What is Business Personal property tax?
Business Personal Property Tax is a tax assessed on tangible personal property businesses own. This type of property includes equipment, furniture, computers, machinery, and inventory, among other items not permanently attached to a building or land.
Local or state government jurisdictions typically impose the tax, and the rate of taxation varies depending on the location and the property’s value. Business owners are usually required to file an annual tax return and pay taxes based on the value of their personal property assets. Failure to pay the required tax may result in penalties and interest charges.
Do I need to file business personal property taxes?
Whether you need to file Business Personal Property Tax depends on the state and local laws where your business is located, as well as the value and type of assets that your business owns. In general, if your business owns tangible personal property such as equipment, furniture, machinery, computers, or inventory, you may be required to file a Business Personal Property Tax return and pay taxes on those assets.
However, some states may have exemptions or minimum thresholds for Business Personal Property Tax filing requirements. For example, some states may exempt businesses with a certain level of assets or a certain amount of annual revenue from filing Business Personal Property Tax returns.
Are there any states that do not tax business personal property?
Twelve states currently do not tax business personal property. These states include Delaware, Hawaii, Illinois, Iowa, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, and South Dakota. However, some of these states may have local jurisdictions that impose a personal property tax, or they may have other taxes or fees that apply to businesses.
Are there any exemptions for Business personal property tax?
Yes, there are exemptions for Business Personal Property Tax. The specific exemptions and qualifications for exemption vary depending on the state and local laws where the business is located.
Common exemptions for Business Personal Property Tax include:
1. Small Business Exemption
2. Manufacturing Exemption
3. Pollution Control Equipment Exemption
4. Agricultural Exemption
5. Non-Profit Exemption
PM Business Advisors has assisted many clients with processing their business personal property renditions and has saved clients thousands of dollars through timely and accurate filings and the use of various exemptions provided through local jurisdictions. Please contact us if you have any concerns regarding business personal property taxes.