TO: ALL COUNTY AUDITORS - Bulletin No. 150
FROM: Stanley J. Bowers, Tax Commissioner
DATE: May 9, 1960
RE: Assessment of Certain Property Belonging to Towel and
Linen, and Industrial Service Companies
To insure uniformity in the assessment of personal property
belonging to towel and linen service companies and industrial
service and supply companies, the following procedure will be
followed beginning with the 1961 personal property tax
The true value of such property as of the taxpayer's required
listing date will be determined by the following method:
1) Cost value of all new inventory items (those not
placed in service) on hand at the beginning of the
current accounting period.
(2) Add to the above cost the value of all new purchases
during this said period.
(3) Deduct from the above total, the cost of all new
items (those not placed in service) on hand at the close
(4) The resulting value will be the cost of all new items
placed in service during the accounting year.
(5) The depreciated value of all new items in service at
the close of the period, will be determined by using
thirty per cent (30%) of the resulting value above.
(6) To this depreciated value will be added the cost of
the new items (100%) not yet placed in service as of the
close of the accounting period, with the result being the
total true value.
(7) The total true value is then listable for taxation at
seventy per cent (70%).
Under no circumstances should a county auditor or
examiner, on analyzing the accounts of such companies,
permit excessive charges
from the inventory account to the "in service" account
during the several months of the accounting period,
which procedure would reduce the inventory value of new
items on band.
All 1960 and prior years' returns should be processed on the
same basis as has been followed in the past.