Learn about business personal property

Business personal property

The State constitution indicates that all property is subject to property tax unless otherwise exempt. 

Business Personal Property is any tangible property owned, claimed, used, possessed, managed or controlled in the conduct of a trade or business. 

Business Personal Property generally includes items that are used in connection with a trade or business, like:

• machinery,
• office furniture
• equipment,
• fixtures, 
• and leasehold improvements.

These items are commonly referred to as unsecured property, property that is not real estate (real property). 
 

A few examples of items not considered business personal property include:

• licensed vehicles (R&T Code 10751)
• business inventory (R&T Code129)
• intangible assets like application software (Property Tax Rule 152) 
• First $50,000 of employee-owned hand tools (R&T Code 241)

The Business Personal Property Division (BPP) of the Office of the Assessor-Recorder is responsible for assessing all unsecured property owned by businesses located in the City and County of San Francisco. 

BPP is also responsible for conducting business audits that are mandated by the State. 

Assessing business personal property

Unlike Real Property, Business Personal Property taxes are based on information provided to the Office of the Assessor-Recorder on an annual basis. 

Business Personal Property is reassessed annually because businesses may have acquired new or disposed of existing personal property during the year. 

Business owners have to file a business property statement (i.e., Form 571-L, 571-R, 571-STR) detailing the acquisition cost of all supplies, equipment, fixtures and improvements owned at each of their locations in the City and County of San Francisco.

• Some businesses have to file a statement each year while others do not. It depends on the value of your business personal property and each year, our office will send you a notice each February indicating whether or not you have to file. 
• Failure to file the property statement will result in the Assessor’s Office estimating the value of your business personal property and adding a 10% penalty to the assessment (R&T Code, Sections 441, 463, and 501).

For more information on whether or not you will have to file a statement, what is considered business personal property, and more, we suggest you check out our fact sheet. English, Español, 中文), Filipino, Tiếng Việt, Pусский, 한국어. 

Assessment begins with the cost of the asset, including sales tax, freight and installation per filed Business Property Statement. The Assessor applies valuation factors to the cost of the asset to arrive at the assessed value. For reference, you can look at the Business Factor Table and Vessel Factor Table. The valuation schedule is based on the expected economic life of the asset, and is different from the valuation schedule used by tax accountants.

If you disagree with your assessment

If you disagree with an assessment made by the Assessor, we recommend you first discuss it with an Auditor-Appraiser at the Assessor's Office. An Auditor-Appraiser is available Monday through Friday, 8 A.M. to 5 P.M. via e-mail at askBPP@sfgov.org or call us at (628) 652-8100.  

Whether or not you discuss the matter with the Assessor, you also have the right to file an assessment appeal with the Assessment Appeals Board. The Appeals Board is an independent agency representing the Board of Supervisors and is not connected with, nor is it under the control of, the Assessor's Office. Please note that Burden of Proof is a requirement per State law. 

• To learn how to file an application for changed assessment, you can visit the Assessment Appeals Board website or calling the Assessment Appeals Board Clerk at 415-554-6778.
• The normal filing period for filing an Application for Changed Assessment is July 2 to September 15th of the current fiscal year per State law. 
• The filing period applies to any assessment produced for the annual assessment roll. If a bill for an assessment roll is mailed to you after the normal filing period has expired, the filing period is extended and you must then file an application within 60 days of the date of mailing of that tax bill.

It's important to note that even if you file an appeal, you must still pay the bill by August 31st of the current fiscal year to avoid late payment penalties; a refund will be issued if the Assessment Appeals Board rules in your favor. Pay your bills with the Treasurer & Tax Collector. 

The August 31 due date for payments is per State law, § 2922 Rev. & Tax. Code.