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.