What is Personal Property?
All property can be divided into two major categories–real property and personal property. Real property is generally immovable and includes land, buildings, and permanent structures. The chief characteristic of personal property is its mobility. Some examples of taxable personal property are: office furniture and equipment, computers, software, store equipment, manufacturing equipment, signs, and farm machinery.
In this state, personal property refers to assets used in conducting a business. The chief characteristic distinguishing personal property (RCW 84.04.080) from real property (RCW 84.04.090) is mobility. Washington State law requires that all non-exempt personal property be assessed for tax purposes (RCW 84.36.005). Taxable personal property includes (but is not limited to): office machinery and equipment as well as supplies and materials which are not held for sale or do not become an ingredient or component of an article being produced for sale. Furniture and fixtures in commercial use, leased equipment, certain leasehold improvements, lessee-owned improvements on public land and commercial vessels not subject to excise tax also are assessed and taxed as personal property. Additionally, agricultural machinery and equipment, manufacturers’, contractors’ and logging machinery and equipment also are assessable as personal property.
