All businesses must meet the requirement to furnish the assessor with a “true and perfect list” annually and be in good standing with the Assessor and Tax Office prior to approval of a business license or renewal.
Businesses are required to itemize and report all assets used in the operation of their business every year. Filers may use the Property Schedule Form 706-A or a reasonable substitute. The asset filing must be submitted to the Assessing Office no later than May 1st of each year. Businesses can apply for a 30-day filing extension if needed provided they do so prior to May 1st.
Some business assets may be eligible for exemption of personal property tax; however, they still need to be reported annually. See if your business qualifies for either of the exemptions listed at the bottom of this page.
Filing Do’s and Don’ts
Following these simple guidelines will help us process your filing accurately and efficiently.
DO
✓ File a complete return every year.
Submit a complete itemized list of all business assets and, if applicable, BETE and/or BETR application by May 1st each year—even if nothing has changed.
✓ Report the year and ORIGINAL COST.
For each asset, provide the year new and original cost. The assessor will calculate depreciation using the same schedule for all businesses.
✓ Include business signs.
Signs are generally considered Furniture & Fixtures. (If your businesses sign is owned by someone else, let us know so the tax bill for that item can be directed to the appropriate party.)
✓ Keep it simple and readable.
For each asset, we generally need only the type, description, year, and original cost.
✓ Report additions and disposals separately.
A separate additions/disposals list is helpful, but it does not replace the complete annual asset list.
✓ File electronically when possible.
A spreadsheet is preferred. Electronic filing also allows us to confirm receipt. Email Assessing@oobmaine.com
✓ Keep a copy.
Save your current asset list. Next year, update it for additions and disposals and submit the complete updated list.
✓ Keep us informed.
Notify us in writing of changes to your mailing address, business location, ownership, or business status. If you close your business, let us know the last date of operation.
DON’T
✕ Don’t skip filing.
If you do not file, the Assessor must estimate your assets using available information, which may include property typical of a similar business.
✕ Don’t submit “No Changes” or only additions and disposals.
A complete asset list is required every year, even when nothing has changed.
✕ Don’t report depreciated values.
Always report original cost. Our office will apply the appropriate depreciation.
✕ Don’t include real estate or unrelated expenses.
Do not include land, buildings, repairs, shipping, sales tax, or other costs that are not reportable business personal property.
✕ Don’t merge property exempt under BETE or BETR with non-exempt items on your list. .
Make sure we can ascertain which items are taxable and which aren’t.
✕ Don’t report disposals as negative values.
Disposed assets should be listed on separate sheet with the date of disposition.
Your Business May Qualify for Tax Relief!
BETE
The Business Equipment Tax Exemption Program, aka “BETE” or “Betty”. This is a 100% exemption program for eligible assets. Note: Due to recently enacted legislation, certain businesses engaged in the sale of retail services will now generally be eligible to participate in the BETE program for qualifying property placed in service after April 1, 2007 and will be ineligible for the BETR program. BETE applies only to certain qualifying items assessed and taxed for the first time in 2008 (i.e. items acquired after April 1, 2007).
BETR
The Business Equipment Tax Reimbursement Program, aka “BETR” or “Better”. BETR is a tax reimbursement program for qualifying businesses/assets. BETR Applies to assets that were placed in service after April 1, 1995 and before April 1, 2007, and that are not eligible for BETE.