The result is then multiplied by a percent good factor to produce an estimate of the property's reproduction or replacement cost new less normal depreciation – indicators of the property's market value as of lien date (January 1). A property's acquisition cost is multiplied by an index factor to produce an estimate of the property's reproduction cost new or replacement cost new.The use of factors to estimate the lien date market value of business equipment (personal property) and fixtures usually occurs in one of two methods: Valuation Factors: combine both price changes experienced and depreciation suffered, in a single factor.įurther discussion on the cost approach as it pertains to the valuation of personal property and fixtures is available in Assessors' Handbook Section 504, Assessment of Personal Property and Fixtures which is available on the State Board of Equalization's website at: Assessors' Handbook Uniformity of AssessmentĪssessors' Handbook Section 581 contains several tables of index, percent good, and valuation factors that will aid in the mass appraisal of various types of personal property and fixtures to produce estimates of market value.Percent Good Factors: reflect depreciation (loss of value) suffered since acquisition.Index Factors: represent price level changes experienced since acquisition.These adjustments are commonly done through the use of factors: The cost approach to value is the process by which the market value of property is estimated by adjusting the property's acquisition cost to account for changes in value since the property's acquisition and installation. Property costs are reported by category and year of acquisition. Property statements are filed with the County Assessor's Office, for the county, in which the property is located. Property statements are declarations, filed by businesses, which report all assessable property owned, claimed, possessed, controlled, or managed by the filer at a specific situs (location). ![]() This is because the cost approach lends itself to mass appraisal and it can be readily employed using the information contained in annual property statements. The Cost Approach to value is the method of valuation used most often to value assessable personal property and fixtures. The valuation of personal property and fixtures for assessment purposes most often involves the use of a mass appraisal method. In addition, personal property may be exempted, in whole or in part, by the Legislature. Section 1 of Article XIII of the California Constitution specifies that unless otherwise provided by this Constitution all property is taxable and shall be assessed at the same percentage of fair market value. Taxable (Assessable) Property: is, for California property tax purposes, all property unless it is exempt from taxation.Cost: is the expenditure required to develop and construct an improvement – fixtures are improvements and improvements are real property – or acquire personal property, including applicable sales tax, shipping charges, and installation costs. ![]() (California Revenue and Taxation Code section 110) ![]()
0 Comments
Leave a Reply. |