What is the difference between real and tangible property taxes?

In Washington, real and tangible property taxes are two distinct forms of taxation. Real property taxes, also known as ad valorem taxes, are taxes levied on land and any permanent structures attached to it, such as a house or commercial building. Tangible personal property taxes, on the other hand, are taxes levied on items owned by individuals or businesses that are not permanently attached to the land, such as furniture, vehicles, and jewelry. Real property taxes in Washington are determined by assessing the appraised value of the property, which is based on fair market value. The owner of the property is then taxed a percentage of the appraised value. Tangible personal property taxes, however, are determined differently. These taxes are based on the size, type, and use of the item and are assessed by the county or city assessor. In Washington, both real and tangible property taxes must be paid annually. Property owners can take advantage of certain tax exemptions and deductions to help lower the amount they owe, but these vary depending on the type of property. For example, certain real estate may be eligible for a tax exemption if it is used for agricultural purposes. Additionally, tangible personal property taxes can be reduced by deducting the cost of any repairs or improvements made in the previous year. Both real and tangible property taxes are essential sources of revenue for the state of Washington. Understanding the differences between the two can help property owners save money on their taxes and ensure they are in compliance with state law.

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What is the difference between real and tangible property taxes?

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