INSTRUCTIONS
Commonly Asked Questions
Who must le a listing, and what do I list?
Any individual(s) or business(es) or farmers owning or possessing personal property
used or connected with a business or other income producing purpose on January 1.
Temporary absence of personal property from the place at which it is normally taxable
shall not affect this rule. For example, a lawn tractor used for personal use, to mow the
lawn at your home is not listed. However, a lawn tractor used as part of a landscaping
business in this county must be listed if the lawn tractor is normally in this county, even if
it happens to be in another state or county on January 1.
NCGS §105-308 reads that.."any person whose duty it is to list any property who willfully
fails or refuses to list the same within the time prescribed by law shall be guilty of a Class
2 misdemeanor. The failure to list shall be prima facie evidence that the failure was willful."
Pursuant to N.C.G.S. §14-3, a class 2 misdemeanor is punishable by imprisonment for
up to six months.
When and where to list?
Listings are due on or before January 31. They must be led with the Cherokee
County Tax Department at:
CHEROKEE COUNTY TAX DEPARTMENT
75 PEACHTREE ST., SUITE 227 • MURPHY, NC 28906-2947
As required by state law, late listings will receive a penalty. An extension of time to list
may be obtained by sending a written request showing "good cause" to the County
Assessor by January 31.
How do I list? -- Two important rules:
(1) Read these INSTRUCTIONS for each schedule or group.
(2) If a Schedule or Group does not apply to you, indicate so on the listing form, DO NOT
LEAVE A SECTION BLANK UNLESS THIS IS A RENTAL PROPERTY, DO NOT WRITE
"SAME AS LAST YEAR". A listing form may be rejected for these reasons and could
result in late listing penalties.
INFORMATION SECTION
Complete all sections at the top of the form, whether or not they are specically addressed
in these INSTRUCTIONS. Attach additional sheets if necessary.
1) Physical address: Please note here the location of the property. The actual
physical location may be different from the mailing address. Post Ofce Boxes are not
acceptable.
(2) Principal Business in this County: What does the listed business do? For example:
Tobacco Farmer, Manufacture electrical appliances, Laundromat, Restaurant.
(3) Other N.C. Counties where personal property is located: If your business has property
normally located in other counties, list those counties here.
(4) Contact person for audit: In case the county tax ofce needs additional information, or
to verify the information listed, list the person to be contacted here.
(5) If out of business: If the business we have sent this form to has closed, please
complete this section and attach any additional information regarding the sale of the
property.
(6) Make any necessary address changes.
Schedule A
The year acquired column: These rows which begin “2018” are the rows in which you
report property acquired during the calendar year 2018. Other years follow the same
format.
Schedule A is divided into eight (8) groups. Each is addressed below. Some records
may have the column “Original Cost” pre-printed. This column should contain the
cost information from last year's listing. If it does not, please complete this column,
referring back to your last year's listing. List under “Current Year's Cost” the 100% cost
of all depreciable personal property in your possession on January 1. Include all fully
depreciated assets as well. Round amounts to the nearest dollar. Use the "Deletions"
column to explain changes from "Original Cost" to "Current Yr. Cost". The “Original
Cost” minus “Deletions” should equal “Current Years Cost”. If there are any deletions,
please attach a separate sheet which describes and gives the cost of each deletion. If
the deletion is a transferred or paid out lease, please note this, and to whom the property
was transferred.
COST - Note that cost information you provide must include all costs associated with
the acquisition as well as the costs associated with bringing that property into operation.
These costs may include, but are not limited to invoice cost, trade-in allowances, freight,
installation costs, sales tax, and construction period interest.
The cost gures reported should be historical cost, that is the original cost of
an item when rst purchased, even if it was rst purchased by someone other
than the current owner. For example, you, the current owner, may have purchased
equipment in 2018 for $100, but the individual you purchased the equipment from
acquired the equipment in 2015 for $1000. You, the current owner, should report the
property as acquired in 2015 for $1000.
Property should be reported at it’s market cost at the retail level of trade. For example, a
manufacturer of computers can make a certain model for $1000 total cost. It is typically
available to any retail customer for $2000. If the manufacturer uses the model for
business purposes, he should report the computer at it’s market cost at the retail level of
trade, which is $2000, not the $1000 it actually cost the manufacturer.
Group (1) Machinery & Equipment
This is the group used for reporting the cost of all machinery and equipment. This
includes all warehouse and packaging equipment, as well as manufacturing equipment,
production lines, hi-tech or low-tech. List the total cost by year of acquisition, including
fully depreciated assets that are still connected with the business.
For example, a manufacturer of textiles purchased a knitting machine in October 2015
for $10,000. The sales tax was $200, shipping charges were $200, and installation costs
were $200. The total cost that the manufacturer should report is $10,600, if there were no
other costs incurred. The $10,600 should be added in group (1) to the 2015 current year’s
cost column.
Group (2) Furniture & Fixtures
This group is for reporting the costs of all furniture & xtures whether it is used as an ofce
or rental property. This includes, but is not limited to, ling cabinets, desks, chairs, chest of
drawers, beds, telephone, burglar alarm systems, stove, refrigerator, etc.
