||Users of the 2000 Cost Index and
||John C. Bailey, Director
Property Tax Division
||Enclosed 2000 Schedules
We are enclosing the Depreciation and Valuation Schedules for the 2000 tax
year. We recommend the use of these schedules in the valuation of business personal
property and certain taxable personal property listed as of January 1, 2000.
There were a few changes this year, other than the usual percent good factor
adjustments. The changes have been marked with an asterisk in the index and
are described below:
- We have further clarified that Point of Sale (POS) equipment is included
in the "STORE EQUIPMENT" major category. Information we have received at this
time indicates that POS equipment does not depreciate at the same rate as
PC's and other computers, nor does it have the same economic life as computers.
Federal tax depreciation guidelines do not include POS equipment as either
computers or peripherals. We suggest a 10-year life is appropriate
as an average useful life for all store equipment as a group.
- Due to the economic downturn of the textile manufacturing industry and the
recent closing of several textile-manufacturing facilities across the state,
there is an excess supply of used textile machinery. To account for this,
we have adjusted schedules A8 and A10 for the category "TEXTILE MILL PRODUCTS"
to depreciate to a 15% residual value. The design of schedule A was altered
to accommodate this change. The schedule A8 and A10 for textiles are calculated
using the same trend factors as the regular schedule A, however textile equipment
will depreciate to a 15% residual.
We will have the schedules on the web as soon as possible. The Department's
site is at http://www.dor.state.nc.us/.
As a reminder, only actual PC's, midrange, or mainframe computers, either stand
alone or servers in a networked environment, along with their peripherals fall
under the guidelines of major category "DATA PROCESSING EQUIPMENT".
These schedules have been prepared by this office as a general guide to be
used in the valuation of business personal property utilizing the replacement
cost approach to value. It is important to remember that the schedules are only
a guide. There will be situations where the appraiser may need to make adjustments
for additional functional or economic obsolescence, or for other factors.
We feel that the proper use of the schedules will aid in the overall uniformity
and equity of property tax assessment practices as required by North Carolina
statutes. If you have any questions about these schedules please contact David
Baker, Kirk Boone, or John Bailey at 919-733-7711.
Last modified on:
10/31/07 03:46:54 PM.