Business
Personal
Property
Valuation
Guidelines
2024
P
ROPERTY
T
AX
D
IVISION
Rev. 11/2023
BUSINESS PERSONAL PROPERTY
VALUATION GUIDELINES
2024
Compiled by
New Mexico Taxation & Revenue Department
Property Tax Division
State Assessed Property Bureau
PO Box 25126
Santa Fe, NM 87504-5126
https://www.tax.newmexico.gov/about-us/property-tax-division/
INTRODUCTION
1
APPRAISAL METHOD
3
APPRAISAL PROCESS
4
PERSONAL PROPERTY – DEFINED
4
LEASED PERSONAL PROPERTY
4
DELINQUENT LEASED PERSONAL PROPERTY
6
RENTED PERSONAL PROPERTY
6
SITUS
7
THE LAW
7
PROCEDURES
7
TRAINING WORKSHOPS
8
TAXPAYER COMPLIANCE
10
NET BOOK VALUES AND IRS COMPLIANCE
11
WHAT TO LOOK FOR
12
APPENDIX I
7-36-33 SMV-Certain Industrial and Commercial Personal Property
15
APPENDIX II
Retail Grouping
17
APPENDIX III
IAAO Standards on Valuation of Personal Property
19
APPENDIX IV
Class Life Summary Schedule - Typical Businesses and Equipment
29
EXHIBIT I
Depreciation Schedules
57
TABLE OF CONTENTS
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BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
1
INTRODUCTION
The purpose of this publication is to provide county assessors, county and state appraisers,
tax collectors, county protest boards, and taxpayers with guidelines to value personal property of
typical business enterprises in New Mexico. It is also an attempt at establishing uniformity in the
assessment of personal property throughout all counties in the state in accordance with New
Mexico’s ad valorem property tax laws [Articles 35 through 38 of Chapter 7 NMSA 1978].
To request a copy of this publication, please email [email protected].
For questions regarding personal property valuation, please email:
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BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
3
APPRAISAL METHOD
This publication reflects procedures for valuation based upon the mandates of Section 7-36-
33, NMSA 1978.
1
Please note that this publication is meant to serve as a guideline. It is not
meant to, nor can it, address every situation of valuation that a county might confront. It is
strongly suggested that each county review this publication and the supporting information that it
refers to.
Note that this publication does not apply to assets that are subject to valuation under
any of the other "Special Methods" outlined in the Property Tax Code.
The appraisal method outlined in Section 7-36-33 is a cost approach. The statute calls for
the use of "tangible property cost". This is defined as "the actual cost of acquisition or construction
of property including additions, retirements, adjustments and transfers".
2
Depreciation must be
considered. Depreciation is calculated using the "straight line method of computing the
depreciation allowance over the useful life of the item of property.
3
The “useful life of the item of property” means the “class life” for same or similar kinds of
property as defined and used in Section 167 of the United States Internal Revenue Code of 1954, as
amended or renumbered.
4
The "class life" as stated in Section 167 of the United States Internal
Revenue Code is based on studies that investigated the average actual useful lifetime of assets.
This is the normal time expired from the date when an asset is purchased, built, or otherwise
acquired and put into service until the date when the asset is worn out, sold, destroyed or otherwise
disposed of. (Please note that this is an "average" and the actual lifetime of any particular asset may
be longer under extremely light use with high maintenance and care or much shorter under
extremely heavy use with little maintenance and care).
This "class life" is reflected in the "Table of Class Lives and Recovery Periods" as outlined
in Appendix B of Publication 946. The website to view the IRS Publication 946 Section 179 can
be viewed at www.irs.gov.
Remember that the Internal Revenue Service Code also reflects what we refer to as an
"artificial life factor" that was created by the federal government in order to stimulate the economy
by assuring the re-investment of asset dollars within shorter spans of time. This method, called
Accelerated Cost Recovery System, (ACRS) allows a taxpayer to depreciate assets over statutorily
assigned "recovery periods" so that it is unnecessary to determine the factual issue of useful life.
The ACRS or Modified ACRS systems govern tangible property placed in service after
1980, however, the recommended "recovery periods" of ACRS or MACRS cannot be used for
New Mexico property tax valuation purposes.
1
See Appendix I, Page 14.
2
See Appendix I, Section 7-36-33, Paragraph B. Part (5), NMSA 1978.
3
Ibid. See Paragraph B, Part (2), NMSA 1978.
4
Regulation §1.167 (a)-1 defines it as "the estimated period over which the asset may reasonably be expected to be useful to the taxpayer in his trade
or business or in the production of his income."
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
4
APPRAISAL PROCESS
"The appraisal process is a systematic, orderly and logical method of collecting, analyzing
and processing data in order to make an intelligent judgment of the value of a commodity at a
specific point in time. Because value depends on decisions made by people, appraising is a social
science rather than a physical science and thus cannot produce findings of an exact nature. An
appraisal is, basically, an opinion of value. It is based upon competent interpretation of the facts.
The appraisal process is also, in part, the product of the experience of the appraiser. As such, it
represents the best-known way of arriving at a conclusion of value. The process itself is valid. The
result depends upon the skill and care with which the process is followed. The importance of being
thorough and careful cannot be overemphasized."
5
PERSONAL PROPERTY DEFINED
Personal Property consists of movable items that are not permanently affixed to, or a part
of, the real estate. Personal property is commonly known as "personalty" or "chattels".
Consideration as to:
• The manner in which the personal property is annexed;
• The intention of the party as to whether to leave permanently or remove at some future
date, and;
• The purpose, for which the premises are used, must be made on an item-by-item basis.
Usually items are classified as personal property if they can be removed without causing
serious injury to the item or to the real estate, however, the three points above must be considered.
Litigation in the Court of Appeals in the State of Texas regarding a transmission pipeline
held that a pipeline which was buried "below normal plow depth" and had been laid pursuant to an
easement authorizing the pipeline company to remove, change, or replace one or more additional
lines of pipe, was personal property.
6
Again, the main factor here seems to be the INTENT.
Tangible personal property held by businesses includes machinery, tools, furniture, fixtures,
equipment and supplies. Materials and Supplies normally used in the business and Inventories held
for sale or resale are exempt unless the owner has claimed a deduction for depreciation for federal
income tax purposes in the prior twelve months.
LEASED PERSONAL PROPERTY
Leased equipment may be defined to include all items of property, which are leased, rented
or otherwise made available to other than the owner for use. The wide range as to types of leases
presents a very complex and difficult appraisal problem for the assessing officer. In order to assess
leased property, the assessor must discover where it is located and to whom it belongs before he/she
can proceed with valuation process. There are few assessment organizations with sufficient staff to
make an annual field survey of the tangible personal property of all businesses and manufacturers.
The assessor must then rely on alternative methods to accomplish the same results. This requires
5
New Mexico County Assessor's Manufactured Housing Manual, Taxation & Revenue Department, Property Tax Division, 1986 Revision, 4.
6
Lingleville Independent School District v. Vallero Transmission Company, Tex. Ct. App. No. 11-88-180CV (January 12, 1989).
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
5
the cooperation of business and industry in supplying a listing of any property used but not owned.
It also requires that those involved in the business of leasing equipment report all property in the
assessing district in which it is located.
Types of Properties Subject to Various Leasing Conditions
1. A manufacturer who leases out equipment and has established a listed selling prices new.
2. A business concern, financial institution and/or non-profit organization which purchases its
equipment and rents or leases to others and is not involved in the manufacturing or sale of
equipment, except as a leasing agency.
3. A manufacturer who leases out equipment such as postage meters but has not established or
is restricted from establishing a selling price.
4. A leasing company, which is a manufacturer, is not restricted in anyway in selling the
product and makes the equipment available at little or no rental, provided the lessee uses the
manufacturer’s product.
Types of Leases
Month –to –Month Lease: Month to month leases are short-term leases that may or may not be
in written form. This type of lease provides no security for the lessor or the lessee.
Short-Term Lease: Short-term leases are generally written with the terms and provisions of the
lease detailed. This type of lease is generally considered to be for periods of less than ten years.
Long-Term Lease: The long-term lease provides for terms extending more than ten years.
Percentage Lease: Percentage leases typically provide for rent payments to be based on a
percentage of income for the sale of merchandise or services. Percentage leases frequently have a
stated minimum rent and sometimes a maximum rent provision.
Graduated Lease: The graduated lease provides for a stated rent level for a given period,
followed by a change (usually an increase) in the rent level during stated subsequent periods.
Renewal Lease: Renewal leases provide for one or more extensions of the lease term in the
original lease document at the option of the lessee. The rent under such renewals may be
predetermined or negotiated at the time of renewal.
Determination of Responsibility for Reporting of Leased Property
All property depreciated and reported on the Federal Asset Listing for IRS depreciation is
subject to property taxation whether locally or state assessed. The primary test for determining the
responsibility of the reporting of leased property for Ad Valorem Taxation hinges on the “Incident
of Ownership”. This means a company bears the burden of exhaustion of the capital investment in
the property. The IRS allows companies to depreciate leased property if they met the “Incident of
Ownership” test, which is as follows:
1. The legal title to the property.
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
6
2. The legal obligation to pay for the property.
3. The responsibility to pay maintenance and operating expenses.
4. The duty to pay any taxes on the property.
5. The risk of loss if the property is destroyed, condemned, or diminished in value through
obsolescence or exhaustion.
Definitions:
• Lessor – The party (usually the owner) who gives the lease (right to possession) in return for
a consideration (rent).
•
Lessee – The party to whom a lease (the right to possession) is given in return for a
consideration (rent).
DELINQUENT LEASED PERSONAL PROPERTY
The collection of delinquent personal property taxes from parties who do not own the
personal property is, at best, difficult, and at its worst, impossible. Lease agreement provisions that
require lessees to pay local taxes, where equitable title does not pass from lessor to lessee, are
simply agreements between two parties, (neither of which is the county assessor) that allow the
lessor to pass the property taxes to the lessee. The agreement does not free either of the parties of
their obligation to the county.
For administrative convenience, it is suggested that leased personal property be assessed
separately from owned personal property. For example, an assessment for a leased Xerox copy
machine should be:
Xerox Corporation, Owner
Albertson’s Store # 12, Lessee
c/o Albertson’s, Inc.
Salt Lake City, UT 00000-0000
An assessment of this nature identifies all parties involved without any further investigation.
In all cases, where the assessment is made against the lessee, a copy of the Lease Agreement
showing the make, model, serial number and description of each item of leased personal property
should be on file. Additionally, the location of the leased equipment should be noted.
