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1 Jared Walczak, Personal Property De Minimis Exemptions Slash Compliance Burdens at Trivial Cost 1 (2023)

handle is hein.taxfoundation/plpydms0001 and id is 1 raw text is: *TTAX FOUNDATION Personal Property De Minimis Exemptions Slash Compliance Burdens at Trivial Cost Jared Walczak Vice President of State Projects December 2023 Key Findings • Most states tax business personal property (machinery, equipment, fixtures, electronics, etc.), but of the 36 states that tax it, 10 states and the District of Columbia provide an exemption for small busi- nesses with little tangible personal property. • The vast majority of personal property tax revenue comes from a very small number of large business- es and utilities. • Complying with personal property taxes is onerous, as it requires documenting all assets-all the way down to cleaning supplies for the office kitchen-along with their acquisition price, acquisition date, and depreciation. • Creating a threshold under which there is no liability or reporting requirement eliminates these compli- ance burdens for the overwhelming majority of businesses at a trivial cost to the government. The Tax Foundation is the world's leading nonpartisan tax policy 501 (c)(3) nonprofit. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. TAX FOUNDATION 1325 G STREET, NW, SUITE 950, WASHINGTON, DC 20005 202-464-6200 1 taxfoundation.org