(a)If a town does not vote to exempt business personal property under section 3849 of this title, such property shall be appraised at fair market value; or, subject to a majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may provide that business personal property shall be appraised for any taxable year according to either of the following methods, which may be elected at the option of the taxpayer:
(1)At 50 percent of its cost during the time that it has not been fully depreciated for federal income tax purposes under the laws of the United States. After the property has been thus depreciated, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost;
(2)At its net book value during
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(a) If a town does not vote to exempt business personal property under section 3849 of this title, such property shall be appraised at fair market value; or, subject to a majority vote of those present and voting at an annual or special meeting warned for the purpose, a town may provide that business personal property shall be appraised for any taxable year according to either of the following methods, which may be elected at the option of the taxpayer:
(1) At 50 percent of its cost during the time that it has not been fully depreciated for federal income tax purposes under the laws of the United States. After the property has been thus depreciated, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost;
(2) At its net book value during the time that it has not been depreciated to 10 percent of its cost or less for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost. Business personal property manufactured by the taxpayer for his or her own use, shall be valued at the net book value for federal income tax purposes under the laws of the United States. After the property has been depreciated to 10 percent of its cost or less, exclusive of salvage value, for federal income tax purposes, it shall be appraised at 10 percent of its cost.
(b) The taxpayer may elect either of the methods set forth in subsection (a) of this section in the first year for which this election is effective. In any subsequent year the taxpayer may not change the method elected in the previous year except with the prior permission of the board of listers. All of the taxpayer’s business personal property shall be valued for any year according to only one of the two methods. Adjustments by the taxpayer or the federal authorities of the depreciation allowed or allowable on the property, for federal income tax purposes, shall not affect or change the appraisal of the property under this section for any year as to which, at the time of the adjustment in depreciation, the grand list has been lodged as required by section 4151 of this title.
(c) As used in this section:
[Subdivision (c)(1) effective until July 1, 2026; see also subdivision (c)(1) effective July 1, 2026 set out below.]
(1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title.
[Subdivision (c)(1) effective July 1, 2026; see also subdivision (c)(1) effective until July 1, 2026 set out above.]
(1) “Business personal property” means tangible personal property of a depreciable nature used or held for use in any trade, business, professional practice, transaction, activity, or occupation conducted for profit, including all furniture and fixtures, apparatus, tools, implements, books, machines, boats, construction devices, and all personal property used or intended to be used for the production, processing, fabrication, assembling, handling, or transportation of anything of value, or for the production, transmission, control, or disposition of power, energy, heat, light, water, or waste. “Business personal property” does not include inventory, or goods and chattels so affixed to real property as to have become part thereof, and that are therefore not severable or removable without material injury to the real property, nor does it include poles, lines, and fixtures that are taxable under sections 3620 and 3659 of this title, nor does it include communications property taxable under section 3602b of this title.
(2) “Net book value” of property means the cost less depreciation of the property as shown on the federal income tax return required to be filed with the federal authorities on or nearest in advance of April 1 in any year. (Added 1975, No. 101, § 2, eff. April 30, 1975; amended 1985, No. 169 (Adj. Sess.), § 3, eff. May 5, 1986; 1991, No. 203 (Adj. Sess.), § 4, eff. May 27, 1992; 2023, No. 145 (Adj. Sess.), § 11, eff. July 1, 2026.)