No. 28908 (Amendment): R884-24P-33.2006 Personal Property Valuation Guides and Schedules Pursuant to Utah Code Ann. Section 59-2-301

DAR File No.: 28908
Filed: 08/01/2006, 03:54
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This is an annual update to the personal property guides and schedules for local valuation and assessment of business personal property and motor vehicles.

 

Summary of the rule or change:

Subsection 59-1-210(3) authorizes the State Tax Commission to promulgate rules that aid county officials in the performance of duties relating to the assessment and equalization of property within the county. The changes to the values are listed under the cost section below.

 

State statutory or constitutional authorization for this rule:

Section 59-2-301

 

Anticipated cost or savings to:

the state budget:

The amount of savings or cost to state government is undetermined. Tax revenue is distributed to local governments for assessing and collecting. Increase or decrease in 2007 tax revenue cannot be determined, even if there were no changes in the percent good tables, because taxpayer acquisitions and deletions of property during 2007 is unknown. The proposed personal property schedules in this rule are raised, lowered, or remain the same for 2007 based on the type and age of the property assessed. Schedules for class 15, class 24, and class 27 are proposed with no changes for 2007 from 2006. Schedules used to value business personal property increased as much as 16 percentage points in class 20, "Petroleum and Natural Gas Exploration and Production Equipment" and decreased as much as 6 percentage points in class 16 "Long Life Property" from the previous rule. The schedule for class 6 used to value "Heavy and Medium Duty Trucks" increased as much as three percentage points. The schedule for class 14, "Motor Homes" decreased as much as five percentage points from the previous rule. In aggregate, for all personal property schedules, it is anticipated that the change in the annual tax rate will have a larger impact on revenue than will the proposed schedule changes due to the proposed amendments.

 

local governments:

The amount of saving or cost to local government is undetermined. Local governmental entities receive tax revenue based on increased or decreased personal property value. Increase or decrease in 2007 tax revenue cannot be determined, even if there were no changes in the percent good tables, because taxpayer acquisitions and deletions of property during 2006 is unknown. The proposed personal property schedules in this rule are raised, lowered or remain the same for 2007 based on the type and age of the property. Schedules for class 15, class 24, and class 27 are proposed with no changes for 2007 from 2006. Schedules used to value business personal property increased as much as 16 percentage points in class 20, "Petroleum and Natural Gas Exploration and Production Equipment" and decreased as much as 6 percentage points in Class 16 "Long Life Property" from the previous rule. The schedule for class 6 used to value "Heavy and Medium Duty Trucks" increased as much as three percentage points. The schedule for class 14, "Motor Homes" decreased as much as five percentage points from the previous rule. In aggregate, for all personal property schedules, it is anticipated that the change in the annual tax rate will have a larger impact on revenue than will the proposed schedule changes due to the proposed amendments.

 

other persons:

In the aggregate, the amount of savings or cost to individuals and business is undetermined. Affected persons pay taxes based on increased or decreased personal property value. The proposed personal property schedules in this rule are raised, lowered or remain the same for 2007 based on the type and age of the property. Since some schedules are increased and some decreased, it is not possible to determine the change to affected persons without knowing the 2007 property mix compared to the previous year.

 

Compliance costs for affected persons:

Local business owners and property tax practitioners will once again be required to be aware of new percent good figures. However, this is no different from previous years; therefore the compliance cost in completing the assessment process will not change. The change in taxes charged for these businesses depends entirely on the owner's mix of property since some percent good schedules are increasing and others decreasing. For example, the owner of a heavy duty truck may see an increase in value since the 2006 proposed percent good schedule because this class increased by as much as three percentage points. The owner of a commercial trailer, however, may see an increase or a decrease, compared to the previous rule, depending on the model year of the trailer.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

As indicated above, the fiscal impact to businesses from changes in the proposed personal property schedules due to changes in this rule will not be as significant as changes in the annual tax rate. Pam Hendrickson, Commission Chair

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Property Tax
210 N 1950 W
SALT LAKE CITY UT 84134

 

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2006

 

This rule may become effective on:

09/21/2006

 

Authorized by:

D'Arcy Dixon, Commissioner

 

 

RULE TEXT

R884. Tax Commission, Property Tax.

