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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
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Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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What is the property tax on inventory by U.S. state?

Resolved Question:

In many U.S. states, businesses pay tax on inventory held in their warehouse. States (and possibly counties) change different rates. I am looking for the rates charged by each state to enable the high-level comparison of one state versus another.

If the rates vary substantially by county within a state, then county-specific rates would be preferred.

Submitted: 7 years ago.
Category: Tax
Expert:  Ed Johnson replied 7 years ago.

What tax are you speaking about? What kind of inventory.

Many states have a floor tax that is a sales tax, other have a property tax. What tax are you speaking of?

Customer: replied 7 years ago.

I believe it's considered Property Tax - on the goods that are held in inventory at a warehouse. I'm not familiar with "Floor Tax". The products in question here would be any type of products - typically finished goods.

Expert:  Ed Johnson replied 7 years ago.

There are 15 states that tax inventory. When do you need this? Is this a school project?

Customer: replied 7 years ago.

I need it as quickly as possible, and should probably pursue other channels.

Expert:  Ed Johnson replied 7 years ago.

I am giving it a shot.

I have found that at least 3 states of the original 15 are no longer assessing inventory tax, so the list grows shorter.

Here is the final list. As you will see, many states are discovering that the inventory property tax is a dis insensitive to business and are phasing it out.

* 1. Georgia: http://web.georgia.org/net/location/county.aspx?countyid=13039&s=0.0.5.3013 Note: Georgia has a free port exemption that can by the local government. Inventory tax rates are at the same rate as personal property.
* 2. Indiana: Eliminated inventory tax for 2007 based on 2006 inventory assessment.
* 3. Kentucky: http://revenue.ky.gov/NR/rdonlyres/97A66498-C8C9-4565-8599-512FFFC158BA/0/2006TaxRateBook5207.pdf
* 4. Louisiana: Provides a 100% tax credit for ad volerum taxes paid to local venues. http://www.revenue.louisiana.gov/mis/wthcalculator/calchelp2.htm Louisiana does not make its local government tax rates publically available on the net. You have to contact 64 individual parishes or contact the Louisiana Department of revenue in order to get a consolidated list.
* 5. Maryland: Maryland uses property tax rates listed here: http://www.dat.state.md.us/sdatweb/taxrate.html http://business.marylandtaxes.com/taxinfo/property/default.asp
* 6. Massachusetts: http://www.celebrateboston.com/statistics/taxes/taxratesbypersonalproperty.htm AND http://www.mass.gov/Ador/docs/dls/TaxRates/taxrate.pdf NOTE: Business inventory is exempt from local tax and is only taxed at state level at this writing.
* 7. Mississippi: Mississippi offers exemptions to industry and businesses for ad volerum taxes on all but inventory. http://www.mstc.state.ms.us/taxareas/property/advalor.htm Use these rules: http://www.mstc.state.ms.us/NewRules/Part%20VI%20property.pdf the following ad volerum mil rates requires a sign in: http://www.mstc.state.ms.us/taxareas/property/MILLAGE2006-2007.xls
* 8. Ohio: Ohio is phasing out inventory tax for tax year 2008. http://www.odod.state.oh.us/taxreform.htm also: http://tax.ohio.gov/divisions/tax_analysis/tax_data_series/publications_tds_property.stm AND http://tax.ohio.gov/divisions/personal_property/index.stm
* 9. Oklahoma: Oklahoma is offering a 5 year ad volerum tax exemption beginning in 2008. http://www.okcommerce.gov/index.php?option=content&task=view&id=267&Itemid=336 to access a by county list of ad volarem rates contact: Ad Valorem Division at 405 - 521 - 3178 at this writing the ad volarem rates are not available on line. There is also a free port exemption allowed at the local level.
* 10. Rhode Island: Rhode Island is in the process of phasing out so called inventory taxes by offering rebates and exclusions. However the basis rates currently are: http://www.riliving.com/TaxRates.asp
* 11. Texas: http://businesspropertytax.com/inventory-valuation.html Texas also has a free port exemption allowed at the local level. http://www.window.state.tx.us/taxinfo/taxforms/02-forms.html If you give me your email address, I will email you the Texas 2006 rates. It is not available on line. But, I called the Texas Property Tax division to get the list and they emailed it to me. It is by county and municipality.
* 12. Vermont: Inventory tax was eliminated: http://www.town.st-johnsbury.vt.us/vertical/Sites/%7B41A61D81-74CB-4322-9850-74E201907B8B%7D/uploads/%7BB949AF30-F13E-48A2-9F1A-FD3B8B812F16%7D.PDF
* 13. West Virginia: http://www.leg.wa.gov/documents/Senate/SCS/WM/SwmWebsite/Publications/2007/PropTaxGuide2007.pdf AND http://www.state.wv.us/taxrev/taxdoc/tsd387.pdf West Virginia appraises at 60% then taxes at the local government rate. You can access the rates for local government through the following sites:
a. Municipal: http://www.wvsao.gov/lg/levyestimates/AL_07-08.aspb. County: http://www.wvsao.gov/lg/cgbp.aspc. Levy estimates include the rates: http://www.wvsao.gov/lg/levyestimates/levyestimates.aspd. Levy rates reports, perhaps the most valuable link: http://www.wvsao.gov/lg/reports.asp

Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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