What type of personal property would typically be exempt from assessment?

Intangible assets, such as patents, are generally considered exempt from property assessments because they do not possess a physical form. Assessment laws and regulations typically focus on tangible personal property, which can include physical items owned by a business. Intangible assets represent intellectual property or rights that provide value but are not classified as physical property.

This exemption is important for separating the valuation of physical assets from intellectual property, as the latter may have values that fluctuate based on market conditions and legal protections rather than traditional methods of valuation used for tangible assets. Therefore, recognizing intangible assets as exempt reflects the unique nature of such assets and the challenges involved in their valuation for tax purposes.

In contrast, inventory held for sale and business equipment may fall under assessment laws, while ground leases, being related to real property, do not pertain to personal property assessments specifically.