HomeMy WebLinkAbout991947.tiff RESOLUTION
RE: THE BOARD OF EQUALIZATION, 1999, WELD COUNTY, COLORADO - DENY
PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE
PETITION OF:
EASTMAN KODAK COMPANY
ATTN DAVE FINNMAN CORP TAX DEPT
343 STATE STREET
ROCHESTER, NY 14650-0904
DESCRIPTION OF PROPERTY: ACCOUNT #: P0020594 PARCEL #: 080726000039 -
THERMAL MEDIA SECT,TWN,RNG:26-06-67
PARCEL:
WHEREAS, the Board of County Commissioners of Weld County, Colorado, convened
as the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the
assessment and valuation of real and personal property within Weld County, fixed and made by
the County Assessor for the year 1999, and
WHEREAS, said petition has been heard before the County Assessor and due Notice of
Determination thereon has been given to the taxpayer(s), and
WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's
valuation for the year 1999, claiming that the property described in such petition was assessed
too high, as more specifically stated in said petition, and
WHEREAS, said petitioner being represented by Norman Wright, and
WHEREAS, the Board has made its findings on the evidence, testimony and
remonstrances and is now fully informed.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, acting as the Weld County Board of Equalization, that the evidence presented at
the hearing clearly supported the value placed upon the Petitioner's property, after review by
the Weld County Assessor. Such evidence indicated the value was reasonable, equitable, and
derived according to the methodologies, percentages, figures and formulas dictated to the Weld
County Assessor by law. The assessment and valuation of the Weld County Assessor shall be,
and hereby is, affirmed as follows:
ACTUAL VALUE
AS DETERMINED
BY ASSESSOR
Land $ 0
Improvements OR
Personal Property 33,346,916
TOTAL ACTUAL VALUE $ 33,346,916
991947
j1 I � AS0043
RE: BOE - EASTMAN KODAK COMPANY
Page 2
BE IT FURTHER RESOLVED that a denial of a petition, in whole or in part, by the Board
of Equalization may be appealed by selecting one of the following three options; however, said
appeal must be filed within 30 days of the denial:
1. Board of Assessment Appeals: You have the right to appeal the County
Board of Equalization's (CBOE's) decision to the Board of Assessment
Appeals (BAA). Such hearing is the final hearing at which testimony,
exhibits, or any other evidence may be introduced. If the decision of the BAA
is further appealed to the Court of Appeals, only the record created at the
BAA hearing shall be the basis for the Court's decision. No new evidence
can be introduced at the Court of Appeals. (Section 39-8-108(10), CRS)
Appeals to the BAA must be made on forms furnished by the BAA, and
should be mailed or delivered within thirty (30) days of denial by the
CBOE to:
Board of Assessment Appeals
1313 Sherman Street, Room 523
Denver, CO 80203
Phone: 866-5880
OR
2. District Court: You have the right to appeal the CBOE's decision to the
District Court of the county wherein your property is located. New testimony,
exhibits or any other evidence may be introduced at the District Court
hearing. For filing requirements, please contact your attorney or the Clerk of
the District Court. Further appeal of the District Court's decision is made to
the Court of Appeals for a review of the record. (Section 39-8-108(1), CRS)
OR
3. Binding Arbitration: You have the right to submit your case to arbitration.
If you choose this option the arbitrator's decision is final and your right to
appeal your current valuation ends. (Section 39-8-108.5, CRS)
Selecting the Arbitrator: In order to pursue arbitration, you must notify the
CBOE of your intent. You and the CBOE select an arbitrator from the official
list of qualified people. If you cannot agree on an arbitrator, the District Court
of the county in which the property is located will make the selection.
Arbitration Hearing Procedure: Arbitration hearings are held within sixty
days from the date the arbitrator is selected. Both you and the CBOE are
entitled to participate. The hearings are informal. The arbitrator has the
authority to issue subpoenas for witnesses, books, records, documents and
other evidence. He also has the power to administer oaths, and all questions
of law and fact shall be determined by him.
991947
AS0043
RE: BOE - EASTMAN KODAK COMPANY
Page 3
The arbitration hearing may be confidential and closed to the public, upon
mutual agreement. The arbitrator's written decision must be delivered to
both parties personally or by registered mail within ten (10) days of the
hearing. Such decision is final and not subject to review.
