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Both are issues. In most states the property tax applies to all physical assets of the business. So they have to pay taxes on all their furniture, manufacturing

Both are issues. In most states the property tax applies to all physical assets of the business. So they have to pay taxes on all their furniture, manufacturing equipment, computers, and yes any inventory they have sitting around.

throwaway2048 6y ago
Property taxes are a rounding error compared to the value of even a small warehouse full of modestly priced consumer goods, talking far less than 1%, especially in industrial areas. It might be a factor in very low priced bulk goods like gravel or something, but I would be shocked even then.
jamiek88 6y ago
Never heard of this is any US state or country I’ve worked in and that’s many. Can you supply an example ?
- eloff 6y ago
  I haven't heard of it either, and it seems like it shouldn't be that way because individuals aren't taxed that way. But I'm no expert.
- evancox100 6y ago
  "As shown in the map, nine states (Arkansas, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, Texas, Virginia, and West Virginia) fully tax business inventory, with five additional states (Alaska, Georgia, Massachusetts, Michigan, and Vermont) levying partial taxes on business inventory." https://taxfoundation.org/state-business-inventory-tax-2021/ https://taxfoundation.org/state-business-inventory-tax-2021/
  - eloff 6y ago
    Wow, that's insane. For a supposedly business friendly place a lot of US regulations (and this tax!) are seriously bad for business.