be furnished annually by the assessor to every potential commercial and industrial personal property taxpayer on or before February 1. A substantially equivalent form may be used, provided that such form is approved by the Division of Property Assessments.

(2) The taxpayer shall annually be required to complete, sign, and file the tangible personal property schedule with the assessor on or before March 1. Failure to file the schedule will subject the taxpayer to a penalty as provided by state law.

(3) In accordance with T.C.A., Title 67, the following types of tangible personal property are not to be reported or assessed;

(a) Growing crops;

(b) The direct product of the soil in the hands of the producer or his immediate vendee;

(c) Finished goods in the hands of the manufacturer;

(d) Inventories of merchandise held for sale or exchange;

(e) Property in transit through the state to a final destination outside the state;

(f) Property imported from outside the United States, held in a foreign trade zone or subzone, and then exported to a location outside Tennessee.

(4) A taxpayer must report the total acquisition costs of property as follows:

(a) For property that was new when the taxpayer purchased it, the taxpayer must report the total acquisition cost of the property as of the year the property was purchased.

(b) For property that was used when the taxpayer purchased it, the taxpayer must report the total acquisition cost of the property as of the year the property was new. However, if the taxpayer does not know or cannot reasonably determine the cost of the property when it was new or the year the property was new, the taxpayer may report the total acquisition cost of the used property as of the year the taxpayer acquired the property.

(c) For property previously reported as CIP tangible personal property, the taxpayer must report its total acquisition cost as of the year the property was placed in service, rather than the year of purchase, if those years differ.

(d) For all property, the total acquisition cost reported should include the full invoiced cost without deduction for the value of certain inducements, such as agreements and warranties, when these inducements are provided without additional charge.

(5) A capitalized expenditure made with respect to property after the initial acquisition must be reported in the year the expenditure was booked as a fixed asset. The costs of the capitalized expenditure should be reported as they are shown on the taxpayer's financial accounting fixed asset records. Any expensed furniture, computer equipment, or other expensed items with a life of one year or longer should also be reported in the appropriate groups as assets. Expenses, costs, or amounts paid or incurred for incidental repairs and maintenance of property should not be reported.

Notes

Tenn. Comp. R. & Regs. 0600-05-.04

Original rule filed August 29, 1988; effective October 13, 1988. Amendments filed February 21, 2017; effective May 22, 2017. Amendments filed May 12, 2020; effective 8/10/2020.

Authority: T.C.A. §§ 67-1-305 and 67-5-902.