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Personal Property Taxes
What is Personal Property?
Personal property pertains to commercial, industrial or agricultural enterprises, as well as mobile homes. Personal property's primary characteristic is "mobility." Examples include but are not limited to machinery, furniture, fixtures, and equipment.
Even though you may have paid sales tax on your equipment or pay Business & Operation tax to the state, that does not mean you are exempt from the Personal Property Tax.
For more information, links to forms and additional resources, visit the Island County Assessor's Personal Property web page.
If I Rent my Office/Space, Why do I Need to Pay Property Tax?
Personal Property has nothing to do with the real property you are occupying. It deals with the business equipment that is in your or your business' name.
How does Island County Know What Personal Property I Have?
Every business in Island County must complete a personal property listing by April 30 each year. This affidavit must be filed with the Island County Assessor's office. If no filing is provided, the Assessor's Office will make an estimation based on the type of business. This estimated value will be used until the business owner has provided an updated listing.
The taxes are based on assessment value as of Jan. 1 of the previous year. For example, the values included on a rendition as of Jan. 1 and filed in April 2022 will determine 2023's taxes.
Paying your Personal Property Tax:
First half taxes are due by April 30. If the total tax for the year is less than $50, the entire amount must be paid by April 30. If the total tax for the year is more than $50, half may be paid by April 30 and the second half will be due Oct. 31. If the April 30 payment is not made by the deadline, on May 1 the total amount of the tax is delinquent and the property becomes subject to distraint.
On May 1, an interest charge of 1% per month will be added to the account until payment is made. Interest is calculated on the entire amount due for the year (RCW 84.60.040). Also, by law, the Treasurer's Office will add a Distraint and Sale fee of $50 in June and $50 in December if the taxes are unpaid. After the first payment is missed we will begin the collection process of bringing your property or equipment to auction.
When paying any delinquent tax after the due date (calculation date), contact the Treasurer's office at 360-679-7302 for the correct amount due. Delinquent payments received that are not for the correct amount will be applied as partial payments subject to continuing late fees; if the property is subject to distraint and sale, the entire payment may be returned.
If taxes remain unpaid the Treasurer's office will take all steps necessary to collect this debt. This includes but is not limited to seizing business assets and selling them at a Sheriff's Auction. Any costs incurred in this process will be added to the total amount due to redeem the property.
Per RCW 84.56.090, when personal property is sold, dissipated, or liquidated, the County Treasurer is required to collect the following year's tax, which is paid in advance at the time of the sale.
if your business is open on Jan. 1, 2022, your 2023 property taxes are due and payable. The 2023 tax is based on the 2022 assessment.
Sale or transfer of the property does not affect the tax lien. Taxes follow the property, so taxes will not be removed for the new owner.
Contact the Assessor's Office at 360-678-7854 to inform them of a business that is closing or being sold.