Form B123, Return of Business Tangible Personal Property for Local Taxation, is the annual return that the City of Chesapeake, Virginia, Commissioner of the Revenue collects from businesses and farms that own or use tangible personal property in the city. It is one of the Chesapeake property tax forms, and it lists the property you owned, disposed of, leased and drove on January 1. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the city publishes the original at cityofchesapeake.net.
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What is B123?
Form B123, Return of Business Tangible Personal Property for Local Taxation, is the City of Chesapeake, Virginia form on which a business or farm reports the tangible personal property it owns or uses in the city so the Commissioner of the Revenue can assess local tax on it.
The return has five sections and a Taxpayer Declaration:
- Section 1: taxpayer information, trade name, nature of business and any closing date.
- Section 2: tangible personal property owned, including computers.
- Section 3: disposals.
- Section 4: property leased, rented, borrowed or otherwise provided by others.
- Section 5: automobiles, trucks and tractor trailers.
The instructions printed on page 2 cover two categories. Business and Farm Tangible Personal Property (BPP) includes furniture, fixtures, operating equipment, farm machinery, hand and power tools, computer equipment and livestock. Machinery and Tools (M&T) is limited to property used in manufacturing, mining, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning or laundry businesses, and that property must be identified on the itemized list filed with the return.
Property is reported at its total original cost, whether capitalized or expensed, before any allowance for trade-ins or depreciation. The form cites Virginia Code §58.1-3518 for the duty to file. It is not a personal vehicle form: individual vehicle assessment appeals are a separate Commissioner of the Revenue document.
Who needs to file B123?
Every person, firm, corporation or other entity that owns or uses tangible personal property located within Chesapeake on January 1, and uses it or has it available for use in any trade or business, must file Form B123. The form states that this includes farm equipment and livestock (Virginia Code §58.1-3518).
Other groups and conditions in the instructions:
- Businesses with no property: if you use no property in your trade or business, complete Sections I and II with "NONE" and provide a written explanation.
- Businesses that closed before January 1: give the date of closing in Section 1 and complete the Taxpayer Declaration.
- Lessors: report inactive leases in Section 3. Leasing companies that manufacture the property they lease report the commercial retail selling price new.
- Legal entities other than sole proprietorships: a person duly authorized to sign such forms completes the Taxpayer Declaration.
Property that is mobile, such as storage and office trailers, farm vehicles, boats and motor vehicles, may be subject to tax if it is garaged in Chesapeake on January 1. Application software, such as custom software, Word, Excel or Lotus, is not taxed and may be excluded if clearly identified on the schedule.
When to file B123
The return is due March 1. Mail postmarked by the U.S. Postal Service on or before March 1 is accepted without penalty. The property reported is what you owned or used in Chesapeake on January 1.
If you cannot meet the deadline, an extension of the filing date to April 15 can be requested on or before March 1. A late filing penalty is added if the deadline is not met; the form prints the rate and the minimum.
The tax is not prorated. If the business closed or property was disposed of after January 1, you are still liable for the full year. Under Virginia Code §58.1-3519, the Commissioner of the Revenue may assess property on the best information available when a taxpayer neglects or refuses to file, and all filings are subject to audit.
Documents you need
- A detailed itemized list for each section, labeled by section if attached as a schedule, giving for every item a description, acquisition date and total original cost.
- A copy of the most recent depreciation schedule; the instructions require it with the return.
- For Machinery & Tools, an itemized list that specifically identifies the property used directly in the qualifying process, such as manufacturing or mining.
- A written explanation, with Sections I and II marked "NONE", if you use no property in your trade or business.
- A schedule clearly identifying application software, only if you want it excluded from your taxable property.
- For lessors reporting inactive leases where ownership has transferred to the lessee: a list of the lessees' names and addresses, a description of the property and the lessee's original cost.
- An itemized schedule of owned property, disposals or vehicles, if you do not use the space on the form (Sections 2, 3 and 5).
How to fill out B123
Enter the tax year
Write the tax year at the top of Form B123 and review the account number and preprinted details.
Complete Section 1 taxpayer information
Correct any preprinted information directly. Enter the taxpayer name, account number, addresses, physical location, trade name and a brief description of the nature of business. If you were out of business before January 1, give the date of closing.
List owned property in Section 2
Report all tangible personal property you owned on January 1, including computers. For each item enter the date acquired, a description and the total original cost, or attach an itemized schedule.
