35 Miss. Code. R. 6-02-08-104 - Method of Pricing

1. Industry: Original acquisition cost new, including all cost associated with installing the equipment in place for production, will be the base for all industrial property. The industry will be classed by utilizing Marshall Valuation Service's manual showing the average life category for the industry. The base cost will be multiplied by the appropriate inflation factor furnished by the STC (from Marshall Valuation Service) based on the age of the item. This calculation will be multiplied by the appropriate percent good depreciation factor (again based on age) that is provided annually by the STC.

2. Business:

a. The STC pricing guide will be used as a source of pricing business personal property. Since the STC is factoring or revising the prices on all items each year, prices used from this source will not be factored for inflation by the Assessor. Prices from the STC manual should be multiplied by the appropriate percent good factor (depreciation schedule) supplied by the STC according to age. Any deviations from the STC pricing guide must be documented in the Assessor's file. Invoices showing prices in arms length transactions, which reflect market value, will be acceptable provided all costs associated with installation of the equipment are included. (Renditions alone will not be acceptable). In the event the invoices do not reflect a market value, then the Assessor should use the pricing guide or other documentation, which clearly establishes the true value of the property in question. This will usually be encountered when the property is purchased at a liquidation sale or other type of forced sale where the property is sold for less than its true value.

b. Any prices that deviate from the STC manual must be classified using the middle value of the asset range life in years of the Marshall Valuation Service's Life Expectancy Guidelines (from IRS Publication 946). Values must be multiplied by the appropriate inflation factor furnished by the STC (based on Marshall Valuation Service) and then multiplied by the STC percent good tables provided by the STC.

c. Documentation for items priced outside the manual and items not und in the manual shall be forwarded to the STC. The missing item(s) will be priced by the STC within ten (10) days from the date of receipt of the written request from the county with sufficient information to identify and value the item(s). In the event the county does not receive the appropriate price within the ten (10) day period, then the Assessor should use comparables or the best information available in arriving at the true value.

Notes

35 Miss. Code. R. 6-02-08-104