Personal property is broken down into two subclasses for appraisal purposes: tangible personal property and intangible personal property.

Tangible personal property is physical property, usually movable, that has value and utility in and of itself (examples: trade tools, fixtures, office equipment, inventory).  In determining whether an item is real property or tangible personal property, the following aspects must be considered:

• The manner in which the item is fixed or attached to the real estate.
• The intention of the party who attached the item.
• The purpose for which the premises are used.
• Crops grown in the year which the assessment is made and in the hands of the producer.
• Tangible personal property owned by institutions exempted under Section 170 of the Kentucky Constitution.

All individuals and business entities who own, lease or have a beneficial interest in taxable, tangible property located within Kentucky on January 1 must file a tangible property tax return. All tangible property is taxable, except the following:

• Personal household goods used in the home.
• Crops grown in the year which the assessment is made and in the hands of the producer.
• Tangible personal property owned by institutions exempted under Section 170 of the Kentucky Constitution.

The taxable situs of tangible personal property in Kentucky are the counties where the property is physically located.