What you file and when
- Check which county your business property sits in: Fulton, DeKalb, Cobb, Gwinnett or another.
- If you owned the business on January 1, file that year's business personal property return by April 1.
- List assets you sold or got rid of, or the county may keep them on your account.
- Send the county a copy of the bill of sale once the business is sold or closed.
- Agree in the purchase agreement how the year's personal property tax is split between you and the buyer.
Dates to know: Returns are due April 1, and late returns can bring a penalty and loss of some valuation allowances.
What the Return Covers
Georgia counties tax business personal property: the furniture, fixtures, machinery, equipment, computers and inventory a business owns.
Each year a business lists what it owns on a return, usually Form PT-50P, and files it with the county board of assessors. The county values it and the tax follows.
For a company inside the City of Atlanta, that is usually the Fulton County Board of Assessors. A slice of the city sits in DeKalb County, which runs its own office. Cobb and Gwinnett have their own as well.
The January 1 Rule
Georgia values property as of January 1. Whoever owns the business property on that date is the owner of record for the whole year, even if they sell it in March.
DeKalb County gives a clear example. An owner of record on January 1 sells the business on March 1. The seller is still the owner of record for that year. The buyer becomes owner of record on January 1 of the following year.
So in the year you sell, expect that year's return, and the bill that follows, to come to you.
The April 1 Deadline
Returns are due April 1. Counties differ on details: DeKalb accepts a return postmarked by April 1, while others say it must be received by then.
A late return can bring a penalty, and some counties say you can lose depreciation or exemptions you would otherwise get.
If you close between January 1 and April 1, file the return anyway. The sale doesn't excuse it.
Splitting the Tax With the Buyer
Because the bill comes to the January 1 owner, the purchase agreement usually splits it. A common approach is to prorate by the days each side owned the business that year. Your share comes off the price at closing, or the buyer reimburses you for theirs.
Bills often arrive late in the year, after closing. Agree on how you will estimate the amount and settle it, so no one is arguing about it in November.
Telling the County You Sold
Counties keep a business account until someone tells them it changed. Georgia counties ask for a bill of sale or lease agreement when a business is sold, moved or closed.
If you sold or disposed of equipment, include a detailed list. One county's instructions say that assets not listed as disposed won't be removed from the account.
Without that paperwork, the next year's return notice may still come to you.
Leased Equipment and Inventory
Equipment you lease is usually reported by whoever the county considers the owner, which depends on the lease. Inventory counts as business property in Georgia unless an exemption applies in that county.
Ask your CPA how your leased gear and stock were reported in past years, so the final return and the buyer's first return line up.
If the county has been valuing assets you sold or scrapped years ago, the year of the sale is a good time to clean that up. A buyer will ask why the county lists more than you own.
Asset Sales and Stock Sales
In an asset sale, the buyer buys the equipment and inventory and files its own return starting the next January.
Your company files its final return for the year of the sale. In a stock sale, the company itself keeps owning the property and keeps filing, under new owners.
Equipment Heavy Companies
For rental houses, contractors, manufacturers and others with large fleets, the personal property bill can be a real number. Buyers will want to see your recent returns to estimate what they will owe.
A return that matches your fixed asset list makes that easy. See the film equipment rental page for one example.
The Rest of the Closing Filings
Your state accounts need clearance: see the TSD-10 guide. Inside the city limits, the City of Atlanta has its own form for a sold business: see the Final/Close form guide.
This page is general information, not tax or legal advice. Confirm the rules for your county and your property with your CPA or attorney. Sources include county assessor guidance from DeKalb and other Georgia counties and the PT-50P return instructions.
Want a number before you start? Read business valuation before you sell, then send the form or call (404) 555-0139.