Personal Property Tax - Certified Machinery & Equipment Appraisals

Who wants to pay more taxes than required for personal property?  Proper planning, along with the supporting documentation of a certified equipment appraisal report can help you negate, or avoid, a large portion of personal property taxes you might have to otherwise pay. According to USPAP, the definition of personal property is as follows: 

Personal Property: Identifiable tangible objects that are considered by the general public as being ‘personal’. For example, furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all tangible property that is not classified as real estate.

Since tangible personal property tax is billed at a fixed rate, value becomes the sole variable in determining how high or low, in terms of amount that the tax may be. Depreciation may, or may not be a factor. Also, not all states differentiate, or exclude, personal use tangible property from that of which is meant for the production of income or business use, making a conclusion of value especially important for property tax purposes.

For example, in states that do have a tangible personal property tax, a truck for personal use would be taxed at a rate based on the its value. With depreciation removed as a factor, the value of the truck would be the most important variable, other than the tax rate, in determining the total amount of taxes owed. A certified equipment appraisal report conducted by a qualified appraiser can help you avoid paying taxes on the book value of your personal property, and instead allow you to base it off the more accurate valuation of fair market value.

Please contact Equipment Appraisal Services today to learn more about obtaining a certified equipment appraisal report for your tangible personal property and how it can help you with property tax planning.