Many states assess a personal property tax on certain items of personal property such as motor vehicles, boats, and aircraft. Business personal property taxes—taxes on tangible personal property items that are used to produce income—are often referred to as ad valorem taxes.
In Florida, there is no annual state-level personal property tax on items such as motor vehicles, boats, and aircraft. Instead, these items are subject to a one-time sales and use tax at the time of purchase or transfer of ownership. However, Florida does have an ad valorem tax system for real property (real estate), which is a local tax assessed by counties, cities, and special districts. Business personal property, which includes tangible personal property used in a business to generate income, is subject to ad valorem tax. Business owners must report their business personal property to their local county property appraiser annually for assessment. The tax rate varies by locality and is based on the assessed value of the property. Tax exemptions and incentives may be available for certain types of property or for businesses that meet specific criteria.
