Quick Facts about Personal Property
For more detailed answers, please refer to www.mass.gov/dor/local-officials/municipal-finance-law
Chapter 59, Section 18 M.G.L. “All tangible personal property, including that of persons not inhabitants of the commonwealth, except ships and vessels, shall, unless exempted by section five, be taxed to the owner in the town where it is situated on January 1st.”
Do other cities and towns in Massachusetts assess a personal property tax?
Yes. The board of assessors in each city and town assesses personal property taxes on all personal property
subject to tax situated within their communities as required by Chapter 59 of the Massachusetts General Laws.
What is considered personal property for local property tax purposes?
Personal property generally includes tangible items not firmly attached to land or buildings and not specially
designed for or of such a size and bulk to be considered part of the real estate. This includes merchandise,
furnishings and effects, machinery, tools, animals, and equipment. Such personal property will be taxable unless
a specific exemption provision applies.
What personal property is subject to local taxation?
All personal property in the commonwealth is subject to tax unless specifically exempt by law. Property is
situated in a particular city or town in the commonwealth if it is present on January 1 with the owner's intention
that it remains with some degree of permanence. Property frequently moved from place to place or intended for
use temporarily at different places is considered situated where the owner is an inhabitant or has a principal
place of business (if the property is business personal property). A primary example of exempt property involves
household furnishings and effects. Household personal property at a person's domicile (primary residence) is
expressly exempt from personal property tax. This exemption does not apply to property located at a second
home.
Where does the revenue from personal property tax go?
Personal property revenue assists in funding the City of Lynn’s general budget to support funding Public Safety,
General Government, Department of Public Works, etc.
which municipality has the authority to assess the tax?
The community in which the property is situated on January 1 has the authority to assess the personal property
tax. If the property has established no particular situs, the city or town where the owner resides (or has a
principal place of business) can assess the tax.
To whom is the tax assessed?
The owner of the property, as of January 1 preceding the fiscal year, is the person assessed the tax. The tax
may also be assessed to those possessing machinery or tangible personal property leased for profit. The
personal property of a deceased person may be assessed to the estate or executor. Jointly owned property may
be assessed to one or more of the owners. Partnership property is assessed in the partnership name.
What are the reporting requirements for personal property in Massachusetts?
Generally, the owner of taxable personal property situated in any community must file a return, known as
the Form of List or State Tax Form 2, with the local board of assessors of that
community on or before March 1 before the fiscal year to which the tax
relates, listing the taxable property. The Fiscal year runs from July 1 through
June 30 of the following year. The return must provide a list of taxable
property in the community on January 1 before the March 1 filing date