Fees and Expenses: The arbitrator's fees and expenses are agreed upon
by you and the CBOE. In the case of residential real property, such fees and
expenses cannot exceed $150.00 per case. The arbitrator's fees and
expenses, not including counsel fees, are to be paid as provided in the
decision.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 4th day of August, A.D., 1999.
BOARD OF COUNTY COMMISSIONERS
.11 / I : ' 4rO
LD COUNTY C
ATTE � ;� C ..(sLQ�E �
Dale K. Hall, Chair
Weld •u t !,p, rk to tn0 B)rd
C` EXCUSED
Barbar J. Kirkmeyer, Pro-Tem
BY.
Deputy Board
eorge . axter
APPROVED AS TO FORM:
0 . G i e
A slant my Attorney U �X uv� p�
Glenn Vaa� �2`_1
991947
AS0043
. NOTICE OF DENIAL
OFFICE OF COUNTY ASSESSOR
6itrNTHERMAL MEDIA SECT,TWN,RNG:26-06-67 1400 NORTH 17th AVE.
PARCEL: GREELEY,CO 8063131 PHONE(970)353-3845,EXT.3650
OWNER: EASTMAN KODAK COMPANY
COLORADO
EASTMAN KODAK COMPANY LOG 3205
ATTN DAVE FINNMAN CORP TAX DEPT PARCEL 080726000039
343 STATE STREET ACCOUNT P0020594
ROCHESTER, NY 14650-0904 YEAR 1999
07/08/1999
The appraised value of property is based on the appropriate consideration of the approaches to value required by law. The Assessor has determined that
your property should be included in the following category(ies):
If your concern is the amount of your property tax,local taxing authorities(county,city,fire protection,and other special districts)hold budget
hearings in the fall. Please refer to your tax bill or ask your Assessor for a listing of these districts,and plan to attend these budget hearings.
The Assessor has carefully P,� studied all available TTh� information,giving particular attention to the specifics included on your protest,and has determined the
Mi ` ®nSE OQD' 'fiihil I H IIP THIS PROfERTYaIueCOLORADO LAW REQUIRES
US TO SEND THIS NOTICE OF DENIAL FOR ALL PROPERTIES ON WHICH WE DO NOT ADJUST THE
VALUE.
PETITIONER'S ASSESSOR'S VALUATION
PROPERTY CLASSIFICATION ESTIMATE
OF VALUE ACTUAL VALUE ACTUAL VALUE
PRIOR TO REVIEW AFTER REVIEW
LAND 0 0
IMPS 66693832 66693832
55693832 66693832
TOTALS $ $ $
If you disagree with the Assessor's decision,you have the right to appeal to the County Board of Equalization for further consideration,39-8-
106(1)(a),C.R.S. Please see the back of this form for detailed information on filing your appeal.07/08/1999
By: Stanley F. Sessions
WELD COUNTY ASSESSOR DATE
15-OPT-AR
Form PR-207-87/99 ADDITIONAL INFORMATION ON REVERSE SIDE
YOU HAVE THE RIGHT TO APPEAL THE ASSESSOR'S DECISION
The County Board of Equalization will sit to hear appeals beginning July 1 and continuing through August 5 for real
property (land and buildings) and personal property (furnishings, machinery, and equipment) 39-8-104 and 39-8-
107(2), C.R.S.
APPEAL PROCEDURES:
If you choose to appeal the Assessor's decision, you must appeal to the County Board of Equalization. To preserve
your right to appeal, your appeal must be POSTMARKED OR DELIVERED ON OR BEFORE JULY 15 FOR
REAL PROPERTY, AND JULY 20 FOR PERSONAL PROPERTY.
WELD COUNTY BOARD OF EQUALIZATION
915 10th Street, P.O. Box 758
Greeley, Colorado 80632
Telephone (970)356-4000 Ext. 4225
NOTIFICATION OF HEARING:
You will be notified of the time and place set for the hearing of your appeal.
COUNTY BOARD OF EQUALIZATION'S DETERMINATION:
The County Board of Equalization must make a decision on your appeal and mail you a determination within five
business days of that decision. The County Board must conclude their hearings by August 5.