R884-24P. Property Tax.

R884-24P-33. [2006]2007 Personal Property Valuation Guides and Schedules Pursuant to Utah Code Ann. Section 59-2-301.

(1) Definitions.

(a) "Acquisition cost" means all costs required to put an item into service, including purchase price, freight and shipping costs; installation, engineering, erection or assembly costs; and excise and sales taxes.

(i) Indirect costs such as debugging, licensing fees and permits, insurance or security are not included in the acquisition cost.

(ii) Acquisition cost may correspond to the cost new for new property, or cost used for used property.

(b)(i) "Actual cost" includes the value of components necessary to complete the vehicle, such as tanks, mixers, special containers, passenger compartments, special axles, installation, engineering, erection, or assembly costs.

(ii) Actual cost does not include sales or excise taxes, maintenance contracts, registration and license fees, dealer charges, tire tax, freight, or shipping costs.

(c) "Cost new" means the actual cost of the property when purchased new.

(i) Except as otherwise provided in this rule, the Tax Commission and assessors shall rely on the following sources to determine cost new:

(A) documented actual cost of the new or used vehicle; or

(B) recognized publications that provide a method for approximating cost new for new or used vehicles.

(ii) For the following property purchased used, the taxing authority may determine cost new by dividing the property's actual cost by the percent good factor for that class:

(A) class 6 heavy and medium duty trucks;

(B) class 13 heavy equipment;

(C) class 14 motor homes;

(D) class 17 vessels equal to or greater than 31 feet in length;

(E) class 21 commercial trailers; and

(F) class 23 aircraft subject to the aircraft uniform fee and not listed in the aircraft bluebook price digest.

(d) "Percent good" means an estimate of value, expressed as a percentage, based on a property's acquisition cost or cost new, adjusted for depreciation and appreciation of all kinds.

(i) The percent good factor is applied against the acquisition cost or the cost new to derive taxable value for the property.

(ii) Percent good schedules are derived from an analysis of the Internal Revenue Service Class Life, the Marshall and Swift Cost index, other data sources or research, and vehicle valuation guides such as Primedia Price Digests.

(2) Each year the Property Tax Division shall update and publish percent good schedules for use in computing personal property valuation.

(a) Proposed schedules shall be transmitted to county assessors and interested parties for comment before adoption.

(b) A public comment period will be scheduled each year and a public hearing will be scheduled if requested by ten or more interested parties or at the discretion of the Commission.

(c) County assessors may deviate from the schedules when warranted by specific conditions affecting an item of personal property. When a deviation will affect an entire class or type of personal property, a written report, substantiating the changes with verifiable data, must be presented to the Commission. Alternative schedules may not be used without prior written approval of the Commission.

(d) A party may request a deviation from the value established by the schedule for a specific item of property if the use of the schedule does not result in the fair market value for the property at the retail level of trade on the lien date, including any relevant installation and assemblage value.

(3) The provisions of this rule do not apply to:

(a) a vehicle subject to the age-based uniform fee under Section 59-2-405.1;

(b) the following personal property subject to the age-based uniform fee under Section 59-2-405.2:

(i) an all-terrain vehicle;

(ii) a camper;

(iii) an other motorcycle;

(iv) an other trailer;

(v) a personal watercraft;

(vi) a small motor vehicle;

(vii) a snowmobile;

(viii) a street motorcycle;

(ix) a tent trailer;

(x) a travel trailer; and

(xi) a vessel, including an outboard motor of the vessel, that is less than 31 feet in length.

(4) Other taxable personal property that is not included in the listed classes includes:

(a) Supplies on hand as of January 1 at 12:00 noon, including office supplies, shipping supplies, maintenance supplies, replacement parts, lubricating oils, fuel and consumable items not held for sale in the ordinary course of business. Supplies are assessed at total cost, including freight-in.

