Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-12 - Property tax division-Rules for assessors › Section 458-12-310 - Valuation of property - Personal property

Current through Register Vol. 24-14, July 15, 2024
As in the valuation of all other classes of tangible property
				for ad valorem tax purposes, market value is the assessment goal. To attain
				that goal, the trade level concept for inventory and leased equipment shall be
				considered.
Trade level may be defined as value at the point in the
				production stream where an item of manufactured personalty is found, or the
				production-distribution level in which a product is found.
In appraising tangible personal property, the assessor shall
				give recognition to the trade level at which the property is situated and to
				the principle that tangible property normally increases in value as it
				progresses through production and distribution channels. Such property normally
				attains its maximum value as it reaches the consumer level.
Raw material
in the hands of the processor or
				manufacturer should be valued at their cost to the owner or to a
				competitor.
Work in process
in the hands of the processor or
				manufacturer shall be valued at the stage of production where found (costs to
				date) or cost to a competitor.
Finished goods
held for sale shall be valued at
				the amount for which they would transfer to a like business (cost to produce);
				those held for lease or rental shall be valued at the trade level of the
				principal user, usually cost to retailer or consumer.
Where personal property is in the hands of a person engaged in
				two or more of the functions of producer, manufacturer, processor, wholesaler,
				or retailer, the assessor shall determine the level of trade at which the
				property is situated on the assessment date by reference to its form, location,
				quantity, and probable purchasers or lessees.
Livestock
all county assessors shall use the
				livestock schedule published annually for their district by the department of
				revenue as a guide in the valuation of livestock. The assessor must not use the
				average inventory basis of valuation in the assessment of livestock. (AGO
				1-17-51)
Petroleum products
all county assessors shall use
				the petroleum products schedule, approved annually by the department of revenue
				and adjusted to market zones within the state as a guide in the valuation of
				petroleum products.
Average inventory
where the stock of goods, wares,
				merchandise or material, whether in a raw or finished state or in process of
				manufacture, owned by a taxpayer on January 1st of any year does not fairly
				represent the average stock carried by such taxpayer, such stock shall be
				listed and assessed upon the basis of the monthly average of stock owned or
				held by such taxpayer during the preceding calendar year or during such portion
				thereof as the taxpayer was engaged in business. (RCW
				84.40.020 ) Although the taxpayer may request
				that the average inventory method be used and the assessor must comply with
				that request, whatever method is used -- average inventory or inventory on
				January 1st -- That method must be followed from year-to-year in reporting
				unless a showing is made that a major change in the business has occurred
				necessitating use of the other method.
Order PT 68-6, § 458-12-310, filed
				  4/29/68.