What to do about personal property
- Check who owned the assets on January 1 of the sale year, since Missouri assesses business personal property as of that date.
- File the Jackson County declaration in the January 1 to March 1 window if your company owned the assets on January 1.
- Agree in the purchase agreement how that year's tax will be split between you and the buyer.
- Call the Assessment Department to report the sale or closing, and ask what they need so the account doesn't stay in your name.
- Make sure the buyer opens its own business personal property account for the next year.
Timing: Declarations are filed between January 1 and March 1. Jackson County warns of late fees, penalties and possible account deactivation if one isn't filed before May 1.
What Gets Taxed
Every business in Jackson County needs a business personal property account with the county Assessment Department. Each year you declare the assets the company owns: machinery, tools, computers, furniture, fixtures and similar items.
The county assesses that property, and the tax bill follows later in the year. Real estate is assessed separately.
The January 1 Rule
Missouri assesses personal property based on who owns it on January 1. The owner on that date files the declaration and gets that year's bill, even if the business is sold a few weeks later.
So if you sell in May, your company likely already owned the assets on January 1. It files that year's declaration, and the bill comes to you.
The buyer becomes the owner of record the following January 1 and files from then on.
Splitting the Year's Tax
Most purchase agreements deal with this by prorating. The seller pays for the part of the year before closing, and the buyer pays for the rest, often as a credit at closing.
Since the tax bill isn't out yet when most sales close, your attorney may estimate it from last year's bill. Make sure the agreement says who pays it when it arrives and how any difference is settled.
Filing on Time Matters More in a Sale Year
Declarations are filed between January 1 and March 1. Jackson County says late fees, penalties and even deactivation of the account can follow if a declaration isn't filed before May 1. The penalty depends on the assessed value.
A sale year is a busy year. Put this on the calendar early so a missed declaration doesn't turn into a penalty you have to explain at closing.
The county's staff will help you file over the phone if you need it.
Telling the County You Sold
Once the assets belong to the buyer, the county needs to know, or the account may stay in your name and next year's declaration notice comes to you.
Call or email the Assessment Department, tell them the company was sold or closed and the date, and ask exactly what they need to update the account. A copy of the bill of sale is a common request at county offices.
Ask the buyer to open its own account for the next year. In an asset sale, your account does not simply pass to them.
A Short Example
Say your company owns its trucks, tools and office equipment on January 1 and the sale closes on June 30. Your company files that year's declaration by March 1.
The purchase agreement credits the buyer for half of that year's estimated tax at closing. When the bill arrives in the fall, it comes to your company, and you pay it.
The next January 1, the buyer owns everything, files its own declaration and gets its own bill. Your account should be closed by then.
Assets You Kept or Sold Off
Not every asset goes to the buyer. You might keep a vehicle, sell some equipment for scrap or move a few items to another company.
Keep a list of what went where and when. If the county asks why your declared assets dropped, that list answers the question.
Not in Jackson County
Kansas City spreads across four counties. If your company's assets sit in Clay, Platte or Cass County, the county assessor there handles your account.
Johnson County and Wyandotte County in Kansas work under Kansas rules. The January 1 idea is common across counties, but forms, deadlines and penalties differ, so check with the right office.
How This Fits With the Rest
The county is only one of several offices to settle with. Start with Missouri Form 943 tax clearance for a business sale, and if you operate in Kansas City, see Kansas City earnings tax final return when you sell.
This page is general information, not tax or legal advice. Confirm the details for your company with your CPA or attorney.
Sources include the Jackson County Assessment Department's business personal property pages and its declaration notices, and the Missouri State Tax Commission.
Want a sense of value before the paperwork? Read what is my business worth, then send the form or call (816) 555-0167.