Don’t get double taxed on your business’s personal property. Recently, we have heard from some of our clients that they received bills from the lease finance company that included a personal property tax charge. If you have entered into a lease finance agreement and your state assesses the personal property (equipment and furniture) used in your business, you may be paying too much in personal property tax.
Many lease finance companies pass personal property tax bills on to customers that have entered into agreements with them. Although you must generally report details of leased property on your personal property tax return it should not be included in the schedule of personal property to be assessed by the state.
Always consult with your tax preparer for specific reporting requirements in your state. If you have paid tax on leased property on prior year returns you may be able to amend those returns and request a refund up to three years after the due date of the original return.