Personal Property Tax
Do you know the difference between real property tax and personal property tax? Do you know which items you can be charged personal property tax on?
Real property tax is a form of taxation charged at state level on residential and commercial property. Personal property tax is liable on cars, boats, mobile homes, trailers and aircraft. Other types of personal assets such as stocks and bonds may also be liable for personal property tax, although most household items are exempt.
In most states, you need to file a personal property tax return within a specified timeframe after you have purchased new items or if you have transported items you already own from another state. The local authority will assess an item of personal property, for example, your vehicle, to determine its condition and age. Other factors such as mileage will also be taken into consideration when determining how much tax you need to pay on your car.
If you feel the assessment of your vehicle is too high, you can appeal against it. This may be based on problems with your car that were overlooked by the assessor, such as structural damage and mechanical problems. You will need supporting evidence and documentation, usually from a qualified mechanic or insurance company, to support your appeal.
Most personal property tax appeals need to be made before December 31 of the current tax year. Even if you are contesting your assessment, you need to pay your tax bill by the due date. If your local authority agrees with your appeal, they will issue you with a refund.
Most local authorities make it simple these days to pay your personal property tax. You can pay for many taxes online using your credit card or electronic check. You can also check the status of your personal property taxes online to find out how much you need to pay.
Remember that you should always pay on time to avoid late penalty fees. And don't forget to inform your local authority if you sell your vehicle or move out of their jurisdiction so that you can claim a refund.