TAXPAYER RIGHTS FOR FURTHER APPEALS:
If you are not satisfied with the County Board of Equalization's decision you must file within thirty days of the
County Board of Equalization's written decision with ONE of the following:
Board of Assessment Appeals (BAA):
Contact the BAA at 1313 Sherman, Room 315, Denver, Colorado 80203, (303)866-5880.
District Court:
9th Avenue and 9th Street, P.O. Box C
Greeley, Colorado 80632
Telephone (970) 356-4000, Ext. 4520
Arbitration:
WELD COUNTY BOARD OF EQUALIZATION
915 10th Street, P.O. Box 758
Greeley, Colorado 80632
Telephone (970) 356-4000, Ext. 4225
If you do not receive a determination from the County Board of Equalization, you must file an appeal with the Board
of Assessment Appeals by September 10.
TO PRESERVE YOUR APPEAL RIGHTS,YOU MUST PROVE YOU HAVE FILED A TIMELY
APPEAL; THEREFORE,WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF
OF MAILING.
PETITION TO THE COUNTY BOARD OF EQUALIZATION
In the space below, please explain why you disagree with the Assessor's valuation. IN ACCORDANCE WITH 39-
8-106, C.R.S., YOU MUST STATE YOUR OPINION OF VALUE IN TERMS OF A SPECIFIC DOLLAR
AMOUNT. Attach additional documents as necessary.
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0 85550
NOTICE OF VALUATION K
PERSONAL PROPERTY
This Is Not a Tax Bill
LEGAL DESCRIPTION: Stanley F. Sessions
Weld County Assessor
1400 N. 17th Avenue
THERMAL MEDIA SECT,TWN,RNG:26-06-67 PARCEL: Greeley, CO 80631
Date: June 15, 1999
HEARING DATES: 6/15/99-7/6/99
LOCATION: 1400 N 17th Avenue
OFFICE E ONE NO: 8:30)3 1845 x-3650
TELEPHONE NO: `97
EASTMAN KODAK COMPANY FAX NO: 970 351-0978
ATTN DA-VETERNMAN CORP TAX DEPT
343 STATE STREET
ROCHESTER NY 14650-0904 1999
TAX YEAR:
TAX AREA: 0400
PARCEL NO: 080726000039
ACCOUNT NO: P0020594
PROPERTY PRIOR YEAR _ CURRENT YEAR INCREASE/
CLASSIFICATION ACTUAL VALUE ACTUAL VALUE DECREASE
PERS PROP 33858114 33346916 -511198
TOTAL 33858114 33346916 -511198 9 6 70 &o ce,
y/3, j
Parcel# 080726000039 d 99 7/
• Account # P0020594
To appeal by mail, list your name, address, and phone # below, detach the lower portion of this notice
and mail in accordance with instructions on the reverse side to:
Weld County Assessor /Q 7 7-5r,-1-01;
1400 N. 17th Avenue, Greeley, CO 80631 ,
An assessment percentage will be applied to the actual value of your property before taxes are
calculated. Personal property is assessed•at 29% of actual value (39-1-104(1), C.R.S.).
Your property was valued as of January 1 of the current year. The "current year actual value"
represents the actual or market value of your property. The tax notice you receive next January from the
treasurer will be based on that value.
` DOCUMENTATION - REASON(F' OR REQUESTING A REVIEW:
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Verification: I the undersigned state the information and facts contained herin to be true to the best of my
knowledge regarding the property.
t=c�s `. t cQ a.lc a
Signature: , P Owner/Agent Date: to `3`9 9 9
V\koL.r lC- Cq*vv cur a Jk-o_
Address: 3,-1 3 S-t e S-1c r c. c_� Daytime Phone #:(-7/4°) 7 d - a a cl
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AUG-04-99 WED 10: 18 AM FAX NO. F. Ci.
✓0,8/02/99 10:48 /09999099 FRO 2002
• I'
•
August 3, 1999
To Whoin It May Concern:
Eastman Kodak Company("Kodak")is the owner of certain personal property located in
Weld County, Colorado,including without limitation tha personal property included in Weld
County account numbers P0018021 and P0020594. Kodak hereby authorizes Halme Roberts&
Owen LLP, acting through any of itt attorneys,to execute and file on Kodak's behalf and to
prosecute as necessary any and all protests and appeals of the actual values assigned to Kodak's
personal property located in Weld County,Colorado,including without limitation the personal
property included in Weld County account number's P0018021 and P0020594,for property tax
year 1949.
