Frequently Asked Questions

Personal Property can be defined, in the most general terms, as anything and everything that is owned (excluding land and anything permanently affixed to the land or any interest in land).  There are three Connecticut General Statutes that help to define Personal Property:

1.    CGS § 12-71 (a) defines personal property as “goods, chattels and effects or any interest therein, including any interest in a leasehold improvement classified as other than real property…”

2.    CGS § 12-41 (c) “The annual declaration of the tangible personal property owned by such person on the assessment date, shall include, but is not limited to, the following property: Machinery used in mills and factories, cables, wires, poles, underground mains, conduits, pipes and other fixtures of water, gas, electric and heating companies, leasehold improvements classified as other than real property and furniture and fixtures of stores, offices, hotels, restaurants, taverns, halls, factories and manufacturers. Tangible personal property does not include a sign placed on a property indicating that the property is for sale or lease.  On and after October 1, 2024, tangible personal property shall include nonpermanent modifications and attachments to commercial motor vehicles. Commercial or financial information in any declaration filed under this section shall not be open for public inspection but may be disclosed to municipal officers for tax collection purposes.”

3.    Section § 12-71 (f)(1) “Property subject to taxation under this chapter shall include each registered and unregistered motor vehicle that, in the normal course of operation, most frequently leaves from and returns to or remains in a town in this state, and any other motor vehicle located in a town in this state, which motor vehicle is not used or is not capable of being used.”  Notwithstanding (f) (4) “Any motor vehicle owned by a nonresident of this state shall be set in the list of the town where such vehicle in the normal course of operation most frequently leaves from and returns to or remains…”.

Goods: Merchandise, wares, etc.

Chattels: Any item that is moveable or immovable property except real estate; an article of personal property.

Effects: Personal estate of property; though the term may include both real and personal property.

Generic or typical equipment and furniture that most businesses would have:

•    Answering Machine (Code 16: Equipment)

•    Hand held calculator (Code 16: Equipment)

•    Briefcase (Code 16: Equipment)

•    Computer or Laptop (Code 20: Computer)

•    Printer (Code 16: Equipment)

•    Copier (Code 16: Equipment)

•    Business cards/invoices/stationary: (Code 23: Supplies)

•    Magnetic Car Door Signs (Code 24a: Other)

•    Sign(s) (Code 24a: Other)

•    Cash register (Code 16: Equipment)

•    Pens/pencils/paper clips/etc. (Code 23: Supplies)

•    Cell Phone (paid for by the business) (Code 16: Equipment)

•    Desk/desk chair/filing cabinet (Code 16: Furniture)

•    Coffee Machine (Code 24a: Other)

•    Flooring/sinks/built-ins installed for business (Code 24a: Leasehold improvements)

•    Refrigerator (Code 16: Equipment)

•    Specialty equipment (Code 24a: Other)

•    Telephone/ Telephone system (Code 16: Equipment)

There are more example on the Summary Sheet page of the Personal Property Declaration.

It would be extremely difficult to come up with one single definition of what a business is.  Even if one could, that definition would be long and complicated.  Perhaps the best way to answer that question is by asking two basic questions:

1.    Do you provide a product for compensation?

2.    Do you provide a service for compensation?

If you answered “YES” to question #1, then you are in business.  You are a business.

If you answered “YES” to question #2, please see the section “Compensation” below.

MONEY:  It is not a question of how much money you are making or even if you are making any money.  If you provide a product or a service for compensation, then you are in business.  You are a business.

OWNERSHIP:  If you have incorporated or if you have created another separate legal entity such as an LLC, LLP, LP etc. to provide a product or service for compensation, then you are in business.  You are a business.

TRADE NAME:  If you use a trade name to provide a product or service for compensation, then you are in business.  You are a business.

SELF-EMPLOYED:  If you are self-employed, then you are in business.  You are a business.

COMPESATION:  If your compensation is reported through a W-2 then you are an employee, not in business or a business.  But if your compensation is reported through a 1099 Form, or if there is no reporting of your income by any IRS form, then you are in business.  You are a business.

