Business Personal Property
Personal property's primary characteristic is its mobility. It includes most machinery, equipment, furniture and fixtures associated with commercial, industrial or agricultural enterprises. Business inventories are exempt from property tax. However, supplies consumed in the operation of a business are taxable. The assessor uses the affidavit to value property for taxes due the following year. Personal property tax rates are the same as for real property.
Personal Property Blank Application
Farm Equipment Exemption Application
Everyone who uses personal property in a business must complete a personal property affidavit by April 30th each year. Listings are accepted by mail, email, fax, or in person. When completing the form you must:
1. List all assets you own as of January 1st, including those assets fully depreciated in your accounting records and assets in storage.
2. Include the total purchase cost of each item. This excludes sales or use tax, but includes costs to make the item usable such as installation and freight.
3. Include the date each item was acquired.
Failure to Submit:
Then penalty for not filing a personal property listing is 5% per month of the total assessed tax due the following year, up to a maximum of 25%. (RCW 84.40.040 & RCW 84.40.130) In addition, by law, if your personal property taxes are not paid a lien can be placed on your real property account (84.56.070).
Types of Personal Property
Unless specifically exempt, all tangible personal property is subject to personal property tax. The major categories of taxable personal property include the following:
* Machinery and Equipment
* Fixtures and Furniture
* Farm Equipment
* Leasehold Improvements (Improvements a lessee makes to a leased space are taxable as leasehold improvements)
* Supplies, Materials and Tools (Tax does not apply to items that are held for resale or that become an ingredient or component of an article manufactured for sale)
Washington State Department of Revenue Informational Pamphlet