EASTMAN KODAK COMPANY
Date: f e 7: 7 7 J_ By
Name: Mark S.Cumarata
Title: Director, State and Local Taxes
•
v i i
iii' i
CHAPTER 4 REPLACEMENT COST FACTORS, ECONOMIC LIFE
ESTIMATES, PERCENT GOOD TABLE 4.1
COST FACTOR TABLES 4.2
PERSONAL PROPERTY Replacement Cost New Factors 4.3
1999 PERSONAL PROPERTY Replacement Cost New Factors 4.5
1999 Cost Index For Real Property Fixtures & Leasehold Improvements 4.7
Average Economic Life Estimates 4.8
PERCENT GOOD TABLE 4.12
DEPRECIATED VALUE FLOOR 4.13
VALUATION OF USED PERSONAL PROPERTY 4.14
LEVEL OF VALUE ADJUSTMENT FACTORS 4.16
S S'ytL
t 15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
•
4.1
Chapter 4 REPLACEMENT COST FACTORS, ECONOMIC LIFE ESTIMATES,
`''k4" PERCENT GOOD TABLE
AND LEVEL OF VALUE ADJUSTMENT FACTORS
The replacement cost factors, economic life estimates, and percent good table are
provided to assist county assessors in valuing personal property by the cost
approach. The level of value adjustment factors are provided pursuant to 39-1-
104(12.3), C.R.S., and must be used to factor current actual values of personal
property to the level of value in effect for real property.
The tables and factors published here are subject to verification in the marketplace.
All cost approach value estimates are based upon the factors and tables found in
this section. Cost approach value estimates must be reconciled to the market and
income approaches to value based upon the appraiser's opinion as to the reliability
of the information used to derive the value estimates from each approach.
Reconciliation of the applicable approaches to value is required for the valuation of
all personal property in Colorado, including cable TV (CATV) systems.
;Actual Value Determined When.
;(13)(a)'.::the cost approach shall establish the maximum value of
'property if all costs incurred in the acquisition and installation of such
property are fully and completely disclosed by the property owner to
!the assessing officer.
(c) ...However, nothing in this subsection (13) shall preclude the
assessing officers from considering the market approach or income
approach to the appraisal of personal property when such
considerations would result in a lower value of the property and when
such valuation is based on independent information obtained by the
assessing officers. •
39-1-103(3), C.R.S.
Counties which develop in-house trending or depreciation tables must submit them
annually for approval to the Statutory Advisory Committee to the Property Tax
Administrator prior to use.
As the property under appraisal ages, the cost approach becomes less indicative of
the property value. After fifteen years of age, the recommended valuation
procedure is to measure the value of depreciated equipment directly in the
marketplace, if possible.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.2
COST FACTOR TABLES
The replacement cost factor tables are provided to assist the assessor in the
determination of replacement cost new estimates by multiplying original or historical
cost of personal property items by the cost price indexes published and made
available through the courtesy of the Marshall Swift Publication Company. When
the original cost is multiplied by the factor for the year of acquisition, the product will
approximate the current cost to replace, or the Replacement Cost New (RCN), of
the item being appraised with an item having similar utility.
The assessor must select the appropriate cost factor table that corresponds to the
type of equipment being appraised. Thirteen tables are supplied. In many
instances, the individual index tables cover more than one type of commercial or
industrial property. Specific types of commercial and industrial property are found in
each table.
• If the property to be factored can be specifically identified, the appropriate specific
factor table (such as 3 for office equipment) should be applied. If the property
cannot specifically be identified, the factor for the business type may be used. If
property is generally useful in many types of business activities, the predominant
use shall determine the cost factor code.
If particular property types are not included in the table, a comparable property type
cost factor table may be selected. The "average of all" (Table 1) cost factor table
should be selected if the specific property type is not included in any of the cost
factor tables. `l
•
After selecting the appropriate cost factor table, the assessor uses the specific cost
factor that corresponds to the year of acquisition of the equipment. The original cost
of the equipment is then multiplied by that cost factor to arrive at the estimated
current replacement cost new (RCN).
