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Appraising Textile Equipment & Miscellaneous Personal Property Topics NCDOR Advanced Personal Property Seminars Greensboro, NC September 13-15, 2010 Gregg.

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Presentation on theme: "Appraising Textile Equipment & Miscellaneous Personal Property Topics NCDOR Advanced Personal Property Seminars Greensboro, NC September 13-15, 2010 Gregg."— Presentation transcript:

1 Appraising Textile Equipment & Miscellaneous Personal Property Topics NCDOR Advanced Personal Property Seminars Greensboro, NC September 13-15, 2010 Gregg Martin, Property Tax Division North Carolina Department of Revenue

2 Treatment of Textile Mill Equipment During the Late 1980s Equipment manufactured prior to 1985 was treated differently than other industries Residual value was set at 15 % This was due to significant technology changes in yarn spinning, knitting and weaving

3 Treatment of Textile Mill Equipment For Tax Year 1990 a modification occurred The application of 15 % residual value was limited to equipment manufactured prior to 1981 This treatment continued until Tax Year 2000

4 Treatment of Textile Mill Equipment For Tax Year 2000 a modification occurred Reference to date of manufacture removed Residual value remained at 15% A separate section of Schedule A was created for Textile Mill Equipment and Dye and Finish Equipment

5 Treatment of Textile Mill Equipment For Tax Year 2002 a modification occurred Residual Value was established at 10% No reference to year of manufacture

6 Treatment of Textile Mill Equipment For Tax Year 2003 a modification occurred Residual Value was set at 5% New Description of Idle Equipment The Textile Mill Equipment and Dye and Finishing Equipment section of Schedule A decreased percent good factors by 8-15% per year prior to residual value

7 Treatment of Textile Mill Equipment For Tax years there were no modifications to the treatment of Textile Mill Equipment and Dye and Finishing Equipment from guidelines established for Tax Year 2003

8 Treatment of Textile Mill Equipment For Tax Year 2010 a modification occurred Special Sub-schedule for Textile Mill Equipment and Dye and Finishing Equipment was moved to memorandum from Schedule A Counties encouraged to determine applicability of Special Sub-schedule

9 Analysis of Textile Mill Equipment Textile mill equipment is used in the manufacture of Spun Yarn and Woven and Knit Fabric Equipment used in the manufacture of apparel and other finished products utilizing yarn and or fabric are appraised using other guidelines

10 Analysis of Textile Mill Equipment Two methods of producing yarn Chemical Process formulates polymer compounds to extrude single filament yarn and cut fiber to be used in the mechanical process Mechanical process uses a mechanical ‘spinning’ or ‘twisting process’ to manufacture yarn by binding cut fibers through friction

11 Analysis of Textile Mill Equipment The special schedules address the equipment used in the mechanical process Ring Spun Open End Air Jet Water Jet Vortex

12 Analysis of Textile Mill Equipment Technologies have advanced to increase operating speeds and output Quality issues have resulted in continued use of Ring Spun technology and actual increases in this production method during recent years Advance in spinning technology have not resulted in abandoning the oldest technology

13 Analysis of Textile Mill Equipment Woven fabric is manufactured using mechanical shuttle, air jet and water jet processes Most weaving technology improvements have been utilized for versatility of manufacturing

14 Analysis of Textile Mill Equipment Fabrics are knit through the mechanical processes of Circular Knitting or Flat Bed Knitting Advances have been more for versatility of manufacturing

15 Analysis of Textile Mill Equipment Non-woven fabrics are manufactured using the latest advances in technology and materials Tyvek Handi-wipes Specialty fabrics This portion of the industry should be appraised using regular schedules

16 Analysis of Textile Mill Equipment Dye and Finishing Equipment Basic mechanical technology has not seen significant change or advances Most significant change has occurred in the chemical properties of synthetic fibers and the actual dyes and chemicals used in the process

17 Treatment of Textile Mill Equipment Establish a separate schedule to avoid confusion Probable that all equipment used in the mechanical processes of Yarn Spinning; Fabric Knitting and Weaving; and Dye and Finishing will receive accelerated depreciation and lower residual values

18 Wind Power Equipment We are beginning to see limited installation of Wind Turbines used to generate electricity Most probable locations of equipment are in coastal areas Study being undertaken by CAMA NC has 14 % of estimated potential wind power generation capacity in US

19 Wind Power Equipment Presently recommending the use of schedule T-18 Generation equipment is very similar to other mechanical generation method As placement increases, better information on valuation will become available


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