Business Services | Homeowner Resources | Records & Fees

I.  THE BUSINESS PROPERTY STATEMENT (FORM 571-L) AND FILING REQUIREMENTS

1. What is a Business Property Statement - Form 571-L (BPS)?

A Business Property Statement is a form, or a series of reporting forms upon which both real and personal property must be declared as such assets exist on the Lien date (January 1st).   The assets must be reported at acquisition cost, if known.

2. Why did I receive a Business Property Statement?

The Assessor might have learned about your business through the city where your business is licensed, from a fictitious business name report or from a field check. Every person who owns taxable personal property other than a mobile home, that has an aggregate initial cost or current market value of $100,000 or more, must report the itemized nature, location and cost of acquisition of such property to the county assessor.

3. What is the purpose of the Business Property Statement (BPS)?

The BPS collects information regarding the supplies, business equipment and leasehold improvements for each business location within the county.  The information an owner provides on the statement is then used to assess and tax property in accordance with California State Law.  The owner reports the acquisition costs of the supplies, business equipment and leasehold improvements that were owned on lien date at the address shown (location of the property).   All 58 California County Assessors mail out similar statements.

4. Who must file a Business Property Statement (BPS)?

If the Assessor sends you a BPS, the law requires that you complete, sign and return the statement to the Assessor’s Office in the time period specified.  Any business that owns Personal Property and/or Leasehold Improvements having a total combined cost or current market value of $100,000 or more is required to file a BPS even if the Assessor did not send you a formal request to do so.  Also, any other business that is requested by the County Assessor to file, must file, regardless of the value of their assets.

5. What is business personal property?

Business personal property includes all supplies, equipment and any leasehold improvements used in the operation of a business (see Page _ of the 571L instructions for an explanation what constitutes leasehold improvements).  Business inventory and licensed vehicles (except Special Equipment (SE) tagged and other off-road vehicles and equipment) are taxable personal property and must be reported.

6. Why do I have to pay taxes on my Business Property?

The California Constitution states in part that “Unless otherwise provided by this Constitution or the laws of the US, (a) All property is taxable…” That is, unless otherwise exempted, all forms of tangible property are taxable in California and the Assessor’s must assess business personal property because the law requires them to do so.

Some forms of personal property are exempt from taxation under the Constitution.  For example, household furnishings, personal effects and business inventory are exempt under the law.

7. What is the “Lien Date”?

The Lien date is January 1st every year, and is also the date property taxes for any fiscal year become a lien against a business property owner.   Where personal property is concerned, the lien is placed on the owner of the property (not the property), and owners who allow their personal property taxes to become delinquent may have a Summary Judgment recorded against them personally (see Judgments & Liens section for more information). (NOTE:  Prior to January 1, 1997, the lien date was March 1)

8. When is the Business Property Statement (BPS) due?

The BPS is due on April 1st and is considered delinquent if it is filed after 5:00 P.M. on May 7th.

9. How much will the tax be?

The tax is 1% of the assessed value. However, your tax bill might also include special assessments voted into effect by the voters or by their representatives within the property’s taxing jurisdiction. Therefore, you can estimate that the taxes will be 1.2% of the assessed value. Under the law, there is no provision for the pro-ration of unsecured property taxes.

10. What is the tax rate on personal property?

Throughout California, the property tax rate is 1% of the assessed value (also, applies to real property). However, your tax bill might also include special assessments voted into effect by the voters or by their representatives within the property’s taxing jurisdiction.   Therefore, you can estimate that the taxes will be approximately 1.2% of the assessed value.  For example, if your personal property assessment is $10,000, your personal property tax bill should be roughly $120.00.  Note:  Under the California law, there is no provision for the pro-ration of unsecured personal property taxes.

11. Why does my tax bill say period dated July 1st through June 30th, when the statement is due as of January 1st lien date?

The State of California as well as all the California Counties operates on a fiscal year, and that fiscal year is July 1st through June 30th.  The responsibility for the tax bill rests with the owner in possession of the business as of January 1st.

