- Agency
- The San Joaquin County Assessor
- Form or filing
- The Business Property Statement, form BOE-571-L, listing equipment, fixtures and supplies owned on the lien date
- Timing
- The county lists April 1 as the filing deadline each year, and the lien date is January 1
Common snag: Assuming the buyer takes over the tax bill. Business property is assessed to whoever owned it on January 1, so who pays for the year of sale depends on your contract.
What the Statement Reports
California counties assess business equipment, fixtures and supplies each year. Owners report them on a Business Property Statement, and the San Joaquin County Assessor lists form BOE-571-L with an April 1 deadline.
The January 1 Rule
Property is assessed to the owner on January 1. If you sold in the middle of the year, you may still be the one billed, even though the buyer now runs the business. Prorating is not automatic and must be written into the purchase agreement.
What to Tell the Assessor
Counties generally expect owners to tell them when a business is sold or closed, and you may still need to file for the year you owned the property.
San Joaquin County's process for a sold business should be confirmed with the assessor's office before you assume anything.
Late Filing
A late statement can bring a penalty, commonly ten percent of the tax in California counties. Keep a copy of what you filed and the date you sent it.
Buyer Steps
The buyer files a statement for the following lien date and should see the equipment list used in the deal. A clean asset list also helps the asset allocation discussion.
What the Statement Lists
The statement covers machinery, equipment, computers, furniture, leasehold improvements and supplies, with the year each was bought and its cost. Keep a clean fixed asset list, since a buyer will want the same list for the purchase price split.
Who Pays for the Year of Sale
Ask your attorney to state in the contract who pays the property tax bill for the year of sale and how it is divided. Without that language, the person billed is the person who owned the property on January 1, and getting reimbursed later is hard.
Related Steps
See the city license guide and the auto shop page for an equipment heavy example.
Questions to Ask Before Closing
Ask the assessor how a sold business is handled, whether you still file for the year you owned the property and where to send proof. Ask your attorney how the contract splits the bill.
Write down what you were told and the date, in case a bill arrives later.
Before You Close
This is general information, not tax or legal advice. Confirm the form, deadline and sale procedure with the San Joaquin County Assessor and your CPA. When you want a price range, request a valuation call.