Group (3) Computer Equipment
This group is for reporting the costs of non-production computers & peripherals. This includes,
but is not limited to, personal computers, midrange, or mainframes, as well as the monitors,
printers, scanners, magnetic storage devices, cables, & other peripherals associated with
those computers. This category also includes software that is capitalized and purchased from
an unrelated business entity. Note: The development cost of software or any modication
cost to software, whether done internally by the taxpayer or externally by a third party to
meet the customer’s specied needs is excluded and should not be reported. This does
not include high tech equipment such as proprietary computerized point of sale equipment or
high tech medical equipment, or computer controlled equipment, or the high-tech computer
components that control the equipment. This type of equipment would be included in Group
(1) or “other”.
Group (4) Leasehold Improvements
This group includes real estate improvements to leased property contracted for, installed, and
paid for by the lessee which may remain with the real estate, thereby becoming an integral part
of the leased fee real estate upon expiration or termination of the current lease, but which are
the property of the current lessee who installed it. (Examples are lavatories installed by lessee
in a barbershop, special lighting, or dropped ceiling.) If you have no leasehold improvements
write “none”.
Group (5) Expensed Items
This group is for reporting any assets which would typically be capitalized, but due to the
business’ capitalization threshold, they have been expensed. Section 179 expensed items
should be included in the appropriate group (1) through (4). Fill in the blank which asks for your
business’ “Capitalization Threshold.” If you have no expensed items write “none”.
Group (6) Other
This group will be used for Copier Equipment unless otherwise noted on listing form.
Group (7) Construction in Progress (CIP)
CIP is business personal property which is under construction on January 1. The accountant
will typically not capitalize the assets under construction until all of the costs associated with
the asset are known. In the interim period, the accountant will typically maintain the costs of
the asset in a CIP account. The total of this account represents investment in tangible personal
property, and is to be listed with the other capital assets of the business during the listing
period. List in detail. If you have no CIP, write “none”.
Group (8) Supplies
Almost all businesses have supplies. These include normal business operating supplies.
The “TYPE” column is for, but is not limited to the following “types” of supplies: OFFICE
SUPPLIES, MAINTENANCE & JANITORIAL SUPPLIES, MEDICAL, DENTAL, OR OTHER
PROFESSIONAL SUPPLIES, BEAUTY & BARBER SHOP SUPPLIES, FUELS OF ALL
KINDS, EQUIPMENT SPARE PARTS, HOTEL & MOTEL SUPPLIES. List the type and cost on
hand as of January 1. Remember, the temporary absence of property on January 1 does not
mean it should not be listed if that property is normally present. Supplies that are immediately
consumed in the manufacturing process or that become a part of the property being sold,
such as packaging materials, or raw materials, for a manufacturer, do not have to be listed.
Even though inventory is exempt, supplies are not. Even if a business carries supplies in an
inventory account, they remain taxable.
SCHEDULE B VEHICULAR EQUIPMENT – ATTACH ADDITIONAL SHEETS IF NECESSARY
Group (1) Unregistered Motor Vehicles & “UDR” rental vehicles, trailers with a multiyear tag.
This category is for these type motor vehicles only, DO NOT list motor vehicles with a current
North Carolina Registration. If the vehicle is located in North Carolina, but has another state’s
tag, or if the vehicle is held for rental purposes with a “U-drive-it” classication with the Division
of Motor Vehicles, list them here. Also list any motor vehicles which are not registered at all, or
semitrailers or trailers registered on a multi year basis.
Group (2), (3), (4) should be listed as appropriate.
SCHEDULE C PROPERTY IN YOUR POSSESSION, BUT NOT OWNED BY OTHERS
If on January 1, you have in your possession any business machines, machinery, furniture,
vending equipment, game machines, postage meters, or any other equipment which is loaned,
leased, or otherwise held and not owned by you, a complete description and ownership of the
property should be reported in this section. This information is for ofce use only. Assessments
will be made to the owner/lessor. If you have already led the January 15th report required
by §105-315, so indicate. If you have none write "none" in the section. If property is held by
a lessee under a “capital lease” where there is a conditional sales contract, or if title to the
property will transfer at the end of the lease due to a nominal “purchase upon termination” fee,
then the lessee is responsible for listing under the appropriate group.
SCHEDULE D - RENTAL PROPERTY FURNITURE & FIXTURES
If on January 1, you supply furnishings for Rental Property, you will need to select the option
for taxation that applies to your rental prperty. If you have more than one (1) rental, you will
need to ll out a listing form for each rental and the address of those rentals.
AFFIRMATION
If the form is not signed by an authorized person, it may be rejected and could be subject to
penalties. Please read the information on this section of the form regarding who may sign the
listing form.
Listings submitted by mail shall be deemed to be led as of the date shown on the postmark
afxed by the U.S. Postal Service. Any other indication of the date mailed (such as your own
postage meter) is not considered and the listing shall be deemed to be led when received in
the ofce of the tax administrator.
Any person who willfully attempts, or who willfully aids or abets any person to attempt, in any
manner to evade or defeat the taxes imposed under this Subchapter (of the Revenue Laws),
whether by removal or concealment of property or otherwise, shall be guilty of a Class 2
misdemeanor. (punishable by imprisonment up to 60 days)
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