If you carefully read the Tax Registration Information notice you received from the Department of Revenue – WA after you applied for your new business licence, you may have noticed on page two a section on Personal Property Tax. See example below
The short answer is YES, for the long answer keep reading… …
Most people know that property tax applies to real property, however, some may not know that property tax also applies to personal property.
Most personal property owned by individuals is exempt. For example, household goods and personal effects are not subject to property tax. However, if these items are used in abusiness, property tax applies.
Personal property tax does not apply to business inventories, or intangible property such as copyrights and trademarks.
The characteristic that distinguishes real and personal property is mobility.
- Real property includes land, structures, improvements to land, and certain equipment affixed to land or structures.
- Personal property includes machinery, equipment, furniture, and supplies of businesses.
If you use personal property that is not exempt, you must complete a Personal Property Tax Listing Form by April 30 each year. If you do not receive a listing form in the mail sometime in January, they are available from your local county assessor’s office. The listing must identify all taxable property located in the county as of noon on January 1. The assessor uses this information to value property for taxes due the following year.
Once property is listed on the tax rolls, the assessor mails a new listing form each year. You then have an opportunity to add or delete property, as appropriate, and return the form to the county assessor by April 30.
FOR MORE INFORMATION on how to fill out the listing, personal property tax exemptions, how the assets are valued, and how to pay the tax due SEE links below:
May 2019 – Personal Property Tax brochure
The materials posted in this article are for informational purposes only and should not be regarded as accounting or tax advice provided by YR Tax Compliance LLC. These materials have been prepared by professionals, however they should not replace professional services, and the user should seek advice before acting on any information presented. Every situation is uniquely different, and could make a world of difference on implementation of specific regulations. YR TAX Compliance LLC assumes no obligation to provide notification of changes of tax laws, regulations or other factors that could affect the information posted.