Utah Code Ann. Back to contents Valuation Business personal property is valued based on schedules developed by the State Tax Commission. For most property, value is based on acquisition or original cost multiplied by a percent good factor. Original cost includes installation, shipping, and sales tax. The percent good factor is developed from IRS economic life estimates which provide for the equivalent of straight-line depreciation to a residual value over the economic life of the property.
Appraisal depreciation is different than accounting depreciation.
Appraisal depreciation is defined as the loss of value of an asset over time from all sources including physical wear and tear, functional obsolescence and economic obsolescence. Accounting depreciation is the recovery of capital cost over a defined period. Economic life is not the same as the depreciation period allowed for federal income tax purposes. Each year the schedules are adjusted using an overall economic index. The percent good factor for construction equipment is developed from the Green Guide and the Last Bid valuation handbooks.