Taxpayers are required to report all tangible fixed assets (business property and fixtures) as of the January 1 lien date. If an asset is acquired after January 1 of the current year, it is not subject to taxation.
Many issues exist regarding the lien date such as construction in process (which is subject to taxation), sale of assets and location of assets.
If you own tangible property as of the January 1 lien date, you are considered the Assessee of record. If the asset is sold after the lien date, you are still liable for the payment of the tax. Special care should be taken to contractually specify who is responsible for payment of the tax if the sale takes place after the January 1 lien date