Cream of the Crop 1/Cream of the Crop 1.iso/BUSINESS/SBA62.ARJ/FSBA.EXE/F266.SBE

Text File | 1992-04-30 | 6KB | 144 lines

@053 CHAP 11

                     ┌───────────────────────────┐
                     │       PROPERTY TAXES      │
                     └───────────────────────────┘

             "There will be no nuclear war.  There's too much
              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 (although many that
do exempt business inventories), and some even have taxes on intangible
personal property, such as stocks, bonds, notes, patent rights, etc.
@CODE: HI
Unlike many states, Hawaii does not impose any tax on business personal
property.

All real property 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 government 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 ownership, since, under the Proposition 13
limits on real property 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, con-
trols 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, depending 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: SD

@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, manu-
facturing machinery and equipment and manufacturing inventories are
generally exempt from the property tax.
@CODE:OF
@CODE: AL AR CO CT FL ID ME MI MO MT NB NM NV OR SC UT WA WY
While business personal property in @STATE is mostly subject to
property tax, business inventories are generally exempted from the tax.
@CODE:OF
@CODE: MO
(Except for raw materials inventories, which are not exempt.)
@CODE:OF
@CODE: GA LA MA MD NC OH
Personal property is subject to the property tax in @STATE, and,
unlike many states, @STATE has no exemption for inventories.
@CODE:OF
@CODE: LS
There is no personal property 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 generally 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 intangible
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, effective April 1, 1990.  The 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
There is no property tax on personal property in @STATE.
@CODE:OF
@CODE: NY

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

There is no property tax on intangibles in @STATE.
@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