(b) Equipment leased or rented from inventory is subject to ad valorem tax. Refer to the appropriate property class schedule to determine taxable value.

(c) Property held for rent or lease is taxable, and is not exempt as inventory. For entities primarily engaged in rent-to-own, inventory on hand at January 1 is exempt and property out on rent-to-own contracts is taxable.

(5) Personal property valuation schedules may not be appealed to, or amended by, county boards of equalization.

(6) All taxable personal property, other than personal property subject to an age-based uniform fee under Section 59-2-405.1 or 59-2-405.2, is classified by expected economic life as follows:

(a) Class 1 - Short Life Property. Property in this class has a typical life of more than one year and less than four years. It is fungible in that it is difficult to determine the age of an item retired from service.

(i) Examples of property in the class include:

(A) barricades/warning signs;

(B) library materials;

(C) patterns, jigs and dies;

(D) pots, pans, and utensils;

(E) canned computer software;

(F) hotel linen;

(G) wood and pallets;

(H) video tapes, compact discs, and DVDs; and

(I) uniforms.

(ii) With the exception of video tapes, compact discs, and DVDs, taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

(iii) A licensee of canned computer software shall use one of the following substitutes for acquisition cost of canned computer software if no acquisition cost for the canned computer software is stated:

(A) retail price of the canned computer software;

(B) if a retail price is unavailable, and the license is a nonrenewable single year license agreement, the total sum of expected payments during that 12-month period; or

(C) if the licensing agreement is a renewable agreement or is a multiple year agreement, the present value of all expected licensing fees paid pursuant to the agreement.

(iv) Video tapes, compact discs, and DVDs are valued at $15.00 per tape or disc for the first year and $3.00 per tape or disc thereafter.

 

TABLE 1

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                 [67]72%

         [04]05                 [41]42%

         [03]04 and prior       [10]11%

 

(b) Class 2 - Computer Integrated Machinery.

(i) Machinery shall be classified as computer integrated machinery if all of the following conditions are met:

(A) The equipment is sold as a single unit. If the invoice breaks out the computer separately from the machine, the computer must be valued as Class 12 property and the machine as Class 8 property.

(B) The machine cannot operate without the computer and the computer cannot perform functions outside the machine.

(C) The machine can perform multiple functions and is controlled by a programmable central processing unit.

(D) The total cost of the machine and computer combined is depreciated as a unit for income tax purposes.

(E) The capabilities of the machine cannot be expanded by substituting a more complex computer for the original.

(ii) Examples of property in this class include:

(A) CNC mills;

(B) CNC lathes;

(C) MRI equipment;

(D) CAT scanners; and

(E) mammography units.

(iii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 2

       Year of            Percent Good

     Acquisition       of Acquisition Cost

         [05]06                  [83]90%

         [04]05                  [73]75%

         [03]04                  [61]67%

         [02]03                  [53]58%

         [01]02                  [44]49%

         [00]01                  [36]39%

         [99]00                  [26]29%

         [98]99 and prior        [16]18%

 

(c) Class 3 - Short Life Trade Fixtures. Property in this class generally consists of electronic types of equipment and includes property subject to rapid functional and economic obsolescence or severe wear and tear.

(i) Examples of property in this class include:

(A) office machines;

(B) alarm systems;

(C) shopping carts;

(D) ATM machines;

(E) small equipment rentals;

(F) rent-to-own merchandise;

(G) telephone equipment and systems;

(H) music systems;

(I) vending machines;

(J) video game machines; and

(K) cash registers and point of sale equipment.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 3

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                  [79]86%

         [04]05                  [68]71%

         [03]04                  [52]57%

         [02]03                  [35]39%

         [01]02 and prior        [18]20%

 

(d) Class 5 - Long Life Trade Fixtures. Class 5 property is subject to functional obsolescence in the form of style changes.

