Business Tangible Personal Property
How is business tangible personal property tax calculated?The current tax rate is $3.05 per $100 of assessed value for furniture, fixtures and equipment, $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 $3.05 = $152.50
- ($5,000 ÷ 100) x $1.25 = $62.50
The method used to determine assessed value varies by equipment type, as follows:
- 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 value in the January National Automobile Dealers Association (NADA) Used Car Guide and tax is not prorated.
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