Example:
Property Factor Year of
Type No. Acquisition Cost Factor RCN
Office Desks 3 1994 $1625 107 $1,739
In other words, it would cost $1,739 on the current assessment date to replace
office desks purchased in 1994 for $1625.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.3
PERSONAL PROPERTY
REPLACEMENT COST NEW FACTORS
Types of Property Included in Factor Groupings
Cost Factor Table
'Reference Number Property Type
1 Average of All
— — — — — Candy & Confectionery,
Creamery & Dairy
2 Flour, Cereal & Feed,
Garage, Meat Packing,
Paint Refrigeration, & Rubber
— -------- — -------------------------
Office Equipment
3 (excluding copiers)
Office Furniture
----------- Retail & Wholesale
4 Stores,
Warehousing
Rental Furnishings,
5 Apartments,
Hotels, Motels.41 Banks,
Savings and Loans,
6 Restaurants &
Lounges,
Theaters
7 Contractors Equipment
8 Laundry & Cleaning
Equipment
Source: Marshall & Swift, October 1998
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 3-99
4.4
PERSONAL PROPERTY
Replacement Cost New Factors
Types of Property Included in Factor Groupings
Cost Factor Table
Reference Number Property Type
Bakery,
9 Bottling,
Canneries, &
Fruit Packing
-------------------------------------------------------------------------------
Brewing &
Distilling,
Cement,
10 Clay Products,
Glass, Logging,
Metal Working,
Mining & Milling
Chemical,
Electrical Equipment
Manufacturing,
11 Paper,
Motion Picture &
Television,
Printing & •
Woodworking
12 All Petroleum, Textile
Computer Equipment
13* Telephone Equipment
Copiers
Source: Marshall & Swift, October 1998
*Table 13 was created to properly value stand-alone, nonproduction
computer equipment, telephone equipment & copiers. Please refer to Section VII,
SPECIAL PERSONAL PROPERTY (VALUATION) ISSUES, COMPUTERS AND
TELEPHONES for more information.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 3-99
4.5
1999 PERSONAL PROPERTY
REPLACEMENT COST NEW FACTORS
Cost Factor Table
Reference Numbers
1
Year
Acquired) 1 2 3 4 5 6
1973 309 307 273 298 277 283
1974 267 266 239 258 251 247
1975 239 238 217 238 233 224
1976 225 225 205 223 219 211
1977 214 214 197 212 209 202
1978 199 199 185 196 195 188
1979 182 182 171 179 180 172
1980 165 165 158 166 166 160
1981 150 149 145 152 152 147
1982 143 142 139 146 147 142
1983 141 139 137 142 144 138
1984 137 135 133 138 139 134
1985 135 133 131 136 137 133
1986 134 132 129 134 136 131
1987 132 130 127 132 134 129
1988 126 125 122 127 128 124
1989 120 119 116 120 122 118
1990 117 116 114 117 118 115
1991 114 113 112 115 116 114
1992 113 112 111 114 114 112
1993 111 110 109 111 111 110
1994 108 107 107 107 107 106
1995 104 104 104 104 104 103
1996 103 102 102 102 102 102
1997 101 101 101 101 101 101
1998 I 100 100 100 100 100 100
Source: Marshall & Swift, October, 1998
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.6
1998 PERSONAL PROPERTY
Replacement Cost New Factors
Cost Factor Table
Reference Numbers
J
Year
Acquired 7 8 9 10 11 12 13
1973 331 306 309 313 296 316 100
1974 286 262 266 268 254 268 100
1975 247 234 236 235 227 239 100
1976 232 221 223 221 215 226 100
1977 220 210 212 209 204 213 100
1978 204 196 197 194 192 198 100
1979 186 180 180 178 174 181 100
1980 168 164 163 162 156 163 100
1981 151 149 148 146 142 145 100
1982 143 143 142 138 138 136 100
1983 140 140 140 136 136 135 100
1984 137 136 136 133 132 133 100
1985 135 134 134 131 130 131 100
1986 134 133 134 130 130 131 100
1987 132 131 132 129 128 131 100
1988 128 126 126 124 121 125 100
1989 122 119 119 118 115 119 100
1990 119 116 116 115 112 116' 100
1991 116 114 114 113 111 113 100
1992 114 113 113 112 111 113 100
1993 111 111 111 110 110 111 100
1994 108 108 108 108 107 109 100
1995 105 104 104 104 102 105 100
1996 103 102 102 102 101 103 100
1997 101 101 101 101 100 102 100
1998 L 100 100 100 100 100 100 100
Source: Marshall & Swift, October, 1998
U
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.7
1999 COST INDEX FOR
REAL PROPERTY FIXTURES & LEASEHOLD IMPROVEMENTS
June 30, 1998 Level of Value
This cost index is provided to assist the assessor in relating original or historical
costs of fixtures or leasehold improvements to the real property level of value. The
items may be valued using real property appraisal records for computations and
should be assessed to the owner of record.
