What is Tangible Personal Property?

Business and Rental Property Assets

Tangible Personal Property includes all furniture, fixtures, tools, machinery, equipment, signs, leasehold improvements, leased equipment, supplies and any other equipment that may be used as part of the ordinary course of business or included inside a rental property.

Inventory or Equipment?

Items of inventory held for lease to customers in the ordinary course of business, rather than for sale, shall be deemed inventory only prior to the initial lease of such items and MUST be reported after their initial lease or rental as equipment and/or furniture or fixtures.

Mobile Homes with Mobile Home (MH) Decal

The owner of a mobile home who does not own the lot or land on which the mobile home is affixed is required to pay an annual license tax by purchasing a MH (mobile home) decal. MH decals are issued by the Department of Highway Safety and Motor Vehicles and purchased from your local county tax collector's office. The attachments associated with these mobile homes are considered tangible personal property. Attachments include items such as air conditioning, skirting, carports, screened rooms, etc.

Mobile Homes that DO NOT have a MH Decal

Mobile homes (MH) that meet the criteria for a MH decal but do not have a current MH decal will be taxed as tangible personal property. Mobile homes that do not bear a current decal (RP or MH) must be assessed by the county property appraiser, placed on the tangible personal property assessment roll, and taxed annually as tangible personal property. You may request a refund of the license tax from the Department of Highway Safety and Motor Vehicles if you provide documentation that you paid the tangible personal property tax for the same year.

DO NOT REPORT THE FOLLOWING AS TANGIBLE PERSONAL PROPERTY

Intangible Personal Property

Intangible Personal Property includes money,all evidence of debt owed to the taxpayer, all evidence of ownership in a corporation, etc.

Household Goods

Items ordinarily found in the home and used for the comfort of the owner and their family is not to be reported as tangible personal property. This includes clothing / apparel, appliances, furniture, and other household items that ARE NOT used for commercial purposes.

NOTE:  These items should be reported if they are used for commercial purposes including in a Hotel, Motel, Apartment or Rental Unit)

Vehicles

Automobiles, Trucks, and Other Licensed Vehicles are not taxable as personal property.The equipment attached to or carried on certain vehicles, however, may be taxable as personal property and must be reported. Examples include power cranes, air compressors, and other equipment designed as a tool rather than primarily as a hauling vehicle.

Inventory

Those chattels (items of property other than real estate) consisting of things commonly referred to as goods, wares and merchandise - which are held for sale or lease to customers in the ordinary course of business. See Inventory or Equipment above.