What it is:
Personal property is a class of property that can be moved from one location to another.
How it works (Example):
Generally, real property is a class of property that cannot be moved. It includes land and buildings, for example. Personal property typically includes furniture, fixtures, tools, vehicles, and machinery and equipment. All of these items can be moved.
Why it Matters:
Many states impose a personal property tax on individual and business personal property. These personal property taxes are particularly important to consider, especially when comparing state corporate tax rates. Some states offset their low corporate tax rates and even low real estate tax rates with higher personal property taxes. As a result, it is important to consider the whole tax bill when evaluating state tax rates.