Personal Property Tax
Forms and Links
- Form of List (FOL) - Businesses (Fillable PDF)
- Form of List (FOL) - Mobile Telecommunications (Fillable PDF)
- Religious and Charitable (Fillable PDF)
What is personal property?
Personal property is “tangible” property. That means the property physically exists. Personal property is assets, goods and material objects used in the conduct of a business and is assessed separately from real estate.
The assessment date is January 1 of each year. Any business that existed on that date is subject to personal property tax and will be billed for the entire fiscal year. This applies to businesses that have closed or relocated after the assessment date. Personal property tax is not prorated per Massachusetts General Law.
The assessment date is January 1 of each year. Any business that existed on that date is subject to personal property tax and will be billed for the entire fiscal year. This applies to businesses that have closed or relocated after the assessment date. Personal property tax is not prorated per Massachusetts General Law.
Who must file a return?
All proprietors, partnerships, associations, trusts and corporations must file a Form of List declaring items as personal property as of January 1 each calendar year. This is a state requirement.
Where and when must my return be filed?
The Form of List is to be filed with the local Board of Assessors each year before March 1 to determine its fair market value. If property has no permanent location (e.g. construction equipment), it must be listed with the assessors in the city or town where you are domiciled (legal place of residence).
What personal property is taxable?
The following summarizes personal property that must be listed on a Form of List:
(The type of business determines which assets will be taxed locally).
Individuals (Sole Proprietorship & Partnerships)
- Business furniture and furnishings, i.e. desks, tables, chairs, file cabinets, accessories, etc.
- Business machinery and equipment, i.e. computers, monitors, printers, fax machines, copiers, compressors, power tools, landscaping equipment, ovens, food processing equipment and machinery, examination tables, x-ray equipment, etc.
- Business inventory, the dollar amount of “stock in trade” that the business carries on January 1. This inventory amount is usually included on the federal income tax form.
Business Corporations
To be considered a corporation the business must be included in the Massachusetts Domestic and Foreign Corporations Book compiled by the Massachusetts Department of Revenue.
Business corporations are taxable on poles, underground conduits, wires and pipes.
They are also taxable on all machinery used in the conduct of business except:
They are also taxable on all machinery used in the conduct of business except:
- Machines that are stock in trade. Example: Inventory for sale or lease such as copy machines from a copy machine distributor would be considered exempt.
- Machines used directly in the dry cleaning or laundering process. Example: A dry cleaning machine owned by a dry cleaner would not be taxable because it is directly involved in the cleaning process.
- Refrigeration and air conditioning equipment used by an incorporated business would not be taxable.
Machinery used directly in the purchasing, selling, accounting or administrative function of the business. Example: Vending machines or point of sale equipment is not taxable. A computer used by a bookkeeper or accounting department of a corporation for payroll would be exempt, however a computer used to do a client’s taxes would be taxable.
Note: Machinery used to provide a service or produce a product for sale or to generate income is taxable. Example: A computer and printer used by a real estate company to generate and distribute information to a prospective client would be taxable.
Manufacturing Corporations/Public Utilities
- Businesses that are classified by the Department of Revenue as “Manufacturing Corporations” and are listed as such in the Massachusetts Domestic and Foreign Corporation Book are not subject to personal property taxes. Link to Massachusetts Domestic and Foreign Corporations Book
The Department of Revenue determines values on poles, underground conduits, wires and pipes for certain landline telecommunications carriers and for gas pipelines.
Appealing Personal Property Tax
Property owners who feel that their personal property is overvalued or exempt may file for abatement. Please note that if no Form of List was filed for the fiscal year, the assessor cannot grant abatement for overvaluation of personal property for the year. A Form of List is not considered filed unless it is complete.
Abatement applications for personal property may be obtained only after the Third Quarter tax bill has been mailed, typically at the end of December. This application must be filed with the Board of Assessors by the due date of the Third Quarter tax bill (typically February 1). Information regarding appeals is also mailed with the Third Quarter bill.
Abatement applications for personal property may be obtained only after the Third Quarter tax bill has been mailed, typically at the end of December. This application must be filed with the Board of Assessors by the due date of the Third Quarter tax bill (typically February 1). Information regarding appeals is also mailed with the Third Quarter bill.