(i) Examples of property in this class include:

(A) furniture;

(B) bars and sinks:

(C) booths, tables and chairs;

(D) beauty and barber shop fixtures;

(E) cabinets and shelves;

(F) displays, cases and racks;

(G) office furniture;

(H) theater seats;

(I) water slides; and

(J) signs, mechanical and electrical.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 5

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                     [86]93%

         [04]05                     [82]85%

         [03]04                     [73]80%

         [02]03                     [63]70%

         [01]02                     [53]59%

         [00]01                     [43]47%

         [99]00                     [33]36%

         [98]99                     [22]24%

         [97]98 and prior           [11]12%

 

(e) Class 6 - Heavy and Medium Duty Trucks.

(i) Examples of property in this class include:

(A) heavy duty trucks;

(B) medium duty trucks;

(C) crane trucks;

(D) concrete pump trucks; and

(E) trucks with well-boring rigs.

(ii) Taxable value is calculated by applying the percent good factor against the cost new.

(iii) Cost new of vehicles in this class is defined as follows:

(A) the documented actual cost of the vehicle for new vehicles; or

(B) 75 percent of the manufacturer's suggested retail price.

(iv) For state assessed vehicles, cost new shall include the value of attached equipment.

(v) The [2006]2007 percent good applies to [2006]2007 models purchased in [2005]2006.

(vi) Trucks weighing two tons or more have a residual taxable value of $1,750.

 

TABLE 6

                     Percent Good

      Model Year     of Cost New



         [06]07                90%

         [05]06                [77]80%

         [04]05                [71]74%

         [03]04                [65]67%

         [02]03                [59]61%

         [01]02                [53]55%

         [00]01                [47]49%

         [99]00                [40]43%

         [98]99                [34]36%

         [97]98                [28]30%

         [96]97                [22]24%

         [95]96                [16]18%

         [94]95                [10]12%

         [93]94 and prior       [4]5%

 

(f) Class 7 - Medical and Dental Equipment. Class 7 property is subject to a high degree of technological development by the health industry.

(i) Examples of property in this class include:

(A) medical and dental equipment and instruments;

(B) exam tables and chairs;

(C) high-tech hospital equipment;

(D) microscopes; and

(E) optical equipment.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 7

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                    [87]95%

         [04]05                    [85]86%

         [03]04                    [78]84%

         [02]03                    [70]77%

         [01]02                    [62]69%

         [00]01                    [54]59%

         [99]00                    [45]50%

         [98]99                    [36]41%

         [97]98                    [28]30%

         [96]97                    [19]21%

         [95]96 and prior          [10]10%

 

(g) Class 8 - Machinery and Equipment. Property in this class is subject to considerable functional and economic obsolescence created by competition as technologically advanced and more efficient equipment becomes available.

(i) Examples of property in this class include:

(A) manufacturing machinery;

(B) amusement rides;

(C) bakery equipment;

(D) distillery equipment;

(E) refrigeration equipment;

(F) laundry and dry cleaning equipment;

(G) machine shop equipment;

(H) processing equipment;

(I) auto service and repair equipment;

(J) mining equipment;

(K) ski lift machinery;

(L) printing equipment;

(M) bottling or cannery equipment;

(N) packaging equipment; and

(O) pollution control equipment.

(ii) Except as provided in Subsection (6)(g)(iii), taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

(iii)(A) Notwithstanding Subsection (6)(g)(ii), the taxable value of the following oil refinery pollution control equipment required by the federal Clean Air Act shall be calculated pursuant to Subsection (6)(g)(iii)(B):

(I) VGO (Vacuum Gas Oil) reactor;

(II) HDS (Diesel Hydrotreater) reactor;

(III) VGO compressor;

(IV) VGO furnace;

(V) VGO and HDS high pressure exchangers;

(VI) VGO, SRU (Sulfur Recovery Unit), SWS (Sour Water Stripper), and TGU; (Tail Gas Unit) low pressure exchangers;

(VII) VGO, amine, SWS, and HDS separators and drums;

(VIII) VGO and tank pumps;

(IX) TGU modules; and

(X) VGO tank and air coolers.

