TO: County Assessors
FROM: John C. Bailey, Director
Property Tax Division
RE: Enclosed 2003 Schedules

We are enclosing the Depreciation and Valuation Schedules for the 2003 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, 2003.

There were a few changes this year, other than the usual percent good factor adjustments. These changes are for appraisals as of January 1, 2003 and forward only and are not retroactive. The changes have been marked with an asterisk in the index and are described below:

  1. We have adjusted schedule B3 to show a 10% residual rather than a 25%. This will affect the appraisal of coin-operated video games, rental video cassette players and DVD players, molds for fiberglass boats, subscriber connections for cable TV, and analog cellular equipment.
  2. We are recognizing the continued decline in the textile equipment market and are allowing a 5% residual value and additional obsolescence on textile mill products manufacturing equipment. A special section under schedule A is provided on page 17 to provide for the 5% residual and additional obsolescence.
  3. We have added a category and definition for idle equipment.

We will have the schedules on the web as soon as possible. The Division’s publication site is at

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 may be situations where the appraiser will need to make adjustments for additional, or less, 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.