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1. What is personal property?

Personal property is used in business operations. The chief characteristic distinguishing personal property from real property is mobility. Land and improvements are considered real property. Unless specifically exempted by law, all other property is taxable as personal property.

2. How often do I have to file a personal property asset listing?

Once a Personal Property Account is established, business owners will be provided asset listing information in late December. Asset listings should be reviewed, updated as necessary, and submitted by April 30th to avoid late filing penalties. Business owners are responsible for filing the Personal Property Listing every year. This is true even if the business owner does not receive the Personal Property Listing information. The penalty for failing to file a Personal Property Listing is 5% per month of the total assessed tax due the following year, up to a maximum penalty of 25%. (RCW 84.40.040, 84.40.130)

3. What happens if I do not pay my personal property taxes?

By law, a lien on personal property exists from the time the Assessor-Treasurer's office lists and values the property until the tax is paid. If the tax is not paid, the treasurer may place a tax lien on the property owner's real property. (RCW 84.56.070)

4. How am I taxed on my personal property?

Personal property is subject to the same levy rates as real property. Business property owners are required to file an annual listing of Personal Property used in the conduct of a business by April 30 each year. Personal Property listings must list all taxable property located in the county as of 12:00 noon on January 1 of that year. Business property owners are required to file a separate listing for each business location in Pierce County. This is because we must, by law, allocate assessed values to the taxing district in which the property is located. (RCW 84.40.040, 84.40.130)

5. Will I receive a personal property tax statement?

Property tax statements are mailed during February each year. If the amount of tax due is $50.00 or less, full payment is due by April 30. If the tax due is over $50.00, half of the amount may be paid by April 30 and the balance by October 31 without incurring a penalty for late payment.(RCW 84.56.070)

6. Why is there a late file penalty on my tax bill?

The Late File Penalty is assessed if the previous year's Personal Property Asset Listing was filed after the April 30th due date or not filed at all. The penalty is calculated at 5% of the tax amount due for each additional month, or fraction thereof, that the Personal Property Asset Listing was received after April 30th to a maximum of 25%. (RCW 84.40.130)

Example: 2005 Listing received in August (4 months late)
2006 Tax Amount Due: $1,000.00
Late File Penalty: 20%
2006 Total Amount Due: $1,200.00