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Home , Personal property, Property tax

STATE DEPARTMENT OF REVENUE Personal

April 2021

Personal Administration As a property owner, you are responsible for filing a personal Most people know that property tax By state , the assessor is applies to , however, responsible for the assessment of real property listing each year that you some may not know that property and , including the have taxable property even if you do tax also applies to personal property. calculation of . The treasurer is not receive the form by mail. If you Most personal property owned by responsible for the billing and have multiple business locations, you is exempt. For example, collection of the taxes based on the must complete a separate listing for and personal “tax roll” received from the assessor. each location. The assessed value is effects are not subject to property The Department of Revenue is also allocated to the taxing district based tax. However, if these items are used involved in the administration of on where the property is located. in a business, property tax applies. property taxes and advises assessors nW he completing the form you must: Personal property tax does not apply and treasurers on how to assess . List all assets you own or control to business inventories, or to assure uniformity of as of January 1, including those property such as copyrights and assessment and taxation throughout assets fully depreciated in your trademarks. the state. accounting records, and assets Personal property is subject to the Personal Property Tax Forms: in storage. same levy rate as real property. The If you use personal property that . Identify each personal property characteristic that distinguishes real is not exempt, you must complete category. For example, office and personal property is mobility. a Personal Property Tax Listing Form equipment should be broken into Real property includes land, by April 30 each year. Listing forms separate categories of personal structures, improvements to land, are available from your local county computers, network servers, and certain equipment affixed to assessor’s office. The listing must printers, phones, etc. land or structures. Personal property identify all taxable property located in . Include the total purchase cost of includes machinery, equipment, the county as of noon on January 1. each item. This excludes sales or furniture, and supplies of businesses The assessor uses this information to use tax, but includes costs to make and farmers. It also includes any value property for taxes due the the item usable such as installation improvements made to land leased following year. and freight. from the government (leasehold . Include the date each item was improvements). acquired. Once property is listed on the tax rolls, the assessor mails a new listing form each year. You then have an opportunity to add or delete property, as appropriate, and return the form to the county assessor by April 30.

This fact sheet provides general information regarding Personal Property Tax. The information is current at the date of publication. Please note subsequent law changes may supersede or invalidate some of this information.

WASHINGTON STATE DEPARTMENT OF REVENUE

Valuation: The assessor values the Tax : The amount of tax due Penalties for Late Payment: Personal property at 100 percent of its current becomes a on personal property tax payments made after the market value. Market, or true and fair property. The lien is in effect from due date are subject to interest and value, is the amount that a willing the time the assessor makes the may also be subject to a penalty. If you and unobligated buyer will pay a assessment until the taxes are paid. do not make your first half tax willing and unobligated seller. After For example, an assessor values payment by April 30, the full year tax is performing a personal property personal property delinquent on May 1. Interest is assessment, the assessor informs in June, and the lien is in effect until calculated at one percent per month the property owner of the assessed the taxes are paid on April 30 of the on the full year taxes, until paid in full. value. following year. A penalty of three percent applies on the current year taxes Penalty for Failing to File: To avoid If the tax remains unpaid, the if still delinquent on June 1. An a penalty, the assessor must receive treasurer may place a lien on the additional penalty of eight percent your listing form by April 30. The owner’s other real and personal applies if taxes are delinquent on penalty is five percent of the tax due property. December 1. per month, up to a maximum of 25 Payment of Property Taxes: Property percent. If the assessor does not (Seizure) of Property/ tax payments are due by April 30 and receive your form, the assessor will Advance Payment Requirement: October 31. If the amount of tax due estimate the value of the property If property taxes are not paid on time, is $50 or less, full payment is due by based on the best information the treasurer may take control of the April 30. If the tax due is more than available. personal property until the taxes are $50, half of the amount due may paid. The treasurer may also seize the Appeal of Assessed Value: You be paid by April 30 and the balance property or require an immediate tax should contact the assessor’s office by October 31. The county treasurer payment and/or advance payment if if you believe an assessment is mails property tax statements every it is alleged that the property will incorrect. The assessor, or their February. be sold, destroyed, or removed from representative, can explain how the the state or county before the tax is value was determined and make The owner of the property on paid. (RCW 84.56.070) corrections if appropriate. January 1 of the assessment year owes the tax due the following year. If you still believe the assessment is The tax is due even if the business Taxable Personal Property incorrect or excessive, you have the closes, or the property is sold or Unless specifically exempt, all right to appeal the assessment transferred before the end of the tangible personal property is subject to the local county board of year. For example, a property owner to personal property tax. The major equalization. Appeal forms are submits a list of personal property categories of taxable personal available from your local county held as of January 1, 2010, and then property include the following: assessor’s office. sells the property in July 2010. The property owner (seller) owes the full The appeal (petition) must be filed amount of taxes due in 2011 for the by July 1 of the assessment year or 2010 assessment year. within 30 days of the date the assessment was mailed, whichever The lien follows the property. is later. Some counties have This means that a new owner extended the filing deadline to 60 can be held liable if the days. Please check with the board of previous owner does equalization in the county where the not pay the tax. Be sure to property is located to determine the check with your local county filing deadline for the appeal. treasurer’s office before buying

or selling personal property.

