|TO:||Users of the 1999 Cost Index and
|FROM:||John C. Bailey, Director
Property Tax Division
|RE:||Enclosed 1999 Schedules|
We are enclosing the Depreciation and Valuation Schedules for the 1999 tax year. We recommend the use of these schedules in the valuation of business fixtures, machinery and equipment listed as of January 1, 1999.
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:
- The overall design of the schedules look slightly different this year due to using different software while developing the schedules. The software will enable us to more easily put the schedules on the internet. We will have the schedules on the web as soon as possible. The Department's site is at http:///.
- Cellular equipment has been broken down into digital and analog equipment. For cellular switches and channel bank equipment, now use the "U 6" schedule.
- We have clarified that leased fax machines are included in the "LEASED OFFICE BUSINESS MACHINES" major category. Fax machines owned by a business would still be appropriately listed in the "OFFICE FURNITURE AND FIXTURES, MACHINES AND EQUIPMENT" category with other office equipment.
- We have 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. Federal tax depreciation guidelines do not include POS equipment as either computers or peripherals.
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 or Kirk Boone at 919-733-7711.
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