RENTED PERSONAL PROPERTY
Equipment that is rented out on a short-term basis, in many cases, may be subject to
excessive wear and tear due to use by people unfamiliar with its' operation. Examples of this may
be DVD's and DVD Tapes rented on a day-to-day basis. Firms that specialize in daily or weekly
rentals of machinery or equipment may fall under this category if the rentals are frequent. The
Class Life, however, must still be used. There are not exceptions to this law.
The taxpayer can, however, provide documentation for additional decreases in valuation
based on "other justifiable factors" such as functional or economic obsolescence. All decreases
should be documented and justified before being adopted for a particular taxpayer.
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
7
SITUS
The fact that personal property is movable brings us to the question of situs. What is situs?
Situs, in regard to personal property, is defined as "...physically present in the state on the date
when it is required to be valued for property taxation purposes..."
7
That "date" is, in almost all
cases, January 1st of the tax year. If personal property, including livestock and construction
contractor’s equipment, is present in the taxing jurisdiction on January 1st of the tax year, it is
subject to property taxation.
However, the two exceptions, livestock and construction contractors' equipment are subject
to another "date". If livestock or construction contractors equipment is present in a New Mexico
taxing jurisdiction "for more than twenty days subsequent to January 1 then the livestock and/or
construction contractors equipment shall be valued for property taxation purposes as of the first day
of the month following the month in which they have remained in the state for more than twenty
days."
8
"A basic allocation formula that prorates value on the basis of the amount of time that
livestock or construction contractors’ equipment is in the state and subject to valuation for property
taxation purposes"
9
then must be used.
THE LAW
What is the law? The law is the Property Tax Code. The "code" is covered in detail in the
publication entitled "New Mexico Selected Taxation & Revenue Department Laws and
Regulations". If you do not have a current copy of the code, please acquire one. Ensure every
employee in your office has a current copy. More importantly, ensure employees become familiar
with it. The information is invaluable. You may download an updated copy here
https://www.tax.newmexico.gov/all-nm-taxes/statutes-with-regulations/. You may also contact the
Taxation & Revenue Department.
10
Perhaps, a reminder is necessary here. The Laws or Statutes in the aforementioned are the
parts with Highlighted Numbers such as "7-36-33". Regulations follow with a series of numbers,
i.e. "3.6.6.40".
PROCEDURES
Write procedures that explain exactly (step by step) what needs to be done. Write them as if
the person who will be expected to follow them knows absolutely nothing about property tax or
your office and is not familiar with anything else relative to the assessor's functions. (This is
certainly the case with new employees who are not familiar with property tax). Once written, make
sure that everyone gets a copy and, more importantly, understands the procedures. Set up a
workshop so that the procedures are explained in detail and allow enough time for a question and
answer session. Remember if your county's personal property valuation system is poorly or under
7
See 7-36-14 A.(3)
8
See 7-36-21 & 7-38-7.1
9
Ibid.
10
Contact the Taxation & Revenue Department, Attn: Tax Information Office, PO Box 630, Santa Fe, New Mexico 87509-0630. Request Property
Tax Code & Regulations. (505) 827-0908.
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
8
administered, a shift in property tax burden occurs. Thus, if an inadequate job is being done when
assessing personal property belonging to retail business enterprises, someone else is picking up the
tax burden. If your county emphasizes on doing a very good job in assessing residential property,
for example, the residential property owner is probably paying his fair share PLUS a portion of his
neighborhood convenience store's share. This tax burden shift is not only unfair; it is illegal
discrimination by default. If you are going to assign an individual or individuals to handle personal
property assessments, make sure that they receive adequate training. If you are going to handle it
on a "walk-in" basis, make sure that everyone has the training to do it correctly.
TRAINING WORKSHOPS
If you do not train all staff members to do a specific task in a specific way, the possibility of
unfair or unequal handling of assessment duties are as varied as the number of people who handle
it. Set up a workshop. Make sure that the person making the presentation knows the subject well.
The following are logical steps to follow for fair and equitable assessments:
Preliminary Status Review: This is merely an examination of what you have and what is
currently being done. Do you have a listing of entities that report personal property? If not, the
preparation of such a list should be your first project. If you do, review it. When was the last time
you updated it? Are entities that you or your staff members know about personally operating in
your county and not reporting? If so, pursue them first.
Local Verification: Although local phone books are quickly becoming close to obsolete, they do
still exist, and if you have access to the newest one, check both the white & yellow pages. Are all
the business entities listed reporting? If your local phone book is not available, the World Wide
Web is your next best resource.
Local Contacts: Contact your county clerk. Do certain business entities require a special county
license or permit to operate? Your county clerk can give you information, and possibly a listing of
all entities that have purchased the license or permit. How about the municipalities in your county?
They can provide you with the same kind of information, including franchisees. Give them a call.
Explain what you desire, why you need the information, and how you will use the information.
Above all, be courteous. Go over in your mind and try to recall if you might have some information
that you can exchange. Try to offer something in return. Remind them that your endeavors mean a
fair and equitable tax distribution among all taxpayers in their jurisdiction.
Final Listing: Now you should have a pretty good listing of all possible taxpayers. Check them
and re-check them against your list of reporting entities. Nothing upsets a taxpayer more than a
request to report something that he has already reported. A request of this sort makes him wonder
if you and your office know what you are doing, and the last thing you want is someone in the
business community questioning your competence.
Cover Letter & Questionnaire: Now you are ready to prepare a cover letter and a questionnaire.
Make them simple. The simpler you make it, the better. Quote pertinent statutes, making sure you
quote the most current statute and the correct citation. Send the letter and questionnaire out and
request a response within a time frame you can meet. Say, fifteen days? Whatever fits your
schedule so that you can do a thorough job. Check all responses. Verify duplicates. Check
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
9
companies reporting under subsidiary or parent company names closely. Be extra careful with the
companies reporting under DBA's (Doing Business As).
Follow Up: Sometimes the first questionnaire is lost, misplaced, forgotten, or turned over to an
employee who is no longer with the company. Make a list of all the entities that do not respond and
call them. Remind them of the questionnaire. Send them another, if necessary. If they do not
respond to the second questionnaire, visit them personally. If the taxpayer still does not cooperate
with you, explain what the law mandates (an estimate - more than likely, based on his competitors
and probably a HIGH estimate) and proceed. Do not be intimidated. Base your estimate on an
average from those reporting entities that are comparable to the one that you are conducting a
forced assessment on. If you do not have a comparable company, call your neighboring assessor.
If a taxpayer comes in, explain what you are doing and why. If a taxpayer becomes upset,
do not place blame on anyone. Simply be courteous and state that it is the law. Do not try to
defend the law and your purpose. Do not pass them on to someone else. If you are unable to
provide answers at that moment, seek assistance from someone who can help, and then ensure you
are prepared for next time. Read the statutes. Learn the procedures. Ask questions.
Explain the law to the taxpayer. Explain the unfairness of the non-payment of taxes and
how other taxpayers may be paying additional taxes due to unreported or underreported portions of
an entity’s responsibility. Focus on the entity and not on the individual. Use examples that pertain
to the taxpayer’s industry. Try to instill a necessity for cooperation and fairness. Do not be
intimidated with threats of legal action. If you are knowledgeable, use proper resources, and have
physical evidence to back your assessment, then it will withstand all legal challenges. Be confident
in your abilities, and, above all, be professional always. Remember your integrity and reputation is
at stake. Make sure that the taxpayer is convinced that his entity is paying only a fair share and
nothing else.
Continuous Compliance: Continue pursuing other sources of information. A few examples:
1. Income Tax Listing
2. Specialized Publications
3. Construction Industries Listings
4. Utility Company Listings
5. City Water Department
6. City Gas Department
7. Mailing List Agencies
Be aware that there is no end to compliance. Old entities close. New ones replace them.
New technologies make way for new types of businesses. Attempt to keep abreast of all develop-
ments.
Retail Grouping: After everyone has reported, group the taxpayers by type. Compare the total
valuations returned. Compare the taxpayer renditions within a Retail Group and analyze for
averages. These averages can then be used for "Forced Assessments" against those within the
group that do not report. Using the average valuation is easy. Using the average valuation within a
retail grouping is also fair, logical, and easily defended at a legal proceeding. (See Appendix II for
a listing of "Retail Groups").
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
10
TAXPAYER COMPLIANCE
In many counties, individual taxpayers are not complying with current property tax laws.
There are probably two reasons for this. The first one is that many employees at the assessor's
office are not familiar with the Property Tax Code. The second is that no one is knocking on the
taxpayer's door. Unfortunately, many taxpayers, consultants, accountants and attorneys are not
familiar with New Mexico Property Tax Laws. You may be surprised at the number of business
people who simply do not know that their personal property is subject to property taxation. It is up
to you to educate the taxpaying public. This is a great challenge for the county assessor's office and
especially the personal property appraiser. Why not meet it? You can start today.
It is usually a good idea for the assessor's office to undertake a public information or
awareness program. A regular property tax flyer should be part of the materials distributed by your
local chamber of commerce.
Occasionally, when applicable, a press release should be prepared for your local paper. If
you do not advertise your intentions, you do not get results.
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
11
NET BOOK VALUES AND IRS COMPLIANCE
An argument may be made to accept the net book value as carried on the books of the
taxpayer for Federal Internal Revenue Service reporting purposes. This approach is contrary to
New Mexico Law. DO NOT accept IRS net book values.
New Mexico Statutes dictate using the IRS adopted class lives for the valuation of personal
property assets and the depreciation schedules found in this manual. Nothing else is acceptable.
The return made by the taxpayer to the IRS is helpful. Request a copy from the taxpayer
and review it to see whether the assets are listed on the taxpayer's depreciation schedule. If
depreciation has been claimed for the prior taxing period, the asset should be assessed. Use the
acquisition cost as it appears on the depreciation schedule and the recommended life listed in the
Asset Class Life tables of this manual.
Remember, of course, that some depreciated assets are not subject to property tax.
Automobiles licensed with the state of New Mexico, for example, are exempt. If a taxpayer is not
reporting for Federal Income Tax purposes, but should be, the fact that he/she is not claiming a
deduction for depreciation for federal income tax purposes does not dismiss him/her from property
tax responsibilities. If the taxpayer has a business of any kind, he/she should be reporting their
business income on their federal income tax report. A Schedule C, Schedule C-E, Schedule F or
Schedule E should be filed. Form 4562 and supporting documents should be available for
inspection to verify that the assets are or are not being depreciated. Remember that an asset may be
legally expensed off in the first year (Section 179) for Federal Income Taxes, and if it has been, you
can pick it up for assessment purposes only in the tax year after the fiscal year in which it has been
expensed.
