Property tax and personal property tax is different because the property tax deals with the building and land. Personal property tax deals with vehicles, boats, planes motorcycles and other motor vehicles. Any type of artwork is subject to personal property tax. If you have a business, any of the inventories is subject to personal property tax as well as bonds or any stocks. The only thing not subject to tax is household goods or personal belongings. The state, rather than the community, governments more commonly do personal property taxes. This, however, may be different from state to state.
In some states, local counties send out personal property tax documents to businesses that are to be completed and returned before a certain date. This personal property amount is then used to determine your next year’s tax due. For example, a tavern owner, claims everything he owns in the building such computers, cash registers, bar stools, bar lights, mirrors and any games as well as televisions. If you own the building, then you would also claim coolers and other things in the bar.
If you do not own the bar and are just leasing the business you do not claim the coolers or anything else that belongs to the owner of the property. The person that owns the building may also include bar equipment with the lease that are customary to a bar business. The owner might own the bar stools as well, then the owner of the building claims these items and not the business owner. Personal property tax is sometimes tricky if you do not understand what you need to claim and what is not claimed. The difference between owning and renting the equipment is another issue where people do not know who is responsible for what.
For a person renting a building to run a business, you will claim the things that you own and the property owner will claim the things in the building that he or she owns. This is the easiest way to look at a business personal property tax. Never claim anything that is not yours. If you rent pool tables or video games from a company, you do not claim these as well. The company that supplies them to you claims the games. If you have any questions about depreciating your personal property, a tax consultant can help you with this process.
You must try to be as exact as you can when figuring out depreciation of personal property. If you have a television set that you bought for $195 three years ago, chances are it has a value of only $25. This is just an example, but you understand the process better. You never want to give a value for something that might be higher than what the item is really worth. This could cause your personal property tax liability to be higher than it needs to be. If you do not understand depreciation, you should always seek outside help to find out actual value at the time.