ASSETS:  The amount of assets (personal property) used in the conduct of a business does not determine if you are in business.  The amount of assets (personal property) used in the conduct of a business need not be many or even valuable.  Depending upon the particular business you are in, the assets (or personal property) could range from a few hundred dollars to millions of dollars.

ADVERTISING:  If you are advertising a product of service for compensation, then you are in business.  You are a business.

RENTING SPACE:  If you rent or lease a space to provide a product or service for compensation, then you are in business.  You are a business.

HOME OCCUPATION:  Even if you do not rent or lease space, if you provide a product or service for compensation from your home, then you are in business.  You are a business.

SALES TAX:  If you have a sale tax number or if you collect sales tax, then you are in business.  You are a business.

TIME:  You do not need to be providing a product of service 24/7 in order to be in a business or to be a business.  Some businesses are seasonal, some are part-time and some are very part-time.

Instructions are on page 2 of the Personal Property Declaration.

Yes.  Declarations filed with “same as last year” are insufficient and shall be considered an incomplete declaration subject to a 25% penalty.  A declaration that is not filed shall result in a value determined by the Assessor plus a 25% penalty will be applied to the total assessment.

The Declaration must be filed annually no later that November 1st (or the next business day following if November 1st falls on a holiday, a Saturday or a Sunday) (CGS §12-2).  The 2024 Declaration must either be hand delivered, by 3:00pm EST, to the Assessor’s Office no later than November 1, 2024 or have a U.S. Postal Service postmark (as defined in CGS §1-2a & as referenced in §12-41(d) on or before November 1st).  Please note, a postage meter machine in your office is not considered to be a U.S. Postal Service postmark.  All Declarations must be signed and notarization of the signature may be required.

When 2024 Declarations are filed after November 1, 2024 and an extension of time to file has not been granted, a 25% penalty is applied to the total assessment.  Mailed Declarations must have a U.S.P. S postmark of November 1, 2024 or earlier.  When an extension is granted and the Declaration is not filed by the extension deadline, a 25% penalty is applied to the total assessment

The Assessor may grant a filing extension for good cause.  If an extension is needed, contact the Assessor in writing on or prior to November 1^st stating the reason for the extension request. The decision to grant an extension is the sole responsibility of the Assessor. There is no appeal.

A Declaration that is not filed shall result in a value determined by the Assessor plus a 25% penalty for failure to file will be applied to the total assessment.

If you are a sole proprietor (that is, you personally own all the assets used in the conduct of your business) or you are one of the partners in a simple partnership (that is, your partnership was not created pursuant to the corporation laws of any state) your signature does not have to be notarized. As a sole proprietor or as one of the partners in a simple partnership, it is assumed that you have personal knowledge of the value of the assets used in the conduct of your business.

When the business is being conducted as a LLC, LP, LLP, PC, Corporation (Inc), Type “S” Corporation or some other separate legal entity or individual, it is necessary to have the identity, the authority and the knowledge of the signer sworn to by the notarization process. This is especially true when the name of the business is fictitious (i.e., when the name of the business bears no similarity with the name of the signer).

Section 12-50 CGS allows an “authorized agent” to file a personal property declaration on behalf of the “taxpayer”. While you may be the “owner” of the LLC, LP, LLP, PC, Corporation (Inc), or Type “S” Corporation; it is the LLC, LP, LLP, PC, Corporation (Inc) or Type “S” Corporation that owns the assets used in the conduct of the business. Therefore, it is the LLC, LP, LLP, PC, Corporation (Inc) or Type “S” Corporation that is the “taxpayer”. When someone signs for a LLC, LP, LLP, PC, Corporation (Inc) or Type “S” Corporation, they are, in fact, signing as an agent of that LLC, LP, LLP, PC, Corporation (Inc) or Type “S” Corporation.

Section 12-50 CGS also states, in part, such agent “shall make oath that he is authorized….and has knowledge of all taxable property…”.

Section 3-94a (7) CGS states, in part, an “oath…means a notarial act…in which a notary public certifies that a person has made a vow in the presence of the notary public on penalty of perjury…”

An agent’s signature must be notarized because it is only through the act of notarization that an oath is made pursuant to Section 12-50 CGS and it is only through an oath that the Assessor can verify that the signer is authorized to be an agent and that he/she has knowledge of all taxable property as required in Section 12-50 CGS.

