Personal Property & Motor Vehicles

What is business personal property?

Business personal property is primarily tangible assets used in the operation of the business. Businesses must report all property owned as of January 1 at its historical installed cost.

This includes, but is not limited to

• Machinery and equipment
• Furniture and fixtures
• Computer equipment and software
• Leasehold improvements
• Construction in progress

The Tax Department's business personal property appraisers determine the depreciation schedules that apply based on the type of business or property being valued. Alamance County uses the North Carolina Department of Revenue's Cost Index & Depreciation Schedules for most business personal property.

Listing your property

Businesses must file their business personal property listing during the annual listing period, which opens January 1. Listings made on or before February 1 are considered timely.

If you need more time, you may submit a listing extension request on or before February 1. An approved extension moves your penalty-free deadline to April 15, so a listing made by then is still considered timely. An extension gives you more time to file — it does not change the January 1 date on which property is assessed.

When and how will I receive my listing form?

If you listed business personal property in the prior year, a pre-populated listing form (an abstract) is mailed to you at the beginning of January. If you did not receive a form and you own or operate a business in Alamance County as of January 1, you are still required to list. Contact the Tax Department to request a form, or use the online listing system, which is open from January 1 through April 15. List on or before February 1 to avoid the late penalty.

How can I submit my listing form?

Listings may be submitted through the online listing system, by mail, or in person at the Tax Department. The online listing system is open from January 1 through April 15. List on or before February 1 to be considered timely; if mailing, the listing must be postmarked by February 1.

How do I file an extension?

Submit an extension request on or before February 1, through the online listing system or in writing to the Tax Department. If approved, you have until April 15 to list without penalty. An extension gives you more time to file — it does not extend the January 1 assessment date.

Can I email or fax my listing or extension request?

Contact the Tax Department to confirm the accepted submission methods for the current year. The online listing system (open January 1 through April 15), mail, and in-person delivery are the standard options. If email or fax is accepted, keep your confirmation and the date sent as proof of timely filing.

How do I change my mailing or physical address?

Note the corrected mailing address and/or physical location directly on your listing form, or notify the Tax Department in writing. Keeping your address current ensures you receive your listing form, notices, and tax bills.

Why do I pay this tax on top of state and federal taxes?

Business personal property tax is a local property tax on the assets used in your business. It is separate from state income tax, federal income tax, and sales tax. Sales tax is paid once at purchase; property tax is assessed annually on property you own as of January 1, based on its depreciated value.

When are bills mailed and due?

Bills are mailed in July. Payment is due September 1, and no interest is charged as long as the bill is paid by January 5. Taxes are delinquent January 6, when 2% interest is added, plus 0.75% on the sixth of each month after.

My business is closed or sold. What should I do?

Notify the Tax Department in writing as soon as the business closes or is sold, and provide the closing or sale date. Whether tax is owed for the year depends on whether you owned the property as of January 1. Any tax billed for a year in which you owned the property on January 1 remains due even if the business later closes.

I sold my business assets mid-year. Who pays this year's bill?

The person or entity that owned the property on January 1 is responsible for the entire current year's tax bill. North Carolina property tax is not prorated between buyer and seller based on the sale date. How the tax is divided between the parties is a private matter, usually handled through the terms of the sale.

County staff came by about listing my business. Is that legitimate?

Yes, this can be a legitimate part of the discovery and compliance process. Tax Department staff may visit businesses to confirm listing requirements, and they carry county identification you may ask to see. If you have any doubt, call the Tax Department using the number below to verify before sharing information.

What to know about audits

North Carolina counties may audit business personal property listings to verify that all taxable property is reported accurately and at the correct cost. An audit compares your listing against your accounting records — fixed asset schedules, depreciation schedules, and federal tax returns — to confirm that all reportable assets are listed.

I got an Audit Introduction Letter. Is it legitimate?

Yes. An Audit Introduction Letter notifies you that your business has been selected for review and explains the records that will be requested and the general process. To confirm it is authentic, call the Tax Department using the number below.

What can I expect during the audit?

You will be asked to provide supporting records, which may include fixed asset listings, depreciation schedules, general ledgers, and federal tax depreciation forms. The auditor reviews these records to confirm what was owned as of January 1 for the years under review and compares them to what was listed. The review may cover the current year and prior years as allowed by law.

I was audited. What happens next?

After the review, you receive the results. If everything was listed correctly, no change is made. If assets were unlisted or under-reported, a discovery may be issued to assess the additional value, which can include prior years and penalties under N.C.G.S. § 105-312. If the audit shows property was over-listed, your value may be reduced.