2001 Introduction & Cost Index

Following this introduction is the 2001 Trending Schedules for use in valuation of business personal property located in North Carolina. One of the most effective and efficient methods for determining current Replacement Cost New less Depreciation is the use of these valuation tables. These tables are published by the Property Tax Division solely to assist the business personal property appraiser in determining current market value.

All life years used on the different types of property have been carefully researched with federal tax guides, other state government depreciation schedules, as well as information provided to us by the taxpayers themselves. The trend factors are determined using the percentage price increase over the past year of similar business markets. These percentages come from the latest edition of Producer Price Indexes, as determined by the U.S. Department of Labor, Bureau of Labor Statistics.

In using these trending schedules, you will be utilizing the cost approach to value. In using the cost approach, the appraiser must determine four critical elements:

  1. The original (historical) installed cost
  2. The current replacement cost new (RCN)
  3. The useful economic life of the property
  4. The loss in value (Depreciation)

When applying the schedules, always use original (historical) cost which includes all costs involved with bringing the property in operation. As an example, consider the following: In their 2001 business listing, a manufacturer of machinery listed $10,000 machinery and equipment, acquired in 1996. This amount correctly included $8,000 actual equipment, $1,500 installation, and $500 freight and taxes. Using schedule A with a suggested useful life of 10 years, we note that the appraised market value as of January 1, 2001 would be:

$10,000 x .53 = $5,300

In examining what we have done, the trending factor of 1.06 brings the value of the equipment up to current replacement cost new which would be:

$10,000 x 1.06 = $10,600

Then we depreciate RCN assuming the property is five years old with a suggested ten year life:

$10,600 x .50 = $5,300, which is the same answer as above.

The valuation tables show percent good factors (.53) which are simply the products of the trending factors (1.06) and the straight line depreciation factors (.50). These percent good factors are used to find current replacement cost new less depreciation. It is very important to remember that in using the trending schedules, do not apply the trend factor a second time as it has already been used in the calculation of the percent good factor.

Cost Index

AEROSPACE INDUSTRY 18 B 8

Primarily engaged in the manufacture of aircraft, spacecraft, rockets, missiles and component parts.

     
AIR CONDITIONING EQUIPMENT      

Large - 20 tons and over

18 B 20

Medium and Small - Under 20 tons

18 B 10

Heat Pumps - All sizes

18 B 7
AIRPORT GROUND EQUIPMENT 18 B 10

Unlicensed Vehicles

18 B 10
AMUSEMENT AND RECREATION EQUIPMENT      
A. Amusement Park      

Amusement Rides

18 B 5

Billiards and Pool

18 B 10

Boats

18 B 5

Bowling Alleys

18 B 8

Coin Operated Electronic Games (Video Games)

18 B 3

Dance Studio

18 B 10

Gymnasium (Health Clubs)

18 B 10

Museum

18 B 10

Race Track

18 B 10

*Video Rental Tapes & DVD's

24 N 2(1)

Video Rental Tape Player

18 B 3
*(1) Residual Value - Use 10% residual value on all remaining tapes & DVD's after 2nd year.  
If Cost Data is Given
If Number of tapes is reported
YEAR
% Good
YEAR
$ PER TAPE/DVD
2000
40
2000
$18.00
1999
15
1999
$ 6.75
1998
10
1998
$ 4.50
   
B. Golf Carts 18 B 5
C. Miniature Golf Courses 18 B 10
D. Average All (Variety) 18 B 7
APARTMENT AND ROOMING HOUSE (EQUIPMENT) 20 G 8
APPAREL AND OTHER FINISHED PRODUCTS MANUFACTURED FROM FABRICS, FABRICATED TEXTILE PRODUCTS AND SIMILAR MATERIALS      

Leather Apparel

17 A 11

Fabrics - Knitwear and Fur

17 A 9

Rubber Apparel

17 A 14

Miscellaneous Textile Products such as draperies and canvas

17 A 9
ASPHALT ROOFING MATERIALS (EQUIPMENT USED TO MANUFACTURE)      

(See Petroleum Products Manufacturing)

