NAC361.1371. Procedure for determination of taxable value.

     1. The taxable value of personal property must be determined by adjusting the acquisition cost of the property by a cost-index factor and reducing the adjusted acquisition cost by an estimate of applicable depreciation. The taxable value so determined shall be deemed to be the indicator of value of replacement cost new less depreciation.

     2. In determining taxable value, a county assessor shall use the schedules in the Personal Property Manual that show the cost-index factors, the rates of depreciation and the percent good by year. The assessor shall use the schedules by:

     (a) Selecting the appropriate expected useful life of the personal property; and

     (b) Selecting the appropriate cost-index factor, based on the year of acquisition of the property, and applying it to the acquisition cost of the property.

Ê The result shall be deemed to be the replacement cost new of the property.

     3. The assessor shall select the method of applying depreciation to the personal property by either:

     (a) Multiplying the adjusted acquisition cost of the property by the rate of depreciation and subtracting the result from the adjusted acquisition cost; or

     (b) Multiplying the adjusted acquisition cost of the property by the percent-good factor.

Ê The result from either approach shall be deemed to be the taxable value of the property.

     (Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)