(B) The taxable value of the oil refinery pollution control equipment described in Subsection (6)(g)(iii)(A) shall be calculated by:

(I) applying the percent good factor in Table 8 against the acquisition cost of the property; and

(II) multiplying the product described in Subsection (6)(g)(iii)(B)(I) by 50%.

 

TABLE 8

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                   [87]95%

         [04]05                   [85]86%

         [03]04                   [78]84%

         [02]03                   [70]77%

         [01]02                   [62]69%

         [00]01                   [54]59%

         [99]00                   [45]50%

         [98]99                   [36]41%

         [97]98                   [28]30%

         [96]97                   [19]21%

         [95]96 and prior         10%

 

(h) Class 9 - Off-Highway Vehicles.

(i) Because Section 59-2-405.2 subjects Class 9 property to an age-based uniform fee, a percent good schedule is not necessary for this class.

(i) Class 10 - Railroad Cars. The Class 10 schedule was developed to value the property of railroad car companies. Functional and economic obsolescence is recognized in the developing technology of the shipping industry. Heavy wear and tear is also a factor in valuing this class of property.

(i) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 10

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                    [92]97%

         [04]05                    [89]91%

         [03]04                    [83]88%

         [02]03                    [77]83%

         [01]02                    [70]77%

         [00]01                    [65]70%

         [99]00                    [58]64%

         [98]99                    [51]57%

         [97]98                    [44]49%

         [96]97                    [37]41%

         [95]96                    [31]33%

         [94]95                    [24]26%

         [93]94                    [16]18%

         [92]93 and prior           [8]9%

 

(j) Class 11 - Street Motorcycles.

(i) Because Section 59-2-405.2 subjects Class 11 property to an age-based uniform fee, a percent good schedule is not necessary for this class.

(k) Class 12 - Computer Hardware.

(i) Examples of property in this class include:

(A) data processing equipment;

(B) personal computers;

(C) main frame computers;

(D) computer equipment peripherals;

(E) cad/cam systems; and

(F) copiers.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 12

     Year of               Percent Good

     Acquisition       of Acquisition Cost

         [05]06                    62%

         [04]05                    46%

         [03]04                    21%

         [02]03                     9%

         [01]02 and prior           7%

 

(l) Class 13 - Heavy Equipment.

(i) Examples of property in this class include:

(A) construction equipment;

(B) excavation equipment;

(C) loaders;

(D) batch plants;

(E) snow cats; and

(F) pavement sweepers.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

(iii) [2006]2007 model equipment purchased in [2005]2006 is valued at 100 percent of acquisition cost.

 

TABLE 13

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                    [57]62%

         [04]05                    [54]59%

         [03]04                    [51]55%

         [02]03                    [48]51%

         [01]02                    [45]48%

         [00]01                    [41]44%

         [99]00                    [38]41%

         [98]99                    [35]37%

         [97]98                    [32]33%

         [96]97                    [29]30%

         [95]96                    [25]26%

         [94]95                    22%

         [93]94                    19%

         [92]93 and prior          [16]15%

 

(m) Class 14 - Motor Homes.

(i) Taxable value is calculated by applying the percent good against the cost new.

(ii) The [2006]2007 percent good applies to [2006]2007 models purchased in [2005]2006.

(iii) Motor homes have a residual taxable value of $1,000.

 

TABLE 14

                         Percent Good

      Model Year         of Cost New

         [06]07                    90%

         [05]06                    [69]65%

         [04]05                    [66]61%

         [03]04                    [63]58%

         [02]03                    [59]55%

         [01]02                    [56]51%

         [00]01                    [53]48%

         [99]00                    [49]45%

         [98]99                    [46]41%

         [97]98                    [43]38%

         [96]97                    [39]35%

         [95]96                    [36]32%

         [94]95                    [33]28%

         [93]94                    [29]25%

         [92]93                    [26]22%

         [91]92                    [23]18%

         [90]91 and prior          [19]15%

 

(n) Class 15 - Semiconductor Manufacturing Equipment. Class 15 applies only to equipment used in the production of semiconductor products. Equipment used in the semiconductor manufacturing industry is subject to significant economic and functional obsolescence due to rapidly changing technology and economic conditions.

