Generally, businesses are required to pay taxes based on their interests in property – real property and personal property. Real property is immovable property, such as land and structures permanently fixed to the ground. Business personal property, the subject of this article, is property used in the course of doing business. This includes supplies (stainless steel tools, dishware, etc.), free-standing equipment (furniture, ranges/ovens, refrigerators, etc.), and leasehold improvements.
Business owners are required to keep a rolling total of the business personal property subject to tax by year since business inception, and declare cost information for these assets on a Business Property Statement (Form 571-L) which is filed annually. All restaurants operating within San Francisco are subject to personal property taxes at the tax rate of 1%, plus any special assessments (approx. 1.18% in total).
A review of Form 571-L by a qualified tax professional could result in significant tax refunds and future savings. Shea Labagh Dobberstein has over 80 accounting professionals and advisors who can assist you. Contact us today if you would like a complimentary review of your property tax filings.