     
AUTOMOBILE REPAIR AND SERVICE EQUIPMENT      

Body Shops

22 J 10

Car Wash Automatic

22 J 5

Car Wash Automatic (Coin Operated)

22 J 5

Garages

22 J 10

Portable Service Station Equipment

22 J 10

Recapping, Retreading and Rebuilding Tires

22 J 8

Service Station Equipment

22 J 10

Service Station Leak Detection Equipment

22 J 8

Service Station Test Equipment

22 J 8
BAKERIES - RETAIL (BAKING AND SELLING) 17 A 10
BANKS & SAVINGS AND LOAN EQUIPMENT      

Automated Teller Machines (ATM)

21 H 5

Drive in Windows

21 H 10

Night Depository

21 H 10

Teller Service Area

21 H 10

Teller service Systems

21 H 10

Closed Circuit TV - Pneumatic

21 H 4

Visual Pneumatic

21 H 10

Currency Lockers

21 H 20

Safe Deposit Box

21 H 20

Teller Lockers

21 H 20
Note For vaults, vault doors, inner gates, vent fans and additions, see the 50 year depreciation schedule M 23 M 50
BAR - RESTAURANT AND SODA FOUNTAIN EQUIPMENT 20 E 10

Includes all eating and drinking establishments selling prepared food and drinks.

     
BARBER SHOP EQUIPMENT 18 B 10
BEAUTY SHOP EQUIPMENT, Tanning beds 18 B 8
BOAT BUILDING      

Includes repair and conversion

18 B 12

Molds for fiberglass boats

18 B 3
BOAT DOCKS (Where Classified as Personalty)      

Wood and Foam

18 B 5

Steel or other Metal Construction

18 B 20
BOTTLING - (PLANT EQUIPMENT) 17 A 12

Manufacture, bottling or canning of soft drinks, fresh fruit drinks, mineral and distilled waters, carbonated beverages, etc.

     
BROADCASTING - RADIO AND TV EQUIPMENT      

Studio Broadcasting Equipment

18 B 6

Transmitting Towers

18 B 25
*CABLE MANUFACTURING      

* Manufacture of Fiber Optic, Coaxial, and data Cable
Including coaxial, composite cable, and twisted Copper cable.

21 I 10
CABLE TV EQUIPMENT      

Headend Equipment, Receiving Antennas

18 B 11

Distribution Systems, Sat. Dishes

18 B 10

Subscriber Connection

18 B 3

Towers

18 B 25
CELLULAR EQUIPMENT      

Towers

18 B 25

Power Supply, PBX (internal phone system), Microwave Antennas

18 B 10

*Digital -Antenna Cell Site, Cell equip, Microwave Digital, Tools & testing equip., Telephones, pagers, antennas

18 U 6

Analog - Antenna Cell Site, Cell equipment

18 B 3

Switches, Channel Bank Equipment

28 U 6
CEMENT MANUFACTURING AND CONCRETE PRODUCTS      

Ready Mix Concrete Plants

17 A 15

Concrete Products Manufacturing, (Blocks, Pipe, etc. )

17 A 12

Cement Manufacturing Plants

17 A 20

Portable Ready Mix Plants

17 A 8

Mixers (Truck Mounted)

17 A 15
Note Cement manufacturing plants have a combination of quarrying and manufacturing machinery which should be reported and appraised separately      
CHEMICAL AND ALLIED PRODUCTS 17 A 10

Establishments producing basic chemicals and establishments manufacturing products by predominantly chemical processes such as industrial gasses, drugs, pharmaceutical detergents, perfumes, cosmetics, cleaning preparations, paints, lacquers, varnishes, enamels, etc.

     

Manufacture of Compressed Gasses

17 A 8
COMMUNICATION - TELEPHONE AND INTERCOM SYSTEMS- PAY PHONES 18 B 10
COMPUTER MANUFACTURING      

Manufacturers engaged in the assembly of computers

21 I 8
CONTRACTOR'S EQUIPMENT      

General Construction - Highway, Dams, etc.

