Survey Topic — Business Equipment Valuation

Description

Assessors value most machinery and equipment using business property valuation factors. Some valuation factors are derived by combining price index factors with percent good factors, while other valuation factors result from valuation studies. A value indicator is obtained by multiplying a property's historical cost by an appropriate value factor.

Section 401.5 provides that the BOE shall issue information that promotes uniformity in appraisal practices and assessed values. Pursuant to that mandate, the BOE annually publishes Assessors' Handbook Section 581, Equipment and Fixtures Index, Percent Good and Valuation Factors (AH 581). The index, percent good and valuation factors for all current and prior years can be found on the BOE Open Data Portal.

For additional information regarding business equipment valuation, refer to Assessors' Handbook Section 504, Assessment of Personal Property and Fixtures (AH504).