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Property tax and leasehold excise tax

Personal property

Everyone who uses personal property in a business must complete a personal property tax listing form. This listing must be filed with your county assessor’s office by April 30 of each year. Examples of personal property used in conducting business include, but are not limited to:

  • Computer hardware and software.
  • Furniture and fixtures.
  • Toys.
  • Books.
  • Supplies.

For more information, please see our Personal Property Tax brochure and our How my business property is valued web page.

Real property

Real property includes land and buildings and is valued by the county assessor's office. You will pay property tax on real property if you own or are purchasing your child care facility.

Leasehold excise tax

You owe leasehold excise tax (LET) if you lease any facilities, equipment, or other property from a governmental entity. LET takes the place of the property tax and is based on the fair market rental value of the property or the actual rent paid. Generally, the governmental entity is required to collect the LET. However, if you lease federal property, you must register and remit the tax directly to the department. Please contact the department at 360-705-6115 for more information on the leasehold excise tax.

Exemptions

Nonprofit organizations may be eligible for an exemption from both property tax and leasehold excise tax. Typical organizations receiving such exemptions are schools, churches, social service agencies, and child care organizations.

To apply for a nonprofit organization exemption, you must file an application with the Department of Revenue's Property Tax Division.

Sole proprietors also may be eligible for a property tax exemption on $15,000 of their personal property's assessed value.

To request this exemption, check the "head of household" box on the Personal Property Tax Affidavit you file with the county assessor. The assessor will determine if you qualify.

References