Another example is when an asset is purchased sometime after the prior year's Federal
Income Tax Report is filed, but before the current year's Federal Income Tax Report is due. Logic
would dictate that if the asset is in your taxing jurisdiction on January 1
st
, you should put it on the
tax roll if the asset is reportable for Federal Income Tax Purposes in that same year. The fact that
the January 1
st
situs date and the statutory reporting deadline of February 28
th
both fall BEFORE the
April 15
th
Federal Income Tax reporting deadline creates a gray area, but the IRS has addressed it as
follows: "Depreciation for tax purposes begins when an asset is placed in service and ends when it
is retired from service"
11
and the fact that "the IRS considers an asset to be ‘placed in service’
when it is in a condition or state of readiness and availability for its assigned function."
12
11
Regs §1.167 (a)-10(b).
12
Rev. Rul. 76-238, 1976-1 C. B. 55.
BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
12
WHAT TO LOOK FOR
IN ALL CASES - Office furniture, office equipment, computers and computer software,
telephones, typewriters, calculators, copy machines, fax machines, check writer machines, file
cabinets, safes, coin operated machines, mail metering machines, tape recorders, and signs. Please
note that custom software is exempt from property taxation. The following test is a helpful guide to
determine if computer software is taxable or exempt from property taxation:
Computer Software Subject to Taxation
1)
Software is readily available for purchase by the general public.
2)
Software is subject to a non-exclusive license.
3) Software has not been substantially modified.
Computer Software Not Subject to Taxation
1)
Software is customized for the company only.
2)
Software is subject to an exclusive license.
3) Software is greatly modified.
Attorney's Offices - Libraries.
Banks - Safety deposit boxes, closed circuit TV's, money machines.
Beauty & Barber Shops - Special tools and equipment, (shears, blow dryers, hair clippers), large
hair dryers, televisions & CD players.
Contractors - Unlicensed vehicles, compressors, cement mixers, drill presses, lathes, sanders, table
and band saws, joiners, shapers, welding equipment, milling machines, etc.
Doctor's and Dentist's Offices - Special surgical and dental equipment, dental chair units, X-ray
units, high-speed drill units, examination tables, operating tables, surgical and dental supplies.
Laundry - Washers, dryers, dry cleaning machines, change machines, soap machines, folding
machines.
Leasing/Rental Agencies - Vehicles with out-of-state license plates, VCR's, DVD’s, TV's, stereos,
VCR & DVD Tapes.
Manufacturing - Special tools, jigs, dies.
Motels, Hotels, Apartments, Rental Condos & Houses - Linen (sheets, pillow cases, towels),
televisions, beds, furniture, satellite dishes, floor buffers, stamp machines, ice makers, prophylactic
and sanitary napkin vending machines, kitchen appliances.
Nursing Homes - Beds wheel chairs, special equipment, and oxygen tanks.
BUSIN ESS PER SONAL P R O PERTY V ALUATI ON GUID ELINES
13
Printing & Publishing - Photographic equipment, printing press, industrial paper cutters, folding
machines collators.
Propane Distributors - Propane tanks, pumps.
Radio Broadcasting - Head-end equipment, antennas and towers, satellite dishes, subscriber
receiver boxes, testing equipment, coaxial cable, transmitter, monitors, studio equipment, tape
recording and remote pickup equipment.
Radio & Television Repair Shops - Tube testers, PA Amplifiers, light & power units, voltmeters,
signal generators, oscillators, calibrators, scanners, millimeters, battery testers, transistor testers,
bench power supply units, analyzers, ammeters, color scopes, pulse generators.
Ranches & Farms - Tractors, special tools, equipment, fuel tanks, unlicensed vehicles.
Recreation Centers & Bowling Alleys - Coin operated machines, pinsetters, and billiard tables.
Restaurants & Saloons - Coin operated vending machines, coffee makers, ice crushers, beverage
dispensers, mixers, slicers, grinders, glassware, silverware, crockery, linen, satellite dishes, and
televisions.
Retail Stores - Electronic cash registers, closed circuit TV systems, ice machines, signs, paint
mixers, key making machines, basket carts, and forklifts.
Sawmills & Logging - Conveyors, handling equipment, road equipment.
Service Garages & Body Shops - Small hand tools, electronic testing equipment, hydraulic lifts,
drill press, buffers, grinders, tire changers, air compressors, tire balancing equipment, brake drum
lathes, battery chargers, wheel alignment machine.
Travel Agencies - Computers, software.
Two-way Radio Equipment - Repeater stations, transmitter-receiver console, poles, towers,
antennas, power cables, telephone handsets, mobile decoders and encoders.
Water Well drilling - Drilling rigs, pumps, & special tools.
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BUSINESS PERSONAL PROPERTY VALUATION GUIDELINES
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APPENDIX I
7-36-33. SPECIAL METHOD OF VALUATION--CERTAIN INDUSTRIAL AND
COMMERCIAL PERSONAL PROPERTY.--
A. The following kinds of property shall be valued for property taxation purposes in
accordance with the provisions of this section:
(1) all property used in connection with mineral property and defined in paragraph (1)
of Subsection B of Section 7-36-23 NMSA 1978 and Paragraph (1) of Subsection B
of Section 7-36-25 NMSA 1978;
(2) all industrial, manufacturing, construction and commercial machinery, equipment,
furniture, materials and supplies subject to valuation for property taxation purposes
and not subject to valuation under the provisions of Sections 7-36-22 through 7-36-
32 NMSA 1978;
(3) all other business personal property subject to valuation for property taxation
purposes and not subject to valuation under the provisions of Sections 7-36-22
through 7-36-32 NMSA 1978; and
(4) construction work in progress that includes any of the items of property specified in
paragraphs (1), (2) or (3) of this subsection.
B. As used in this section:
(1) "depreciation" means the straight-line method of computing the depreciation
allowance over the useful life of the item of property;
(2) "useful life of the item of property" means the "class life" for same or similar kinds
of property as defined and used in Section 167 of the United States Internal Revenue
Code of 1954 as amended or renumbered'
(3) "other justifiable factors" includes, but is not limited to, functional and economic
obsolescence;
(4) "schedule value" means a fixed value of an individual property unit within a mass of
similar or like units established by determining the average unit tangible property
cost of a substantial sample of such property and deducting there from an average
related accumulated provision for depreciation per unit and an average of other
justifiable factors per unit;
(5) "tangible property cost" means the actual cost of acquisition or construction of
property including additions, retirements, adjustments and transfers, but without
deduction of related accumulated provision for depreciation, amortization or other
purposes; and
(6) "construction work in progress" means the total of the balance of work orders for
property in process of construction on the last day of the preceding calendar year but
does not include the equipment, machinery or devices used or available to construct
such property but not incorporated therein.
C. The value of individual items of property subject to valuation under this section, except
construction work in progress, shall be determined as follows:
(1) the valuation authority shall first establish the tangible property cost of each item of
property;
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(2) from the tangible property cost shall be deducted the related accumulated provision
for depreciation and any other justifiable factors; and
(3) notwithstanding the foregoing determination of value for property taxation
purposes, the value for property taxation purposes of each item of property valued
under this subsection shall never be less than twelve and one-half percent of the
tangible property cost of such item of property so long as the property is used and
useful in a business activity.
D. Construction work in progress shall be valued at fifty percent of the actual amounts
expended and entered upon the accounting records of the taxpayer as of December 31 of the
preceding calendar year as construction work in progress.
E. The Division may establish a schedule value for the same or similar kinds of property to be
valued under Subsection C of this section for property taxation purposes. In arriving at a
schedule value, the Division shall:
(1) determine the average unit tangible property cost of a substantial sample of the same
or similar kinds of property;
(2) such unit average tangible property cost shall then be reduced by the average related
accumulated provision for depreciation per unit applicable to the sample of the same
or similar kinds of property and shall then be further reduced by an average of other
justifiable factors per unit applicable to the same or similar kinds of property; and
(3) from the foregoing determination, a schedule value for the same or similar kinds of
property shall be determined and set forth in a regulation adopted pursuant to
Section 7-38-88 NMSA 1978 [repealed].
F. The Division shall adopt a schedule value for the following kinds of property:
(1) drilling rigs; and
(2) large off-the-road highway construction equipment.
G. Each item of property having a taxable situs in the state and valued under this section shall
have its net taxable value allocated to the governmental unit in which the property is
located.
H. The Division shall adopt regulations under Section 7-38-88 NMSA 1978 [repealed] to
implement the provisions of this section.
History: 1953 Comp., § 72-29-22, enacted by Laws 1975, ch. 165, § 14; 1982, ch. 28, § 5.
Annotations: Laws 1991, ch. 166, § 14 repealed 7-38-88 NMSA 1978, referred to in Subsections E
and H. For present comparable provisions, see 9-11-6.2 NMSA 1978. “Division” or “property tax
division” means the property tax division of the taxation and revenue department, the director of the
division or any employee of the division exercising authority lawfully delegated to that employee
through the director.
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APPENDIX II
RETAIL GROUPINGS
1. FOOD STORES – Supermarkets, Neighborhood Grocery, Convenience Stores, Meat
Markets.
2. BAKERIES – Bakeries, Bakery combined with Restaurant.
3. VARIETY & GENERAL MERCHANDISE STORES – Department Stores, Nickel &
Dime.
4. APPAREL STORES – Children & Infant's Wear, Ladies Wear, Bridal Shops, Maternity
Shops.
5. SHOE SHOPS – Family Shoes, Children's Shoes, Men's and Boy's Shoes, Ladies Shoes and
Hosiery.
6. DRY GOODS STORES – Yard Goods, Curtain & Drapes, Luggage, and Leather.
7. HOME FURNISHINGS STORES – Household Appliance, Radio, Television, Hi-Fi’s,
Furniture, Floor Covering.
8. AUTOMOTIVE SALES – New Car Dealers, Used Car lots.
9. GASOLINE SERVICE STATIONS – Full Service, Self Se, Convenience Store with
gasoline.
10. HARDWARE STORES – Paint, Glass, Wallpaper.
11. RESTAURANTS AND BARS – Restaurants with bars, Bakeries with restaurant, Service
Restaurants, Lunch Counter Restaurants, Fast Food, Drive-In Restaurants, Snow cone type
Stands.
12. PACKAGE LIQUOR STORES
13. DRUG STORES – Pharmacies, Drug Stores with Soda Fountain, Drug Stores with Lunch
Counter.
