Business property tax refers to the tax, which is imposed on business properties or real estate utilized for carrying out business operations. Business property tax is paid by individual business owners, as well as big business enterprises.
The business owners have to pay different types of taxes, such as payroll tax, regular income tax, as well as city wage tax. Additionally, if the business owner or entrepreneur is also the owner of the building or premises where the business enterprise is located or domiciliated, then it is also the responsibility of the business owner to pay business property tax.
The business property tax is levied on tangible business properties or equipments owned by a business enterprise, such as furnitures and fixtures and business equipments. The business property tax rates are fixed by local government agencies.
The business property tax collection proceeds are utilized for various public utility services. In some jurisdictions, the business property tax is appraised on a yearly basis. The amount of property tax payable by the business is usually ascertained by multiplying the business property tax rate with the market valuation of the property (performed by a licensed assessor).
The calculation of the tax rate is dependent on a number of factors, which are the following:
The actual cost of the property
The estimated replacement cost of the property
The historical cost of the property
The market value of the property
In the United States, the rules and regulations regarding business property tax are quite stringent in nature. The Internal Revenue Service (IRS), which is a department under the federal government of the United States of America, supervises the business tax infrastructure of the country.
The services provided by the business property tax consultants can be categorized into the following types:
Business property tax consulting
Business property tax appeals
Personal business property tax services
Commercial properties, residential properties, and real property tax services
Preparation of business property tax
For the convenience of the business owners and business property tax payers, a large number of business property tax consultants and business property tax preparation firms offer a variety of tools and tax calculators. With the help of these tools, the entrepreneurs and business owners are able to compute the amount of tax payable and get a fair bit of idea about the different tax rebates and exemptions that are available.
Last Updated on : 29th July 2013