This amendment reverses the change in methodology for the valuation of betterments to more closely align valuation methodology with unique industry practices and defines a working day period in which the majority of light repairs and maintenance are normally accomplished. The State receives tax revenue for assessing and collecting and for the uniform school fund based on increased or decreased property value including centrally-assessed property. It is estimated that the overall change to the state budget because of the proposed amendments would be minimal. Local governmental entities receive tax revenue based on increased or decreased property value including centrally assessed railcars. For any individual tax entity the dollar impact will be very small.
Affected persons pay taxes based on increased or decreased property value.
One of the major reasons for this change is to reduce the reporting effort required of the railcar industry while still providing the Tax Commission the necessary information to perform accurate assessments. This rule change, reflecting agreements with the railcar industry, provides required information to the Tax Commission in a manner compatible with industry business practices and reporting capabilities. It provides the Tax Commission with appropriate valuation methodology as well as the information necessary to accurately assess railcars. In addition, the amendments have been agreed to with industry as being compatible with industry business practices and reporting capabilities. The fiscal impact will be minimal.