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WASHINGTON STATE DEPARTMENT OF REVENUE
Personal Property Tax MARCH 2010
Personal Property Tax Administration
Most people know that property tax By state law, the county assessor is As a property owner, you are
applies to real property, however, responsible for the assessment of real responsible for filing a personal
some may not know that property and personal property, including the property listing each year that you
tax also applies to personal property. calculation of taxes. The treasurer is have taxable property even if you do
Most personal property owned by responsible for the billing and not receive the form by mail. If you
individuals is exempt. For example, collection of the taxes based on the have multiple business locations, you
household goods and personal “tax roll” received from the assessor. must complete a separate listing for
effects are not subject to property The Department of Revenue is also each location. The assessed value is
tax. However, if these items are used involved in the administration of allocated to the taxing district based
in a business, property tax applies. property taxes and advises assessors on where the property is located.
Personal property tax does not apply and treasurers on how to assess
When completing the form you must:
to business inventories, or intangible property to assure uniformity of
List all assets you own or control
property such as copyrights and assessment and taxation throughout
as of January 1, including those
trademarks. the state.
assets fully depreciated in your
Personal property is subject to the Personal Property Tax Forms: accounting records, and assets
same levy rate as real property. The If you use personal property that in storage.
characteristic that distinguishes real is not exempt, you must complete Identify each personal property
and personal property is mobility. a Personal Property Tax Listing Form category. For example, office
Real property includes land, by April 30 each year. Listing forms equipment should be broken into
structures, improvements to land, are available from your local county separate categories of personal
and certain equipment affixed to assessor’s office. The listing must computers, network servers,
land or structures. Personal property identify all taxable property located in printers, phones, etc.
includes machinery, equipment, the county as of noon on January 1. Include the total purchase cost of
furniture, and supplies of businesses The assessor uses this information to each item. This excludes sales or
and farmers. It also includes any value property for taxes due the use tax, but includes costs to make
improvements made to land leased following year. the item usable such as installation
from the government (leasehold and freight.
improvements).
Include the date each item was
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 The appeal (petition) must be filed The lien follows the property. This
property at 100 percent of its current by July 1 of the assessment year or means that a new owner can be held
market value. Market, or true and fair within 30 days of the date the liable if the previous owner does
value, is the amount that a willing assessment was mailed, whichever not pay the tax. Be sure to check with
and unobligated buyer will pay a is later. Some counties have extended your local county treasurer’s office
willing and unobligated seller. After the filing deadline to 60 days. Please before buying or selling personal
performing a personal property check with the board of equalization property.
assessment, the assessor informs in the county where the property is
Penalties for Late Payment: Personal
the property owner of the assessed located to determine the filing
property tax payments made after
value. deadline for the appeal.
the due date are subject to interest
Penalty for Failing to File: To avoid Tax Liens: The amount of tax due and may also be subject to a penalty.
a penalty, the assessor must receive becomes a lien on personal property. If you do not make your first half tax
your listing form by April 30. The The lien is in effect from the time the payment by April 30, the full year tax
penalty is five percent of the tax due assessor makes the assessment until is delinquent on May 1. Interest is
per month, up to a maximum of 25 the taxes are paid. For example, an calculated at one percent per month
percent. If the assessor does not assessor values personal property on the full year taxes, until paid in
receive your form, the assessor will in June, and the lien is in effect until full. A penalty of three percent
estimate the value of the property the taxes are paid on April 30 of the applies on the current year taxes
based on the best information following year. if still delinquent on June 1. An
available. additional penalty of eight percent
If the tax remains unpaid, the
applies if taxes are delinquent on
Appeal of Assessed Value: You treasurer may place a lien on the
December 1.
should contact the assessor’s office owner’s other real and personal
if you believe an assessment is property. Distraint (Seizure) of Property/
incorrect. The assessor, or their Advance Payment Requirement:
Payment of Property Taxes: Property
representative, can explain how the If property taxes are not paid on time,
tax payments are due by April 30 and
value was determined and make the treasurer may take control of the
October 31. If the amount of tax due
corrections if appropriate. personal property until the taxes are
is $50 or less, full payment is due by
paid. The treasurer may also seize the
If you still believe the assessment is April 30. If the tax due is more than
property or require an immediate tax
incorrect or excessive, you have the $50, half of the amount due may
payment and/or advance payment if
right to appeal the assessment be paid by April 30 and the balance
it is alleged that the property will
to the local county board of by October 31. The county treasurer
be sold, destroyed, or removed from
equalization. Appeal forms are mails property tax statements every
the state or county before the tax is
available from your local county February.
paid. (RCW 84.56.070)
assessor’s office.
The owner of the property on
January 1 of the assessment year
owes the tax due the following year.
The tax is due even if the business
closes, or the property is sold or
transferred before the end of the
year. For example, a property owner
submits a list of personal property
held as of January 1, 2010, and then
sells the property in July 2010. The
property owner (seller) owes the full
amount of taxes due in 2011 for the
2010 assessment year.