14. JEWELRY STORES
15. SPORTING GOODS – Fishing Supplies, Fruit Stands, Bait Shops.
16. BOOKSTORES – Card Shop, Souvenir Shop, Camera Shop, Tobacco Shop, Florist Shop,
Coin Shop, Music & Record Shop, Video Rental Stores.
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17. BARBER SHOPS
18. BEAUTY SHOPS
19. DRY CLEANING SHOPS
20. LAUNDRY
21. FUNERAL HOMES
22. REPAIR SHOPS – General Repair Shop, Plumbing Shop, Upholstery Shop, Shoe Repair
Shop, Television and Radio Repair Shop.
23. HOTELS/MOTELS – Chain Hotels, Private Hospitals, Nursing Homes, Furnished
Apartments.
24. THEATERS – Indoor, Outdoor Drive-Ins.
25. GENERAL BUSINESS OFFICE – Real Estate, Insurance, Car Lot Office, Accountant's
Office, Lawyer’s Office, Dental Office, Doctor's Office, Chiropractor's Office,
Veterinarian's Office, Optician's/Optometrist's Office.
26. RECREATION – Bowling Alley, Video Arcade.
27. MEDICAL FACILITIES – Doctor’s Office, Dental Office, Chiropractors/Acupuncture
Office, Ophthalmologist/Optometrist Office, Medical & X-ray Laboratories &
Veterinarian’s Office.
28. BREWING & DISTILLING
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APPENDIX III
International Association of Assessing Officers (IAAO)
STANDARDS ON VALUATION OF PERSONAL PROPERTY
13
Approved December 2005
The assessment standards set forth herein represent a consensus of thought in the assessing
field and have been adopted by the Executive Board of the International Association of Assessing
Officers (IAAO). The objective of these standards is to provide a systematic means by which
assessing officers can improve and standardize the operation of their offices. The standards
presented here are advisory in nature, and the use of, or compliance with, such standards is
purely voluntary. If any portion of these standards is found to be in conflict with state law or
the Uniform Standards of Professional Appraisal Practice (USPAP), USPAP and state law
shall govern.
1. Scope
This standard is intended to provide recommendations for defining, classifying, discovering,
reporting, verifying, and valuing personal property for ad valorem tax purposes. It is beyond the
scope of this standard to address unique valuation issues that may arise in the appraisal of personal
property associated with public utilities, telecommunications, railroads, or similar properties.
2. Introduction
The purpose of this standard is to present methods that assessing officers can use to achieve
uniform and equitable personal property valuation. Effective administration of a personal property
assessment system depends, in part, on legislation and regulations that provide clear direction for
determining the proper status of personal property for assessment and taxation. Such
administration also requires an adequate budget to obtain the resources necessary to assess personal
property accurately and equitably.
3. Definition of Personal Property
Property means an aggregate of things or rights to things whose possession is protected by
law.
There are two basic types of property, real and personal. Real property means land or any
interest arising there from, including land, buildings, easements, and affixed improvements
generally classified as immovable.
Personal property by its nature is not permanently attached and therefore is movable.
Criteria for distinguishing whether an item is real or personal property in a particular situation
usually include intent of owner, means of attachment, and contribution to highest and best use of
the property, case law, and statutory and legal guidelines.
Personal property is divisible into two classes, tangible and intangible. Tangible personal
property includes material items such as animals, watercraft, aircraft, motor vehicles, furniture and
fixtures, machinery and equipment, tools, dies, jigs, patterns, and stock in trade (including
13
The "Standard on Valuation of Personal Property" as adopted by the Executive Board of the International Association of Assessing Officers is
reproduced here with prior written permission of the publisher, International Association of Assessing Officers, PO Box 94573, Chicago, IL 60690-
4573.
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inventories, supplies, materials in process, and other similar items).
Intangible personal property includes representations of rights to property; for example,
money, shares, annuities, patents, stocks, bonds, notes receivable, insurance policies, accounts
receivable, licenses, franchises, money market certificates, certificates of deposit, and copyrights.
An assessment statute should explicitly define the types of personal property subject to and
exempt from assessment and taxation, thereby avoiding the expense of listing and valuing items of
uncertain assessment status. State and provincial agencies should provide supplementary
guidelines and clarifications as required. Legislation should also explicitly define the situs of
personal property for assessment purposes and should specify a common assessment date for all
taxing authorities.
4. Discovery of Personal Property
The extent to which taxable personal property can be assessed depends upon its discovery.
Disclosure of personal property is often contingent on initially identifying the owner of the
property. Complete discover requires adequate manpower and supporting resources. Taxation
agencies should be empowered to issue binding rules and regulations covering the discovery of
personal property. Basic sources for the discovery of personal property and its owners include:
1. previous assessment records
2. physical inspections
3. personal property listing forms
4. real property field appraiser reports and records
5. previous audits
6. state and local sales tax permits
7. city and county business licenses
8. credit reports
9. chamber of commerce memberships
10. new business listings from the news media
11. property transfer documents
12. classified advertisements
13. telephone directories
14. city directories
15. accounting records, including financial statements
16. income tax returns (state and federal)
17. internet research on business operations and contacts
18. web sites, specifically leasing and sales
19. public records (e.g., trade name records, corporation charters, partnership articles, and
assumed name notices);
Once the property has been discovered and the owner identified, an appraiser should
systematically inspect the property and establish an account or record for the owner (or business).
A standard form or checklist, showing the date of inspection, should be used for this purpose. The
appraiser should speak to the owner or manager of the property, explain the purpose of the visit,
and then obtain the necessary data from the owner, manager, or other appropriate persons.
Information that should be obtained about a business includes the following:
1. name of the business
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2. type of business (e.g., restaurant or motel)
3. type of ownership (e.g. sole proprietorship, partnership, franchise, or corporation)
4. mailing address of the business
5. name and address of the owner(s)
6. telephone number of the business
7. name and title of the person supplying the information
8. name, address, and telephone number of the party keeping records for the business
9. beginning date of the business and business fiscal year
10. e-mail addresses
11. for leased equipment, the name and address of the lessor, information on the equipment
(including name of manufacturer, date of manufacture, description, model number, serial
number, list price, and original cost if available), and lease number, terms of lease (if
possible, a copy of the lease agreement should be obtained)
12. for loaned or consigned items (e.g. vending machines, amusement devices, and juke
boxes), the name and address of their owner(s) and a brief description
13. whether a business rents or leases items in its inventory as part of its normal operation, for
such items may be assessable inventory
14. the nature of any leasehold improvements, because these may be assessable as real
property and care should be taken to avoid double assessment and taxation
15. a list of equipment owned by the business but located at another site within the
jurisdiction, including a brief description and address
5. Reporting of Personal Property
In an ideal world, appraisers would physically list individual personal property items. Time
and personnel constraints, however, usually dictate the use of a reporting form completed by the
taxpayer or his agent, supplemented by periodic audits by the appraiser. Reporting forms should be
mailed within sufficient time to allow their proper completion and return. A cover letter should
accompany the form. This letter should identify the tax year, explain the purpose of the form,
reference applicable statutes, state the required return date, contain instructions for completing the
form, and include a telephone number for obtaining assistance.
Personal property reporting forms for machinery and equipment usually have one of two
formats. One format is based on reporting original costs by type of property and by year of
acquisition. This permits the appraiser to apply appropriate cost trending and depreciation factors
against reported costs for each category of machinery and equipment. This format requires the
property owner to recalculate total acquisition cost for each category each year. There is, though,
no itemized list that allows the appraiser to verify complete reporting on an item-by-item basis.
The second, more extensive format is based on an initial itemized listing of all items of
machinery and equipment, including manufacturer, model number, serial number, and year and cost
of acquisition. Items of the same type, however, can be generally be grouped. The taxpayer then
need report annually only new acquisitions and deletions, again along with appropriate descriptions
and acquisition costs. This system promotes verification and valuation accuracy, since each item or
grouping of similar items can be separately trended or depreciated or both. Such a system,
however, also requires the assessor to maintain a permanent file of all items of personalty.
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With either format, the instructions on the form should make clear which items are to be
reported and which items are to be excluded. Special attention should be given to leasehold
improvements, equipment leased from others, inventories, and equipment awaiting installation.
The instructions should also specify whether reported costs should include freight costs, installation
costs, taxes, or fees.
6. Verification and auditing
6.1 Authority
Statutes should give assessors and their representatives the authority to examine the
property, books, papers, and accounts of taxpayers. Statutes should also provide appropriate
penalties for those who fail to file in a timely manner or who deny the assessor access to property
and records. Penalty for failure to make a report as required under Section 7-38-8 of the Property
Tax Code is to be applied in the amount of (5%) Five Percent of the property taxes ultimately
determined to be due on the property.
6.2 Audit Program
The assessor should establish an audit program designated to facilitate the full and proper
listing of all personal property in the assessment jurisdiction. In general, emphasis should be placed
on the audit of new accounts, major accounts, accounts with significant changes from the previous
year, and accounts that are suspected of being improperly reported. All accounts should be audited
periodically, however. The purpose of an audit is to verify that all personal property items have
been reported and that the information given is accurate. A physical inspection will help to verify
the completeness of the reports.
In addition, the appraiser should examine a detailed plant ledger or similar record, if
available, that provides such information on each item as description, serial number, manufacturer,
date of purchase, date of installation, location, acquisition cost, depreciation charges, and retirement
provisions. The appraiser should verify that assessable items have been completely and properly
reported. It is important that acquisition costs include charges for freight, taxes, fees, and
installation, if applicable.
In determining whether all assessable items have been reported, special attention should be
directed to standby equipment, permanently idled equipment, retired or fully depreciated
equipment, and uninstalled equipment. Regardless of book values, such equipment and inventory
should be listed and valued unless specifically exempted. In general, the status of personal property
as of the assessment date determines its assessability and situs for tax purposes.
The appraiser should compare total reported costs with those shown in the general ledger or
balance sheet of the business in order to verify that all property has been reported.
The appraiser should verify that leased items, of which the business is either the lessor or
lessee, have been properly reported and assessed to the proper party. If leasehold improvements
exist, the appraiser should ensure that they are being assessed on either the real property or the
personal property roll.
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Simultaneous review of real and personal property records can also help to assure complete
assessment of property.
Time and cost considerations sometimes dictate that the appraiser may not be able to verify
the proper reporting of each item of personal property at each site or business being audited. Often,
verifying a sampling of major items listed in the detailed plant ledger, a walk-through inspection,
and an examination of the general ledger, balance sheet, or other appropriate records will suffice. It
may also be helpful to check a sample of recent invoices to see if the taxable assets have been
properly reported. The overall objective of the audit and verification process is to promote proper
reporting to the extent possible with available resources.