When using this method of valuation, the property must be classified and abstracted
as real property improvements. The factors are useful only in the cost approach
when attempting to factor historical costs to the correct level of value. All cost
approach value estimates must be reconciled to the sales comparison (market) and
income approaches to value as with other real property improvements. The factors
found in this table are for estimating replacement costs only and do not include an
allowance for depreciation.
Year Acquired Factor % 1
1973 287
1974 268
1975 247
1976 230
1977 214
1978 192
1979 175
1980 162
1981 152
1982 147
1983 142
1984 136
1985 133
1986 132
1987 131
1988 129
1989 126
1990 122
1991 121
1992 119
1993 114
1994 109
1995 106
1996 106
1997 102
1998 100
Source: Marshall & Swift Co. and Division of Property Taxation
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.8
AVERAGE ECONOMIC LIFE ESTIMATES
2 4
et-
The average economic life estimates are provided for assistance in applying the
percent good depreciation tables for each type of property being valued. The
economic life recommendations are based upon the Class Life Asset Depreciation
Range published by the Internal Revenue Service and other sources. Further
information about the estimates may be found in I.R.S. publication 946, "How To
Depreciate Property", available from the I.R.S.
The economic life estimates are based on average national service lives and
assume normal use and maintenance of the property. Use of economic lives that
differ from those in the estimates must be documented with specific market
information. Counties and taxpayers are encouraged to provide this documentation
for review by the Division of Property Taxation for possible update of existing
published lives.
For specific types of equipment, economic life estimates were developed based on
studies completed by the Division of Property Taxation.
•
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.9
•
Recommended
Property Type Economic Life (years)
RESIDENTIAL/COMMERCIAL
Residential rental furnishings 10
Apartment, hotel and motel furnishings 10
COMMERCIAL
Wholesale Trade Level
Wholesale trade machinery,
equipment, and furnishings 9
Retail Trade Level
Retail trade machinery
equipment, and furnishings 9
Service Trade Level
Adding machines, calculators 6
Amusement parks 12
Auto repair shops 10
Barber and beauty shops 10
Cable Television
Subscriber converters** 5
Test equipment 8
Origination equipment 9
Distribution & subscriber connection
equipment 10
Headend equipment 11
Microwave systems 9
Computers (Stand-Alone, NonProduction) 4.
Construction equipment, general 6
Copiers and duplicators 5
Data handling equipment, except computers 6
Electronic equipment, except computers 6
Laundry and dry cleaning 10
Office furniture 10
Professional services 9
Radio and television broadcasting 6
Recreation and amusement 10
Restaurant and bar (all) 10
Shopping carts 5
Signs (Billboard) 20
Signs (Other) By Typical Business Life
** Source: Division of Property Taxation, Marshall & Swift, & I.R.S.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 3-99
4.10
Recommended
Equipment Type Economic Life (years)
Service Trade Level
Telephone Equipment 6
Theater 10
Typewriters 6
Vending Machines 10
Video & Video Arcade Games 6
INDUSTRIAL
Manufacturing Trade Level
Aerospace 10
Apparel and fabricated textiles 9
Bakeries and Confectionery 12
Brewery 12
Canneries and frozen food 12
Cement manufacture 20
Cereal, flour, grain and mill products 17
Chemicals and related products 10
Clay and gypsum products 15
Concrete manufacture 15
Dairy products manufacturing 12
Electrical equipment manufacturing 10
Electronic equipment manufacturing 6
Fabricated metal products 12
Special tools 3
Food and beverage production 12
Special handling devices 4
Glass and glass products 14 .
