Inventory Tax
Treatment: Broadly exempt
Assessment & Filing
Assessment date: Locally determined
Real property is assessed by the county assessment office in counties covered by the Consolidated County Assessment Law (53 Pa.C.S. §§ 8801(b), 8842(a)). The statutes cited here do not set a single statewide assessment date; confirm timing with the county assessment office.
The Pennsylvania Department of Community and Economic Development's Taxation Manual (2022) states: "Tangible personal property, including business inventories is not taxed in Pennsylvania." Under 53 Pa.C.S. § 8811(b)(1), "machinery, tools, appliances and other equipment contained in any mill, mine, manufactory or industrial establishment shall not be considered or included as a part of the real estate in determining the value for taxation of the mill, mine, manufactory or industrial establishment." Land and buildings permanently attached to land are taxable real estate under § 8811(a)(1).
Additional Exemptions
Business Inventory Exclusion from Real Property Tax Base
According to the Pennsylvania Department of Community and Economic Development's Taxation Manual (2022), "Tangible personal property, including business inventories is not taxed in Pennsylvania." Under 53 Pa.C.S. § 8811(b)(1), machinery, tools, appliances and other equipment contained in a mill, mine, manufactory or industrial establishment are not included in valuing that establishment's real estate for taxation. Buildings and land remain taxable real estate under § 8811(a)(1).
Sources: https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/53/00.088.011.000..HTM. https://dced.pa.gov/download/taxation-manual/?filename=1670273056wpdm_TaxationManual_2022.pdf&ind=1670273056755&refresh=6ac0272d8b4f91790977837&wpdmdl=56385
Frequently Asked Questions
Is business inventory taxed in Pennsylvania?
No. According to the Pennsylvania Department of Community and Economic Development's Taxation Manual (2022), "tangible personal property, including business inventories is not taxed in Pennsylvania." Land and buildings are taxed locally as real estate (53 Pa.C.S. § 8811(a)(1)).
When is the Pennsylvania property tax assessment date?
Real property is assessed by the county assessment office in counties covered by the Consolidated County Assessment Law (53 Pa.C.S. §§ 8801(b), 8842(a)). The statutes cited here do not set a single statewide assessment date; confirm timing with the county assessment office.
What warehouse-related property is taxed in Pennsylvania?
Land and buildings permanently attached to land are taxed locally as real estate (53 Pa.C.S. § 8811(a)(1)). Business inventories are not taxed (DCED Taxation Manual, 2022), and under § 8811(b)(1) machinery, tools, appliances and other equipment contained in a mill, mine, manufactory or industrial establishment are not included in the real estate valuation of that establishment.
Primary Source
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This page is general information, not tax or legal advice. State tax laws and local rates change. Confirm current positions with the state revenue department, county assessor, and qualified advisors before committing to a location.