Personal property taxes are a way to help states raise revenue, according to TurboTax. Personal property tax isn't the same as the state and local taxes paid on real estate, but it might be added to those taxes. Depending on whether a taxpayer itemizes deductions on his federal tax return, there's a chance he may qualify for a deduction for any personal property tax he pays.Continue Reading
Each state can have different types of property that can be assessed for taxes, notes TurboTax. Cities, counties and other forms of local government impose personal property tax, which makes them even more varied from state to state. For instance, in Florida a business or rental home owner can be made to pay personal property tax for any furniture, equipment or tools that produce income.
When filing personal property taxes, an individual might have to note the fair market value and cost of every item listed on the tax return, according to TurboTax. Taxpayers may have a table that can be used to determine how much an item is worth according to its age and life expectancy. There's also a chance some property might be considered exempt for a specific tax year or that the taxpayer qualifies for a deduction from the IRS.Learn more about Taxes