Property Tax Treatment for Temporary Stores: Tax Compliance Considerations for Mobile Clearance Locations
Enterprises set up short-term "pop-up stores" to clear inventory, using movable tangible personal property (TTP) such as shelves and display stands, with operating periods ranging from 3 to 90 days, and no plans to exceed 1 year and 1 day. These temporary stores are located in leased buildings, with equipment transported from the company's warehouse to the site and then returned or moved to the next location after operations conclude. This article focuses on the property tax treatment of such TTP in the temporary state and whether it may be considered property of the company's warehouse state and thus exempt from taxation in the temporary state.
The company I work for has recently started setting up so-called "pop-up stores" to clear out inventory. These locations use movable tangible personal property (TTP), such as shelving, display stands, benches, etc. Some pop-up store sales last only 3 days, while others may last up to 90 days. Currently, the company plans for these pop-up stores to exist for no longer than 1 year and 1 day. They operate in one state for a period, then are dismantled and moved to another location, which may be in the same state or in a different state.
When setting up these temporary pop-up stores, the company leases buildings and pays rent. During the sales period, related equipment is transported from the company's warehouse to the site, and after the sales end, the equipment either returns to the warehouse or is shipped directly to the next location.
My question is: How should property tax apply to this TTP in the state where the pop-up store is located? Can this TTP be considered property of the state where the company's warehouse is located, thereby being taxed only in that state and exempt from taxation in the temporary location state?