Quick Facts about Personal Property
For more detailed answers, please refer to www.mass.gov/dor/local-officials/municipal-finance-law
Overview of Personal Property Tax
Chapter 59, Section 18 M.G.L. states that all tangible personal property must be taxed in the town where it is located on January 1st. This includes property owned by non-residents, except for ships and vessels.
Do Other Cities and Towns in Massachusetts Assess a Personal Property Tax?
Yes, they do. Each city's and town's board of assessors is responsible for assessing personal property taxes. This is required by Chapter 59 of the Massachusetts General Laws.
What is Considered Personal Property?
Personal property includes tangible items that are not firmly attached to land or buildings. These items are not designed to be part of real estate. Examples of personal property include:
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Merchandise
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Furnishings and effects
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Machinery and tools
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Animals
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Equipment
This property is taxable unless a specific exemption applies.
What Personal Property is Subject to Local Taxation?
All personal property in Massachusetts is subject to tax unless it is exempt by law. Property is considered situated in a city or town if it is present on January 1 and the owner intends for it to stay there.
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Property that moves frequently or is used temporarily is considered situated where the owner lives or has a principal place of business.
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Household furnishings at a primary residence are exempt from this tax. However, this exemption does not apply to items at a second home.
Where Does the Revenue from Personal Property Tax Go?
The revenue from personal property tax helps fund the City of Lynn’s general budget. This funding supports:
Which Municipality Has the Authority to Assess the Tax?
The community where the property is located on January 1 has the authority to assess the personal property tax. If the property does not have a specific location, the city or town where the owner lives or has a principal place of business can assess the tax.
To Whom is the Tax Assessed?
The tax is assessed to the property owner as of January 1 before the fiscal year. It may also be assessed to:
- Those who possess machinery or tangible personal property leased for profit
- The estate or executor of a deceased person
- One or more owners of jointly owned property
- The partnership name for partnership property
What Are the Reporting Requirements for Personal Property in Massachusetts?
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Owners of taxable personal property must file a return, known as the Form of List or State Tax Form 2. This must be done with the local board of assessors by March 1 prior to the fiscal year. The fiscal year runs from July 1 through June 30 of the following year. The return must list all taxable property in the community as of January 1 before the March 1 filing date.