Personal Property Taxes

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 a business, property tax applies. Personal property is subject to the same levy rate as real property. 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.

Unless specifically exempt, all tangible personal property is taxable, including items such as:
  • Office equipment, communication equipment, supplies and materials not held for sale or not components of a product
  • Tools, furniture, rugs and fixtures used in a business
  • Leased or rented equipment, leasehold and tenant improvements, and lessee-owned improvements on public land
  • Machinery and equipment used in agriculture, construction, manufacturing and logging
  • Signs, billboards, poster panels, display samples not held for sale
  • Commercial vessels not subject to excise tax, off road vehicles, drag racers and similar competition vehicles not licensed
  • Rental video tapes, discs and game cartridges
  • Boathouses, portable buildings and office trailers