Tangible Property Business Tax
Although most people know that property tax applies to real property, some might not know that property tax also applies to business personal property. Most personal property that individuals own is exempt like household goods and personal effects. If person property items are used for business purposes, however, then property tax does apply to them. Business property taxes do not require any business inventory or intangible property like trademarks and copyrights, though. Either way these taxes can still affect business growth.
What Makes Business Property Personal?
The main characteristic that distinguishes business personal property from real property is mobility. Property that can be moved is business personal, whereas “fixed” property, such as land, structure, improvements to land and structures and affixed equipment, is real property. Types of business property that is taxable is property that is used by the business such as machinery, equipment, furniture, business and farming supplies and leasehold improvements.
How Is Business Property Valued?
Business property taxes are valued at 100 percent of its fair market value. The fair market value of business personal property is the amount that a willing and un-obligated buyer will pay a willing and un-obligated seller for the property. Business property tax is valued at the retail trade level, which is the basically the value that the property has to the current owner after the property has been installed and is in use. It is important to note that the retail trade level of business personal property is quite different from the wholesale trade level. The wholesale trade level is offered at a discounted price because it’s not meant for the equipment to be used. Rather, it’s meant for resale purposes. Moreover, although installation delivery costs are part of the assessed business property value, they might not always be part of the selling price of it.
Assessment Technologies Can Appeal Your Assessment
If you believe that your business personal property tax was assessed at a higher value than it should have been, then Assessment Technologies law experts will do their own property assessment. Assessment Technologies experts can research and gather information about your personal property items to determine whether or not your property was assessed at its fair market value. Then, they can initiate the appeals process if they can find evidence supporting your claim. The benefits of using professionals like the ones at Assessment Technologies is that they have proven experience in helping people get their personal property tax assessments reduced, and they’ll ensure that everything is conducted according to proper procedure.