Form Fp-31 - Personal Property Tax - 2008 (Page 5 of 24) in pdf

amount reported on your return. In this case, the penalty

Related peripheral equipment means any auxiliary machine

is an amount equal to 20% of the underpayment.

(whether on-line or off-line) designed to be placed under the

– The misstatement is gross if the amount determined

control of a computer and operated in conjunction with the

to be the correct valuation is 400% or more than the

computer.

amount reported on your return. In this case the penalty

is an amount equal to 40% of the underpayment.

Qualified technological equipment means any computer or

related peripheral equipment except:

Make sure your check will clear

•

Equipment that is an integral part of other property that

You will be charged $65 if your check is returned to us.

is not a computer;

•

Typewriters, calculators, adding and accounting machines,

Specific Instructions

copiers, duplicating equipment and similar devices;

•

Equipment of a kind used primarily for the amusement

Value of Tangible Personal Property — You must report the

or entertainment of the user;

remaining cost (current value) of all your tangible personal

•

Mainframe computers capable of simultaneously support-

property as of July 1, 2007.

ing multiple transactions and multiple users, and having

an original cost in excess of $500,000, including any

Depreciation — Depreciation is allowed only for the period

additional memory units, tape drives, disk drives, power

of ownership from the month and year of acquisition. The

supplies, cooling units and communication controllers that

straight-line method of depreciation is the only method al-

are peripheral equipment related to such computers; or

lowed in calculating the remaining cost (current value). Do

not use accelerated depreciation methods and property lives,

•

Computers used in operating industrial processing equip-

ment, equipment used in a computer assisted manufac-

including the Accelerated Cost Recovery System.

turing system, equipment used in a computer assisted

Tangible personal property (excluding qualified technological

design or engineering system integral to an industrial

equipment) reported on the return must not be depreciated

process, or a subunit or an electronic assembly com-

in excess of 75 percent of its original cost. Consequently, the

prising a component in a computer integrated industry

remaining cost (current value) of all tangible personal property

processing system.

(excluding qualified technological equipment) must be at least

Leased Property — Any tangible personal property owned by

25 percent of the original cost.

the lessor must be reported by the lessor in Schedule A. Any

Qualified technological equipment must be depreciated at

tangible personal property under a “Lease-Purchase” Agree-

ment or a “Security Purchase” Agreement, under which the

the rate of 30 percent per year. It must not be depreciated

lessee is obligated to become the owner, must be reported by

in excess of 90 percent of its original cost. Consequently, the

the lessee in Schedule A.

remaining cost (current value) of qualified technological equip-

ment must be at least 10 percent of the original cost.

Schedules — When attaching separate schedules to the FP-

31, include your name, address, tax year, and your FEIN (or

For personal property tax years beginning July 1, 2000 and

SSN) on each schedule.

thereafter, the remaining cost (current value) of qualified tech-

nological equipment acquired on or before June 30, 2000,

All items of tangible personal property owned by the business

must be calculated as if depreciation at the rate of 30 percent

and located or having a taxable situs in DC, whether or not

per year was used from the acquisition date. However, there

currently in use, must be reported at their remaining cost

will be no credit granted nor refund of tax paid in earlier tax

(current value) as of July 1, 2007.

years under the prior depreciation rate for qualified technologi-

cal equipment.

Schedule A: Books, DVDs and other reference material

Report in this schedule all books and other reference material

Depreciation rates for tangible personal property not listed in

such as DVDs, tapes, etc., used in the business or profession.

the Depreciation Guidelines in this booklet may be obtained

Enter the totals on page 2 of form FP-31, line 1 of columns

by calling (202) 727-4829.

A and B.

Use Schedule A of the Personal Property Tax Return to report

Furniture, fixtures, machinery and equipment

all depreciable property that you own which is subject to the

Report furniture, fixtures, machinery, equipment and other

personal property tax.

fixed assets used in the business or profession. Report the

furniture, furnishings and equipment of hotels, apartments,

Definition of Qualified Technological Equipment

schools, hospitals, sanitariums, rooming and boarding houses,

As used here, computer means a programmable electronically

estate property, property in storage and private dwellings that

activated device capable of accepting information, applying

are rented furnished as a complete unit or as individual rooms

prescribed processes to the information and supplying the re-

or apartments. Enter the totals on page 2 of form FP-31, line 2,

sults with or without human intervention, and which consists

of columns A and B. Hotels and motels must also report their

of a central unit containing extensive storage, logic, arithmetic

total number of rooms on page 1 of form FP-31, line C.

and control capabilities.

-5-

Form Fp-31 - Personal Property Tax - 2008 Page 5

Related Articles

Related forms

Related Categories