TANGIBLE AND INTANGIBLE PROPERTY

TANGIBLE PROPERTY

Tangible personal property is physical property, usually movable, that has value and utility in and of itself (example: Trade tools, fixtures, office equipment, and inventory). In determining whether an item is real property or tangible personal property, the following aspects must be considered:

The manner in which the item is fixed or attached to the real estate.

The intention of the party who attached the item.

The purpose for which the premises are used.

Generally items remain personal property if they can be removed without damage to the real estate or to the item itself. Machinery bolted to the floor to prevent movement while in operation would remain personal property. If the machinery were built into the building in such a manner that its removal would produce considerable damage to the building, it would be part of the real estate.

Tangible Property subject to "full state and local rates" includes:

AIRCRAFT

AUTOMOBILES

WATER CRAFT

TRUCKS AND TRAILERS

PROFESSIONAL TRADE TOOLS AND BUSINESS FIXTURES

DRILLING, MINING, AND CONSTRUCTION EQUIPMENT

Tangible Property subject to "state rate only" includes:

MANUFACTURING MACHINERY

MANUFACTURES' INVENTORIES OF RAW MATERIALS AND GOODS IN PROCESS

FARM TRACTORS, OTHER FARM IMPLEMENTS AND FARM MACHINERY

LIVESTOCK

COMMERCIAL RADIO AND TELEVISION EQUIPMENT

Tangible Property subject to a "state rate with mixed local rates" includes:

TOBACCO IN STORAGE

UNMANUFACTURED AGRICULTURAL PRODUCTS

INTANGIBLE PROPERTY

Taxpayers must mail Intangible Property Tax Return, (Form 62A376), to your local PVA office.

All Residents of Kentucky must report their intangible property for taxation. The intangible Property Tax Return ( Form 62a376) must be filed with the Property Valuation Administrator (PVA) of the county of taxable status (or the Department of Property Valuation in Frankfort) each year between January 1 and May 15.

Any return not received or postmarked by May 15 will be omitted and subject to penalties and interest except for individuals only who have filed for a federal extension. The return must be filed on or before the extended due date.

A copy of the federal extension must be attached to the intangible return and forwarded to the Intangible Personal Property Section, Department of Property Valuation, Frankfort, Kentucky 40620, where they will be assessed without penalty but lose opportunity to pay locally during the discount period.

Please provide all identification information which is required at the top of the form. Failure to complete this part of the return properly, particularly with regard to Social Security number (or Federal I.D. number) and complete name, location and type of return information, could result in computer coding errors or miss-filing.

Intangible property consists of any property or investment which represents evidence of value or the right to value under law and custom.

Some types of intangible property to be listed for Advalorem property tax purposes include, but are not limited to the following:

Money Market Accounts

Bonds

Notes

Retail Repurchase Agreements

Accounts Receivable

Trusts

Enforceable Contracts Sale of Real Estate

Money in Hand

Money in Safe Deposit Boxes

Annuities

Interests in Estates

Loans to Stockholders

Commercial Paper

For more information or Tangible and Intangible property tax forms, please call or stop by the P.V.A. office.