@053 CHAP 11

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                  ³       PROPERTY TAXES      ³
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@Q        "There will be no nuclear war.  There's too much
@Q         real estate involved." -- Frank Zappa

Each of the 50 states imposes property taxes on the real
property (real estate) located within its borders.  There
is usually no need to contact the local city or county tax
assessor's office regarding payment of any real property
taxes on real estate owned by your business.  They will
generally send you a bill each year for the taxes due on
your property, based on its assessed value.  Most states
also have property taxes on tangible personal property (al-
though many that do exempt business inventories), and some
even have taxes on intangible personal property, such as
stocks, bonds, promissory notes, patent rights, & so forth.
@CODE: HI
Unlike many states, Hawaii does not impose any tax on busi-
ness personal property.

All real estate within the state of Hawaii is subject to
property tax unless specifically exempted by state law.
Real property taxes are assessed by the four counties of
Honolulu, Maui, Hawaii and Kauai.  Cities are not separate
taxing bodies, since in Hawaii the city and county govern-
ment functions are merged.  A mayor and council is elected
for each county and act as such for all cities within the
county.

@CODE:OF
@CODE: CA

In California, you will generally receive a bill for real
property taxes, which is mailed by the county assessor to
the owner of record.  However, if you acquire real estate,
you should notify the county assessor of the change in own-
ership, since, under the Proposition 13 limits on real prop-
erty taxes, such a change in ownership permits the county
to reassess the property at its current fair market value,
which is usually much higher than its old Proposition 13
value, which can only be increased 2% a year, unless there
is a change in ownership.  Real property taxes are due in
two installments each year, on April 10 and December 10.

A business that owns $30,000 or more (at cost) of taxable
personal property must file a business personal property
tax statement each year, based on the personal property it
owns, claims, possesses, controls or manages within the
county as of 12:01 a.m. on the first day of March.  The
tax applies to most types of tangible personal property of
a business, except inventory, which is exempt.  California
does not impose a property tax on intangible property.

Persons with less than $30,000 of taxable personal property
must file a business personal property statement only if
requested by the county assessor.  The statement is due
between April 1 and the last Friday in May each year, de-
pending upon the deadline adopted by the particular county.
California law provides for a 10% penalty assessment on the
unreported property for failure to file a required business
personal property tax statement.

@CODE:EN
@CODE: DC IN OK RI TN VT VA
As is true in most states, personal property is subject to
property tax in @STATE.
@CODE:OF
@CODE: TN

However, inventories of businesses subject to the Tennessee
business and occupations tax are exempt from property tax.
@CODE:OF
@CODE: RI

Business inventories are generally subject to tax. However,
manufacturing machinery and equipment and manufacturing in-
ventories are generally exempt from the property tax.
@CODE:OF
@CODE: AL AZ AR CO CT FL ID KS ME MI MO MT NB NM NV OR SC UT WA WY
While business personal property is mostly subject to the
property tax, business inventories are generally exempted
from the property tax in @STATE.
@IF143xx]
@IF143xx]This may be an important tax break for your business, since
@IF143xx]@NAME has significant inventories.
@CODE:OF
@CODE: MO

(Note, however, that Missouri does not exempt raw materials
inventories.)
@CODE:OF
@CODE: GA KY LA MA MD MS NC OH TX
Personal property is made subject to the property tax in
@STATE, and, unlike many states, there's no general
exemption for inventories in @STATE.
@CODE:OF
@CODE: LS
All personal property is confiscated in @STATE.
@CODE:OF
@CODE: MD

However, Maryland counties are allowed to exempt business
inventory from the property tax and a number of counties
do so.
@CODE:OF
@CODE: MA

However, note that corporations subject to the corporation
excise tax are largely exempt from personal property taxes
in Massachusetts.
@CODE:OF
@CODE: PA
The state of Pennsylvania does not impose a property tax on
inventory or other TANGIBLE personal property, and general-
ly does not tax INTANGIBLE property.
@CODE:OF
@CODE: AL FL GA KS KY LA MT NC TN WV

Businesses in @STATE are subject to tax on most in-
tangible personal property.
@CODE:OF
@CODE: IN

Indiana has an intangible property tax, but at present it
is in limbo while the courts and legislature decide whether
it is unconstitutional or should be repealed.

Indiana has enacted a state "fair property tax" at the rate
of $0.0035 per $100 of assessed valuation.  This new tax is
collected by the county treasurers, in the same manner that
property taxes of political subdivisions are collected.
@CODE:OF
@CODE: DE IA IL NY ND
There is no property tax on personal property in @STATE.
@CODE:OF
@CODE: MN SD
Tangible personal property is generally exempt from tax in
@STATE.
@CODE:OF
@CODE: NY

However, New York City imposes a Commercial Rent and Occu-
pancy Tax based on the amount of rent paid by a commercial
tenant in the City.
@CODE:OF
@CODE: AK AZ CO CT DC ID OK ME MA MN MO NB NH NJ NM OR RI SC SD UT VA WA WS

There is no property tax on intangibles in @STATE.
@CODE:OF
@CODE: MD MS NV ND TX

Most kinds of intangible property are exempt from property
tax in @STATE.
@CODE:OF
@CODE: RI

Note that a 1992 Rhode Island Supreme Court decision held
that CUSTOM computer software is intangible property, and
thus it is not subject to personal property taxes imposed
by local governments.
@CODE:OF
@CODE: MI

Michigan has a tax on intangible property, but it does not
apply to intangible property used in a trade or business
subject to the Michigan Single Business Tax.
@CODE:OF
@CODE: LA

In Louisiana, property taxes are assessed at the parish
level.
@CODE:OF