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State
California
Year
2016
Is Personal Property Taxed
Yes, but see explanation
Are Motor Vehicles Taxed
No, but see footnote
Is Inventory Taxed
No, but see footnote
Are Machinery and Equipment Taxed
Yes, but see footnote
How are Mobile Homes Taxed
Mobile home characteristics determine tax status
Mobile Home Characteristics
A manufactured home, mobile home, or commercial coach that may be installed on a foundation system is taxed as real property. Otherwise, a manufactured home, mobile home, or commercial coach is taxed as personal property.
Mobile Home Definition
A manufactured home or a mobile home is a structure that was constructed on or after 15 June 1976, is transportable in one or more sections, is 8 body feet or more in width, or 40 body feet or more in length, in the traveling mode, or, when erected on site, is 320 or more square feet, is built on a permanent chassis and designed to be used as a single-family dwelling with or without a foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein.
Record ID
CA001_PP16
Footnotes
Inventory that is owned or used rather than intended for sale or lease is taxable.
Cargo containers used in ocean commerce and historical aircraft are exempt. The first $50,000 of personal property that consists of hand tools owned and supplied by an employee that are required as a condition of that employee's employment is exempt from taxation.
California imposes a Vehicle License Fee (VLF) in lieu of assessing a property tax. The formula for VLF assessment established by the Legislature is based upon the purchase price of the vehicle or the value of the vehicle when acquired. The VLF decreases with each renewal for the first 11 years.
The following are exempt: intangible personal property, seed potatoes, fruit trees, nut trees, grapevines, and household goods.
Sources
Cal. Revenue and Taxation Code § 201; Cal. Revenue and Taxation Code § 212; Cal. Revenue and Taxation Code § 223; Cal. Revenue and Taxation Code § 224; Cal. Revenue and Taxation Code § 234 (in effect for 2016)
Cal. Revenue and Taxation Code § 219 (in effect for 2016)
Cal. Revenue and Taxation Code § 232; Cal. Revenue and Taxation Code § 241; Cal. Revenue and Taxation Code § 220.5 (in effect for 2016)
Cal. Revenue and Taxation Code § 5801; Cal. Health and Safety Code § 18007 ~ § 18008 (in effect for 2016)
Cal. Revenue and Taxation Code § 10751 (in effect for 2016)
To reference this webpage/table, please use the following citation:
Significant Features of the Property Tax. https://www.lincolninst.edu/taxable-personal-property/california-taxable-personal-property-california-2016 Lincoln Institute of Land Policy and George Washington Institute of Public Policy. (CALIFORNIA Taxable Personal Property; accessed: 12/15/2023 11:05:18 PM)
I've got a fair bit of expertise in the realm of taxation, particularly property tax laws and regulations, which includes a comprehensive understanding of California's taxation policies. I've delved into the intricate details of taxable personal property, motor vehicles, inventory, machinery, mobile homes, and more.
In California, the taxation of personal property isn't a straightforward affair. Let's break it down:
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Personal Property Tax: Yes, personal property is taxed, but there are exceptions. Inventory used or owned rather than intended for sale or lease is taxable, with exemptions for specific items like cargo containers used in ocean commerce and historical aircraft.
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Motor Vehicles Taxation: Interestingly, in California, motor vehicles aren't directly taxed as personal property. Instead, the state imposes a Vehicle License Fee (VLF) based on the vehicle's purchase price or value upon acquisition. This VLF decreases with each renewal for the first 11 years.
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Inventory Taxation: As mentioned earlier, inventory that's used or owned rather than intended for sale or lease is taxable, but there are exceptions for certain items.
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Machinery and Equipment Taxation: Machinery and equipment are subject to taxation, but exceptions exist based on specific footnotes in the tax code.
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Mobile Homes Taxation: The tax status of mobile homes in California depends on their characteristics. If a manufactured or mobile home meets certain criteria—like being constructed after June 15, 1976, being transportable, meeting size requirements, and having specific utility connections—it may be taxed as real property. Otherwise, it's taxed as personal property.
This nuanced approach to taxation involves several statutes under the California Revenue and Taxation Code. For instance, exemptions exist for certain personal property such as intangible personal property, seed potatoes, fruit trees, nut trees, grapevines, household goods, and the first $50,000 worth of specific hand tools supplied by an employee as a condition of employment.
The sources cited from the Lincoln Institute of Land Policy and George Washington Institute of Public Policy validate these tax laws and regulations in effect for 2016 in California. If you're looking to cite or refer to this information, these sources are reliable for understanding the nuances of California's taxable personal property.
