(1) The wholesale market value of heavy equipment shall be the most current quick sale as shown in the "Green Guide" and "Green Guide for Older Equipment" or the on-line version of the Green Guide known as Equipment Watch, as of January 1 of the year of assessment. This guide may be reviewed in the department or purchased from the publisher and is incorporated by reference: Dataquest, 1290 Ridder Park Drive, San Jose, California 95131.

(2) For all heavy equipment which cannot be valued under (1), the department shall try to ascertain the original FOB (free on board value) through old heavy equipment valuation guidebooks. If an original FOB cannot be ascertained, the department may use trending to determine the FOB. The FOB or "trended" FOB will be used in conjunction with the depreciation schedule in (5) to arrive at a value which approximates wholesale value. The trend factors are calculated using the most recent Contractor's Equipment factors available in the Marshall & Swift Valuation Service Guide for the year of assessment. The Marshall & Swift Valuation Service Guide, published by Marshall and Swift Publication Company, 915 Wilshire Boulevard, 8th Floor, P.O. Box 26307, Los Angeles, California 90026-0307, is adopted by reference.

(3) A trended quick sale value shall be applied to equipment if:

(a) the equipment cannot be valued under (1) but a quick sale value is available for the same make and model with a different year new; and

(b) the equipment cannot be valued under (2) or the value as calculated under (2) is higher than the most recently published previous year quick sale for the same make, model and year new. The trended quick sale value for heavy equipment shall be ascertained by trending the quick sale as found in the guide in (1), for the same make and model with a different year new. The trend factors are the same as those mentioned in (2).

(4) The wholesale market value of heavy equipment that cannot be valued under (1), (2), or (3) shall be the acquired cost, as certified by the owner or applicant to the department as applied to the depreciation schedule in (5). The department may require proof from the taxpayer to certify the accuracy of the acquired cost.

(5) The trended depreciation schedule referred to in (2), (3), and (4) is listed below and shall be used for tax year 2014. The values derived through the use of these percentages approximate the "quick sale" values as calculated in the guidebooks listed in (1).

 

HEAVY EQUIPMENT TRENDED DEPRECIATION SCHEDULE

YEAR NEW/ACQUIRED	TRENDED % GOOD WHOLESALE
2014	80%
2013	65%
2012	57%
2011	57%
2010	54%
2009	48%
2008	43%
2007	40%
2006	36%
2005	32%
2004	30%
2003	23%
2002	22%
2001	23%
2000	24%
1999	19%
1998	21%
1997	20%
1996	20%
1995 and older	15%

 

(6) This rule is effective for tax years beginning after December 31, 2013, and applies to all heavy equipment.