What are Personal Property Taxes?

Read the Article

When you bought a car, house, or a motorcycle have you ever thought of the taxes you’ll be paying on it for years? With the exception of my house I honestly don’t think about personal property taxes, but it’s something many of us have to budget.

Every year, we get a statement from the county on how much we need to pay for our cars’ personal property tax. We also have our escrow account take care of our house’s tax bill. If you’re not expecting one or it’s higher than planned, it can really put a damper on your finances.

Some people might not be familiar with them or they’re just starting out and want to see what they can do about it. They have questions that they’d like answered. What are personal property taxes? How are they calculated? Is there anything you can do to reduce it? I’ll try to tackle them and hopefully help you save some money.

Personal Property Tax Assessments

For many cities, property taxes are a huge source of revenue, so if you try to not pay it expect penalties. It’s a tax based on the value of one’s property as determined by a municipalities and its usually a specified percentage. Property can include (but not limited to) boats, cars, or homes.

Your property is checked by local public officials called tax assessors who are supposed to calculate the  unbiased market value of it. For cars they may use NADA book value as an example. You’ll receive a bill well in advance of the taxes due date, so hopefully you’ll  put something aside in your bank account for it.

Dealing With Your Personal Property Tax Bill

Sometimes, though, you may disagree with how the city or county has calculated your property. You may feel like it’s too high. For example, some areas of the country are still experiencing much lower housing prices yet your bill shows a high assessment. You could contest it and ask the city or county to reassess it considering current marketing conditions.

Many times, you have to submit a written request along with documentation that proves that your position is valid. If it looks reasonable, a local tax assessor will investigate your claim. These assessors will re-analyze and calculate your property’s current value.

People have successfully argued their case and have lowered their property tax bill. While there is paperwork involved most agree that it helped them financially.

Thoughts on Personal Property Taxes

I know many people have opinion on local taxes and how it affects their community and their own bottom line. I’d love to hear your take on it.

What the tax rate for personal property in your area? Have you ever had to contest your tax bill? Did you win? How long did the process take?

Elle Martinez
Elle Martinez

Written by Elle Martinez

Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez

8 responses to “What are Personal Property Taxes?”

  1. I just bought a used car im sure when it was bought somebody paid tax on it .then I bought it and paid tax on it, then I paid to get my drivers license then paid for and inspection then paid for plates now after I paid my tax you now want me to pay tax for having it in your city. oh and then you want me to pay when I go through the tunnel and then high gas prices and now they want 40 dollars for an oil change
    who ever told you you can charge people for having stuff anyway

  2. Excellent goods from you, man. I have understand your stuff previous to and you are
    just extremely fantastic. I actually lie what you’ve acquired here, really like what you are saying and the way in which you say it.
    You make itt enjoyable and you still carre for to keep it wise.
    I cant wait to read far more from you. This is really a tremendous web site.

  3. I find property taxes to be one of the most underhanded, slimy violations citizens suffer due to their government.

    I am honestly appalled that at some point in time, this was voted on, and charging people to own what they bought with hard-earned money seemed like a logical idea.

  4. Hiya, I’m truly cheerful I have set up this information. Now bloggers publish only regarding gossips and internet and this is especially frustrating. A sunny locate with attractive pleased, this is what I need. Recognition for keeping this website, I’ll be visiting it. Perform you solve newsletters? Can not find it.

  5. I have a cabin on Forest Service leased property. The cabin is considered personal property and not real property yet it is taxed as if it were real property (same as my home which is real property). The cabin fits definition of real property in my state as it is attached to the ground and immoveable etc.

    If this cabin is not real property why is it taxed as such?

Leave a Reply