7. Valuation
7.1 Trade Level
The appraiser should value personalty at the level of trade at which it is found. Such
considerations are particularly important in inventory valuation. All approaches to personal
property valuation should take into consideration trade level, which refers to the production and
distribution of a product. The appraiser should recognize the three distinct levels of trade: the
manufacturing level, the wholesale level and the retail level. Incremental costs (such as freight
overhead, handling, and installation) are added to a product as it advances from one level of trade to
the next, thereby increasing its value as a final product. The value of goods will differ depending
on the level of trade.
7.2 Valuation Techniques
The cost, income and sales comparison approaches should be considered in the appraisal of
personal property. The degree of dependence upon any one approach will change with the
availability of reliable data. In addition, value-per-square-foot figures developed for comparable
properties can be used to check the value estimates derived from the standard appraisal approaches.
Such figures can also be used when the data required for other approaches are unavailable.
7.2.1 Cost Approach
Costs used in the cost approach can be original acquisition, replacement or reproduction
costs although often only original or acquisition costs are readily available for personal property.
The cost approach provides an estimate of value based on the depreciated cost of the property. In
applying the cost approach to personal property, the appraiser must identify make and model
number of the personalty, year acquired, and total acquisition costs including freight, installation,
taxes and fees. Acquisition costs of equipment acquired pursuant to a lease-purchase agreement
should include the total payments, not just the final payment. The acquisition costs should then be
trended and depreciated as appropriate to reflect current market values unless statutes or specific
market data dictate otherwise.
The assessor should recognize that appraisal and accounting practices may differ in
depreciating machinery. Accounting practices provide for recovery of the cost of an asset, while
appraisal practices strive to estimate a value related to the current market. Appraisal practice
should consider depreciation in the forms of physical deterioration, functional obsolescence, and
economic obsolescence.
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Useful guidelines in the form of depreciation schedules or tables are available from central
assessing authorities, professional revaluation companies, and appraisal publishing firms.
Generally, these guides are sufficiently accurate for use in mass appraisal or property. However,
there are always particular types of property where accrued depreciation defies the use of guides
and can only be estimated by applying experience and judgment.
If guides do not exist for specific types of personal property, it is recommended that they be
developed.
7.2.2 Sales Comparison Approach
The sales comparison approach may have limited application in appraising machinery and
equipment used in business, since sales of used items are generally few and are often liquidation
sales, which typically are not at market value. On the other hand, list prices, including delivery
costs and sales taxes, when supported by the marketplace, can be good indications of value. Care
must be taken to assure that the property is valued at the proper level of trade. Trade and cash
discounts should be subtracted from the list prices, particularly if the equipment sold is still at the
wholesale level of trade.
If reliable sales data are available, the adjustment process can be applied in the same manner
as in real estate, with one exception; sales of comparable real properties usually have a positive
adjustment for time because of appreciation. Since depreciation of machinery and equipment may
outpace inflationary effects, sales of this type of property may require a negative adjustment for
time.
7.2.3 Income Approach
The income approach produces an estimate of the present worth of income to be received in
the future. To apply this approach the assessor must estimate the income stream over the remaining
economic life of the subject equipment. Typical gross incomes may differ under various leasing
arrangements, although lessors may be able to supply average gross revenues for each type of
model of equipment. The historical pattern of net income streams, together with an analysis of
current leasing patterns, will suggest the likely shape of future income streams. The capitalization
technique chosen should be consistent with the anticipated income stream.
When reliable data on equipment leases are available, the income approach can provide
good value estimates. Lessors should be required to document operating expenses to be deducted
from the gross income. These expenses include management expenses directly associated with the
production of lease revenue, equipment maintenance expenses, and the like.
Developing a capitalization rate is a critical step in the capitalization process. Capitalization
rates contain provisions for return on investment (discount rate) and capital recovery (return of the
investment). In addition, property taxes may be accounted for as a component of the capitalization
rate. The discount rate compensates investors for their entrepreneurial efforts; it is determined by
the anticipated rate of return and the risk associated with a particular investment. Capital recovery
is a provision for recapture of the investment over its economic life.
Data on the economic lives of equipment can be obtained from a number of sources.
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Lessors are perhaps the best source, although typical economic lives should be documented with
dates of acquisition and disposal of actual items. These data can be used to estimate recapture rates.
When applying the income approach, consideration should be given to the salvage or scrap value, if
any, when the equipment has reached the end of its normal life expectancy.
In cases where equipment is both sold and leased, gross income multipliers should be
developed. Gross income multipliers can provide reliable value estimates for personal property
items that have similar operating expenses, discount rates, and remaining economic lives.
7.3 Valuation Guidelines for Tangible Personal Property
As discussed in section 7.2, the cost, income and sales comparison approaches should be
considered in the appraisal of tangible personal property. However, certain types of personal
property do not readily lend themselves to development of all three generally accepted approaches.
If sufficient sales data are available to support use of the sales comparison approach, it should
receive primary consideration. In many instances, however, sufficient sales data are not available,
and in these instances more reliance in placed on the cost approach or the income approach.
The following are procedures typically used in the valuation of common types of personal
property.
7.3.1 Machinery and Equipment
Machinery and equipment are items of personalty used in the normal conduct of business,
not permanently attached and, unlike inventory, not intended to be sold. Factors that influence the
valuation of machinery and equipment are utility, usefulness to the owner, and ability to produce
income. At the end of economic life, however, consideration should be given to salvage or scrap
value. The market value of machinery and equipment typically follows a declining path once the
assets are acquired and put into operation.
The most common and generally applicable approach for the valuation of machinery and
equipment is the cost approach, although the sales comparison approach should receive primary
consideration when adequate data are available. In particular, small equipment for which there is
often an active resale market may lend itself to valuation by the sales comparison approach.
Tools, dies, jigs, and patterns generally have very short lives and therefore are often
appraised at book value.
7.3.2 Furniture and Fixtures
The same procedure as described for the appraisal of machinery and equipment is generally
used in the appraisal of furniture and fixtures.
7.3.3 Leased Equipment
The valuation of leased equipment is complicated by such factors as the wide variety of
leased equipment, the variety of leasing arrangements, rapidly changing technologies, and changing
market conditions. These factors can cause the quality and quantity of available market data to
vary.
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The income approach can be used in valuing leased equipment since data on sales and rental
rates are usually available. When sales data are available, emphasis should be given to income
multipliers derived from market data and to the sales comparison approach.
The cost approach may be used in the valuation of leased equipment but must be utilized
with caution, since markups of cost to list prices may vary from one company to another on the
same type of equipment and vary with the level of trade. If manufactured cost is the only
information that is reported, it is recommended that the assessor try to obtain more data from the
lessor or try to compare the equipment in question with similar equipment of known cost.
7.3.4 Inventories
The term inventories includes specific categories of goods held for resale in the course of
business, goods in the process of production, and raw materials.
The classification of certain types of goods as inventories or otherwise will change
depending on the trade level at which the appraisal is being made. Machinery and other equipment
that remains classified as inventories at the manufacturing, wholesale, and retail levels become
machinery and equipment upon reaching the end user.
Inventory valuation, both for work in process and for finished goods, should include the
value of labor, materials, and overhead expended during production.
There are many valuation methods for estimating the value of inventories for assessment
purposes. Some of the more common ones are: 1. Cost of goods sold. 2. Gross profit. 3. Retail
pricing. Caution should be exercised when estimating inventory values from the owner’s
accounting records, since most accounting systems use an original acquisition cost basis for pricing
inventory and do not necessarily reflect market value as extracted from the marketplace. The
assessor should be aware of typical turnover rates when valuing inventory.
7.3.5 Supplies
Supplies are stocks of goods intended to be consumed during the production process but are
not part of the raw materials inventory that is processed into the finished product. Examples of
supplies include chemicals, clothing, pallets, paper, fuels, and repair parts. Unlike inventory,
supplies are not held for resale.
Supplies should be valued at their acquisition cost.
7.3.6 Consigned Goods
Consigned goods are personal property in the possession of an agent, held for sale by that
agent. They should be valued, at the appropriate level of trade, as part of the consignor’s inventory.
7.3.7 Imports and Exports
Assessors should be aware of the legal status of import and export merchandise to
determine its taxable status.
If there is no exemption provided by statute, then the techniques used in estimating the
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value of inventories should be utilized in valuing imports and exports.
7.4 Valuation Guidelines for Intangible Personal Property
Intangible personal property is exempt from property taxation in New Mexico. If tangible
personal property could be valued, the discovery, reporting, verification, and proper valuation of
intangible personal property would be a difficult process and would be expensive. The methods for
discovering, reporting, verifying, and auditing intangibles are the same as for tangible personal
property, however. Pertinent information required includes type of asset, name of issuer, date of
acquisition, legal life, expected useful life, face value or par value, market value, dividends or other
income. Various published sources provide information on the selling price of intangibles.
Assessment of intangibles should be administered by state-level governments since these
governments normally have income tax responsibilities and income tax returns are one of the most
important sources of discovery of intangibles. Statutes should provide concise guidance on the
assessment of intangibles. The benefit/cost ratio of taxation of intangibles is such that many states
have exempted intangible personal property from taxation.
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Selected References
California. State Board of Equalization. Assessment Standards Division. The Appraisal of Equipment,
Inventory and Supplies. Assessors Handbook 571. Sacramento: California State Board of Equalization,
Assessment Standards Division, 1974. 137 p. This handbook contains an excellent discussion of valuation
methods; although written to conform with California laws, much of the discussion is of general interest.
The Board also publishes General Audit Guidelines (Assessors Handbook 504) and Management of the
Business Property Program (Assessors Handbook 503). Substantial personal property manuals are also
issued by Arizona, Tennessee, and Washington.
Clatanoff, Robert M. Tangible Personal Property: Valuation, Assessment, and Taxation. Bibliographic
Series. Chicago: International Association of Assessing Officers, Research and Technical Services
Department, 1982. 20 p. A selected annotated bibliography that is divided into three sections. The first
section is “Assessment Methods and Practices and Tax Policies”; the second is governmental manuals on
personal property; and the third is “Price Guides, ‘Blue Books’, Indexes, etc.”.
Gossett, James F. “Assessment Law Notes: Problems in Intangibles Taxation.” Property Tax Journal 3 no. 4
(December 1984): 277-88. Review of case law dealing with many aspects of intangible personal property
assessment and valuation, for example, who should pay, situs, valuation, exemptions, discrimination.
