Which of the following statements is true regarding business personal property?

The statement that business personal property may be tangible or intangible is accurate. Business personal property encompasses all tangible assets used in the operation of a business, such as equipment, furniture, and inventory. Additionally, it can also include intangible assets such as patents, trademarks, and business goodwill. This dual nature of business personal property—spanning both physical items and intellectual property—is significant for tax assessment and valuation.

In contrast, some of the other statements do not accurately describe the nature of business personal property. For instance, it is not exempt from property taxation—most business personal property is taxable unless specifically exempted by law. The assertion that business personal property is valued using only the income capitalization method is also misleading, as various valuation methods can be used, including the cost approach and the market approach. Lastly, while special land use typically refers to properties with specific zoning or land use considerations, it does not apply to the classification of business personal property, which is distinct from real property. Thus, the correct understanding of business personal property being both tangible and intangible supports the identification of its critical characteristics for taxation purposes.