(i) Examples of property in this class include:

(A) crystal growing equipment;

(B) die assembly equipment;

(C) wire bonding equipment;

(D) encapsulation equipment;

(E) semiconductor test equipment;

(F) clean room equipment;

(G) chemical and gas systems related to semiconductor manufacturing;

(H) deionized water systems;

(I) electrical systems; and

(J) photo mask and wafer manufacturing dedicated to semiconductor production.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 15

       Year of            Percent Good

     Acquisition      of Acquisition Cost



         [05]06                  47%

         [04]05                  34%

         [03]04                  24%

         [02]03                  15%

         [01]02 and prior         6%

 

(o) Class 16 - Long-Life Property. Class 16 property has a long physical life with little obsolescence.

(i) Examples of property in this class include:

(A) billboards;

(B) sign towers;

(C) radio towers;

(D) ski lift and tram towers;

(E) non-farm grain elevators; and

(F) bulk storage tanks.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 16

       Year of            Percent Good

      Acquisition     of Acquisition Cost



         [05]06                  [94]98%

         [04]05                  [92]93%

         [03]04                  [88]91%

         [02]03                  [84]87%

         [01]02                  [79]83%

         [00]01                  [75]78%

         [99]00                  [71]74%

         [98]99                  [65]71%

         [97]98                  [61]65%

         [96]97                  [56]61%

         [95]96                  [52]56%

         [94]95                  [48]51%

         [93]94                  [43]47%

         [92]93                  [37]41%

         [91]92                  [31]35%

         [90]91                  [25]28%

         [89]90                  [20]21%

         [88]89                  [14]15%

         [87]88 and prior         [7]8%

 

(p) Class 17 - Vessels Equal to or Greater Than 31 Feet in Length.

(i) Examples of property in this class include:

(A) houseboats equal to or greater than 31 feet in length;

(B) sloops equal to or greater than 31 feet in length; and

(C) yachts equal to or greater than 31 feet in length.

(ii) A vessel, including an outboard motor of the vessel, under 31 feet in length:

(A) is not included in Class 17;

(B) may not be valued using Table 17; and

(C) is subject to an age-based uniform fee under Section 59-2-405.2.

(iii) Taxable value is calculated by applying the percent good factor against the cost new of the property.

(iv) The Tax Commission and assessors shall rely on the following sources to determine cost new for property in this class:

(A) the following publications or valuation methods:

(I) the manufacturer's suggested retail price listed in the ABOS Marine Blue Book;

(II) for property not listed in the ABOS Marine Blue Book but listed in the NADA Marine Appraisal Guide, the NADA average value for the property divided by the percent good factor; or

(III) for property not listed in the ABOS Marine Blue Book or the NADA Appraisal Guide:

(aa) the manufacturer's suggested retail price for comparable property; or

(bb) the cost new established for that property by a documented valuation source; or

(B) the documented actual cost of new or used property in this class.

(v) The [2006]2007 percent good applies to [2006]2007 models purchased in [2005]2006.

(vi) Property in this class has a residual taxable value of $1,000.

 

TABLE 17

                         Percent Good

     Model Year          of Cost New



         [06]07                   90%

         [05]06                   [72]68%

         [04]05                   [70]66%

         [03]04                   [67]64%

         [02]03                   [65]62%

         [01]02                   [63]59%

         [00]01                   [61]57%

         [99]00                   [59]55%

         [98]99                   [57]53%

         [97]98                   [54]50%

         [96]97                   [52]48%

         [95]96                   [50]46%

         [94]95                   [48]44%

         [93]94                   [46]42%

         [92]93                   [43]39%

         [91]92                   [41]37%

         [90]91                   [39]35%

         [89]90                   [37]33%

         [88]89                   [35]31%

         [87]88                   [32]28%

         [86]87                   [30]26%

         [85]86 and prior         [28]24%

 

(q) Class 18 - Travel Trailers/Truck Campers.

