Business Personal Property

Definition & Characteristics

Personal property is property that is characterized by its mobility. Land and improvements are considered real property. Personal property is generally used in the operation of business activities and includes, but is not limited to, furniture and fixtures, machinery, equipment, supplies and materials not held for sale or do not become a part of an article being produced for sale.

There are two types of personal property:

• Intangible items which consist of rights and privileges having a legal but not a physical existence
• Tangible items which have physical existence

Some personal property is excluded from taxation. This includes livestock, inventories held solely for resale, intangible property except for software licenses, personal effects and household goods in actual use by their owner.

Available Forms

Annual Certification for Improvements
Application for Exemption for Farm Machinery and Equipment
Application for Exemption of Improvements Benefiting Fish and Wildlife Habitat, Water Quality, or Water Quantity
Destroyed Personal Property Claim for Reduction of Assessments
Heavy Equipment Rental Exemption
Qualified Renewable Energy Property Tax Exemption Application

Resources

• Personal Property Tax Guide
• RCW 84.04.080
• Video overview of personal property tax