Personal property taxes Definition Bankrate.com Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content
Personal property taxes
You need to understand what personal property taxes are. Here’s what to know. What are personal property taxes
Personal property taxes, also known as property taxes, are a form of taxation on what is termed personal property. Personal property is defined as any movable property that is not attached to a home or building. The requirements for personal property tax vary from state to state and mostly affect businesses. In a business, all movable assets are termed personal property and are taxed annually. Additionally, some states tax personal property such as motor vehicles, boats and aircraft. Personal property excludes real property, which comprises of real estate, land and buildings. Deeper definition
Historically, all property was taxed as a means of raising money to fund local authorities, although these requirements gradually have been eased over time. For the individual, the most obvious form of this tax is that which is levied on real estate as well as the tax levied in some states on valuable movable property such as vehicles. The tax payable is based on a percentage of the assessed value of the property. Businesses are most affected by personal property taxes, because all equipment that does not form part of immovable property and which is used in a business is considered personal property. This means that companies need to keep detailed records of all personal property, including the purchase price and its annual depreciation. Personal property can be tangible, that is physical and can be felt and touched, or intangible, such as securities, patents and copyrights. Personal property is taxed locally and, provided the tax is based on the value of the property, it can be deducted from federal taxes. Personal property tax examples
An example of a personal property tax are the taxes levied in Arlington County, Virginia, on all motor vehicles that are normally housed overnight in that county. If you live in Arlington and have a car, motor home or a boat stored in that county, you have to pay an annual property tax. However, if you live in another county but work in Arlington, and your vehicle is stored outside the county overnight, you don’t have to pay the tax. On the other hand, if you run a business in Arlington, then all movable assets owned by that business are subject to personal property taxes. Do you know how personal property is taxed in your state? More From Bankrate
An LLC can simplify tax filing and reduce the legal liability of its members. How to lessen the tax liability, so you can keep as much profit in your pocket as possible. If you haven’t filed your taxes yet, don’t panic — but act fast. Typically, taxpayers have two options: Take the itemized deductions or take the standard deduction. Regardless of what may cause a person to miss the tax-filing deadline, there are potential consequences. Applying for more time to file your taxes is easy. Just don’t put off paying your tax bill. The fast-approaching deadline for filing your 2021 taxes is April 18, 2022. There are seven tax brackets for most ordinary income: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The credit was confusing even before Congress revamped it for 2021.