Unsecured property tax refers to a type of tax imposed on assets owned by individuals or businesses that are not attached to real estate. Unlike secured property tax which is levied on land, buildings, or other real property, unsecured property tax is assessed on movable assets such as personal property, equipment, machinery, or leased assets.
Unsecured property tax is typically based on the assessed value of the asset and is calculated by multiplying the tax rate by the assessed value. This tax may be imposed annually or on a periodic basis, depending on local tax regulations.
The term "unsecured" implies that the property is not physically secured against non-payment. In case of non-payment of unsecured property taxes, the taxing authority generally has the power to pursue legal actions to collect the tax debt, such as placing liens on the assets, conducting asset seizures, or seeking other forms of recourse outlined by local laws.
Common examples of items subject to unsecured property tax include vehicles, boats, aircraft, collectibles, business inventory, and certain personal belongings. The revenue generated from unsecured property taxes contributes to funding local government services such as education, infrastructure development, public safety, and community programs.
Individuals and businesses are usually notified of the liability for unsecured property taxes by the taxing authority and provided with instructions on how and when to pay. Failure to comply with tax obligations regarding unsecured property may result in penalties, interest charges, or legal consequences.
