Discussion and Possible Action Regarding Resolution 21-05-18 Rescinding the Personal Property Taxes for Prairie Grass Living LLC (PWC R513) Due to a Palpable Error [Riffle]
BACKGROUND:
The property owner sold the apartment complex in 2019 and therefore should not have been received to 2020 tax bill. The personal property that was taxed involved appliances. DOR guidance on appliances states:
Sales of Built-In Appliances
A "built-in" appliance is an appliance that is affixed to the real estate with the intention that it remain permanently with the building or home. An appliance that is direct-wired or connected to a natural gas line is not considered to be "built-in" solely because of this connection. Similarly, a refrigerator with an ice maker or water dispenser is not considered to be "built-in" solely because of its connection to the realty by a water line.
The tax treatment of the sale of a built-in appliance is dependent upon a number of factors:
- Is it a built-in appliance that is permanently affixed in a residential facility?
- Yes - Real property improvement
- No - Tangible personal property
Since the appliances were sold as part of the real estate transaction, I think it is clear that they were affixed to the real estate with the intention that it remain permanently with the building. Therefore their value should be part of the real estate.
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