Missouri residents may be familiar with the income tax they pay, but they may not know much about personal property tax. The state of Missouri collects personal property taxes, and understanding these taxes is important for anyone who owns property in the state. In this article, we'll explain the basics of Missouri's personal property tax and what you need to know in 2023.
What is Personal Property Tax?
Personal property tax is a tax that is collected on any type of property that is not real estate. This includes items such as cars, boats, furniture, jewelry, and other personal possessions. Each county in Missouri sets its own tax rate for personal property, so the amount of tax you owe may vary depending on where you live. The taxes are due each year on December 31st and must be paid by April 15th of the following year.
Who Pays Personal Property Tax?
In Missouri, all individuals who own personal property within the state are required to pay personal property taxes. This includes both residents and non-residents. If you own a car, boat, or other property in the state, you are responsible for paying the personal property taxes in the county where the property is located.
What is Exempt from Personal Property Tax?
Not all personal property is subject to tax in Missouri. Certain items, such as clothing, books, and household goods are exempt from personal property tax. Additionally, certain types of businesses may qualify for an exemption from personal property tax. For example, farmers may be eligible for an agricultural personal property tax exemption, and certain types of businesses may be eligible for an industrial exemption.
How is Personal Property Tax Calculated?
The amount of personal property tax you owe is based on the value of your personal property. The county assessor will determine the value of your property and then multiply it by the county's personal property tax rate. For example, if your property is valued at $10,000 and the county's personal property tax rate is 1%, you would owe $100 in personal property taxes.
How to Pay Personal Property Tax?
Personal property taxes can be paid online, by mail, or in-person. To pay online, you will need to create an account with your county's online payment system. To pay by mail, you will need to fill out the appropriate form and send it with your payment to the county collector. To pay in-person, you will need to bring your payment to the county collector's office. Be sure to include your account number on your payment so it can be applied to the correct account.
What Happens If I Don't Pay Personal Property Tax?
If you fail to pay your personal property taxes on time, you may incur penalties and interest. Additionally, if you fail to pay your taxes for three consecutive years, your property may be subject to seizure and sale. It is important to pay your property taxes on time to avoid any potential penalties.
Conclusion
Understanding personal property tax in Missouri is important for anyone who owns property in the state. Knowing what is exempt from personal property tax, how the tax is calculated, and how to pay the tax can help you avoid any potential penalties. By staying informed and up-to-date on the current personal property tax laws, you can make sure you are in compliance with the state's laws.