(i) Because Section 59-2-405.2 subjects Class 18 property to an age-based uniform fee, a percent good schedule is not necessary for this class.

(r) Class 20 - Petroleum and Natural Gas Exploration and Production Equipment. Class 20 property is subject to significant functional and economic obsolescence due to the volatile nature of the petroleum industry.

(i) Examples of property in this class include:

(A) oil and gas exploration equipment;

(B) distillation equipment;

(C) wellhead assemblies;

(D) holding and storage facilities;

(E) drill rigs;

(F) reinjection equipment;

(G) metering devices;

(H) cracking equipment;

(I) well-site generators, transformers, and power lines;

(J) equipment sheds;

(K) pumps;

(L) radio telemetry units; and

(M) support and control equipment.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 20

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                   [92]97%

         [04]05                   [90]95%

         [03]04                   [82]94%

         [02]03                   [76]87%

         [01]02                   [69]80%

         [00]01                   [62]72%

         [99]00                   [55]64%

         [98]99                   [47]55%

         [97]98                   [40]46%

         [96]97                   [33]38%

         [95]96                   [25]29%

         [94]95                   [17]20%

         [93]94 and prior          [9]10%

 

(s) Class 21 - Commercial Trailers.

(i) Examples of property in this class include:

(A) dry freight van trailers;

(B) refrigerated van trailers;

(C) flat bed trailers;

(D) dump trailers;

(E) livestock trailers; and

(F) tank trailers.

(ii) Taxable value is calculated by applying the percent good factor against the cost new of the property. For state assessed vehicles, cost new shall include the value of attached equipment.

(iii) The [2006]2007 percent good applies to [2006]2007 models purchased in [2005]2006.

Commercial trailers have a residual taxable value of $1,000.

 

TABLE 21

                       Percent Good

      Model Year       of Cost New



         [06]07                   95%

         [05]06                   [78]81%

         [04]05                   [74]76%

         [03]04                   [69]71%

         [02]03                   65%

         [01]02                   [61]60%

         [00]01                   [56]55%

         [99]00                   [52]50%

         [98]99                   [48]44%

         [97]98                   [43]39%

         [96]97                   [39]34%

         [95]96                   [35]29%

         [94]95                   [30]24%

         [93]94                   [26]18%

         [92]93                   [22]13%

         [91]92                   [18]8%

         [90]91 and prior         [13]3%

 

(t) Class 22 - Passenger Cars, Light Trucks/Utility Vehicles, and Vans.

a) Class 22 vehicles fall within four subcategories: domestic passenger cars, foreign passenger cars, light trucks, including utility vehicles, and vans.

b) Because Section 59-2-405.1 subjects Class 22 property to an age-based uniform fee, a percent good schedule is not necessary for this class.

(u) Class 23 - Aircraft Subject to the Aircraft Uniform Fee and Not Listed in the Aircraft Bluebook Price Digest.

(i) Examples of property in this class include:

(A) kit-built aircraft;

(B) experimental aircraft;

(C) gliders;

(D) hot air balloons; and

(E) any other aircraft requiring FAA registration.

(ii) Aircraft subject to the aircraft uniform fee, but not listed in the Aircraft Bluebook Price Digest, are valued by applying the percent good factor against the acquisition cost of the aircraft.

(iii) Aircraft requiring Federal Aviation Agency registration and kept in Utah must be registered with the Motor Vehicle Division of the Tax Commission.

 

TABLE 23

       Year of            Percent Good

     Acquisition       of Acquisition Cost



         [05]06                    75%

         [04]05                    71%

         [03]04                    67%

         [02]03                    63%

         [01]02                    59%

         [00]01                    55%

         [99]00                    51%

         [98]99                    47%

         [97]98                    43%

         [96]97                    39%

         [95]96                    35%

         [94]95 and prior          31%

 

(v) Class 24 - Leasehold Improvements.

