Most states implement a tax on real property, but many states also implement a tax on business personal property, such as farm machinery, manufacturing equipment and aircraft. Personal property tax systems can be fraught with traps for the unwary, including whether the tax is self-reported, how the tax should be measured, and when the returns must be filed. Faegre Baker Daniels tax professionals are experienced in reducing our clients' personal property tax burdens at the state and local levels.
Nationwide, personal property may be eligible for hundreds of various exemptions, deductions and credits. Air and water pollution control systems, information technology equipment, and vehicles subject to excise tax are often exempt from property taxation. Certain depreciation schedules and obsolescence factors may apply. Depending on where the property is located, the taxpayer may be able to claim deductions for locating in a certified technology park, economic revitalization area, maritime opportunity district, enterprise zone or one of dozens of other development areas. Our tax attorneys regularly work with our clients to ensure that all exemptions, deductions and credits are correctly reported and claimed.
We have longstanding relationships with many local assessors, which allow us to structure favorable resolutions without having to resort to litigation. However, our attorneys have extensive litigation experience, and, when appropriate, we seek to resolve personal property tax disputes through administrative appeals and the courts.
In addition, when a client seeks an integrated solution to personal property tax reporting and analysis, we collaborate with our colleagues in the Equity Property Tax Group of Faegre Baker Daniels Consulting to provide a transaction structured to minimize current and future tax liability.