Personal Property Tax Declaration in Connecticut: What Business Owners Need to Know

It’s that time of year again in Connecticut, time to file your Annual Personal Property Tax Declarations. While it might not be anyone’s favorite activity, it’s a legal requirement for businesses operating in the state. ARI can help take stress out of this process by handling the filing for your business and offering a few helpful tips to reduce headaches and expenses.

What Is Personal Property Tax?

Annually, businesses in most states are required to declare their personal property to the town in which they operate. This includes property like land, buildings, furniture, equipment, computers, and other fixed assets used in your business.

Among other things, you must report: the year of purchase and the original cost of the item.

Your municipality uses this information to calculate the assessed value of your property and determine the taxes owed. If you miss the deadline or skip filing, you could be assessed a 25% penalty.

This year’s CT deadline is Monday, November 3, 2025 (since November 1 falls on a Saturday).

What Counts as Personal Property?

Fixed assets are items purchased for long-term business use (more than one year) and are not expensed immediately. Instead, they appear on your balance sheet and are depreciated over time. These include furniture and fixtures, machinery and equipment, computers and servers, tools, and unregistered motor vehicles (registered vehicles are taxed separately).

You’ll also need to declare leased property, like copiers or machinery (even though you don’t own them), expensed supplies, such as office, IT, and janitorial supplies, and basic business info: business start date, number of employees, physical location, and NAICS code.

How to File Accurately

1. Review your asset list: Remove any assets you no longer own or that were scrapped or sold. There’s no sense paying tax on something no longer in your possession.
2. Keep accurate records: If you’re audited (it’s rare, but it happens), you’ll need to show proof of the assets listed on your declarations such as invoices, serial numbers, and depreciation schedules. The auditor will also compare the listed items with your balance sheet and accounting records.
3. Know your exemptions: Property used directly in manufacturing or farming may be exempt under state statutes. You can learn more about these exemptions from the Connecticut Office of Policy and Management (OPM) or by speaking to your local Assessor’s Office.
4. Request an extension if needed: If you’re running behind, you can formally request more time to file but don’t assume it’s automatic. Contact your town’s Assessor’s Office in advance.

What Happens After You File?

Each town in Connecticut sends out tax bills around June, based on property declared as of October 1 of the prior year. If you don’t receive your bill in the mail, don’t assume you’re off the hook. You’re still responsible for paying on time.

Most towns split the bill into two installments – July and January.

If your total is below a certain threshold (which varies by town), you might be required to pay it all at once.

We handle personal property tax filings for many of our accounting clients. Our team ensures your declaration is accurate, complete, and submitted on time, reducing your risk of penalties or overpayment.

For more information, contact us today.

In the meantime, discover the 10 benefits of outsourcing your accounting function.

If you’re interested, check out how ARI and its employees are active in the community.