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Personal tangible property taxes: A basic guide for home & business owners

by Andrew & Nicole Johnsrud 02/05/2024

Personal tangible property is a tax term referring to physical property used in running your commercial or rental business. While general property taxes concern the actual land and buildings, personal tangible property taxes are related to equipment, furnishings, vehicles and more. If you own a business or rental property, it's important to understand how these taxes work. Here is some basic info to know:

Examples of tangible personal property

Tangible personal property is any asset used for your rental or commercial business. To qualify as tangible personal property, the assets must have a physical existence. Therefore, important assets like copyrights or patents do not count. Here are some examples of common forms of tangible personal property:

  • office furniture
  • equipment and machinery
  • computers, cell phones and other digital devices
  • delivery vehicles

Some other examples of tangible personal property can include:

  • jewelry
  • collectables
  • sports & hobby memorabilia 

How tangible personal property is taxed

Tangible personal property is taxed in a similar way to land or building property. Landlords and companies must determine the value of their business assets and report them in a separate tax return. Depending on the state, the value might be dependent on the purchase price, assessed value or appraisal. Assets are taxed based on a percentage of their value. Depending on the asset, you may have to pay taxes on personal tangible property annually or only once.

If you're a property or business owner, it's important to be aware of what qualifies as personal tangible property. If you're not sure if your assets qualify, you can consult with your local tax authority to find out the specific requirements of your state and municipality.

About the Author
Author

Andrew & Nicole Johnsrud

I'm a residential Realtor in the Twin Cities and surrounding suburbs and I work closely with my husband, Andrew, who is a custom home builder and remodeler. Our partnership turns out to be a very good collaboration for our clients benefit. We work with both buyers and sellers on personal residence purchases and sales as well as investments and second homes. We take great pride in being extremely organized and attend to a great level of detail in home preparation for our sellers as well as details to the purchase of a home. We strive to keep our clients real estate transaction a seamless process. Additionally, every transaction is different so a sense of creativity is helpful and important in the process of buying and selling a home. This helps sellers get their properties in front of more buyers and it helps our buyers look at homes in different ways if things aren't quite as they'd like. Our knowledge and expertise in the industry and process as well as home construction result in a reassuring experience to our clients.  

Specialties: 

First-time Home Buyers
Investment Properties
Luxury Homes and Properties
Condos
Townhomes