O’Keefe, Kevin M. “The Classification Issue and the Law of Fixtures: A Chattel by Any Other Name…”
Journal of State Taxation 2 no. 1 (Spring 1983): 37-57. A survey of case law on the law of fixtures,
focusing on the attachment doctrine, the institutional doctrine, the integrated industrial plant doctrine, and
the material injury test: Illinois, New Jersey, and California are featured. See also the article following.
Hyman, M. Allan. “Commercial Property Assessments: Criteria for Classifying Personal Property as Real
Estate”, 59-66.
Skaff, Michael S. “Computerized Personal Property Valuation Models” International Property
Assessment Administration 7 (1974): 194-201. A paper that examines the use of computers in the
administrative function (computation of assessed values, bills and rolls) and in the analysis of the
valuation function (including determination of property life).
Washington State Association of County Assessors and Washington State Department of Revenue.
Taxpayers Guide to Personal Property. (Olympia): Washington State Department of Revenue, Property
Tax Division, 1984. 12 p. A compilation of information on the personal property tax in Washington,
most of the paragraphs with reference to the state statutes-definition, property subject to taxation, listing
(with responsibilities of assessor and taxpayer), situs, verification, valuation (of 12 kinds of personal
property), exemptions, appeal, etc. An example of the kind of brief guide that can be issued to assessors
and property owners alike.
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Note: The following listings are not all inclusive.
Typical
Businesses and
Equipment
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APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Cardiac Ultrasonic Scanners 6
CAT (Comp Tomography) Scanners 6
Diagnostic Ultrasounds 6
General Ultrasonic Scanners 6
MRI (Magnetic) Scanners 6
Nuclear Medicine Cameras 6
Ob/Gyn Ultrasonic Scanners 6
PET Scanners (Positron) Emission 6
All Portable Units of Same 6
Patient Service Related, i.e. 6
Monitors of all kinds 6
Anesthesia Monitors 6
Apnea Monitors 6
Blood Pressure Monitors 6
Chart Recorders 6
Defibs 6
Detox Analyzers 6
Dopplers 6
EEG Machine 6
EKG Machines 6
External Pace Makers 6
Heart Rate Devices 6
Neurological Monitors 6
Oximeter 6
Oxygen Analyzers 6
Spriometers 6
Systolic Monitors 6
Temperature Monitors 6
Angiographic X-ray Units 10
Chest X-ray Units 10
Dental X-ray Units 10
Flourographic X-units 10
Mammographic X-ray Units 10
Medical Laser Units 10
Portable X-ray Units 10
Radiographic X-ray Units 10
Special Procedure X-ray Units 10
All Portable Units of Same 10
HIGH-TECH MEDICAL
31
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Air hockey tables 6
Basketball games (single, two, three+ player) 10
Billiard/pool tables (complete*) and accessories 10
Boxing machine 6
Coin or token machines 14
Countertop touch machine 6
Dartboard—electronic 6
Electric crane machines 6
Foosball table 6
Jukebox 6
Jump houses—inflatable/obstacle courses 3
Kiddie rides 3
Photo booths 10
Pinball machine 3
Ping pong table 6
Redemption machines 6
Video and dance games—“sit-down” type, smaller, deluxe 3
Virtual bowling and shuffleboard 3
AMUSEMENT
* Complete includes all sizes, freight and set‑up, set of balls, rack, 4‑cue sticks, wall mount cue stick rack,
crutch cue, and table dust cover.
32
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Armoire 10
Beds
Queen - set (includes mattress, box spring, and frame) 10
Double - set (same) 10
Bookcase 10
Chest 10
Cocktail Table 10
Credenza 10
Dinette Set-Table and 4 Chairs 10
Dishwasher 10
Drapes-Per Window 10
Dresser 10
Fitness equipment 10
Floor Lamp 10
Game Table (30 inch) 10
Grills 10
Headboard-Queen / Double 10
Love Seat 10
Microwave 10
Mirror 10
Nightstand 10
Occasional Table 10
Pictures (each) 10
Pillows 50%
Pit Groups-Per Piece 10
Recliner 10
Refrigerator 10
Sectional Units 10
Side Chairs 10
Sleeper Sofa-Queen 10
Sofa 10
Stove/Oven 10
Table Lamp 10
TV 10
Upholstered Chair 10
Washer & Dryer 10
APARTMENTS
33
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Armoire 10
Beds (All - Includes Mattress, Box Spring, & Frame) 10
Clock Radio with CD 10
Coffee Maker-4 cup 10
Credenza-4 drawer 10
Credenza-2 drawer 10
Crib 10
Desk 10
Desk Chair 10
Drapes (60 x 40) 10
Dresser-4 drawer 10
Dresser-6 drawer 10
DVD Player 3
Fitness equipment 10
Floor Lamp 10
Game Table 10
Hair Dryer 3
Headboards-All 10
Ice Machine 10
Iron 10
Ironing Board 10
Iron/Ironing Board Combo 10
Lounge Chair 10
Low Chest-3 drawer 10
Luggage Cart 10
Luggage Rack-Metal Folding 10
Maid's Cart (Housekeeping) 10
Microwave 10
Mirrors 10
Nightstands 10
Pictures 10
Radio 10
Roll-A-Way Beds 10
Round or Game Table 10
Sleeper Sofa-Queen Size 10
Slider 10
Spreads-Queen 10
Table Lamp 10
Towels & Bedding (per single unit includes pillows) 50%
HOTEL, MOTEL, B&B
34
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
TV Stand 6
TV 19-inch Color w/ remote control 6
TV 25-inch Color w/ remote control 6
TV 27-inch Color w/ remote control 6
TV 32-inch LCD Flatscreen w/ remote control 6
Video Player 3
Wall Hanging Lamp- Single & Double Arm 10
Washer & Dryer 10
V.I.P. rooms, add $2,540 if unit is furnished with round
or heart-shaped bed 10
HOTEL, MOTEL, B&B (Cont.)
35
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Single Rooms
Fair Quality Average Quality Good Quality
Double Bed Queen Bed Queen Bed
Frame Frame Frame
Headboard Headboard Headboard
Table Lamps (3) Table Lamps (3) Table Lamps (3)
Dresser / Desk Dresser / Desk Dresser / Desk
Desk Chair Desk Chair Low Chest
Lounge Chairs (2) Lounge Chairs (2) Desk Chair
Mirror Mirror Lounge Chairs (2)
Pictures (3) Pictures (2) Mirror
Luggage Rack-Metal Luggage Rack-Metal Pictures (2)
Spread Spread Luggage Rack-Wood
TV 19-inch w/ remote TV 27-inch w/ remote Spread
Towels & Bedding Towel & Bedding TV 32-inch w/ remote
Drapes Drapes Towels & Bedding
Game Table Game Table Drapes
Game Table
Floor Lamp
Clock Radio
Iron
Ironing Board
Coffee Maker
Hair Dryer
Hotel and Motel Typical Unit Costs include these items:
HOTEL, MOTEL, B&B (Cont.)
36
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Double Rooms
Fair Quality Average Quality Good Quality
Double Beds (2) Queen Beds (2) Queen Beds (2)
Frames (2) Frames (2) Frames (2)
Headboards (2) Headboards (2) Headboards (2)
Table Lamps (2) Table Lamps (2) Table Lamps (2)
Dresser / Desk Dresser / Desk Dresser / Desk
Desk Chair Desk Chair Low Chest
Lounge Chairs (2) Lounge Chairs (2) Desk Chair
Mirror Mirror Lounge Chairs (2)
Pictures (2) Pictures (2) Mirror
Luggage Rack-Metal Luggage Rack-Metal Pictures (3)
Spreads (2) Spreads (2) Luggage Rack-Wood
TV 19-inch w/ remote TV 27-inch w/ remote Spreads (2)
Towels & Bedding (2) Towels & Bedding (2) TV 32-inch w/ remote
Drapes Drapes Towels & Bedding (2)
Game Table Drapes
Nightstand (1) Game Table
Nightstand (1)
Floor Lamp
Clock Radio
Iron
Ironing Board
Coffee Maker
Hair Dryer
Hotel and Motel Typical Unit Costs include these items:
HOTEL, MOTEL, B&B (Cont.)
37
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Bagel Display (Self-service, Refrigerated) 10
Baker Label Printer 10
Bench, Ingredient 10
Bread Rack, Midget 10
Bread Slicer and Bagger 10
Bun Divider, Rounder 10
Bun Slicer 10
Cart, cake box 10
Case, bakery (refrigerated & unrefrigerated) 10
Cookie Display 10
Cookie Machine 10
Dishwasher 10
Production Equipment 10
Dough Divian 10
Dough Hook 40-Quart 10
Dough Sheeter 10
Freezer, Bakery - 8x10 10
Glazer 10
Heavy Duty Wire Whip 10
Kook-E-King 10
Mixers, Bakery 10
Molding Machine, French Bread 10
Oven, Bakery 10
Oven, Pan 10
Pastry Filling Injector 10
Pot Rack 10
Projector, Designer 10
Proofer 10
Retarder (walk-in) 10
Sink, Bakery 10
Spice Rack, 8 feet 10
Stoves 10
Tables 10
Wire Shelving and Accessories (unassembled breakdown)
Dunnage Racks (base for wire rack assembly) 10
Post (Chrome) 62 1/2 " (1 post each corner) 10
Shelf Dividers 10
Shelf Ledges (4" high) (1 ledge each side) 10
Shelves (zinc) Add 30% for coated wires 10
Tray Slides (Chrome) holds 12 trays 10
Wire Whip, Heavy Duty 10
BAKERY
38
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Overall Cost Age/Life Table
Barber Shop - per chair 10
Beauty Shop - per station 10
Styling Shop 10
Per Item Cost
All Purpose Chair 10
Chair/Dryer Combination 10
Back Bar 10
Barber Chair 10
Blow Dryers 3
Chair/Dryer Combination 10
Curling Iron 3
Dry Station 10
Dryer, Free Standing 10
Eight-in-One Function 10
Electric Clippers 3
Facial Station 10
Hair Processors 10
Hot Lather Machine 3
Hot Towel Sterilizer 10
Hydraulic Styling Chair 10
Hygienic Mat 10
Manicure Stool 10
Manicure Table 10
Massage Table 10
Massage Chair - Portable 10
Microderm Abrasion 10
Nail Tables 10
Pedicure Spa Portable 10
Perm Topper Stand 10
Pipeless Pedicure Spa w/ Motorized Seat 10
Retail Casing - 6 ft case 10
Rollabout Cart/Stand 10
Shampoo Back Bar (shampoo bowl, storage, etc 10
Shampoo Bowl (cast iron system/fiberglass) 10
Shampoo Chair 10
Shears/Razors 3
Tanning Bed 6
Vacuum Cleaner 10
Waxing Bed 10
Wet Station 10
BARBER AND BEAUTY SHOP
39
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Ball Cleaner and Polishing Machine 10
Ball, house (7 per lane) each 10
Ball Resurface Machine, Hass 10
Ball Resurface Unit, Surface Factory Machine 10
Ball Spinner 10
Ball Storage Racks (portable) 10
Basic Bowling Light package, per lane 10
Bowling Pins (2 sets per lane, 1 extra set per 10 lanes - cost/set)* 10
Buffing Machine 10
Chairs - swivel (for spectator tables) 10
Dodo scale (used to balance bowling balls) 10
Drilling Machine (includes 40 bits, measuring device and jigs) 10
Mill-drill complete 10
Gutter and lane mop 10
refill (per head) 3
Lane Monitor System 10
Lane Oiler (LED readout) 10
Lane Oiling and Cleaning Combo 10
Lino Duster (lane dragger) 10
Lockers (5 per lane) each 10 unit bank 10
Measuring Ball (for finger layout 10
Model Wall Free Standing Table 10
Name Engraver 10
Pin Cleaning Machine - manual 10
Pin Cleaning Machine - start up kit 10
Shoes (8 pair per lane) each 3
Spectator Tables (48-inch round Formica) 10
Table & 4 Stationary Chairs 10
Table w/ 4 Swivel Chairs 10
Tool Kit (for pin setting machine) 10
Waste Receptacles 10
*Most bowling alleys have duplicate sets of pins which are used when others are being repaired.