Special tools 3
Jewelry 12
Lumber, wood products and furniture 10
Machinery (not listed in this section) 10
Meat packing 12
Motion picture and television production 12
Paint and varnish 10
Plastics and plastic products 11
Special tools 3
Printing and publishing 11
Professional and scientific instruments 10
Paperboard and pulp 10
Rubber products 14
Special tools 4
** Source: Division of Property Taxation, Marshall & Swift, & I.R.S.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 3-99
4.11
Recommended
Equipment Type Economic Life (years)
j
Manufacturing Trade Level
Semi-conductor manufacturing** 5
Research and development** 3
Test equipment** 5
Wafer fabrication** 3
Soft drink bottling 12
Steel and related products 15
Stone products 15
Sugar and sugar products 18
NATURAL RESOURCES
Mining-Metallic and Nonmetallic
Mining, quarrying, & milling equipment 10
Petroleum and Natural Gas
Exploration, drilling 6
Production (Excluding pipelines) 14
Marketing, retail 9
Refining 16
Timber
Logging 6
Sawmills, permanent 10
Sawmills, portable 6
** Source: Division of Property Taxation, Marshall & Swift, & I.R.S.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.12
PERCENT GOOD TABLE
The personal roe
or in
estimting the preplacement cost newt)less normal depreciation (RCNLD).sThe
column headings represent the average service life expectancy of the personal
property being appraised. Each column contains the percent good factor for a
specified age in the life of the property.
Percent good tables measure the value remaining in an item. Depreciation tables
measure the loss in value at a specified age. The factor shown in the columns of
the percent good table represents the percentage of RCN remaining at a specified
age. The percent good tables are built upon the following assumptions:
1 Iowa State Univ. property retirement & depreciation studies
2. A specified rate of return
3. Average condition and usage of typical property
The percent good table is generic in nature. It was designed to be generally useful
for the majority of personal property. It is not specific to any particular industry or
type of personal property.
The table was designed to account for normal physical depreciation. Additional
functional and/or economic obsolescence may also exist. If documented to exist,
additional functional and economic obsolescence must be measured in the
marketplace either using the market approach or rent loss methods. In addition, any
adjustments to the percent good due to the condition of the subject property must be
defensible and documented.
The minimum percent good shown for each of the columns is useful as a guide to
residual value. It is not absolute and must be reconciled with market information for
similar types of property in order to be valid. If the market shows that the actual
value of personal property is lower than the value arrived at by using the minimum
percent good, the use of the minimum percent good should be rejected in favor of
the lower value. The actual value of the personal property must be determined as
long as the property is still in use.
If the cost-calculated value is lower than the market and/or income approach, when
the item reaches its minimum percent good, the assessor should review the original
cost, all assigned factors, the physical condition of the property, and other pertinent
contributors to value. If these are correct, the assessor must use the cost approach
value as the actual value of the property pursuant to 39-1-103(13)(a), C.R.S.
As the property under appraisal ages, the cost approach becomes less indicative of
the property value. After fifteen years of age, the recommended valuation
procedure is to measure the value of depreciated equipment directly in the
marketplace, if possible.
;O
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.13
To use the table, the assessor must determine the economic life and the age of the
subject property. The percent good may be determined by moving across the
column util one specified forthe conomic life is reahed an then down this
column to the point that reflects the effective age of the property.
� � Exampie:
Type of Economic Percent
Property Life Aae RCN Good RCNLD
Office
Desks 10 years 5 years $1,739 62% $1,078
The assessor must also consider functional and economic obsolescence, abnormal
physical condition, or other factors that might affect the value of the equipment. The
assessor should also consider the frequency and extent of maintenance to the
property. Extensive maintenance or reconditioning of the property may extend the
economic life of the property just as a lack of maintenance may shorten the
economic life.
DEPRECIATED VALUE FLOOR
When an item of personal property has reached its minimum depreciated value
(15%), the applicable Replacement Cost New (RCN) trending factor in use at that
time is "frozen." For the following assessment years, this RCNLD value does not
4;) change, other than to reflect the proper level of value, until the item is permanently
taken out of service. An exception to this rule applies when the property has been
reconditioned to extend its remaining economic life.
Even though an item of personal property has been permanently taken out of
service, but has not been scrapped or sold, it still has value. However, additional
functional and/or economic obsolescence may exist.
