Frequently Asked Questions
Personal Property
1.
What is personal property?
2. Who must pay this
tax?
3. What property is taxable?
4. What is a form of list?
5. Who must file a return?
6. When and where must my return be filed?
7. What is the return used for and who has access
to it?
8. Who is eligible for an abatement?
9. What property is exempt?
What is personal property?
Personal property is all tangible property other than real
property, including, but not limited to: business equipment,
office machinery, inventory, furniture, and fixtures not located
at the owner’s domicile on January1.
Who must pay this tax?
Individuals, partnerships, associations, trusts, limited liability
companies, Massachusetts business and out of state corporations,
limited liability companies filing federally as corporations,
mutual insurance holding companies, Massachusetts and out
of state manufacturing corporations and all other Massachusetts
corporations subject to taxation under G.L. Chapter 63.
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What property is taxable?
In general, all tangible personal property situated in Massachusetts
and all tangible personal property owned by Massachusetts
domiciliaries is taxable unless expressly exempt. There are
many exemptions, which are usually based on (1) ownership,
(2) type of property, or (3) use of property.
What is a form of list?
State Tax Form 2 is a form listing all personal property assets
of an organization for the current fiscal year. Filing a form
of list is required by statute. In the event that a taxpayer
does not file a list, the assessor will ascertain, as best
they can, the personal estate belonging to the taxpayer and
will estimate its value. The form of list is not open to public
inspection.
Who must file a return?
This form must be filed each year by individuals, partnerships,
associations, trusts and corporations that own or hold taxable
personal property on January 1, except telephone and telegraph
companies and owners of pipelines that are required to file
a personal property return with the Mass. Department of Revenue.
Literary, temperance, benevolent, charitable, or scientific
organizations that may be entitled to an exemption must file
State Tax Form 3 ABC listing all property they own or hold
for those purposes on January 1.
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When and where must
my return be filed?
Forms of return must be filed by March 1 with the Board of
Assessors in the city or town where the personal property
is situated on January 1.
What is the return used
for and who has access to it?
The information in the Form of List is used by the Board of
Assessors to determine the taxable or exempt status of your
personal property and, if taxable, its fair market value.
Forms of List or not available to the public for inspection
under the public records law.
Who is eligible for
an abatement?
Anyone who feels that their personal property is overvalued
or exempt may file an abatement. You must file an abatement
form at the Assessors Office between January 1 and February
1 of the current tax year. Only the current tax year is eligible
for abatement or exemption.
What property is exempt?
Tools employed by a plumber, carpenter, auto mechanic and
other trade professionals are exempt from the personal property
tax. In legal terms, this covers “tools of trade”
of a “mechanic” (e.g. tools that can fit in a
box). Boats, fishing gear and nets – up to $10,000 in
value – owned and used in a commercial fishing business
are exempt. Computers are also subject to personal property
tax, but in cases where they are utilized by a corporation
for internal purposes only, computers are not subject to taxation.
Tangible personal property subject to some other local tax
is also exempt from the personal property tax. Additionally,
intangible property (such as stocks, bonds, mortgages) is
exempt from the personal property tax.
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