This discussion summarizes the considerations a valuation analyst employs in the identification of intellectual property for ad valorem property tax purposes. It also identifies and describes the four types of intellectual property assets: (1) patents, (2) trademarks, (3) copyrights, and (4) trade secrets. These intangible assets enjoy special legal recognition (compared to other commercial intangible assets). Moreover, an intellectual property can generate income for its taxpayer corporation owner in the form of license royalty income and/or use operating income. The property tax valuation of intellectual property begins with the identification of the subject intellectual property ownership rights. The value of an intellectual property is often a function of its potential to earn and/or protect income for the intellectual property owner.
Intangible property tax
This article provides a further in-depth discussion of one of the four categories of intangible personal property assets described in the author's article, "Valuation of commercial intangible assets for ad valorem tax purposes," published in volume 6, issue 1.
Reilly, R. F. (2009). Intellectual property assets in the taxpayer corporation. Journal of Property Tax Assessment & Administration, 6(2), 19-28. Retrieved from https://researchexchange.iaao.org/jptaa/vol6/iss2/2