Property that can be moved or touched is referred to as tangible personal property (TPP), and examples include commercial machinery, merchandise, furniture, and automobiles.
TPP taxes account for a small portion of all state and local tax revenues, but they are complicated, leading to high compliance costs, nonneutral, favoring some businesses over others, and distorting investment choices.
Many of the resources used by enterprises to expand and increase productivity, such as machinery and equipment, are burdened by TPP levies. TPP taxes deter new investment by raising the cost of ownership of these assets, which is detrimental to general economic growth. As of 2019, tangible personal property was taxable in 43 states.
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