Business Equipment Valuation Resources

The following resources provide information and guidance on the Business Equipment Valuation Survey Topic.

California Constitution
Article Title
Article XIII, §14 Taxation
Article XIII, §27 Taxation
Article XIII, §28 Taxation

Sales and Use Tax Regulations
Section Title
1533.1 Farm Equipment and Machinery

Revenue and Taxation Code
Section Title
101-136 Construction
201-242 Taxable and Exempt Property
401-409 General Requirements
982-998 Special Types of Property - Generally
6351-6380 General Exemptions

Property Tax Rules

The BOE is mandated to prescribe rules and regulations to govern local boards of equalization when equalizing and Assessors when assessing in compliance with the rulemaking procedures adopted by the California Office of Administrative Law. Pursuant to that mandate, the BOE has adopted various Property Tax Rules which are contained in Title 18 of the California Code of Regulations.

The following Property Tax Rules pertain to business equipment valuation.
Rule Title
2 The Value Concept
10 Trade Level for Tangible Personal Property
122.5 Fixtures
133 Business Inventory Exemption
134 Household Furnishings, Personal Effects, and Pets Exemption
152 Computer Program Storage Media
153 Liquefied Petroleum Gas Tanks
205 Movable Property
461 Real Property Value Changes
463 Newly Constructed Property
474 Petroleum Refining Properties (In effect October 1, 2015)
1046 Horses Subject to Ad Valorem Taxation
1047 Property Classification of Racehorses
1051 Extension of Time for Acts Required by Regulation

Assessors' Handbook (AH)

The AH is a series of manuals developed by the staff of the Board of Equalization (BOE) in an open process. The objective of the AH is to give Assessors, their staff, and other interested parties an understanding of the principles of property assessment and real and personal property appraisal for property tax purposes. Additionally, the AH presents the BOE staff's interpretation of rules, laws, and court decisions on property assessment.

In attempting to relate the advice or guidance provided in the AH, care must be taken to ensure that the advice has not been superseded by subsequent legislative or administrative action, court decisions, or reconsideration of staff's position. Following advice provided in the AH is not reasonable reliance upon written advice for purpose of obtaining relief from a failure to pay tax, interest, and/or penalty. In any instance where there is an inconsistency between a statute or regulation and an AH section, statutory or regulatory law is controlling.

The following AH section pertains to procedural issues involving business equipment valuation.
Section Title
504 Assessment of Personal Property and Fixtures
581 Equipment Index and Percent Good Factors

Special Topic Survey

Letters To Assessors (LTAs)

LTAs provide an ongoing advisory service for Assessors and other interested parties. The letters present BOE staff's interpretation of rules, laws, and court decisions on property tax assessment.

The following LTAs pertain to procedural issues involving business equipment valuation.
Letter to Assessors Title
78/80 Works of Art on Consignment
78/88 Pet Exemption or Ad Valorem Taxation
78/209 Business Inventory Exemption Application to Contractors' Inventories
79/75 Situs of Linen Supply
79/170 Exemption of Business Inventories
80/69 Business Inventory Exemption
80/82 Home Protection Companies' Personal Property
81/94 Assembly Bill 375, Active Solar Energy System
83/59 Applicability of the Business Inventory Exemption to Returnable Containers, and Definition of Containers and Container Materials
84/102 Financial Corporations
85/12 Allstate Insurance Company v County of Los Angeles et al., and Security Pacific National Bank v. County of Los Angeles et al.
85/88 Assessors' Letter No. 85/12 Allstate Insurance Company v County of Los Angeles et al., and Security Pacific National Bank v. County of Los Angeles et al.
86/90 Amendment to Section 129 of the Revenue and Taxation Code Involving Business Inventories
88/24 Service Station Fixtures
89/58 Assessment of Personal Property in Residential
90/07 Crocker National Bank v. City and County of San Francisco
90/45 Hospital Supplies and Inventories
91/68 Inventory Exemption for Linen Rentals
92/27 Assessment of Service Station Structures and Fixtures
94/44 Assessment Status of Tractors and Other Mobile Property Used at a Residence
94/76 Exemption of Hand Tools Owned by an Employee and Used on Job
95/42 Transfer of Personal Property Assessment to Unsecured Roll
96/25 One-Way Paging Companies
96/29 The Proper Assessment of Computer Program Storage Media
96/49 Exempt Property of the Civil Air Patrol
99/39 State Appeals Court Upholds Rule 152
99/45 New Construction Exclusion - Fire Detection Systems
99/54 Interim Guidelines for the Valuation of Biopharmaceutical Industry Equipment and Fixtures
99/62 New Construction Exclusion - Underground Storage Tanks
99/83 Supplemental Assessments on Electric Generation Facilities Acquired by Investor-Owned Companies
2000/059 Business Inventory Exemption Nonprofessional Service Enterprises
2002/029 Partial Sales and Use Tax Exemption for Farm Equipment and Machinery
2002/078 Guidelines for the Assessment of Billboard Properties
2004/019 Minimum Percent Good Factors
2010/030 Guidelines for Substantiating Additional Obsolescence for Personal Property and Fixtures
2014/050 Property Tax Rule 133, Business Inventory Exemption
2017/032 Classification of Mobile Agricultural Equipment and Application of Percent Good Factors
2019/034 Valuation of Certificated Aircraft
2023/045 Space Flight Property Tax Exemption: Sunset Date Extension

Annotated legal opinions are summaries of the conclusions reached in selected legal rulings of California State Board of Equalization counsel.

The following legal opinions pertain to questions involving business equipment valuation.
Annotated Legal Opinion Title
100.0008 Business Inventory Exemption
205.0000 et seq. Business Inventory Exemption
207.0005 Business Records
260.0095 Third Party Property Statements
325.0015 Deadlines Falling on Saturdays, Sundays, and Holidays
515.0000 et seq. Household Furnishings
530.0000 et seq. Insurance Companies
560.0000 et seq. Leased to Government
630.0000 et seq. Personal Property
680.0000 et seq. Property Statement
700.0000 et seq. Racehorses
740.0000 et seq. Situs

Assessors Handbook 581 – Equipment and Fixtures Index, Percent Good and Valuation Factors

The current year and four prior years of the handbook are available on the AH 581 webpage. Factor tables from 2010 to present are available on the BOE Open Data Portal - Property Tax (ODP). The ODP is intended to provide centralized access to the BOE's publicly available data in easy-to-use formats.

Vessel Valuation Factors

Current and prior year lien date vessel valuation factors are available on the LTA webpage. Select the appropriate year and search for the Vessel Valuation Factors LTA or use the Topical Index to search by topic.

Valuation of Certificated Aircraft California Standard Flight Times

Current and prior year California standard flight times are available on the LTA webpage. Select the appropriate year and search for the Valuation of Certificated Aircraft California Standard Flight Times LTA or use the Topical Index to search by topic.

Calendar for the Valuation of Public Utilities and Railroads

Current and prior year calendars are available on the LTA webpage. Select the appropriate year and search for the Calendar for the Valuation of Public Utilities and Railroads LTA or use the Topical Index to search by topic.