Personal Property Tax Services

Numerous states, including Wisconsin, impose personal property taxes (also called ad valorem taxes) on businesses. These taxes are based on returns prepared by the taxpayers themselves who list the asset costs and acquisition years. Those amounts are then subjected to an index (similar to a depreciation schedule).

The treatment of assets is different for property tax purposes than for book, income tax, and sales tax purposes. Therefore, proper classification is important to utilize the proper index or to claim any available exemptions.

A handful of states tax inventory but allow a “freeport” exemption for the percentage of inventory that will leave the jurisdiction during the year. A timely election must be filed to claim this election.

For businesses that do not self-report a value, the assessor will create a “doomage” assessment. These amounts are usually significantly higher than the actual amount that is due.

Property tax return amounts can be adjusted via an amended return or a discussion during the open book process. If no action is taken at that time to object to a Board of Review or Board of Assessor, a business generally cannot contest the amount when they receive their actual tax bill. Some states allow a claim for refund to be filed but generally the tax needs to be paid in full and there are specific filing deadlines.

For more information on personal property taxes or a free review of your filings, contact us or call (920) 450-1411.