Personal Property Tax and Leasehold Excise Tax
Unless specifically exempt, all tangible personal property is subject to the personal property tax. Personal
property tax rates are the same as for real property. Personal property includes machinery, equipment, furniture
and supplies of businesses. In general, the characteristic that distinguishes personal property from real
property is mobility. Household goods and certain intangibles are exempt from personal property tax, unless
used in a business activity. Business inventories are specifically exempt from personal property tax.
Everyone who uses personal property in a business or has taxable personal property
must complete a personal property affidavit by April 30 each year. The affidavit
must list the taxable personal property located in the county as of 12:00 p.m.
on January 1. The affidavit must include the acquisition cost and year acquired
for all taxable property. The assessor uses the affidavit to value personal property
for taxes due the following year.
County assessors and treasurers levy and collect the property tax. Every January,
county assessors mail personal property affidavits to persons who have previously
listed personal property. Businesses that do not receive an affidavit or that
have questions regarding paying real and/or personal property taxes should
contact
their local county treasurer's office.
Leasehold Excise Tax
Persons or businesses that lease or otherwise possess and use publicly-owned real or personal property are subject to the
leasehold excise tax. The tax is imposed in lieu of state and local property tax. Public property is property owned by
the federal government, Washington State, counties, school districts and other municipal corporations.
The amount subject to tax is generally the amount of rent paid to the lessor. Certain expenses and improvements may also be
included in the taxable amount.
Generally, the tax is collected by the public entity leasing property to private lessees. However, lessees of federal property
must report directly to the Department of Revenue.
Reference: For more information regarding leasehold excise tax, contact
the Department's
Leasehold Excise Tax section.