(i) This class includes leasehold improvements to real property installed by a tenant. The Class 24 schedule is to be used only with leasehold improvements that are assessed to the lessee of the real property pursuant to Tax Commission rule R884-24P-32. Leasehold improvements include:

(A) walls and partitions;

(B) plumbing and roughed-in fixtures;

(C) floor coverings other than carpet;

(D) store fronts;

(E) decoration;

(F) wiring;

(G) suspended or acoustical ceilings;

(H) heating and cooling systems; and

(I) iron or millwork trim.

(ii) Taxable value is calculated by applying the percent good factor against the cost of acquisition, including installation.

(iii) The Class 3 schedule is used to value short life leasehold improvements.

 

TABLE 24

       Year of             Percent of

     Installation       Installation Cost



         [05]06                 94%

         [04]05                 88%

         [03]04                 82%

         [02]03                 77%

         [01]02                 71%

         [00]01                 65%

         [99]00                 59%

         [98]99                 54%

         [97]98                 48%

         [96]97                 42%

         [95]96                 36%

         [94]95 and prior       30%

 

(w) Class 25 - Aircraft Parts Manufacturing Tools and Dies. Property in this class is generally subject to rapid physical, functional, and economic obsolescence due to rapid technological and economic shifts in the airline parts manufacturing industry. Heavy wear and tear is also a factor in valuing this class of property.

(i) Examples of property in this class include:

(A) aircraft parts manufacturing jigs and dies;

(B) aircraft parts manufacturing molds;

(C) aircraft parts manufacturing patterns;

(D) aircraft parts manufacturing taps and gauges;

(E) aircraft parts manufacturing test equipment; and

(F) aircraft parts manufacturing fixtures.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 25

       Year of           Percent Good

     Acquisition      of Acquisition Cost



         [05]06                     [79]86%

         [04]05                     [69]71%

         [03]04                     [53]58%

         [02]03                     [36]40%

         [01]02                     [19]21%

         [00]01 and prior            4%

 

(x) Class 26 - Personal Watercraft.

(i) Because Section 59-2-405.2 subjects Class 26 property to an age-based uniform fee, a percent good schedule is not necessary for this class.

(y) Class 27 - Electrical Power Generating Equipment and Fixtures

(i) Examples of property in this class include:

(A) electrical power generators; and

(B) control equipment.

(ii) Taxable value is calculated by applying the percent good factor against the acquisition cost of the property.

 

TABLE 27

       Year of           Percent Good

     Acquisition      of Acquisition Cost



         [05]06                    97%

         [04]05                    95%

         [03]04                    92%

         [02]03                    90%

         [01]02                    87%

         [00]01                    84%

         [99]00                    82%

         [98]99                    79%

         [97]98                    77%

         [96]97                    74%

         [95]96                    71%

         [94]95                    69%

         [93]94                    66%

         [92]93                    64%

         [91]92                    61%

         [90]91                    58%

         [89]90                    56%

         [88]89                    53%

         [87]88                    51%

         [86]87                    48%

         [85]86                    45%

         [84]85                    43%

         [83]84                    40%

         [82]83                    38%

         [81]82                    35%

         [80]81                    32%

         [79]80                    30%

         [78]79                    27%

         [77]78                    25%

         [76]77                    22%

         [75]76                    19%

         [74]75                    17%

         [73]74                    14%

         [72]73                    12%

         [71]72 and prior           9%

 

F. The provisions of this rule shall be implemented and become binding on taxpayers beginning January 1, [2006]2007.

 

KEY: taxation, personal property, property tax, appraisals

Date of Enactment or Last Substantive Amendment: [March 6,] 2006

Notice of Continuation: April 5, 2002

Authorizing, and Implemented or Interpreted Law: 59-2-301