17 A 8

Barricades and Warning Devices

17 A 3

Special Trade Contractors

     

Electrical Heating, Plumbing, Painting, Framing & Carpentry

17 A 10

Cranes to 50 tons, Shovels to 8 cubic yards

17 A 10

Cranes, Shovels, and Drag Lines

18 B 25

Portable Asphalt Batch Plants

17 A 6
COTTON GINS AND COMPRESSES 17 A 12

Cotton gin machinery for removing seeds from raw cotton.
Cotton Compresses are machines used to bale cotton after ginning.

     
COPYING AND DUPLICATING EQUIPMENT      

Use Schedule N

24 N 5

Use this schedule for manufacturer-lessor as current retail selling price will be reported.

     

Use Schedule L

22 L 5

Use this schedule for non-manufacturer-lessor and private owner as historical cost will be reported.

     
DATA PROCESSING EQUIPMENT - Non-production computers      

This category includes personal computers, midrange and mainframe computers, and their peripherals, used for data processing. This category does not include computers embedded in machinery nor does it include equipment or computers specifically designed for use in any other application directly related to manufacturing or retail. Does not include equipment that is an integral part of other capital equipment that is included in other classes of economic activity, i.e., computers used primarily for process or production control, switching, channeling, and automating distributive trades and services such as point of sale (POS) computer systems. For POS equipment, see "Store Equipment". Also, does not include equipment of a kind used primarily for amusement or entertainment of the user.

     

Use Schedule U (10% residual)

28 U 5

Use this schedule for all reported computer and data processing equip.

     

Software (10% residual)

28 U 5
Note Accelerated depreciation is used on data processing equipment.      
DRILLING EQUIPMENT (GAS, PETROLEUM & WATER)      

Exploration and Drilling Equipment

17 A 6

Includes water well drilling equipment mounted on vehicles.

     
DRY CLEANING AND LAUNDRY EQUIPMENT      

Commercial

18 B 10

Coin Operated

18 B 6

Leased and Rented Linens and Uniforms (Not trended)

24 N 2
ELECTRICAL EQUIPMENT      

Manufacture of electrical household appliances, batteries, machinery used in the generation and utilization of electric energy.

21 I 10
ELECTRONIC EQUIPMENT      

A. Includes the manufacture (50% or more) of Electronic Communication, Detection, Guidance, Control, Radiation Computation, Test and Navigation equipment.

21 I 8

B. Manufacturers engaged only in the purchase and assembly of electronic components.

21 I 12

C. Semi-Conductor Manufacturing

28 U 6

    Semi-Conductor Testing Equip

28 U 8

D. Vapor Depollution System

17 A 5
FABRICATED METAL PRODUCTS 17 A 12

Includes the manufacture of fabricated metal products such as cans, tinware, hardware, metal structural products, architectural and ornamental metal work, nuts, bolts, metal awnings, portable metal structures, etc.

     
FARM AND RANCH MACHINERY AND EQUIPMENT      

Includes machinery and equipment used in the production of crops and livestock and on-the-farm processing of feeds. (portable hammermills)

17 A 8

Tractors, combines, cotton harvesters, hay balers, forage harvesters, plows, harrows, sprinkler equip., etc.

17 A 8
*FIBER OPTICS MANUFACTURING 21 I 8

Manufacturers of glass fiber for fiber optics

     
FOOD, BEVERAGE AND KINDRED PRODUCTS (MANUFACTURING, PACKAGING, AND PROCESSING)      

Bakery Products

17 A 12

Brewery and Distillery

17 A 12

Canned, Preserved Fruits and Vegetables

17 A 12

Confectionery and Related Products

17 A 12

Creamery and Dairy Products

17 A 12

Grain Mill Products

17 A 17

Includes assets used in the production of flours, cereals, live-stock feeds, and other grain and grain mill products. (large hammermills)

     

Grain Tanks

17 A 15

Miscellaneous Food Preparations such as honey and potato chips

17 A 12

Sugar and Sugar Products

17 A 18

Vegetable Oil Products

17 A 18
FURNITURE MANUFACTURING OF WOOD PRODUCTS, EXCEPT LUMBER MANUFACTURING 17 A 10
GLASS AND GLASS PRODUCTS (EXCLUDES MANUFACTURE OF LENSES) 17 A 14

The manufacture of glassware, pressed or blown, and the manu- facture of products from purchased glass such as quartz and pyrex laboratory apparatus, art glass, doors made from purchased glass, etc., glass containers, plate, safety and window glass.

