The Personal Property Tax is governed by Massachusetts General Laws, Chapter 59. It is assessed annually on tangible, movable property not permanently affixed to real estate. This includes machinery, equipment, furniture, fixtures, and other business assets.
Taxable Personal Property
Taxable Personal Property
Personal property is assessed by the city or town in which it is situated on the assessment date (January 1 preceding the fiscal year). Taxable property generally includes:
- Business furniture, fixtures, and equipment
- Machinery used in the conduct of business
- Tools and implements used by professionals (e.g., medical or legal equipment)
- Merchandise, inventory, or work in progress
Exemptions: Certain items are exempt, including:
- Household furnishings at the owner’s domicile
- Tools of a trade under specified limits
- Boats and non-commercial aircraft
- Intangible property (stocks, bonds, cash)
- MassDOR: Personal Property Tax FAQ’s
Filing Requirements
All persons, partnerships, associations, trusts and corporations owning taxable personal property must file a Form of List (State Tax Form 2), annually by March 1st.
- Late filings may result in denial of abatement requests or assessment based on estimated values.
Assessment & Valuation
- Property is assessed at fair market value, based on replacement cost less depreciation.
- The assessment date is January 1 of the fiscal year.
- The local tax rate applied is the same as that for commercial or industrial real estate.
- Assessors may request additional documentation or property inspections to verify valuations.
Abatements & Appeals
Taxpayers may request an abatement if they believe:
- Property has been incorrectly valued
- Non-taxable property was included
Requirements
- File the abatement application with the Board of Assessors only on the 3rd quarter bill (typically January).
- Must be received no later than the bill due date
- Only the current fiscal year is eligible for abatement
- Failure to file a timely Form of List may bar abatement eligibility, except under narrow circumstances (M.G.L. c.59 §64).