Personal Property Tax 101
The Carbon County Assessor is responsible for the equitable and fair assessment of all taxable properties in Utah County. Personal Property is valued based on schedules developed by the Utah State Tax Commission. All non-exempt tangible personal property is valued and assessed annually by the Personal Property Specialist of the Assessor's Office.
Utah Code in Title 59 requires the taxation of property for the funding of local government and Utah schools. Property tax is assessed on both real property and personal property. Generally, personal property used in business is subject to property taxes. Utah law requires business personal property to be reported to the county assessor where the property is located (has situs) on a tax form identified as a Personal Property Signed Statement. Registered motor vehicles and recreational vehicles are subject to Uniform Fees.
Personal Property is taxed based on its taxable value as of January 1st of each year. In order to value personal property, the Utah State Tax Commission provides a number of personal property classification categories, which are used by all county assessors in Utah.
Business Asset Personal Property Tax
Determining Business Personal Property Class:
Personal Property is valued using a classification system referred to as “Recommended Personal Property Valuation Schedules”. These schedules identify various types of personal property and provide a “percent good” of acquisition cost for commercial personal property. To determine property type or “class” refers to the Classification Guide. To determine personal property values refer to the Recommended Personal Property Valuation Schedules for each class of property. These valuation schedules provide a factor to be applied to acquisition cost (refer to the Definition of Acquisition Cost) and acquisition year to determine taxable value. Once taxable value is determined, the local taxing area rate is applied to calculate the tax.
Applying Valuation Schedule to Determine Taxable Value
Taxable value for business personal property classes subject to an ad valorem tax is calculated by applying the acquisition cost at the retail level of trade by the percent good factor of the year acquired.
Definition of Acquisition Cost
Cost of Acquisition must include all costs required to put an item into service. In addition to the cost of the item, include the following costs:
- Freight in, includes shipping costs, loading at origin, unloading at destination, crating, skidding, and other applicable costs of shipping.
- Installation, engineering, rigging, erection or assembly to include foundations, pilings, utility connections and any other costs related to installation.
- Excise and sales taxes.
- Any other costs related to putting personal property into service are to be included in acquisition cost.
Indirect costs such as debugging, licensing fees, permits, insurance or security are not included in acquisition cost. Registered motor vehicles, recreational vehicles and aircraft subject to statewide uniform fees. Registered Motor Vehicles and recreational vehicles taxed with two types of statewide uniform fees. Passenger vehicles, light duty trucks, off-highway recreational vehicles, street motorcycles, travel trailers, truck campers, personal watercraft, vessels under 31 feet in length and non-commercial trailers are subject to uniform fees based on vehicle age categories.
Heavy duty trucks, commercial trailers and vessels 31 feet in length and longer are subject to a value based statewide uniform fee of 1.5% of taxable value, motor homes are subject to a uniform fee of 1.25% of taxable value. The vehicle value is calculated by applying the percent good from the property class published in the Recommended Personal Property Schedules to the vehicle's “cost new”.
Taxable value for aircraft subject to the Aircraft Uniform Fee is the "average wholesale value” as listed in the fall edition of the Aircraft Bluebook Price Digest or valued by Class 23 for unlisted aircraft. The uniform fee is .4% (.004) of taxable value. Agricultural Aerial Applicators are subject to a uniform fee of .2% (.002).
Supplies on hand as of January 1st are to be valued and assessed at total cost including freight-in. Supplies on hand include: all office supplies, shipping supplies, maintenance supplies, replacement parts, lubricating substances, fuel, and consumable items not held for sale in the ordinary course of business.
Property Leased or Rented from Inventory
Property held for lease or rent or actually leased or rented from inventory on January 1st is subject to ad valorem tax. Refer to the appropriate recommended class schedule to determine taxable value. Entities engaged in a combination of direct sales, leases, rental or rent-to-own may exempt only inventory held for sale.
Transitory Personal Property
Transitory personal property includes property that is not in Utah on January 1st but is subject to a proportional assessment when it has been in the state for 90 consecutive days in a calendar year. Such property is subject to transitory personal property tax for the period it remains in Utah. (See Tax Commission Administrative Rule R884-24P-65).
Business Personal Property Taxes
Utah law requires business personal property to be reported to the county assessor where the property is located (has situs) on a tax form identified as a Personal Property Signed Statement.
White Form: (This is the affidavit form and it must be the actual form mailed from the Assessor's office). Please call the Assessor's office for a computer generated affidavit form if needed.
Schedule B & C
Blue Form: Personal Property Acquired/Disposed & Leased or Rented Equipment
Percent Good Table