Question

Which of the following is excluded from personal property tax?

custom software

off-the-shelf software

leasehold improvements

vehicles used for off-road purposes

When assessing personal property all factors listed below are considered except:

the original cost

The age of the asset

whether the asset has been sold

the current market value

A company can appeal a property valuation by doing all of the following except:

appeal to the Board of Equalization

contacting the assessor and telling him to change the valuation.

provide market evidence of property value

File a petition Companies are required to keep records that include _______. Asset name Asset type Asset cost all of the above

Answer 1

1. All those items which may be classified as tangible property are subject to personal property tax whereas software by nature is not considered as tangible and hence they intangible property. However, certain court ruling took the view that inventory of off the shelf software is possible and hence they can be considered as tangible property. However, the same is not possible with custom software and hence, they are intangible item and are not subject to personal property tax.

Thus, the correct answer is (a). Custom software is excluded from personal property tax.

2. While assessing the personal property tax, sometime orignal cost is used, sometime current market value of the assetis used, and we also take into consideration age of the asset, thus what not to be considered is whether asset has been sold.

Thus, the correct answer is (c), while assessing personal property, whether asset has been sold is not to be considered.

3. Contacting the assessor and telling him to change the valuation is not the formal way to appeal a property valuation.

Thus, the correct answer is (b).

4. Comapnies are required to keep records confirming asset type, its cost, etc.

So the correct answer is (d). companies are required to keep records relating to asset name, asset type and asset cost for filing a petition.