     

Manufacture of Mirrors

17 A 10
HOSPITAL AND NURSING HOME EQUIPMENT 19 C 10

CAT Scan & MRI Equipment.

19 C 6
HOTEL, MOTEL AND RESORT EQUIPMENT 20 D 10

Televisions

18 B 5
HYDRO ELECTRIC GENERATING EQUIPMENT 27 T 50
INSTRUMENTS (PROFESSIONAL, SCIENTIFIC & CONTROLLING, PHOTOGRAPHIC AND OPTICAL, WATCHES AND CLOCKS 18 B 12

Includes establishments in manufacturing scientific and research instruments such as meters - gas, liquid, tallying and measuring; optical elements and assemblies, hearing aids, hearing test equipment, wheel chairs, prosthetic devices, contact lenses, photographic acces- sories, data cameras, watches and clocks.

     
LEASED OFFICE BUSINESS MACHINES      

Excludes electronic data processing equipment, portable commercial equipment, and copiers. Includes leased fax machines.

     

Use Schedule N

24 N 5

Use this schedule for manufacturer/lessor as current retail selling price will be reported.

     

Use Schedule S

26 S 5

Use this schedule for non-manufacturer/lessor as historical cost will be reported. Leased Communication Equipment.

     
LEATHER AND LEATHER PRODUCTS 17 A 11

Includes the manufacture of finished leather products, the tanning, currying and finishing of hides and skins, and the processing of fur pelts. For example, footwear, hand-bags, saddles, harnesses, luggage, etc.

     
LUMBERING      

Logging Equipment

17 A 8

Sawmill Machinery and Equipment (Permanent Mills)
Lumber manufacturing included.

17 A 10

Sawmill (Portable)

17 A 6
MACHINERY (MACHINE SHOPS) 17 A 10

Includes the manufacture of machinery such as engines and turbines, farm machinery, construction and mining machinery, food products machinery, paper industries machinery, compressors, pumps, ball and roller bearings, blowers, industrial patterns, process furnaces and ovens, office machines and service industry machines and equipment. Excludes manufacture of electrical machinery. Includes equipment used in machine shops.

     
*MANUFACTURED HOME MANUFACTURING 18 B 10
MEAT PRODUCTS - MANUFACTURING, PACKAGING AND PROCESSING 17 A 12
MEDICAL & DENTAL EQUIPMENT - INCLUDES VETERINARIAN, MEDICAL & DENTAL LABORATORIES EQUIPMENT 19 C 10
METAL WORKING MACHINERY 17 A 12

Manufacture of metal cutting, grinding, forming machines, jigs, dies, fixtures and accessories.

     
MINING, QUARRYING AND PROCESSING (METAL AND NON-METAL)      

*A.Mining and quarrying non-metallic minerals such as sand and gravel, ceramic clay, cinder, stone (other than granite), chemicals, fertilizer

17 A 10

    *Granite Quarrying and Processing

17 A 9

    Portable Sand and Gravel Units

17 A 8

B. Mining, Milling and Processing Plants - (Metal)

     

   Mining Equipment

17 A 10

   Milling and Chemical Plant Equipment

17 A 15

   Metal Processing Plants such as custom smelters

17 A 20

C. Foil Manufacturing

17 A 8

D. Environmental Equipment

17 A 12

E. Cranes, Shovels and Drag Lines

18 B 25
MISCELLANEOUS MANUFACTURING 17 A 12

Industries engaged in manufacturing the following: jewelry, silverware and plated ware, musical instruments, toys, amusement, sporting and athletic goods, pens, pencils, and other artist's materials, costume jewelry, notions, etc., brooms and brushes, etc.

