Business Tangible Personal Property

How to Calculate Business Tangible Tax


The current tax rate is $3.60 per $100 of assessed value for furniture, fixtures and equipment and $1.25 per $100 for computer equipment. To compute the tax on an item assessed at $5,000, divide the assessed value by 100 and multiply by the tax rate:
  • ($5,000 ÷ 100) x $3.60 = $180.00
  • ($5,000 ÷ 100) x $1.25 = $62.50
The method used to determine assessed value varies by equipment type, as follows.

Equipment


The assessed value of equipment (except motor vehicles and computer equipment) is 80% of the original cost for the first year the property is owned. For each of the six subsequent years, the assessed value declines by 10% according to the following schedule:
Year of Ownership % of Original Cost
First 80%
Second 70%
Third 60%
Fourth 50%
Fifth 40%
Sixth 30%
Seventh 20%

Computer equipment is assessed at 50% of the original cost the first year owned and declines for the next four years according to the following schedule:
Year of Ownership % of Original Cost
First 50%
Second 35%
Third 20%
Fourth 10%
Fifth 5%

Motor vehicles tax is based on the clean trade-in value in the January National Automobile Dealers Association (NADA) Used Car Guide and tax is not prorated. The tax rate for business motor vehicles is $3.60.