If you own a business in Florida, you are already familiar with property taxes on your building or land. What almost no one has told you is that there is a second annual assessment applied to everything inside it, and it can be challenged the same way.
In Florida, business equipment, furniture, and machinery are taxed separately under tangible personal property (TPP) tax. Most businesses in South Florida have never had this assessment reviewed.
What Is Tangible Personal Property Tax in Florida?
Tangible personal property tax is an annual tax assessed by Florida county property appraisers on business-owned physical assets that are not permanently attached to real estate. This includes computers, office furniture, restaurant equipment, retail display fixtures, machinery, leased equipment, and vehicles used in business operations.
Every year, your county assigns a value to these assets and issues a separate tax bill. This applies whether your business owns its space or rents it.
Who Must File the DR-405 in Florida?
Any business that owns, leases, or uses tangible personal property in Florida as of January 1 is required to file a tangible personal property return, Form DR-405, with the county property appraiser by April 1. Florida provides a $25,000 exemption: if your total assessed TPP value is $25,000 or less, no tax is owed.
For most commercial operations, including restaurants, automotive dealerships, retail chains, hospitality businesses, and medical offices, the assessed value significantly exceeds that threshold.
Can a Florida TPP Assessment Be Appealed?
Yes. TPP assessments in Florida can be challenged through the Value Adjustment Board (VAB), the same process used for real estate appeals.
You have 25 days from the mailing date of your TRIM notice to file a petition. For most South Florida counties, that puts the deadline around September 15.
The grounds for a successful TPP appeal parallel those for real estate: the county’s assessed value does not accurately reflect the actual fair market value of your assets. Equipment depreciates. Technology becomes obsolete. Commercial kitchen gear wears down over years of daily use. The county’s depreciation schedules do not always reflect what is actually on the ground.
Which Florida Industries Are Most Affected by TPP Tax?
TPP assessments tend to run high in industries with substantial physical assets. Restaurant groups are among the most commonly over-assessed. Commercial kitchen equipment, furniture, and smallwares add up quickly, and the county often applies generic depreciation rates rather than assessing actual condition.
Automotive dealerships, retail chains, medical practices, and hospitality businesses carry significant TPP exposure year after year. Most have never had their assessment reviewed, not because there is no case to make, but because nobody told them the appeal was possible. The savings that accumulate from unchallenged assessments over five or ten years are substantial.
How Florida Property Tax Service Handles TPP Appeals
Florida Property Tax Service has been representing South Florida businesses in tangible personal property appeals since 1984. We review the county’s valuation against your actual asset inventory, identify where the methodology overstates value, and represent your business directly with the property appraiser and before the Value Adjustment Board.
Like all of our work, TPP appeals are contingency-based. If we do not reduce your assessment, there is no charge.
What to Do Before the August Filing Window Opens
If your business has never had its TPP assessment reviewed, the period between now and late August is the right time to start. Once TRIM notices mail (typically the third week of August), the 25-day window opens immediately.
We review TPP assessments at no cost. If there is a case worth making, we will tell you. If there is not, we will tell you that too.
Frequently Asked Questions About Tangible Personal Property Tax in Florida
What is tangible personal property tax in Florida?
Tangible personal property (TPP) tax in Florida is an annual tax on business-owned physical assets that are not permanently attached to real estate. Taxable assets include equipment, furniture, computers, machinery, and vehicles used in business operations. Each year, your county property appraiser assigns a value to these assets and issues a separate tax bill.
What is Form DR-405 in Florida?
Form DR-405 is the Florida tangible personal property return that businesses must file with their county property appraiser by April 1 each year. Any business that owns, leases, or uses tangible personal property in Florida as of January 1 is required to file. Businesses with a total assessed TPP value of $25,000 or less qualify for a full exemption from the tax.
Can I appeal my Florida tangible personal property assessment?
Yes. Florida TPP assessments can be appealed through the Value Adjustment Board (VAB), the same process used for real estate appeals. You have 25 days from the mailing of your TRIM notice to file a petition. Florida Property Tax Service represents South Florida businesses through the entire TPP appeals process on a contingency basis.
Which businesses in South Florida are most commonly over-assessed on TPP?
Restaurants, automotive dealerships, retail chains, hospitality businesses, and medical practices typically carry the highest TPP exposure in South Florida. Generic county depreciation schedules often overstate the value of commercial kitchen equipment, technology assets, and high-wear machinery.
Does Florida Property Tax Service handle tangible personal property appeals?
Yes. Florida Property Tax Service has been representing South Florida businesses in TPP appeals since 1984. We review your actual asset inventory against the county’s valuation, identify grounds for reduction, and represent you before the Value Adjustment Board. If we do not reduce your assessment, there is no charge.