Machinery and Tools
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Machinery and Tools (M&T) are limited to property used directly in manufacturing, mining, water well drilling, processing or reprocessing, radio or television broadcasting, dairy, dry cleaning and laundry businesses. The property is assessed at various percentages of the total capitalized cost, excluding capitalized interest, depending on the year of acquisition.
Eligibility Requirements
- A Business Classification Information (BCI) sheet must be completed to determine eligibility for the M & T tax rate.
- A detailed itemized list must be included with the return. Report all assets that have been sold, deleted, disposed of or idle.
- Processing businesses will be required to file a Return of Business Tangible Property Form as well.
Taxes
- Machinery and Tools taxes are not prorated and must be filed on or before March 1 of each year, to avoid a 10% late filing penalty.
- Tax bills are mailed after processing and are to be paid on or before June 5 to avoid 10% late payment penalties and interest at a rate of 10% per year.
Tax Incentive
- M&T taxpayers operating within Technology Zones may qualify for certain rebates and other tax incentives.
Forms
Return of Machinery and Tools
- 2023 Return of Machinery and Tools (PDF)
- 2022 Return of Machinery and Tools (PDF)
- 2021 Return of Machinery and Tools (PDF)
- 2020 Return of Machinery and Tools (PDF)
- 2019 Return of Machinery and Tools (PDF)
- 2018 Return of Machinery and Tools (PDF)
- 2017 Return of Machinery and Tools (PDF)
- 2016 Return of Machinery and Tools (PDF)
- 2015 Return of Machinery and Tools (PDF)
- 2014 Return of Machinery and Tools (PDF)
- 2013 Return of Machinery and Tools (PDF)
- How do you determine who is a manufacturer or processor?
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Taxpayers must complete a Business Classification Information (BCI) sheet (not online) explaining the process and nature of your business activities. Process flow charts, pictures and site visits may also be used for a determination.
- What assets should be filed as M&T?
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Any assets used directly in the manufacturing process, or used in connection with machinery that is directly used, will be filed as M&T.
- What about idle and unused equipment?
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Machinery and tools may be reported as "Idle and Unused" if:
- They have been discontinued in use continuously for at least one year prior to January 1 of the current tax year.
- On and after January 1, 2017, have been specifically identified in writing by the taxpayer to the commissioner of the revenue on or before April 1, 2017, that the machinery and tools would be withdrawn from service before January 1, 2018, not in use on January 1, 2018, and no reasonable prospect exists that the machinery and tools will be returned to use prior to January 1, 2019.
- What is the deadline for filing M & T?
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The filing deadline for Machinery and Tools is March 1.
- Is there a penalty for not filing M & T on time?
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There is a 10% late filing penalty assessed on all returns not postmarked by March 1.