Businesses/Personal Property

Most business owners are aware that the building and land owned by a business is subject to a real estate tax. Business owners may not be aware they are also subject to a local personal property tax.

Personal property is composed of goods, merchandise, equipment, tools, machinery, furniture, furnishings and effects and other movable property. The municipality where the property is located on January 1 has the authority to assess the tax. Property is located in a particular municipality if it is physically located in the community on January 1 and is intended to remain there. Property intended to be moved from location to location is deemed located where the owner lives or has a principal place of business.

Example: The equipment of a construction company that is moved from site to site is located in the municipality where the company is headquartered.

The tax is an assessment on the ownership of property and the owner’s tax liability is measured by the value of that property. In the case of a partnership, all of the partners are liable for the whole tax.

For businesses owned by individuals and partnerships, all equipment, machinery, stock in trade, furniture and fixtures is taxable at the local level.

For businesses owned by a corporation, machinery (not stock in trade), poles, wires and underground conduits are taxable at the local level. Corporations are partially exempt from local taxation on much of their personal property, but the exempted property is taxed at the state level as part of the corporate excise. The coordination of the complementary provisions avoids double taxation of these assets.

A “Form of List� should be filed annually with the Assessors Office. The list includes owner information and how the business files its federal tax return (i.e. individual, partnership, limited liability corporation, corporation). Also required is a description, purchase price, and year of purchase of all equipment, machinery, furniture and fixtures and inventory. The “Form of List� is confidential and not public information

Information or questions about personal property should be directed to the Board of Assessors, 1 Avenue A, Turners Falls, MA 01376.
Telephone – 413-863-3200 Ext. 204
Fax – 413-863-3228
Email – assessorclerk@montague.net

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