Although personal property tax can be imposed on any piece of property, it is most often applied to items with a high dollar value, such as vehicles, boats, furniture and livestock. These taxes are imposed by state and local governments and the items subject to taxation change with the jurisdiction.Continue Reading
Many state and local governments collect taxes on personal property in addition to collecting taxes on real estate. Both of these taxes are usually based on the assessed value of the item being taxed. Since real estate values are generally more stable and tend to appreciate, property tax collected on them tends to rise over a given time period. Most personal property loses its value over time, so the tax on a given item often declines every year until it reaches a minimum level.
Personal property tax can be collected from individuals as well as businesses, depending on the location. However, most states that collect personal property tax from businesses exempt individual taxpayers. Most jurisdictions that collect this tax employ a tax assessor that determines the value of the items subject to the tax. For vehicles, this is most likely a blue book value or the amount that a dealer would pay for a specific vehicle.Learn more about Taxes