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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
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