Personal Property Tax

County Bulletin

TO:  All County Auditors

FROM:  Shelley Wilson, Executive Administrator, Property Taxes

DATE:  December 12, 2006

RE:  Application of Penalties for Filing Late or Omitting Personal Property

Amended Bulletin No.287

Ohio Revised Code Section (RC) 5711.27 instructs the Tax Commissioner or County Auditor to add penalties when a taxpayer files a personal property tax return after the due date or omits personal property from its return and balance sheet. Please note that if the return is filed or omitted property is reported within sixty days of the date the return was due, Ohio law requires the penalty to equal five percent of the unreported amount. This bulletin has been revised to clarify this limitation and to publish the standard the Department will use to assess late payment penalties for inter-county filers and to remit late payment penalties for all taxpayers.

Therefore, the Department establishes the following schedule for the application of late filing penalties:

(1) When a taxpayer files a return after the due date but before August 15 of the year for which it is filed, a penalty equal to five percent of the total taxable value on the return will be added to the assessment. As previously stated, if the return is filed or omitted property is reported within sixty days of the date the return was due, a five percent penalty is required by statute. However, for ease of administration, the Department will use the five percent penalty for all returns filed after the due date but before August 15 of the filing year.

(2) When a taxpayer files a return after the due date and on or after August 15 but before October 1 of the year for which it is filed, a penalty equal to ten percent of the total taxable value on the return will be added to the assessment.

(3) When a taxpayer files a return after the due date and on or after October 1 of the year for which it is filed, a penalty of fifteen percent of the total taxable value will be added to the assessment.

(4) When a single county taxpayer files a return on time but fails to pay one-half of the total tax within ten days of the due date, a penalty of five percent will be added to the assessment.

(5) When a taxpayer files a return for the current year on time but files a supplemental return within sixty days of the due date to include property not included in the initial filing, a penalty equal to five percent of the additional value will be added to the assessment. If the amended return is not filed until after the sixty day period, a penalty equal to ten percent of the additional value will be added to the assessment.

(6) When a taxpayer files a new taxpayer return within sixty days after the due date, a penalty of five percent of the total taxable value will be added to the assessment. If the return is filed after the sixty day period, a penalty of fifteen percent of the total taxable value will be added to the assessment.

Mailing Assessment Certificates after Application of Penalty

RC 5711.27, RC 5711.28 and RC 5711.31 require that you mail an assessment certificate to the taxpayer when you add a penalty for the following reasons: filing late, adding omitted property to an assessment, or assessing a penalty for failure to pay one-half of the total tax due within 10 days of the due date. In cases where a return has been filed or a preliminary assessment certificate has been issued, an amended assessment certificate should be issued reflecting the penalty for failure to pay one-half of the total tax due within 10 days of the due date, or in the case of omitted property, the additional value and penalty.

This bulletin replaces Bulletin Number 287 last amended July 3, 2003.