|TO:||Users of the 2001 Cost Index and Depreciation Schedules|
|FROM:||John C. Bailey, Director
Property Tax Division
|RE:||Enclosed 2001 Schedules|
We are enclosing the Depreciation and Valuation Schedules for the 2001 tax year. We recommend the use of these schedules in the valuation of business personal property and certain taxable personal property listed as of January 1, 2001.
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 appraisal of rental video tapes and DVDs has been modified to reflect changes in the industry which includes the ability of retailers to purchase mass quantities of videos which soon become economically obsolete due to low demand within a few months after release.
- A cable-manufacturing category has been added which includes the manufacture of fiber optic, coaxial, and data cable. The manufacture of glass fiber for fiber optic cable is found under a different heading titled "Fiber Optics Manufacturing".
- The Cellular Equipment category has been modified to suggest a U6 schedule for Digital Equipment. This change was necessary due to reflect the rapid technological advancements of the digital cellular industry. The industry is showing a complete replacement of cell site equipment every 3 to 4 years.
- The Mining and Quarrying category now suggests an A9 schedule for Granite Quarrying and Processing equipment.
- A category for Manufactured Home Manufacturing equipment has been added for 2001. We suggest a B10 schedule for this type of equipment.
We will have the schedules on the web as soon as possible. The Division's publication site is at http://www.dor.state.nc.us/publications/property.html.
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, Kirk Boone, or John Bailey at 919-733-7711.
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