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Lawmakers consider removing outdated farm equipment manual from statute
Summary
House Bill 108 would eliminate a 1998 supplemental manual for valuing agricultural implements and instead value such equipment by acquisition year and cost; DOR witnesses said the manual is outdated and difficult to maintain.
House Taxation Committee members heard that House Bill 108 would remove the statutory requirement that the Department of Revenue maintain a supplemental farm equipment valuation manual and instead value unlisted agricultural implements using the year acquired and acquisition cost with depreciation.
Representative Eric Tillman introduced the bill on behalf of DOR. Robin Rude, deputy administrator for the Property Assessment Division, told the committee the supplemental guide dates to 1998 and is outdated; contractors have not been available to update it and valuing those items by acquired year and cost is consistent with current practice. Rude said the department uses equipment valuation services for heavy equipment and that if an item is not found in the commercial guide, owners will report purchase year and cost and the department will apply depreciation.
Committee members asked whether acquisition‑year valuation is established by regulation and whether owners must provide receipts. Rude said the acquired‑cost approach is implemented by regulation, owners self‑report acquisition year and cost and receipts are not routinely required unless an audit occurs. Representative Close asked whether owners could provide additional documentation during review; Rude affirmed they could.
The sponsor closed the hearing and the committee moved on to other bills.
