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Knowing the Personal Property Taxes Exemptions

Knowing the Personal Property Taxes Exemptions

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Knowing the Personal Property Taxes Exemptions
Depending on the state one lives in, they may have to pay personal property tax on their vehicles and some other items. However, even in states that require one to pay personal property taxes, there are some items that are exempt from the personal property tax. Tax exemptions from the personal property tax vary by state. Before Minnesota stopped their personal property tax law, even pets were not exempt from being taxed. Now, there are more tax exemptions on personal property that one must pay if they live in a state that requires it.
Some tax exemptions will only apply to businesses. Other tax exemptions may only apply to residential homes. Since there is no national personal property law, one must check with their state to see what items are really exempt from a personal property tax. Most regular household items are exempt from personal property tax rules. 
However, if those items are used for business purposes as well, there may be no tax exemption on them. Residential homes have many more tax exemptions than businesses. Some household items that are valuable may not be exempt. Determining what constitutes valuable depends on the state one lives in. There are almost no tax exemptions for vehicles if an individual's state requires one to pay a personal property tax.
 Businesses do not have as many tax exemptions although they do have some. This also depends on specific state rules, as tax exemptions differ depending on the location. In the state of Washington, certain items from a businesses inventory are exempt from the personal property tax. Tax exemptions include goods that are for resale and things used to make items sold at the business. 
That would include any ingredients used. Livestock is also exempt from the personal property tax if one owns a farm. Even though vehicles are usually the first thing to be taxed, there is one tax exemption for them. If, for the most part, a vehicle was built or used only on public streets and the high way, it may be exempt fro the personal property tax.
Certain types of property may be exempt from the personal property tax as well. Tax exemptions may include property that non profit place owns. Under that example, a church would be exempt and would not have to pay a personal property tax. Another possible tax exemption might be any property that is government owned and operated.
Since the items that are exempt from a personal property tax may differ in each state, one should be aware of what is exempt in theirs. Individuals can find themselves in trouble legal trouble and be subject to tax liens.

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