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WASHINGTON STATE DEPARTMENT OF REVENUE

Machinery and Equipment, Fixtures Leasehold Improvements: Personal Vehicles: Personal property tax and Furniture: Most machinery, property tax applies when the applies to vehicles that are used equipment, and fixtures are lessee/tenant retains of off- and not primarily designed considered personal property unless the leasehold improvements, or is for use on public streets or highways, permanently affixed to real property. required to remove them at the end licensed or not. of the . For example, the Personal property is generally Taxable vehicles include: improvements a lessee makes considered permanently affixed to . Vehicles used entirely upon private to a leased space are taxable as real property if it cannot be removed property without causing damage to the real leasehold improvements. . Special highway construction property, or if it is adapted for use Supplies, Materials and Tools: equipment, such as earth moving only in one location. The assessor’s Taxable materials and supplies and paving equipment. office can answer questions about include office, shop, janitorial, . vehicles whether a specific item is taxable as brochures, promotional materials, . Off-road vehicles real or personal property. fuel held in storage, spare parts, etc. . Racing vehicles Taxable tangible personal property Tax does not apply to items that are includes but is not limited to: held for resale or that become an . Office furniture and fixtures such ingredient or component of an Intangible Personal Property as desks, chairs, etc. article manufactured for sale. Personal property tax does not apply . Office equipment such as Watercraft: Watercraft is subject to to intangible personal property such computers and printers either property tax (at the state levy as monies, notes, certificates . Store fixtures and equipment rate) or watercraft tax. of , personal , . Computer software (canned and Commercial watercraft that is exempt franchise agreements, trademarks, embedded) from the watercraft excise tax is patents, brand names, copyrights, , and customer lists. . Manufacturing machinery and subject to personal property tax.

equipment Owners of charter vessels . Construction equipment documented with the U.S. Coast Destroyed Property If your property is destroyed in whole . Office trailers Guard must register with the Special or in part during the year, the Programs Division of the Department . assessed value may be reduced. Signs of Revenue and pay property tax. To obtain a reduction, you must file Leased Equipment: Equipment that is Taxable watercraft include: a claim with the local county assessor leased under a lease-purchase . Vessels used exclusively for within three years of the date of is subject to personal commercial fishing. destruction or reduction in value. property tax. Both the lessor and the . Documented vessels, such as tugs, Claim forms are available from the lessee may be requested to list the used to transport property or assessor’s office. This reduction is not equipment. The assessor will persons between specific points available to a person convicted of determine which party is liable for the . arson with respect to the property. tax. Barges, dredges, and similar watercraft. Farm Equipment, Machinery, . Charter vessels that are required Personal Property Tax Supplies, and Tools: Most farm to be documented by the United Exemptions equipment, machinery and supplies States Coast Guard. Personal property tax does not are subject to personal property tax. For more information or to obtain a apply to: An exemption or partial exemption listing form, please contact the . Household goods and personal may apply to some farm machinery Special Programs Division of the effects unless used in a business and equipment. Contact your local Department of Revenue at (360) 534- activity. assessor for exemption information. 1503 (option #5). For more . Personal property owned by information, please refer to RCW governmental entities. 84.40.065. . Business inventories including goods for resale, ingredients or components of articles manufactured for sale, and

3 WASHINGTON STATE DEPARTMENT OF REVENUE

. (Property held for lease/ and Rules Need More Information? rental is subject to tax.) Revised Code of Washington (RCW) . Review the following publications: . Custom software and modifications Chapter 84 provides for the taxation to canned software. of personal property. The . Nonprofit Organizations . Cargo containers used in interstate Department of Revenue publishes . Personal Property Valuation commerce. administrative rules, Washington Guidelines . $15,000 of assessed value for Administrative Code (WAC), to These can be found on our persons who qualify as head of administer the law. Chapter 458-12 website at dor.wa.gov. and 458-16 WAC discuss the taxation family; the assessor determines . Contact your local who qualifies for this exemption. and exemption of property. The Department of Revenue also issues county assessor’s . Personal property accounts valued Property Tax Advisories that discuss office. at less than $500 (Those qualifying specific tax issues. You may obtain for the $15,000 head of family a copy from the Department of exemption do not qualify). Revenue online at dor.wa.gov or by . Property owned by nonprofit calling 360-534-1400. For personal property tax organizations such as churches and assistance call 360-543-1400. social service agencies; qualifying entities must apply for the Questions To request this document in an exemption each year. Your local county assessor’s office alternate format, visit . Property owned by schools. can answer questions regarding: dor.wa.gov or call . . Vehicles used or designed primarily Assessed Values 360-705-6705. Teletype (TTY) to be used on the public streets or . Listing Forms users may use the Washington highways. . Exemptions Relay Service by calling 711. . Starting in 2021, a heavy equipment . Appeals rental property dealer may request an exemption for rental property it Your local county treasurer’s office owns if certain criteria are met. can answer questions regarding tax However, beginning in 2022, the statements and payments. dealer will collect a 1.25% rental tax from the consumer on the rental Telephone numbers are located in price of heavy equipment. the county government section (blue pages) of your local telephone directory or the county website.

dor.wa.gov

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