Personal Property Tax
Most states impose tax on personal property, which is defined as tangible personal property (TPP) that is not real estate. This can include machinery and equipment, inventory, leased or rented equipment, furniture, as well as other pieces of property. Twelve states that do not tax personal property: Delaware, Hawaii, Illinois, Iowa, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania and South Dakota.
Personal Property Tax is separate from and in addition to Real Property Tax. Taxpayers are required to file a return upon which they report their items of tangible personal property, original cost, increase or decrease in value and the value. Once received, the taxing authority assesses a value to the personal property, applies the tax rate and levies a tax. Business personal property, such as a printing press, may be assessed at a significant value by the taxing authority resulting in a substantial tax burden on the taxpayer. Often, taxing authorities over value property or improperly classify a particular item as taxable personal property.
The attorneys at Stavitsky & Associates LLC are skilled in reviewing personal property tax assessments to determine whether a particular item was given the wrong classification or valuation. Taxing authorities often overestimate the condition of the TPP or fail to identify obsolescence. Our attorneys are able to easily identify improper classifications and determine the proper amount of obsolescence to assign to a particular piece of TPP. Our firm has successfully challenged personal property tax assessments in various states throughout the nation resulting in substantial tax savings for its clients.
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