Home Personal Property Taxes

Personal Property Taxes

Watch Out for Personal Property Taxes Penalties

Watch Out for Personal Property Taxes Penalties

Tax penalties exist for many infractions involving ones taxes. A tax penalty can be severe or mild, depending on what it is. Rules about both personal property taxes and property taxes should be followed carefully. Property tax penalties exist in every state, although the tax penalties themselves can be different. Since personal property taxes do not exist in every state, one must check their own state’s rules about tax penalties before knowing what their tax penalty will be.
 The tax penalty that one will face depends on the infarction. Property owners, and individuals required to pay personal property taxes are required to file their property on a yearly basis with their county assessor. An individual who owns more than one property is responsible for filing forms each year for each property, whether it is a business property or a residential property. Failure to register one’s property on a yearly basis is a tax penalty. An individual has to list their assets that they own as of the first day of each year.
If one fails to file their property by April 30th with their local county assessor, they are facing a tax penalty. The tax penalty varies from state to state. Usually, it is a percentage of the taxes due. Each month that one does not file charges the same percentage. Other tax penalties exist for different infractions. If one is late to pay their personal property taxes, a percentage of the amount owed is added up each month. For every month that the personal tax payment is delinquent, the individual must pay that percentage. The percentage rises as time passes.
 The longer that one’s taxes are delinquent, the more serious the tax penalties that an individual faces are. One of the more serious tax penalties is when an individual’s property is seized. 
The owner of the property may then be required to pay back the full amount due before gaining access to their property. However, immediate payment for the back taxes might be demanded. If the individual doesn’t have it then the property might be sold to pay off the tax debt. Since the property will belong to the county, they have the right to destroy it or remove it for building purposes if they choose to.
Avoiding tax penalties on personal property taxes can be accomplished if one stays organized. One should always file their property on time. Paying personal property taxes when they are due will eliminate costly interest payments and the property being seized. 

What You Didn’t Know About Personal Property Taxes

What You Didn't Know About Personal Property Taxes

State
personal property law varies a great deal. Some states require an individual to
pay personal property taxes and other do not. Depending on what state one lives
in, the method of personal property appraisal will be different. There are no
set nationwide rules that determine personal property law. Property taxes
specifically deal with real estate property. Personal property taxes deal with
many things. Personal property taxes are best known for charging taxes for all
types of vehicles.

        
If
personal property taxes are relevant in one’s state, then personal property law
almost always requires that vehicles be covered. These types of vehicles are
not limited to cars and trucks. Motorcycles, boats, wave runners and utility
trailers are all items that must have a personal property appraisal to
determine the tax dollar amount that should be paid. Under personal property
law, any personal air crafts that one may own are also required to be taxed.
Many people consider mobile homes to be property. However, they are subject to
a personal property appraisal and taxed as well. Technically, mobile homes are
still vehicles even though many people think of them as houses or regular
property.

        
Vehicles
are not the only thing that one must pay personal property taxes on. Businesses
and residents may both be required to pay personal property taxes. In some
states, only businesses are required. In the states that require only
businesses to pay personal property taxes, there is a particular way of
determining what can be taxed. A personal property appraisal must be done on
any item that can be removed from the building that houses the business as long
as the building itself would not be damaged. This means that office furniture
in the business can have a personal property appraisal but the building itself
can not.

        
Under
personal property law, many household items are not subject to being taxed.
However, there are particular valuable items that one will be required to pay a
personal property tax on. Examples are instruments or valuable pieces of art.
Personal property taxes also must be paid on stocks and bonds in some states.
Any state that has a personal property law has to have assessors to determine
an item’s value. Items are assessed by calculating a percentage of their market
value. Owning very expensive things will raise the amount of money one must pay
for personal property taxes. Vehicles in particular are subject to high rates
of personal property tax. 


While personal property law varies drastically from state to state, some things
remain similar. Vehicles are always included in the amount of personal property
taxes one has to pay. Paying personal property taxes on other things, like
certain household items may not always be required.

An Overview of Personal Property Taxes

An Overview of Personal Property Taxes

Personal property taxes are not the same as property taxes, which cover real estate and land. Property taxes are due in every state. However, paying personal property taxes are only required in certain states. One must check with their state tax rules so they can know exactly what will be taxed. Every state has different guidelines that they follow. 
Some states may require one to pay a personal property tax on things that another state does not. Personal property taxes are paid in addition to, not instead of property taxes. Many states require businesses to pay personal property taxes. In order to find out the value of the personal property, the personal property is inspected by a county assessor. 
The county assessor calculates a percentage of the true value of the object. The true value of an object is calculated by determining the amount of money that an average person would pay for the item.
Background:

Personal property does not mean every object in someone’s home or office. One thing that is almost always considered personal property is vehicles. Almost no vehicle is exempt from being taxed if one must pay personal property taxes. 
Everything from cars to boats to aircrafts are are considered personal property. In fact, vehicles in particular are known for being heavily taxed if one’s state requires personal property tax payment. Certain valuable items like paintings may be taxable as personal property. The rules of what constitutes personal property differs when it comes to businesses.
Exemptions:

There are many things that are exempt from being taxed as personal property. Regular household items, except when also used for business, are not taxable even if one does have to pay personal property taxes. Businesses have fewer exemptions.
Almost all of their things, including office furniture is not exempt from personal property taxes. However, businesses do have one special exception that does not apply to any other vehicle. If a business has a vehicle that was made or used primarily for traveling on highways or public streets, it is exempt from personal property tax payments.
Taxes on Destroyed Property:

Destroyed property loses both property and personal property value. If an individual’s property is destroyed, they must file a claim with their assessor and have the property reassessed. 
The assessor decides what the new value is. While there is only a certain amount of time one has to make file the claim, there is a very strong chance that their property and personal property taxes will be lowered. This is true even if the property was only partially destroyed. It is important to remember that if one gets their property rebuilt during the year, they must notify the county. The county will then send an assessor to reassess the property and decide on the new property and personal property taxes.
Penalties:

Serious penalties may be imposed on an individuals who fail to pay their required property and personal property taxes. There are also tax penalties for individuals who do not file a claim for their personal property each year. While some of the penalties may be mild, such as small interest rate increases, others are much more serious. 
One might even be subject to having their property and personal property seized. The county may then have option of selling it or using it for whatever purpose they choose. One should stay organized, file necessary paperwork on time and make all tax payments quickly.
Advertisement

CPA Federal Tax Return Status Income Tax Tax Deductions Tax ID Number Tax Preparation Tax Refund Tax Return Tax Software

Oregon Income Tax Forms