The oath (as provided through the act of notarization) is an acknowledgment that the person signing personally appeared before the notary, that he/she has authority to provide the information that appears on that personal property declaration and that he/she has knowledge of all taxable property owned.

NOTE: Failure to have the personal property declaration properly signed and/or notarized will result in a 25% penalty being applied to the total assessment.

The Town of Middlefield Assessor’s Office does not accept electronic or faxed filings.

Section 12-50. List may be filed by spouse, attorney or agent. The list of taxable property required to be filed annually by any taxpayer may be filed by the husband or wife or by an authorized agent or attorney of a taxpayer. Such husband or wife or agent or attorney shall make oath that he is authorized by the taxpayer to file such list and that he has knowledge of all taxable property of his principal subject to taxation in the town or municipality wherein such list is filed.

Section 3-94a. Notaries Public. Definitions. (7) “Oath” or “affirmation” means a notarial act or part thereof in which a notary public certifies that a person has made a vow in the presence of the notary public on penalty of perjury. In the case of an oath, the vow shall include reference to a Supreme Being.

Your cost information is confidential and not open to public inspection. The original acquisition cost should include any additional charges for transportation and installation. The original acquisition cost less the standard depreciation (as shown on Pages 4, 5 and 6) will determine the depreciated cost. The total depreciated cost times 70% will determine the gross assessment for that particular category of personal property. Include all assets that may have been fully depreciated, written off, or charged to expensed but are still owned. Computerized filings are acceptable as long as all the information is reported in this prescribed format. If more space is needed, then attach additional pages to the Declaration.

The original acquisition cost should include any additional charges for transportation and installation. The cost of the asset should be the cost of the item as new. This cost should be an arm’s length value that has been neither discounted nor determine by an auction sale. When purchasing used equipment, the value that is paid for the item is the depreciated amount not the original cost.

If you do not remember the item’s original cost, then estimate its current value and put that number on the current (first) year line under the appropriate code on the Declaration.

If you do not know the item’s original cost, then estimate its current value and put that number on the current (first) year line in the appropriate code on the Declaration.

No.  Your cost information is confidential and not open to public inspection.

There are two ways to appeal a Personal Property Assessment:

Number 1:

A prescribed appeal application form must be filed in order to appear before the Board of Assessment Appeals (CGS 12-111). These forms will be available February 1st-20th in the Assessor’s Office. Complete all sections of the Appeal Application Form as indicated.  The filing application is February 20th.

The Board of Assessment Appeals will meet in March.

You will receive notification of your March appointment by mail.

Please bring copies of any documentation that you want to submit to the Board of Assessment Appeals as they will not make copies for you. Either you or your agent must appear before the Board of Assessment Appeals and be sworn to answer all questions regarding this appeal. Failure to do so shall waive your rights to this appeal. If someone is appearing as your agent at the hearing, a completed Affidavit for Agent must either be attached to the Appeal Form or presented at the time of your appointment. Forms for “Affidavit for Agent” are available in the Assessor’s Office.

In March, the Board of Assessment Appeals will notify you by mail of its decision.  If you are not satisfied with the Board’s decision, you may (within two months of the date of mailing of that decision) file an appeal with the Superior Court (CGS 12-117a). If filing with the Superior Court, it is recommended that you have legal counsel.

Number 2:

You may also file an appeal with the Superior Court without first appealing to the Board of Assessment Appeals (CGS 12-119). If filing with the Superior Court, it is recommended that you have legal counsel.

Please Note:  If the Grand List is filed in February instead of January the appeal application forms will be available March 1st-20th.  The application filing deadline will be March 20th and the hearings will be held in April.

If, on or before October 1st, you sold, closed or moved (out of Middlefield) the business noted on page 1, you must complete the Affidavit of Business Closed, Sold or Moved Out of Middlefield form and provide documentation either as to the new owner, the date the business ceased or your new address. Otherwise, the Assessor must assume that you still own taxable personal property and have only failed to declare it. Examples of documentation include: bill of sale, Letter of Dissolution, letter from your bank noting the date the account was closed, shipping invoices etc.