     
MORTUARY AND CEMETERY EQUIPMENT 18 B 10
MOTOR VEHICLES, PARTS AND ACCESSORIES 18 B 12

Includes the manufacture of custom automobiles, vans, special truck bodies, catering, garbage, etc. The category also includes the manufacture of parts and accessories such as brake pads, shock absorbers, trailer hitches, etc.

     
OFFICE FURNITURE, FIXTURES, MACHINES AND EQUIPMENT 22 K 10

Mailing Machines, Postage Machines, Burglar Alarms, etc.

     
Note This class does not include personal computers.      
PAPER AND ALLIED PRODUCTS      

A. Pulp and Paper

17 A 16

Includes the manufacture of pulp and pulp products from wood, rags, and other fibers. Also included is the manufacture of paper and paperboard products.

     

B. Paper Finishing and Converting

17 A 12

Includes the finishing and converting of paper into cartons bags, envelopes, and other similar products.

     
PETROLEUM PRODUCTS MANUFACTURING EQUIPMENT 17 A 14

Includes equipment used in manufacturing asphalt shingles, roofing materials etc.

     
PETROLEUM AND GAS      

Oil and Gas Well production equipment (includes well head equipment, gathering pipelines and related storage facilities)

17 A 14

Petroleum Refining Plants

17 A 16

Petroleum Storage Facilities

17 A 16

Natural Gas and Helium Production Plants

17 A 14

Propane Gas Tanks and Distribution Equipment

17 A 16
PHOTOGRAPHIC 19 C 9

Automatic film processing equipment including the type used in the fast one hour photo process.

     
PLASTIC PRODUCTS 17 A 11

Includes the manufacture of processed, fabricated and finished plastic products as well as the manufacture of basic plastic materials such as plastic bottles, Styrofoam cups and packaging materials, plastic pipe, tubing, plastic screen, fiberglass bathroom fixtures etc.

     
PRIMARY METAL INDUSTRIES      

Includes most hot metal processes such as the manufacture of foundry products, castings, forgings, sheet metal, pipe tubing, structural shapes and wire.

     

Ferrous - Iron

17 A 18

Non- Ferrous - (Aluminum, copper)

17 A 14
PRINTING AND PUBLISHING 17 A 11

Includes printing, publishing lithography and printing services such as bookbinding, typesetting, photo-engraving, and electrotyping.

     
Note EDP and other Computer equipment used in publishing should be listed and appraised separately.      
PROFESSIONAL EQUIPMENT (MISCELLANEOUS) 18 B 10

Architects, accountants, engineers, photographic studio equipment, Taxidermists, Hobby & Craft Shops, Graphic Design Illustrations, etc.

     
PROFESSIONAL LIBRARIES 25 O  

Architects, engineers, accountants law, medical, etc.

     
Note Used volumes in good saleable condition, should be appraised at 1/3 of original cost regardless of age.      
REFRIGERATION EQUIPMENT 18 B 10

Vacuum Cooling Stationary

18 B 10

Vacuum Cooling Portable

18 B 8
RENTAL EQUIPMENT 26 P & Q 5

Use schedule P when historical cost is reported. Use Schedule Q when current replacement cost is supplied.
The equipment covered by this schedule consists of but is not limited to the following:
Hand Tools, portable gasoline powered equipment, service equipment, small mixers, lawn and garden equipment, printing equipment, etc. These schedules are for property which is typically rented on an hourly or daily basis.

     
REPAIR SHOP EQUIPMENT 17 A 10

Electrical, watch, clock, jewelry radio and TV, upholstery, furniture, household appliances, welding, locksmith, shoe, etc.

     
RUBBER PRODUCTS 17 A 14

Includes the manufacture of finished rubber products.

     
SCALES      

25 - 10 Ton.

