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In Washington State, both real and personal property are assessed for property tax purposes. Personal property refers to assets used in conducting a business.
Assessed value is determined through annually revaluations based on market data, and physical inspections that take place at least once every six years. Tax rates apply to those assessed values.
Washington state does not have a personal or corporate income tax. However, people or businesses that engage in business in Washington are subject to business and occupation (B&O) and/or public utility tax. The business's gross receipts determine the amount of tax they are required to pay.
Personal property tax is due on most property used in conducting business. Personal property includes all assets and supplies used by the business. It does not include inventory held for sale.
The Washington State Constitution limits the annual rate of property taxes that may be imposed on an individual parcel of property to 1% of its true and fair value.
Personal property includes machinery, equipment, furniture, and supplies of businesses and farmers. It also includes any improvements made to land leased from the government (leasehold improvements).