Report disposals in Section 3
List property disposed of or relocated from Chesapeake before January 1, with description, original cost, date acquired and date disposed. Lessors report inactive leases here.
Report borrowed or leased property in Section 4
For property you use but do not own, give the owner's name and address, a description, the lease period (From and To), cost and any purchase option. If cost is unknown, give your monthly lease payment.
List vehicles in Section 5
For each automobile, truck or tractor trailer garaged in Chesapeake on January 1, enter make, year, vehicle ID, title number, state, tag number, gross weight, original cost, date in service and % of business use.
Add notes for special vehicle cases
For a vehicle with an out-of-state plate, indicate if personal property tax is paid to another state. Motor vehicle carriers indicate if a vehicle is used strictly in interstate commerce.
Complete the Taxpayer Declaration
Enter the signature, date, printed name, title, FEIN or SSN, phone, email and fax. Use the federal ID for an entity registered with the Virginia State Corporation Commission and the Social Security number for a sole proprietor or partnership.
Review, download and assemble
Check that every section is complete, the schedules are labeled by section and the depreciation schedule is attached. Download or print the completed PDF from FillingPDF and mail it as described under How to submit.
How to submit B123
The form names one filing method: mail. Send the completed return to the Commissioner of the Revenue, P.O. Box 15285; Chesapeake, VA 23328. Mail postmarked by the U.S. Postal Service on or before the March 1 due date is accepted without penalty.
Include with the return:
- the itemized list for each section, labeled by section;
- a copy of your most recent depreciation schedule;
- the itemized M&T list, if you report machinery and tools.
The form prints these contacts for the Commissioner of the Revenue: telephone 757-382-6455, Option 3; fax 757-382-8822; email [email protected]. Use them for questions. The form does not say that returns are accepted by fax or email.
Do not send a blank form or one marked "SAME AS LAST YEAR": the instructions say either may be treated as a non-filing. FillingPDF lets you fill out and download the PDF; submission follows the channel above.
Common mistakes to avoid
- Filing a blank form or writing "SAME AS LAST YEAR"; the instructions say this is not acceptable and may be treated as a non-filing.
- Omitting fully depreciated items that you still own and use on January 1; the instructions say they must be included.
- Reporting cost after trade-in allowances or depreciation instead of total original cost, including freight, labor, installation and sales tax.
- Leaving out the copy of the most recent depreciation schedule or the itemized list for a section.
- Assuming the tax is prorated because the business closed or an asset was sold after January 1; the full year is still owed.
- Asking for the April 15 extension after March 1; the request must be made on or before March 1.
- Leaving Section 4 empty when you use leased, rented or borrowed equipment; if cost is unknown, give the monthly lease payment.
- Reporting a % of Bus Use in Section 5 that does not match your federal income tax return.
- Not indicating whether personal property tax is paid to another state for a vehicle with an out-of-state plate.
Frequently asked questions
What is Form B123 in Chesapeake, VA?
Form B123 is the City of Chesapeake return of business tangible personal property for local taxation. Businesses and farms use it to report property they owned or used in the city on January 1 to the Commissioner of the Revenue.
Who has to file the Chesapeake business personal property return?
Every person, firm, corporation or other entity that owns or uses tangible personal property in Chesapeake on January 1 for a trade or business, including farm equipment and livestock. If you have no business property, complete Sections I and II with "NONE" and explain in writing.
When is Chesapeake property tax on business equipment due?
The return is due March 1, and mail postmarked on or before that date is accepted without penalty. You can request an extension to April 15 on or before March 1. A late filing penalty applies after the deadline.
Where do I mail Form B123?
Mail it to the Commissioner of the Revenue, P.O. Box 15285; Chesapeake, VA 23328. The form's printed contacts are 757-382-6455, Option 3, and [email protected] for questions.
What do I attach to Form B123?
Attach a detailed itemized list for each section, with a description, acquisition date and total original cost for each item, and a copy of the most recent depreciation schedule. Machinery and tools need an itemized list identifying the qualifying property.
Is the business personal property tax prorated if I close or sell assets?
No. The instructions say the tax is not prorated: if the business closed or property was disposed of after January 1, you are still liable for the full year.
Do I report fully depreciated equipment?
Yes, if you still own and use it on January 1. Report every item at total original cost, before trade-in allowances or depreciation, including purchase price, freight, labor, installation and sales tax.
Can I fill out Form B123 online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is independent of the City of Chesapeake and does not file the return; you mail it to the Commissioner of the Revenue.
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