| Who files | The business that owned the property at the end of the prior year |
|---|---|
| Where | Maricopa County Assessor, by e-file or the mailed statement; Pinal County Assessor for Apache Junction |
| When | April 1 each year; written extension requests go in before April 1 |
Before closing: Decide in the purchase agreement who pays the year's property tax on the equipment and how it is split.
Arizona Taxes Business Equipment
Arizona counties tax business personal property: the desks, computers, machines, tools and other equipment a business uses.
Real estate is taxed separately. Every year, businesses report what they own to the county assessor on an Arizona Taxable Business Personal Property return.
Mesa, Gilbert, Chandler, Tempe and most of Queen Creek are in Maricopa County, so that return goes to the Maricopa County Assessor.
The April 1 Deadline
The Maricopa County Assessor's notices give April 1 as the filing deadline. The return lists the business personal property owned at the end of the previous calendar year, by its original cost and the year it was acquired.
The Assessor recommends filing electronically through its online portal. If you file on paper, the original mailed statement has to come with it. Extension requests may be granted for good cause if they are made in writing before April 1.
Some smaller businesses owe little or nothing because Arizona exempts a portion of business property value each year, but the return is still how the county knows. Your CPA can tell you where you fall.
How a Sale Fits the Calendar
Because the return looks back at what you owned at the end of the prior year, the timing of your sale matters.
Sale before year end
If you sell in, say, September, you won't own the equipment at the end of the year.
Ask the Assessor how to report the sale or closure when the next statement arrives, so the county knows who now owns the property. Don't ignore the statement just because you sold.
Sale after year end
If you close in February or March, you still owned the property at the end of the prior year. Your company files that year's return, even though the buyer will be the one using the equipment when the bill comes.
Prorating the bill
Purchase agreements often split the year's property tax between seller and buyer by date. Your attorney will write that in. Make sure the return you file matches the asset list in the deal, since a buyer's lender may compare them.
What to Report Carefully
- Every piece of equipment still in use, with its original cost and year
- Items you disposed of, so the county stops taxing them
- Leased equipment, which may be reported by the owner rather than you
- Equipment at more than one location, if you have several
A clean, current asset list helps twice. It keeps your property return accurate, and it is the same list a buyer will want when pricing your equipment. See preparing your company for sale.
Don't Forget Vehicles
Licensed vehicles are generally handled through registration fees rather than this return. Trailers, forklifts and other unlicensed equipment usually belong on it. Ask your CPA which of your items go where, since mixing them up is a common source of questions.
Apache Junction and Pinal County
Most of Apache Junction, and part of Queen Creek, is in Pinal County. Those businesses file with the Pinal County Assessor instead, which has its own forms and process. See business brokers serving Apache Junction, AZ for more on that area.
Asset Sale or Stock Sale
In an asset sale, the buyer becomes the new owner of the equipment and reports it from then on. In a stock sale, the company still owns it, and the company keeps filing as before under new owners.
Either way, the buyer will check that past returns were filed. Unfiled returns can bring penalties that a careful buyer will want settled before closing.
The Rest of the Closing List
The county return is one of several filings. State tax clearance comes first, explained in Arizona TPT successor liability when you sell a business. Final returns follow, covered in cancel your Arizona TPT license and withholding after a sale.
Sources and a Caution
This page draws on the Maricopa County Assessor's business personal property notices and filing guidance, and on general Arizona property tax rules.
It is general information, not tax or legal advice. Deadlines and exemption amounts can change, so confirm the details for your company with your CPA or attorney, and with the Assessor's office.
Curious what your company would sell for, equipment included? Send the form or call (480) 555-0124.