17 A 20

Less than 10 Ton

17 A 10

Portable

17 A 10
SCHOOL EQUIPMENT 20 D 10
SCRAP METAL 20 E 10

Equipment used in the cutting, wrecking, and storing of scrap metals.

     
SIGNS AND BILLBOARDS      

Billboards: The valuation of outdoor display structures is outlined in a separate publication.

     

Signs: On and off premise signs are erected for the purpose of information and direction. If the sign is built in a manner similar to a billboard, use the methodology outlined for outdoor display structures. If the sign is considered a "logo" type, it should be listed at historical cost and depreciated on a 10 to 20 year life.

     
SPECIAL PROPERTIES 25 O  
STEAM POWERED ELECTRICAL GENERATING EQUIPMENT 27 T 30
STONE AND CLAY PRODUCTS EXCEPT CEMENT 17 A 15

Includes the manufacture of structural clay products such as brick, tile, pipe, etc. The category also includes pottery and related products such as vitreous china, plumbing fixtures, earthenware, ceramic insulating materials, asphalt building materials, gypsum and plaster products, cut and finished stone and abrasives, asbestos, and miscellaneous non-metallic mineral products.

     
STORE EQUIPMENT (RETAIL, WHOLESALE, AND SUPPLY)      

General merchandise stores, building materials, hardware, apparel and accessory stores, furniture, home furnishings, equipment and supply, jewelry, miscellaneous retail, wholesale, and supply store equip. Includes POS equipment usually located at the check out counters such as electronic cash registers, scanners, receipt printers, and dumb terminals. Does not include PC's and computers acting as servers which should be appraised as data processing equipment

20 D 10

Food stores, grocery, etc.

20 D 10
STRAIGHT LINE SCHEDULES 24 N  

These schedules are included to assist the appraiser when other schedules are inappropriate. When using the straight line schedules, a residual value of 25% remains in effect unless variation is indicated by the property being appraised.

     
TELECOMMUNICATIONS SWITCH MANUFACTURING      

Switch manufacturing equipment

28 U 8

Switch testing equipment

28 U 6
TESTING EQUIPMENT 26 R 8

Includes equipment used in research and development.

     
TEXTILE MILL PRODUCTS      

Includes the manufacture of spun, woven or processed yarns and fabrics from natural or synthetic fibers

17 A 10

Textile finishing and dying

17 A 8
*Note Effective 1-1-2000 a 15% residual value will apply to textile Mill products manufacturing equipment appraised under this schedule. A special section under schedule A is provided on page 17 to provide For the 15% residual.      
THEATER EQUIPMENT 20 D 10
TOBACCO AND TOBACCO PRODUCTS MANUFACTURING 17 A 15
TOOLS, MOLDS, DIES AND JIGS 25 O 2 - 7

It will be necessary to determine from the particular manufacturer the average life of this category of property. Once the proper life has been determined, apply the straight line schedule (N).

     
TRANSPORTATION EQUIPMENT 18 B 12

This category includes the manufacture of Motor Homes, Campers, Mobile Homes, and Motorcycles.

     
VENDING EQUIPMENT      

Amusement (Bowlers, Pin Ball, Pool, Kiddie Rides, Hobby Horses etc.)

25 O 5

Cigarette Vendors

25 O 6

Food Vendors (Soft Drink, Candy, Hot and Cold Foods, Popcorn etc.)

25 O 5

Music Machines

25 O 6

Miscellaneous (Change, Newspaper, Photo, Stamps etc.)

25 O 6

Leased Ice Machines

25 O 6
Use straight line schedule for the correct life years. (Schedule N)      
WAREHOUSE MATERIALS HANDLING EQUIPMENT 20 E 10

Forklifts & Pallets

     
WASTE MANAGEMENT 18 B 8

Includes assets and equipment used in the collection and management of household garbage and similar waste.
Includes greenbox containers, toters, and similar equipment.

     
WIRE PRODUCTS MANUFACTURING 17 A 14

*Establishments primarily engaged in the manufacture of wire.

     
WOODWORKING EQUIPMENT 20 F 10

*indicates a change from last year