What You Didn’t Know About Personal Property Taxes

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.




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