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Personal Property FAQs

ISSUE DATE (5/13/2009)
The following frequently asked questions (FAQ) are intended as a quick reference for the general public, taxpayers and assessors. They are not intended to provide definitive answers to particular personal property tax issues, which may be very taxpayer and fact specific.
1. Do cities and towns in Massachusetts assess a personal property tax?
2. What is considered personal property for local property tax purposes?
3. What personal property is subject to local taxation?
4. Which municipality has authority to assess the tax?
5. To whom is the tax assessed?
6. What are the reporting requirements for personal property in Massachusetts?
7. Who must report leased personal property?
8. Is there any penalty for failure to file a return, or in filing a late return?
9. What procedures exist for contesting a valuation or tax on personal property in Massachusetts?
10. What property is exempt from personal property tax?
11. What personal property tax exemptions apply generally to all taxpayers, regardless of the form of entity of the owner?
12. What exemptions apply specifically to individuals?
13. What exemptions apply to partnerships and other unincorporated entities?
14. What exemptions apply to corporations?
15. What is a business corporation?
16. What is machinery for personal property tax purposes in Massachusetts?
17. What is machinery used in the conduct of business?
18. What is manufacturing?
19. How does a corporation become classified as a manufacturer?
20. What exemptions apply to limited liability companies, partnerships, trusts and other unincorporated legal entities that are treated as corporations for federal income tax purposes?
21. What qualifying factors make a corporation a financial institution, insurance corporation or utility corporation, which are entitled to special personal property tax exemptions in Massachusetts?
22. How is personal property valued in Massachusetts?
23. Do cities and towns in Massachusetts use fixed depreciation schedules for valuing personal property?
24. What are the procedures and timelines for central valuation of telephone and telegraph company property?
25. What are the procedures and timelines for central valuation of pipeline company property?