BOWLING CENTER
40
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Accessory Racks 10
Cases / Counters
Display Cases 10
Register Stand 10
Wrap Counter 10
Garment Racks 10
Grid Panels 10
Mannequins/Figure Forms 10
Merchandisers
Display Table, metal legs, 5' long 10
Glass Cubes 10
Glass Shelf Displayer,
Island Unit, 4' high, base 36" x 60" 10
Modular System, chrome plated tubing 10
Gondola Combination Unit, 60" x 48" x 16"-22" 10
Wall Unit, 5' high, base 36" x 48" 10
Mirrors 10
Perimeter Wall Displays 10
Picture Frame Card Holders 10
Security Items 10
Slotwall or Slatwall 4' x 8', wt. 90# per sheet
Paint Ready 10
Red Oak (wood laminates) 10
White Birch (wood laminates) 10
Gray Melamine 10
Mirror (plastic laminates) 10
Regular plastic laminates 10
Steamer, clothing 10
Stockroom Rack (rolling) 10
Track Lighting, Power Track (including connectors), per ft. 10
Turn System (including ticket dispenser) 10
CLOTHING STORE
41
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Air Abrasive Cavity Prep Unit 10
Air Abrasive Economy Model 10
Amalgamator 10
Assistant's Cart 10
Cabinetry
Doctor's sink console 10
Assistant's sink console 10
Split entry console 10
Rear treatment console with delivery system 10
Rear treatment console without controls 10
CD1 Player and Patient Education Disc 10
Chair 10
Compressor 10
Curing Lights 10
Dark Room Equipment (includes safe light, mixing valve, developing
tank, duplicator, etc.) 10
Delivery System (3 hand piece over patient) 10
With Cuspidor 10
Digital X-Ray System 10
Medical Tools/Instruments 6
Hand Tools (per treatment room) 6
Intra-oral Camera Cart System 10
Intra-oral Camera System-multi-op network-per room 10
Laboratory Items (includes model trimmer, plaster bin, lathe,
plaster tray, vibrator, etc.) 10
Lights (track mount) 10
Lights (unit mount) 10
Nitrous Oxide System (built in) 10
Nitrous Oxide System, portable (cart, head, 2 regulators) 10
Sterilizer 10
Stools (Doctors and Assistant) per pair 10
Ultrasonic Cleaner (benchtop) 10
Ultrasonic Instrument Cleaner (recessed) 10
Ultrasonic Scaler 10
Vacuum Pump (built in) 10
X-Ray Illuminator 10
X-Ray Machine 10
additional heads 10
X-Ray Processor 10
X-Ray Room
Panoramic machine (full view) extraoral in addition
to the GE 90 or 70KV X-Ray machines above 10
DENTAL
42
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Alarm Systems-Surveillance 10
Box (storage)
Dairy with customer doors 18 x 38 x 9 10
Freezer 10 x 11 x 8 10
Freezer 15 x 42 x 9 10
Floral 8 x 8 x 8 10
Produce 20 x 24 x 9 10
Cardboard Compactor and Tube 10
Carts (hand baskets, electric & shopping) 10
Cabinet, Video (locked storage) 10
Case
Cheese (6' x 14') 10
Frozen Food/Ice Cream 10
Refrigerated (beverage, dairy, etc.) 10
Produce (12' sectional) 10
Cash Registers (electronic) 6
Check Out Scanner Units (processor, terminal, scanner) 6
Checkstands 10
Counter 10
Display 10
Disposal Unit - Produce 10
Dock Board 10
Garbage Compactor, 20-yard 10
Generator 30 kw 10
Humidifier 10
Ice Machine (1,000 & cab) 10
Ice Merchandiser 10
Juice Machine 10
Labeler, Automatic 10
Magazine & Card Racks (10') 10
Merchandiser
Dough (Refrigerated) 10
Egg (Refrigerated) 10
Wine 8' (Refrigerated) 10
Pallet Trucks (electric, manual & straddle) 10
Paper Baler 10
Pineapple Corer 10
Polisher/Scrubber 10
Safes (5-7 cu. ft.) 10
Scales 10
Scanner Units 6
GROCERY STORE
43
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Sealer, Belt Type 10
Shelving 10
Sink, Preparation 10
Telephone / Intercom 6
Terminals (electronic) 6
Time Clocks 10
Trash Receptacle 15
Walk-In Cooler 10
Wet Vacuum 10
Wine Chiller 10
GROCERY STORE (Cont.)
44
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
BBQ Cooker / Rotisserie 10
Beer dispenser - direct draw (all keg capacities) 10
Blender (commercial food & liquid) 10
Bone Dust Remover 10
Bowl Cutter (cut meats, fruits, veggies, breads) 10
Broilers 10
Buffet Table 10
Bun Toaster - Conveyer 10
Bun Warmer 10
Burger Press - 5 oz. 4" 10
Bus Cart 10
Cabinets (utility / storage) 10
Can Opener 10
Cases (display) 10
Chairs 10
Chair Risers (child's booster seat) 10
Cleaner, Grout Hog (clean tile floors) 10
Coffee Brewer 10
Coffee Urn 10
Combin - Therm Oven - Single 10
Combin - Therm Oven - Double 10
Convention Oven 10
Deep Fryer 10
Dishes 10
Dishwasher 10
Disposal Unit, Meat and Fish 10
Drink Dispenser 10
Espresso Machine 10
Fat Tester 10
Fat Vat 10
Food Processors 10
Freezer 10
Fryer, Pressure 10
Glasses 10
Granita Machine 10
Griddle 10
Grill 10
Grinder (chopper & mixer) 10
Guest Pager Kit 10
Heat Lamps 10
Hot Chocolate Machine 10
MEAT SHOP, DELI & RESTAURANT
45
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Hot Dog Broiler / Bun Warmer 10
Hot Dog Grill 10
Hot Plate 10
Hood, Service Deli (4' x 13') w/ Fire Protection 10
Ice Cream Machine 10
Ice Dispenser 10
Ice Machine 10
Ice Merchandiser (Double Door) 10
Ice Tea Brewer 10
Insta-Cut Machine 10
Drink Dispenser 10
Island, Deli ' 10
Meat Grinder 10
Meat Slicer 10
Microwave 10
Milk Dispenser 10
Mixer - w/ S/S bowl, beater and wire whip 10
Nacho Cheese Melter/Warmer 10
Nacho Chip Warmer 10
Oriental Wok Stove 10
Oven, Convention 10
Oven, Pizza 10
Oven - Slow Roast / Hold 72" H x 23" W x 33" D 10
Oyster Shucker 10
Packaging Machine (heat seal) 10
Packaging Scale 10
Pan, Chicken Drain 10
Pannini Grill 10
Pasta Cooker, stand-alone 10
Pie Case 10
Pizza Dough Mixer 10
Pizza Dough Sheeter - single pass roller 10
Pizza Station (display) 10
Popcorn Butter Dispenser 10
Popcorn Machine 10
Portion Blending System 10
Pots & Pans 10
Pretzel Display 10
Range 10
Refrigerated Back Bar Cooler - under counter 10
Refrigerated Chef's Salad Top 10
MEAT SHOP, DELI & RESTAURANT (Cont.)
46
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Refrigerated Direct Draw Draft Beer Dispenser 10
Refrigerated Glass and Plate Chiller 10
Refrigerated Pizza Preparation Table 10
Refrigerator 10
Revolving Display Case 10
Rice Cooker 10
Rolling Warming Drawers 10
Salad Bar, 5' x 16', refrigerated, self-contained, w/ sneeze guard 10
Sausage Stuffer 10
Saw, Meat 10
Sealer, Belt (meat wrapping system) 10
Shake Mixer 10
Silverware 10
Sinks 10
Slicing Machine 10
Snow Cone Maker 10
Soft Ice Cream Machine 10
Soup Kettles 10
Steam Cooker 10
Steam Tables - Gas, Electric, Portable 10
Steamer (warmer) 10
Straw Dispensers 10
Tables (All) 10
Buffet 10
Pizza Preparation 10
Salad Top/Work Top 10
Serve Deli 10
Meat Cutting 10
Tenderizer 10
Toaster 10
Topping Dispensers 10
Utensils and Miscellaneous 10
Vegetable Cutter 10
Waffle Baker 10
Warmer, Display 10
Weigh Wrap System 10
Wine Cooler 10
MEAT SHOP, DELI & RESTAURANT (Cont.)