12. What if the pre-printed information on the BPS is incorrect?

If your business has moved or changed its mailing address, then draw a single line through the incorrect information (Please DO NOT make the pre-printed information unreadable).  Then legibly print or type the new information on the form and also indicate the effective date of the move or when the change became effective.  When reporting on 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 deposition of any taxable personal property.  Complete the BPS, sign and return it to the Assessor’s Office.

13. What is considered “business equipment”?

Basically, any equipment that you use in your business should be reported. 
Examples:

• Computers, printers, servers
• Office furniture
• Telephones
• Copiers, fax
• Restaurant Equipment
• Forklifts
• Video Equipment
• Cameras

14. Where can I obtain assistance in completing the BPS?

You may obtain assistance with completing the form in the following ways:

• In Person:

555 County Center, 3rd Floor, Redwood City, Ca 94063
8:00A.M. to 5 P.M., Monday through Friday

• By Telephone:  (650)363-4501 -- 8:00 A.M. to 5 P.M., Monday through Friday

• By Fax:   (650)599-7456
  
  

• By Internet:  www.calbpsfile.org
  
  
• By US Mail:

Business Personal Property Division
San Mateo County Assessor’s Office
555 County Center, 3rd Floor
Redwood City, CA  94063

15. FAQ's - Agency Letter

If you are acting as an agent for a business, you must complete a letter of authorization and send it to the Assessor’s Office. You can either download a copy from our website or contact our office for a copy. If you wish to download a form, please click on this link. The Agency Authorization is in effect for eighteen months.

II.  FILING THE BUSINESS PROPERTY STATEMENT ONLINE

1. Can I file my business property statement online?

Yes, most small businesses in San Mateo County have received a notification letter containing their business account number and a BIN (Business Identification Number) that will allow them to file their property statements online.  This BIN will change annually, so every year a new one will be issued.  If you were in business in San Mateo County on January 1st and you did not receive one of these notification letters, you may contact our office to see if e-filing is available to you.  Filing deadlines apply.  See contact information above.

2. Can large businesses file property statements online?

There is a separate electronic filing program for large businesses that have multiple locations throughout the state.  Participation in this program requires programming on behalf of the business entity such that business property data itself is uploaded to a state-wide server.  Alternatively, it is possible for a larger business with one or two locations within this County to file online.  Filing deadlines apply.  Feel free to contact us if you need more information.

III. HOW DO I KNOW IF MY BUSINESS IS LOCATED IN SAN MATEO COUNTY?

List of San Mateo County Cities

The following list identifies the cities and towns located within the borders of San Mateo County.  An asterisk (*) indicates that the entity is not incorporated.  Numbered footnotes provide additional information.

Broadmoor Country Club Park

North Fair Oaks, Oak Knoll

Unincorporated Areas:  Devonshire, El Granada, Emerald Lake Hills, La Honda, Ladera, Loma Mar, Los Trancos Woods/Vista Verde, Menlo Oaks, Montara/Moss Beach, Palomar Park, Pescadero, Princeton, San Gregorio, South Coast/Skyline, Sequoia Tract, Skylonda, Stanford Lands and West Menlo Park.

Burlingame Hills, Highlands/Baywood Park

Please note the following:

San Francisco International Airport is situated within San Mateo County, though its name leads many people to believe it is within the City and County of San Francisco.

East Palo Alto is an incorporated city in San Mateo County.  Palo Alto is an incorporated city in Santa Clara County.

IV. COMPLETING THE BUSINESS PROPERTY STATEMENT

1. 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, calculators and etc., if those items are used in their business. Other examples include:

• Example 1: Someone operating an auto repair shop is using their own 'personal' car jack in the business. In this case, the car jack becomes assessable as business personal property and must be reported.

• Example 2: A home business or auto repair shop goes out of business prior to January 1. In this case, any equipment previously used in the business that could revert back to 'personal' use is no longer taxable. Such items become nontaxable because