where is tangible personal property not taxed 
seven states exempt all tangible personal property from taxation they are moreover other states exempt most tangible personal property from taxation they include resistance against a tangible personal property tax appears to be growing according to multistate a state and local government relations company 23 states sought to reduce or eliminate taxes on tangible personal property 10the tax has been described as complex costly to administer and guilty of pushing businesses to set up shop in other states with friendlier rates 2tangible personal property and depreciationtangible personal property is typically depreciated over its useful life the irs provides guidelines for different classes of property under the modified accelerated cost recovery system macrs this system outlines specific depreciation methods and recovery periods depending on the type of asset 11the most commonly used depreciation methods under macrs are the general depreciation system gds and the alternative depreciation system ads gds usually provides faster depreciation through methods like the double declining balance while ads offers a longer recovery period with a straight line method often used for tax exempt and foreign use property section 179 of the irs code allows businesses to expense the full purchase price of qualifying tangible personal property in the year it is placed in service rather than capitalizing and depreciating it over time for tax year 2023 the maximum deduction limit is 1 160 000 with a phase out threshold of 2 890 000 this provision is designed to encourage businesses to invest in new equipment by providing immediate tax relief to qualify for section 179 expensing the property must be tangible personal property acquired for use in a trade or business newly purchased not acquired from a related party or through a gift or inheritance and placed in service during the tax year bonus depreciation allows businesses to deduct a significant percentage of the cost of qualifying property in the year it is placed in service as of the tax cuts and jobs act of 2017 businesses can take 100 bonus depreciation on new and used tangible personal property acquired and placed in service after september 27 2017 and before january 1 2023 note that this provision phases down by 20 each year starting in 2023 with no bonus depreciation available after 2026 unless congress extends it 12