47
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Overall Cost Age/Life Table
Examining Rooms 10
Laboratory 10
Minor Surgery Room 10
Per Item Cost
Blood Analyzer (Serometer) 6
Blood Pressure Gauge (table or wall-mounted) 6
Centrifuge 10
Diagnostic Set 10
Drug Cabinet 10
EKG Machine 6
Examining Table 10
Examining Room Cabinets 10
Fluoroscopic X-Ray (small & large clinic) 10
Goose Neck Lamp 10
Instruments 6
Microscope 10
Mini Mass Spectrometer 10
Sterilizer 10
Stools/chairs 10
Suction Pump 10
Surgery Room Cabinets (5') 10
Surgery Room Lights 10
Surgery Table - (major & minor procedure) 10
Table Counter 10
Ultraviolet Exam Light (Woods) 10
Waste Receivers 10
X-Ray Machine 10
MEDICAL
48
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Amplify speakers ticket booth 10
Computer point of sale station 6
Crowd control pole and rope 10
Digital cinema system (projector, lens, server) 10
Omni max projector (sound extra) 10
Omni-term ticket and concession system
Small System (1 ticket outlet and 3 concession terminals) 6
Large System (unlimited ticket outlets and concession terminals) 6
Projector with reel transport system (includes lenses, makeup table, 10
platter, transport)
Projectors (older system) Note: 2 required per screen 10
Screens (includes frame and installation) per square foot (15'x30') 10
Sound system
Dolby System 10
THX (add to Dolby) 10
Splicing Machine 10
Concession Equipment
Cotton candy maker 10
Express multiples - 3 to 5 pump condiments 10
Hot dog merchandiser - countertop unit with bun warmer 10
Ice machine 10
Nacho cheese warmer 10
Nacho chip case 10
Point of sale system 6
Popcorn Machine 10
Pizza cabinet 10
Pretzel bake and serve cabinet 10
Soft drink dispensers - CO
2
10
MOVIE THEATER EQUIPMENT
49
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Furniture
Bookcases 10
Chairs 10
Conference table 10
Credenza 10
Desk - Steel 10
Desk - Wood 10
Drafting Table (with base) 10
File Cabinets 10
Reception Room
Sofa 10
Settee 10
Love Seat 10
Chair 10
Corner Table 10
Coffee Table 10
Plant Encasement 10
Secretarial Work Station 10
Typewriter Table 10
Work Table - 6' 10
Equipment
Calculator (all models) 6
Cell phone 6
Digital camera 6
Easel (Dry Erase and Pad) 10
Electronic Labeling System 10
Electronic Whiteboard 10
Fax (primary fax function) 6
Laminator 6
Multifunction fax/copier/printer/scanner (color laser, inkjet) 6
Projector - digital LCD, digital wall display DLP & overhead 6
Printer (all types) 6
Safe 10
Scanner 6
Shredder 10
Typewriter 10
OFFICE
50
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Overall Cost Age/Life Table
Examining Rooms 10
Laboratory only 10
Laboratory with Edger 10
Laboratory with Automated Edger 10
Per Item Cost
Automatic refractor with keratometer 10
Binocular indirect ophthalmoscope 10
Buffer 10
Chair and stand - optimetrics 10
Contact Lens Center (CLC) (table, mirror, sink, and modification unit) 10
Digital imaging system (can retrofit to most existing slit lamps) 10
Digital scanner 10
Direct ophtalmoscope (head only) 10
Handle 10
Edging System 10
Exam chair 10
Frame warmer with beads 10
Fundus Camera
Non-mydriatic 10
Mydriatic 10
Groover - auto 10
Hand instrument package 6
Lane package - indirect, transformer, and hand instruments 10
Instrument stand 10
Keratometer 10
Lensometer (automated & manual) 10
Pachymeter 10
Perimeter 10
Polisher 10
Procedure chair 10
Projector (includes screen, slides, and mounts)
Non-automated 10
Automated 10
Mirror Set 10
Pupilometer, digital 10
Radius gauge or scope 10
Refractor (Phoroptor) 10
Refractor (Phoroptor, digital) 10
OPTICAL
51
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Per Item Cost Age/Life Table
Retinscope 10
Salt pan and frame warmer 10
Screening table 10
Slit Lamp 10
Stool (each) 10
Tinter 10
Tonometer
Noncontact 10
Applanation 10
Tono-Pen 10
Topographer 10
Transilluminator 10
Trial lens set and frame 10
Ultrasonic cleaner 10
Ultrasound 10
Vision tester 10
Visual acuity system 6
OPTICAL (Cont.)
52
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Air Compressors 10
Air Impact Tools (1/2 " drive) 10
Anti-Freeze Recycler 10
Battery Chargers 10
Battery Testers 10
Bearing Packer 10
Bench Grinder (6") 10
Microfiche Viewer system 10
Brake Bleeder 10
Computer 6
Drill Press 10
Dwell-Tach Gauges (hand held) 10
Electric Drills 10
Electric Welder 10
Engine Analyzer (5 gas) 6
Fire Extinguishers 10
Floor Jacks 10
Gas Welder 10
Gear Oil Dispenser 10
"H" Frame Hydraulic Press (12 ton) 10
General Hand Tools 10
Headlight Aimer 10
Hoist (above-ground, portable) 10,000 lb. capacity 10
Lube Equipment (portable chassis) 10
Mikes and Guages (assorted) 10
Mobile Floor Crane (1 ton) 10
Oil Drain Receiver 10
Parts Washing Tanks 10
Porta-Power Tools (10 ton) 10
Portable Engine Stands 10
Power Broom 10
Spark Plug Cleaner 10
Steel Shelving 10
Timing Lights 6
Tire Dismount Equipment (air-powered) 10
Tool Chests and Carts 10
Transmission Jack 10
Wheel Alignment Equipment, Computerized 10
Wheel Balancers 10
Work Benches 10
SERVICE GARAGE
53
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
Cigarette Dispenser 10
Cold Food - Bill Changer included 10
Flavored Coffee Machine 10
Glass Front Combination 10
Glass Front Snack 10
Hot Drink Machine 10
Ice Cream Machine 10
Junior Snack - countertop model 10
Microwave Ovens 10
Office Coffee Brewers 10
Office Coffee Machines - countertop 10
Water Machines 10
VENDING MACHINES
54
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Overall Cost Age/Life Table
Examining Rooms 10
Holding Area 10
Laboratory 10
Laundry Room 10
Surgery Rooms 10
Per Item Cost
Anesthesia Machine 10
Buster ICU 10
Cages 10
Cage Dryer 10
Centrifuge 10
Dental system (main system, polisher, scalers) 10
ECG/EKG machines 10
Electrosurgery units (ESU) 10
Examining Table or Counter (wall mount) 10
Freezer 10
Hand Instruments 6
Heart Monitor 6
Incubator 10
Induction Tank 10
Instruments in Examining Room 6
Instrument Table (stainless steel) 10
Lab Scope 10
Microscope 10
Opthalmoscope (head only) 10
Otoscope (complete) 10
Prep Table (stainless steel) 10
Refrigerator 10
Scale 10
Sterilizer (autoclaves) 10
Surgery Lights 10
Surgery Table 10
Table Top Refrigerator 10
Vet Diagnostic Set - Ophthalmoscope/otoscope (complete) 10
Vet Test (blood chemistry analyzer) 10
Walk-on Platform Scale 10
Washer & Dryer 10
X-Ray Machines (including accessories) 10
VETERINARY
55
Rev. 12/2018
APPENDIX IV
CLASS LIFE SUMMARY SCHEDULE
Item Age/Life Table
BluRay DVD player (incl. 3D) 3
Camcorders - digital 3
Cameras - digital 6
Consoles (incl. systems, accessories and games)
Game Cube, Nintendo, Playstation, PSP, Xbox 3
DVD player and recorder 3
DVD and BluRay discs 3
Videotapes 50%
VIDEO EQUIPMENT RENTAL
56
Rev. 12/2018
Schedule 1 Schedule 2 Schedule 3
3 yr life 6 yr life 10 yr life
2023 85% 2023 93% 2023 96%
2022 56% 2022 78% 2022 87%
2021 27% 2021 64% 2021 78%
2020 13% 2020 49% 2020 69%
2019 34% 2019 61%
2018 20% 2018 52%
2017 13% 2017 43%
2016 34%
2015 26%
2014 17%
2013 13%
Schedule 4 Schedule 5 Schedule 6 Schedule 7
14 yr life 20 yr life 25 yr life 45 yr life
2023 97% 2023 98% 2023 98% 2023 99% 1997 49%
2022 91% 2022 93% 2022 95% 2022 97% 1996 47%
2021 84% 2021 89% 2021 91% 2021 95% 1995 45%
2020 78% 2020 85% 2020 88% 2020 93% 1994 43%
2019 72% 2019 80% 2019 84% 2019 91% 1993 41%
2018 66% 2018
76% 2018 81% 2018 89% 1992 39%
2017 59% 2017 72% 2017 77% 2017 87% 1991 37%
2016 53% 2016 67% 2016 74% 2016 86% 1990 35%
2015 47% 2015 63% 2015 70% 2015 84% 1989 33%
2014 41% 2014 58% 2014 67% 2014 82% 1988 31%
2013 34% 2013 54% 2013 63% 2013 80% 1987 29%
2012 28% 2012 50% 2012 60% 2012 78% 1986 27%
2011 22% 2011 45% 2011 56% 2011 76% 1985 25%
2010 16% 2010 41% 2010 53% 2010 74% 1984 23%
2009 13% 2009 37% 2009 49% 2009 72% 1983 21%
2008 32% 2008 46%
2008 70% 1982 20%
2007 28% 2007 42% 2007 68% 1981 18%
2006 23% 2006 39% 2006 66% 1980 16%
2005 19% 2005 35% 2005 64% 1979 14%
2004 15% 2004 32% 2004 62% 1978 13%
2003 13% 2003 28% 2003 60%
2002 25% 2002 58%
2001 21% 2001 56%
2000 18% 2000 54%
1999 14% 1999 53%
1998 13% 1998 51%
Wooden billboards; cement
production assets (does not
include manufacture of
concrete)
Manufacturing equipment of
chemical, rubber, metal, stone
,
glass, steel mills
Gas & purification plants;
pipelines; oil field compressors;
storage & holding tanks
Steel billboards; bank vaults
EXHIBIT I
Tax Year 2024
Short-term rentals; video
games; standard software
Computers & peripheral equipment; copiers;
cell phones; drones; TVs; LED billboards;
drilling & well service; assets used in
construction
DEPRECIATION SCHEDULES
Office furniture, fixtures & communications
equipment; vending machines; portable
buildings; signage (non-billboard); ag m&e;
entertainment services assets i.e. bowling
alle
y
s
,
concert halls
,
mini
g
olf cours
e
57
Rev. 11/2023
