Frequently asked Questions for Personal Property

WHAT ARE THE THREE PRIMARY PROBLEMS PEOPLE HAVE WHEN SUBMITTING THE AFFIDAVIT AND HOW CAN I AVOID THEM?
First, business owners forget to sign the affidavit. An unsigned affidavit must be returned to the business owner for signature. The account is treated as one where the affidavit has not been returned and is subject to the same penalties and interest. Avoid this situation by remembering to sign the affidavit.

Second, if you are a new business reporting for the first time you need to fill out your Schedule A. You do not pay the minimum amount of tax due unless your taxable value is $500 or below. If the new business does not fill out a Schedule A then it is treated as one where the affidavit has not been returned is subject to the same penalties and interest.

Third, business owners sometimes forget to send the check with the affidavit. Avoid this situation by remembering to enclose your signed check.

DO I NEED TO LIST EQUIPMENT THAT WAS PURCHASED PRIOR TO THE BEGINNING OF THE BUSINESS OR WAS MY OWN EQUIPMENT WHICH I BROUGHT FROM HOME OR WHICH WAS A GIFT?
All equipment or fixtures used in the operation of a business are taxable under Utah law. It all must be reported whether it was acquired before or after the startup of the business. Also, equipment that the owner requires an employee to provide needs to be reported by the business owner or by the employee.

WHEN I BUY A BUSINESS DO I USE THE ACQUISITION COST OF THE ORIGINAL OWNER OR DOES MY PURCHASE CREATE A NEW ACQUISITION COST?
At the time of the sale a new "market value" was established. The new owner will need to report the acquisitions, purchase price and date of his or her purchase.

HOW AN I TAXED WHEN I LEASE EQUIPMENT?
If the lease agreement is a true lease and the equipment is truly owned by the leasing company, the leasing company is responsible to report the equipment and pay the taxes on it. The lessee reports the same equipment along with the leasing company's name and address.

If the lease agreement is a financial arrangement for the purchase of the equipment, the affidavit should be filed and the tax paid by the lessee. If you are leasing equipment and have questions about the terms of your lease contact your lessor to find out if the leasing company is reporting an paying the taxes on the equipment.

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