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WASHINGTON STATE DEPARTMENT OF REVENUE
Taxable Personal Property Farm Equipment, Machinery, For more information or to obtain
Unless specifically exempt, all Supplies, and Tools: Most farm a listing form, please contact the
tangible personal property is subject equipment, machinery and supplies Special Programs Division of the
to personal property tax. The major are subject to personal property Department of Revenue at (360)
categories of taxable personal tax. An exemption or partial 570-3265. For more information,
property include the following: exemption may apply to some farm please refer to RCW 84.40.065.
machinery and equipment. Contact
Machinery and Equipment, Fixtures Vehicles: Personal property tax
your local assessor for exemption
and Furniture: Most machinery, applies to vehicles that are used
information.
equipment, and fixtures are off-road and not primarily designed
considered personal property unless Leasehold Improvements: Personal for use on public streets or highways,
permanently affixed to real property. property tax applies when the licensed or not.
Personal property is generally lessee/tenant retains ownership of
Taxable vehicles include:
considered permanently affixed to the leasehold improvements, or is
Vehicles used entirely upon private
real property if it cannot be removed required to remove them at the end
property
without causing damage to the real of the lease. For example, the
property, or if it is adapted for use improvements a lessee makes Special highway construction
only in one location. The assessor’s to a leased space are taxable as equipment, such as earth moving
office can answer questions about leasehold improvements. and paving equipment.
whether a specific item is taxable as Farm vehicles
Supplies, Materials and Tools:
real or personal property. Off-road vehicles
Taxable materials and supplies
Taxable tangible personal property include office, shop, janitorial, Racing vehicles
includes but is not limited to: brochures, promotional materials,
Office furniture and fixtures such fuel held in storage, spare parts, etc.
Intangible Personal Property
as desks, chairs, etc. Tax does not apply to items that are
Personal property tax does not apply
Office equipment such as held for resale or that become an
to intangible personal property such
computers and printers ingredient or component of an
as monies, notes, certificates
article manufactured for sale.
Store fixtures and equipment of deposit, personal service contracts,
Computer software (canned and Watercraft: Watercraft is subject to franchise agreements, trademarks,
embedded) either property tax (at the state levy patents, brand names, copyrights,
Manufacturing machinery and rate) or watercraft excise tax. licenses, and customer lists.
equipment Commercial watercraft that is exempt
Construction equipment from the watercraft excise tax is Destroyed Property
subject to personal property tax. If your property is destroyed in whole
Office trailers
Owners of charter vessels or in part during the year, the
Signs
documented with the U.S. Coast assessed value may be reduced.
Leased Equipment: Equipment that To obtain a reduction, you must file
is leased under a lease-purchase Guard must register with the Special
Programs Division of the Department a claim with the local county assessor
contract is subject to personal within three years of the date of
property tax. Both the lessor and the of Revenue and pay property tax.
destruction or reduction in value.
lessee may be requested to list the Taxable watercraft include: Claim forms are available from the
equipment. The assessor will Vessels used exclusively for assessor’s office. This reduction is not
determine which party is liable for commercial fishing. available to a person convicted of
the tax. Documented vessels, such as tugs, arson with respect to the property.
used to transport property or
persons between specific points
Barges, dredges, and similar
watercraft.
Charter vessels that are required
to be documented by the United
States Coast Guard.
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WASHINGTON STATE DEPARTMENT OF REVENUE
Personal Property Laws and Rules Need More Information?
Tax Exemptions Revised Code of Washington (RCW) Review the following publications:
Personal property tax does not Chapter 84 provides for the taxation Nonprofit Organizations
apply to: of personal property. The Personal Property Valuation
Household goods and personal Department of Revenue publishes Guidelines
effects unless used in a business administrative rules, Washington
Administrative Code (WAC), to These can be found on the
activity. Department of Revenue web site
administer the law. Chapter 458-12
Personal property owned by at dor.wa.gov.
and 458-16 WAC discuss the taxation
governmental entities.
and exemption of property. The Call our Telephone Information
Business inventories including Department of Revenue also issues
goods for resale, ingredients or Center 1-800-647-7706
Property Tax Advisories that discuss
components of articles specific tax issues. You may obtain Contact your local county
manufactured for sale, and a copy from the Department of assessor’s office
livestock. (Property held for lease/ Revenue online at dor.wa.gov or
rental is subject to tax.) To inquire about the availability
by calling 1-800-647-7706. of this document in an alternate
Custom software and modifications
format for the visually impaired,
to canned software.
please call (360) 705-6715.
Cargo containers used in interstate Questions
commerce. Your local county assessor’s office Teletype (TTY) users please call
$15,000 of assessed value for can answer questions regarding: 1-800-451-7985.
persons who qualify as head of Assessed Values
family; the assessor determines Listing Forms
who qualifies for this exemption. Exemptions
Personal property accounts valued Appeals
at less than $500 (Those qualifying
for the $15,000 head of family Your local county treasurer’s office
exemption do not qualify). can answer questions regarding tax
Property owned by nonprofit statements and payments.
organizations such as churches and
Telephone numbers are located in
social service agencies; qualifying
the county government section (blue
entities must apply for the
pages) of your local telephone
exemption each year.
directory.
Property owned by schools.
Vehicles used or designed primarily
to be used on the public streets or
highways.
http://dor.wa.gov
PTFS0014 03/10
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