Property tax on camera gear

[Fingertip]

I am curious how many people have to pay property taxes on your gear. I am not talking about sales tax or income tax, I am referring to tax you pay every year on equipment you use.
They started charging me this last year and I was quite miffed at having to pay taxes on stuff that I bought locally and had already paid sales tax on. When I complained to the state, they said each town could make up whatever rules they want in regards to property taxes.
Is this going on everywhere or am I just unlucky?

[dkspook]

Come to Denmark!

Bad food, worse weather and the worlds highest taxes:
http://jp.dk/uknews/business/article1292920.ece

[Fingertip]

Come to think of it, I can't remember the last time I saw a restaraunt with a sign out front that said "Fine Danish Dining":)

[Triptoph]

That seems entirely unfair. How do they decide what gear is taxed and what isn't? and how do they know what you have?

[Fingertip]

Everything is taxed. I have to document every piece of gear I own and how much I paid for it. Failure to provide the list will result in the town arbitrarily making up a figure to tax me on. The scary thing is that this is perfectly legal!

BTW, I am not just a nut who wants to avoid taxes. I was audited by the feds 2 years ago and (thanks to my wife!) was in 100% compliance. Every dime was accounted for.

[digirebelva]

Come down south...where the taxes arent so high...:D

[Patrick]

Are you paying these taxes because they're related to your business or are they trying to collect taxes on everything you own. Your not paying property taxes on your T.V., DVD player, etc. are you?

In WV we have to pay property taxes on vehicles for the purpose of getting tags to drive it on the road. If you only drive it on private property, you don't need tags and therefore don't have to pay the taxes.

Technically, if you have to pay for something every month or year, you don't really own it.
When taxes get out of hand it just drives business away which hurts the local economy more in the long run far greater than the benefit of the taxes collected.

[Tigershark]

I pay property taxes on all my camera equipment

[mgrover]

Fingertip, I'm from Maine as well and I haven't heard of this. What town are you in so I know not to move there.

[Fingertip]

Tigershark, thanks for replying, at least now I know I am not alone

Patrick, If they knew I was using my personal plasma TV at bridal shows, then yes I would be paying taxes on that too. Thier argument is that anything you use that contributes to income can be taxed.

Mgrover, I am in Hermon. I actually moved out of Bangor partly due to the higher taxes and thought a smaller town would be better.... HA. Out of the frying pan into the fire! I do know people who have other types of businesses with storefronts who get approached with this type of tax, but I am a hobbyist working out of my house. I was told that they just happen to see my business in the phone book and decided to tax me.

[Tigershark]

In my state you pay it at the County level. Everybody wants a piece of the pie

[mgrover]

Mgrover, I am in Hermon. I actually moved out of Bangor partly due to the higher taxes and thought a smaller town would be better.... HA. Out of the frying pan into the fire! I do know people who have other types of businesses with storefronts who get approached with this type of tax, but I am a hobbyist working out of my house. I was told that they just happen to see my business in the phone book and decided to tax me.

Gee, wasn't that nice of the townsfolk! I have some friends who also live in Hermon who run a business out of their home. I'll have to check with them to see if they are as lucky as you are :rolleyes:. BTW, I'm in Biddeford.

[digirebelva]

I pay property taxes on all my camera equipment

That simply sucks bigtime:cry:

[hawkeye60]

I'm no tax expert but, you should also be allowed to depreciate the equipment every year.

[FlyingPhotog]

Maine didn't get the memo that the Soviet Union collapsed...

http://www.aopa.org/whatsnew/newsitems/2007/070608me.html

[HammerCope]

In Nebraska you do I think it's at the state level. Or is it the local. I'm not sure I know you do pay extra tax on your equipment every year.

[Tigershark]

All the states I have lived in works the same way as owning a house or a car, you fill out a form for assets, file it and then you receive a bill from the county that includes, both State, and County taxes, just like your car depreciates so does your camera equipment. It does suck but it is part of having a business.

[Fingertip]

Yes, tiger, that is exactly what I am dealing with.
The thing that gets me is the random aspect of it. I was in business for 10 years before I even heard of something like this, and I doubt all of my competition is paying this tax.
Most people understand when you buy a car or a house that you will have to pay taxes on it each year. But I don't think too many people plan on paying taxes on your computer and cameras every year.
For someone who is in this mostly for the fun of it, this is just plain ridiculous!

[Blue S2]

Incorporate in a state has no yearly property tax on business equipment! No one says you need to have your company based out of the state you work in!

[Patrick]

Incorporate in a state has no yearly property tax on business equipment! No one says you need to have your company based out of the state you work in!

Good idea. You'll probably need an address in the other state though.
As mentioned before, your gear depreciates over time so your tax liability should be less every subsequent year.

[bwolford]

Come down south...where the taxes arent so high...:D

NO NO NO. Stay home!

[Blue S2]

Also, look into Section 179 deductions. You will be able to fully expense your equipment the first year if you fall into its set of rules. This is good if you are actually making an income. Then the only depreciation you will be reporting is for state property taxes which is much easier to deal with.

[BscPhoto]

I'm no tax expert but, you should also be allowed to depreciate the equipment every year.
Most people take the complete write off the year they bought the equipment not depreciate it.

[digirebelva]

NO NO NO. Stay home!

Yes I know, too many of them down here already;)

Thought about that after i wrote it:D