It is possible, however, that the market or income approach may indicate lower
values than 15 percent of RCN. In addition, as property ages, the use of original
installed cost multiplied by trending factors may not yield reasonable RCN values.
Any RCNLD estimate should be cross-checked with sales comparison (market) and
income information sources, if possible, and the appropriate value used.
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.14
VALUATION OF USED PERSONAL PROPERTY
The valuation of used personal property requires that a decision be made
concerning the remaining economic life of the property. If the personal property's
elapsed age from its actual year of manufacture, or estimated effective year of
manufacture, is equal to or greater than the number of years in which the personal
property would have reached its depreciated value floor, then the price paid for the
personal property is to be treated as RCNLD and "frozen" at that value. RCN
trending and percent good factors will not be applied to the frozen value and that
value will only change due to the appropriate level of value factor being applied for
each assessment year, until the item is permanently taken out of service.
An exception to this rule applies when the personal property is reconditioned to
extend its remaining economic life. Then the reconditioned property is treated as a
new item of personal property and the formerly frozen value is treated as acquisition
cost which is subject to depreciation over a complete economic life of a new item.
Even though an item of personal property has been permanently taken out of
service, but has not been scrapped or sold, it still has value. However, additional
functional and/or economic obsolescence may exist.
If, however, the elapsed age from the year of manufacture, or estimated effective
year of manufacture, is less than the number of years when the personal property
would have reached its depreciated value floor, as evidenced in its recommended
economic life from the preceding tables, then the property is treated as a new item
of personal property and the owner's acquisition cost is subject to depreciation over
the complete economic life as would be used for a new item. However, the resulting
value should be compared to the sales comparison (market) value for the item, if
possible.
•
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
415
Percent Good Table 1999
1
Average Economic Life
Aae 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 68 77 83 86 89 91 92 93 94 95 96 96 97 97 97 98 98 98
2 39 55 65 72 77 81 84 86 88 89 91 92 93 94 94 95 95 96
3 18 34 47 57 64 70 75 78 81 84 86 87 89 90 91 92 93 94
4 15 19 32 43 52 60 66 70 74 78 80 83 85 86 88 89 90 91
5 15 19 31 40 50 56 62 67 71 75 78 80 82 84 86 87 89
E
F 6 15 20 30 39 47 54 60 65 69 73 75 78 80 83 84 86
F 7 15 21 31 39 46 53 58 63 67 70 74 76 79 81 83
E 8 15 22 31 38 45 51 56 62 66 69 72 75 78 80
C 9 15 23 31 37 44 50 56 60 64 68 71 74 77
T 10 15 24 31 38 44 49 55 60 63 67 71 73
I
V 11 15 25 31 38 44 50 55 58 63 67 70
E 12 21 26 31 38 44 49 53 58 63 66
13 15 23 27 34 38 44 48 53 59 62
14 15 24 28 35 40 44 50 54 58
A 15 19 23 29 35 41 46 50 54
G
E 16 15 21 24 30 36 41 46 50
17 15 23 25 31 37 42 46
18 15 25 27 32 37 42
19 21 23 28 33 38
20 15 19 24 30 34
21 • 18 21 26 31
22 15 17 23 28
23 15 20 25
24 15 22
25 20
26 15
Source : Division of Property Taxation
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
4.16
LEVEL OF VALUE ADJUSTMENT FACTORS
The following table contains the indexes for adjusting current actual value of
personal property to the level of value in effect for real property as specified by 39-1-
104(12.3)(a)(l), C.R.S. The procedure involves the multiplication of the current
actual value estimate by the appropriate factor for the type of property being valued.
Example:"> ..
Current 6/30/98
Type of Factor Actual Level of
Property Number Value Factor % Value
Office
Desks 3 $1,078 100% $1,078
PERSONAL PROPERTY ADJUSTMENT FACTOR FOR 1999 ASSESSMENT
YEAR
June 30, 1998 Level of Value
Factor Table
Reference Number Reverse Index %
1 1.00
2 1.00
3 1.00
4 1.00
5 1.00 •
6 1.00
7 1.00
8 1.00
9 1.00
10 1.00
11 1.00
12 1.00
13 1.00
15-DIVISION-AS
PUB ARL VOL 5 2-89
Revised 1-99
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