Personal Property Taxes General Information
The personal property tax is a tax on businesses. A person or company that is in business as of January 1 is subject to a personal property tax in the community where the business is located. If the business is owned by an individual, partnership, limited liability company or trust it is subject to a tax on everything used in the conduct of their business; furniture, fixtures, equipment, inventory and/or machinery.
If the business is owned by a corporation, the furniture, fixtures and inventory are exempt locally as they pay a corporate excise to the State, and they are subject to a tax locally, only on their machinery used in the conduct of their business, poles, wires, underground conduits and machinery used in the distribution of water. There is an exemption on machinery used in the administration of the business, purchasing, selling, refrigeration of goods, the air conditioning of the premises, and laundering.
If the business is owned by a manufacturing corporation, they are only taxable on poles, wires, underground conduits and machinery used in the distribution of water.
In the case of laundries, if the business is owned by an individual, they are subject to a tax on all of their equipment and machinery. If the business is owned by a corporation, the machinery used for laundering is exempt, but they are subject to taxes on all other machinery, such as the revolving racks, presses, sewing machines, etc.
All businesses are required to file a Form of List with the Board of Assessors by March 1st of each year. This is a declaration by the person owning the business as to what they have, the date of purchase, price new, make and model of machinery, furniture, etc., and what they feel the current value is. In addition to reviewing the Form of List, the Assessors go out in the field to list the property. If, when the tax bills are issued, the taxpayer has a question on what they are being billed for or the valuation, they have the right to file an abatement application. This application must be filed when the third notice or “actual tax bill” is issued, but no later than February 1st, or if mailed, have a United States post office postmark of no later that February 1st.
If a Form of List is not filed and the taxpayer files an abatement application, an abatement granted will be penalized by 50%.