Personal property tables contain the industry category, cost factor, economic life estimates, general percent good and level of value factor tables that are provided to assist county assessors and other users in valuing personal property by application of the cost approach.
2023 Personal Property Tables (Excel)
Industry Category and Cost Factor Tables
The industry category and cost factor tables are provided to ensure uniformity in the determination of Reproduction Cost New or Replacement Cost New (RCN) estimates by multiplying either original/historical cost or the reasonable cost to the current owner of personal property by the cost price indexes published and made available courtesy of Marshall Valuation Service. When the original/historical cost or the reasonable cost to the current owner is multiplied by the factor for the year of acquisition, the product will approximate the RCN of the personal property being appraised.
The assessor must select the appropriate industry category number that corresponds to the type of personal property being appraised from the industry category table. After selecting the appropriate industry category number, the assessor uses the specific cost factor that corresponds to the year of acquisition of the personal property. The original cost of the personal property is then multiplied by the cost factor to arrive at the estimated RCN as of the assessment date.
Economic Life Estimates
The economic life estimates are provided to ensure uniformity in applying the general percent good depreciation tables for each type of property being valued. They are based on average national service lives and assume normal use and maintenance of the property. Typical physical depreciation and functional/technological obsolescence for the personal property are accounted for when using the appropriate economic life estimate. Use of economic lives that differ from those in the estimates must be documented. Counties and taxpayers are encouraged to provide this documentation for review by the Division of Property Taxation for possible update of existing published lives.
General Percent Good Tables
The personal property general percent good tables are provided to ensure uniformity in estimating the Reproduction Cost New or Replacement Cost New (RCNLD), whichever is appropriate. Percent good tables measure the value remaining in personal property. Depreciation tables measure the loss in value at a specified age. The factor shown in the columns of the general percent good table represents the percentage of RCN remaining at a specified age. The general percent good tables are built upon the following assumptions:
- Iowa State University property retirement & depreciation studies
- A specified rate of return
- Average condition and usage of typical property
The table was designed to account for normal physical depreciation. Typical physical depreciation and functional/technological obsolescence are accounted for when the appropriate economic life estimate is used. Additional functional/technological and/or economic obsolescence may also exist. If documented to exist, additional functional and economic obsolescence must be measured in the marketplace using the direct sales comparison, rent loss, or inutility methods. In addition, any adjustments to the percent good due to the condition of the subject property must be defensible and documented.
The Division has developed percent good tables specifically for technologically advanced personal property and renewable energy personal property as well.
Level of Value Factors
The Level of Value Factors adjust the current actual value of personal property to the level of value (LOV) in effect for real property as specified by § 39-1-104(12.3)(a)(I), C.R.S. The procedure involves the multiplication of the assessment date actual value estimate by the appropriate LOV factor for the type of property being valued.