Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-16 - Property tax Exemptions › Section 458-16-115 - Personal property exemptions for household goods, furnishings, and personal effects, and for the head of a family

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This section explains the personal property tax
			 exemption for household goods, furnishings, and personal effects. It also
			 explains the exemption available to the head of a family for otherwise taxable
			 personal property up to a value of fifteen thousand dollars. These exemptions
			 are provided by
			 RCW
			 84.36.110. (For sections dealing with
			 exemptions of intangible personal property under
			 RCW
			 84.36.070,
see
WAC
			 458-50-150 through
			 458-50-190.)
(2)
Exemption for household goods,
			 furnishings, and personal effects.
All household goods and furnishings
			 actually being used to equip and outfit the owner's residence or place of abode
			 and all personal effects held by any person for his or her exclusive use and
			 benefit are exempt from property taxation. Any household goods and furnishings
			 or personal effects held for sale or commercial use do not qualify for this
			 exemption.
			 RCW
			 84.36.110(1).
(a)
What are household goods and
			 furnishings?
"Household goods and furnishings" are all items of tangible
			 personal property normally located in or about a residence and used or held to
			 enhance the value or enjoyment of the residence, including its premises. The
			 phrase includes, but is not limited to, movable items of necessity,
			 convenience, or decoration, such as furniture, appliances, food, pictures, and
			 tools and equipment used to maintain the residence. Personal property
			 qualifying for this exemption retains its exempt status while temporarily in
			 storage or while being used temporarily at locations other than the owner's
			 residence.
"Household goods and furnishings" do not include items of
				personal property constructed primarily for use independent of and separate
				from a residence such as boats, motor vehicles, campers, and travel trailers.
				However, certain motor vehicles, campers, and travel trailers may be entitled
				to an exemption from property taxation under
				RCW
				84.36.595. Also, some boats may be wholly or
				partially exempt from property taxation under
				RCW
				84.36.080 and
				84.36.090.
(b)
What are personal effects?
"Personal effects" are items of tangible property of a personal or intimate
			 nature that usually and ordinarily accompany a person such as wearing apparel,
			 jewelry, and articles of a similar nature.
			 RCW
			 84.36.120.
(c)
When are household goods,
			 furnishings, and personal effects not exempt?
Personal property held for
			 sale or used for any business or commercial purpose does not qualify for the
			 household goods exemption. Thus, property used to equip and outfit a motel,
			 hotel, apartment, sorority, fraternity, boarding house, rented home, duplex, or
			 any other premises not used by the owner for his or her own personal residence
			 or place of abode does not qualify for this exemption. Likewise, a hairdresser
			 who uses any portion of his or her home as a beauty salon cannot claim a
			 household goods exemption for personal property held for sale or otherwise used
			 in the business. Business inventories, however, are exempt from property
			 taxation under
			 RCW
			 84.36.477.
Following is a nonexclusive list of items that are exempt as
				household goods or furnishings if they are used in a residence or place of
				abode but are fully taxable if they are used for business or commercial
				purposes.
(i) Desks are exempt as
			 household goods if they are used in a residence but are taxable if they are
			 used in a business office, including an office located in the owner's
			 residence.
(ii) Silverware and
			 china are exempt if they are used in a residence but are taxable if they are
			 used in a restaurant.
(iii) Art or
			 other collections are exempt if they are located in a residence but are taxable
			 if they are located in a public display or used for commercial
			 purposes.
(iv) Power equipment such
			 as lawnmowers used exclusively to enhance the value or enjoyment of a
			 residence, including its premises, are exempt, but they are taxable when used
			 to maintain a golf course or for any other business or commercial
			 purpose.