SF0049-Tangible Personal Property-Index and Depreciation

Summary/Major Elements:

This bill revises the method for determining the value of personal property for the purpose of administering taxes on the property.
The bill specifies that fair market value of personal property shall be determined using valuation indexes and depreciation schedules prescribed by the rule and regulation of the Department of Revenue. Once the tangible personal property is depreciated to the depreciation floor, the bill specifies that the trending factor shall remain constant for the subsequent years until the property is removed from service.
The bill defines "depreciation floor" to mean twenty percent (20%) of the reported installed cost of the property.