What Is Personal Property Tax?

A personal property tax is imposed by state or local governments on certain assets that can be touched and moved such as cars, livestock, or equipment. Personal property includes assets other than land or permanent structures such as buildings. These are considered to be 澳洲幸运5官方开奖结果体彩网:real property.

Most states levy a business personal property tax as well as a property tax on individuals. Twelve states don't tax business personal property as of 2024: North Dakota, South Dakota, Ohio, Pennsylvania, New Jersey, New York, New Hampshire, Hawaii, Delaware, Illinois, Minnesota, and Iowa. 

Each locality can apply its own personal property tax rules. Those that collect this tax typically use the proceeds to fund 澳洲幸运5官方开奖结果体彩网:public works projects such as road maintenance or the construction of schools.

How Personal Property Taxes Work

State and local governments with perso𒁏nal property taxes can apply them in terms of:

• Which types of property are subject to tax
• How the tax is calculated
• What the funds raised from personal property taxes are used for

澳洲幸运5官方开奖结果体彩网:Property tax is assessed locally and collected by individual counties in North Carolina. The North Carolina Department of Revenue which collects sales and income tax plays no part in the collection or management of personal property taxes.

North Carolina residents are subject to taxes on both real property and 澳洲幸运5官方开奖结果体彩网:tangible personal property, divided into three categories:

• Real property
• Personal property
• Motor vehicles

Other states such as New York tax only tax real property like land and buildings but they and their local governments may collect sales tax on personal property at the time of purchase. States also collect revenue in the form of registration and licensing fees in the case o🙈f personal property such as automobiles and motorc♛ycles.

Examples of Taxable Personal Property

State and local governments define personal property differently. What’s considered personal property in one state might not fall under that same umbrella in another and not every state taxes personal property at all. Many that do tax it provide exemptions for personal property that's worth less than a certain amount.

Personal prope♑rty covers anything you own other than real property. The distinguishing factor between personal property and real property i⛦s that the former is movable and isn’t fixed permanently to one particular location. Examples of personal property include clothes, jewelry, furniture, and automobiles.

Personal property can also include assets owned by a business. Some typical examples are:

• Machinery
• Equipment
• Furniture
• Photocopiers
• Computers
• Telephones
• Supplies

How Personal Property Taxes Are Calculated

Personal property tax is typically calculated based on the value of the property in question. It's generally assessed as a percentage of that value. Taxes based on the value of the property are sometimes referred to as ad valorem taxes.

Tax assessors determine the value of personal property in various ways. The Missouri city of St. Louis sets car values based on the average trade-in value for that make, model, and year as established by the National Automobile Dealers Association.

The tax rate and how it’s applied can also vary by state and locality. Some states impose a flat tax rate across all property types, including real property, personal property, and vehicles. Others have different rates for types of property. Many allow counties or other local governments to determine what rate to impose although the state may set limits.

The basic property tax rate is 1% in California. This applies to personal property owned by individuals or businesses as well as to real property. But California counties can also add fees or other charges to their personal property tax assessments.

Your local tax assessor’s office or its website should be able to supply i🐷nformation on the personal pr𝓡operty tax rate you’re subject to, if any, and what types of property are included.

How to File and Pay Personal Property Tax

Personal property 🎶tax is typically due annually and assessed on Jan. 1 of each year. Bills are then mailed out to individuals or businesses owing the tax.

You may have to register certain types of personal property with your local tax office when you 🍌purchase them. This generally involves completing a form online or in person💞 at the tax assessor’s office listing the details of the property.

Whether you must file this type of form can depenඣd on where you live and the value of the property. Filing a business property statement form listing business personal property is only required in Orange County, California when the aggregate value of the property is $100,000 or more. It wouldn’t be necessary to file if you run a business but your equipment is valued at less than $100,000 in total.

There may be a set deadline for filing this form each year. The deadline is April 1 in Orange County. Businesses can file for 💟an extension if they need more time, howeve🍌r.

The Bottom Line

You may be taxed on the property you own that’s not attached to land, such as vehicles and household items, depending on where you live. Personal property refers to movable assets. It's taxed in several states and localities in the United States and can be quite complicated. Each jurisdiction has its own rules on what constitutes personal property and how it’s taxed and collected.

States and localities that impose this tax typically use the money to improve public infrastructure and services. It’s possible to subtract these expenses on your federal tax return, reducing the amount of 澳洲幸运5官方开奖结果体彩网:taxable income ﷺon which you owe federal tax, if you iteᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚmize your tax deductions.