What Is A Personal Property Tax

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Nxt Levl Professional Services, LLC
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What Is A Personal Property Tax?
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The Definition Of Personal Property

• A personal property tax, also known as an
  inventory tax, is a tax that goes toward the
  upkeep of public works in the community. These
  taxes are typically paid annually to states and
  local governments and apply to personal property
  such as vehicles, boats, airplanes, and other
  large items that are not typically purchased with
  the intention of re-selling them in the future.
  Its important to understand how to calculate
  your property tax liability so you dont get hit
  with an unexpectedly high bill when it comes time
  to pay up.

Personal property is defined as any kind of
physical asset that you own. Some examples
include furniture, tools, equipment, vehicles,
jewelry, clothing, and so on. The specific
definition may vary from one country to another
but in general terms, the personal property
consists of all tangible things which are not
considered real estate. Personal Property Tax
(PPT) therefore refers to taxes imposed on
personal possessions owned by an individual or
corporate entity. Such taxes are common in most
countries around the world.
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The History Of Personal Property Tax

• There are many reasons why governments impose PPT
  including raising funds for government projects,
  providing services for citizens, and discouraging
  people from accumulating excessive personal
  assets.

Personal property taxes have been around since
1900 when they were enacted to help fund public
education. Currently, personal property tax rates
vary by state but are generally calculated as a
percentage of value. Most states exempt certain
items from personal property taxes, such as
clothing and appliances that cost less than 500.
Property tax rates are also generally lower in
rural areas than in urban areas with high real
estate values. Personal property taxes are
usually assessed on an annual basis however,
some states assess personal property taxes twice
per year. Personal property tax returns must be
filed annually or semi-annually (depending on
your state). To learn more about personal
property tax rules and regulations for your
state, visit our guide to personal property taxes.
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Who Pays The Personal Property Tax?

• For most states, youll pay personal property
  taxes if you own an item that has value and could
  be sold. A few states require businesses to pay
  personal property taxes on their business
  equipment, but most do not. States that have some
  kind of personal property tax usually exempt
  vehicles, so your car wont be taxed unless its
  specially equipped with special features such as
  lifts or giant tires. And even then, only in
  certain circumstances. If you live in a state
  where personal property taxes are required for
  cars, check out our guide to paying personal
  property taxes for more information about how
  these fees work.

How Much Does It Cost For You To Pay Your
Personal Property Taxes?
Personal property taxes are fees assessed on
vehicles, trailers, boats, and other items that
are not permanently affixed to your land. If you
have personal items that arent on your land,
then you might be required to pay personal
property taxes for them.
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Appraisals, Collections, And Audits

• You can either pay online or in-person at your
  local DMV office or county treasurers office. It
  will vary by state and region as to how much
  these fees cost you. In North Carolina, for
  example, it costs 50 per year to pay personal
  property taxes on your car. The amount varies
  from state to state and even within counties of
  each state.

Property taxes are based on an assessment of your
homes value. Every year, local
municipalitiescities, counties, and school
districtsassess your property value and issue
you a bill based on their estimate. If they
assess your home higher than it is, then youll
have to pay more than what you owe to balance
things out (this can be corrected through an
appeal process). What happens if they assess it
lower than its worth? Then you get a refund!
Keep in mind that personal property taxes vary
from state to state, so these guidelines might
not apply everywhere.
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Contact Us

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• Email - info_at_nxtlevlpros.com
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  property-tax/