Business Property/Personal Taxes

[LAA17]

The Chapter 7 filing on our business was discharged almost 2 years ago. The property, equipment and fixtures have long been sold. However, I am getting billed by the county for "business personal" taxes. My attorney says "do not pay". I know that the property tax was paid at the time the land and building sold, but the question is, shouldn't the tax on the equipment and fixtures also be paid before it can sell?

Thanks to anyone that can explain this for me.

[HHM]

Hmmm, that is a very state specific issue. Are they billing you for an old period (i.e. 2 years ago), or are they billing you for a period subsequent the discharge.

You may be misinterpreting the term "personal" in this context. In the grand scheme of things, there are only 2 types of property. Real Property (Land), and Personal Property (anything that can be moved, or anything that is not land or a dwelling). Many states or localities tax businesses based on the value of that businesses "personal property" (i.e. copiers, computers, desks, machines, equipment, etc). Thus, you are probably receiving a bill for the personal property tax of the business.

This might be easily solvable. Go back to the last tax period for which the business was still in operation, file the Personal Property Tax Return, mark it "FINAL RETURN" and send it to the taxing authority. Also, send along the discharge order from the companies BK.

[nodollarsnomo]

Our business receives a form each year to fill out and return by April 15th to the county appraisal district. There is an area on the form to fill out if the business has been closed. Perhaps they just need to be notified that the business is no longer open.

[aquavir]

Did you get any resolution on this? I have a similar issue in CT.

[packerfan]

We closed our business in June '09 I as well got a tangible tax notice in the mail this year...called and told them when we paid last year we reported the business closure..I was told the bills are for the prior year so if the business was open at all in '09 we were still responsible for the tax's...although what they would go after is beyond me...no equipment etc..just filed personal BK and lost our personal property in foreclosure..Our bill is only for $32 so I may just go ahead and pay it

[aquavir]

I'm sorry about the foreclosure. Thanks for the response. I'm wondering what, if anything, they can go after besides the business property, which I no longer own (financing company held lien). I think it is kind of crap if they can come after me personally for tax on business property that I no longer own and therefore cannot use to generate money to pay. Hopefully I'll be insulated in some way.