House Revenue committee approves change to tangible personal-property indexing and depreciation

The House Revenue Committee voted 7-1 to advance Senate File 49, a bill that changes how fair market value of tangible personal property is calculated by limiting the effect of valuation indexes and depreciation schedules once property reaches a statutory depreciation floor.

Ken Gill of the Department of Revenue told the committee the bill's core effect is to prevent valuation indexes or depreciation schedules from increasing the fair market value of "fully depreciated property above the depreciation floor." The department offered an amendment the committee adopted that reads, in part, "once the tangible personal property reaches the depreciation floor, the trending factor shall remain constant for subsequent years until it is removed from service." Gill said the amendment clarifies that trending stops after an asset reaches its defined useful life and the value remains at that level until…