(3) This rule does not apply to:(a) a vehicle subject to the age-based uniform fee under Section 59-2-405.1;
(b) the following personal property subject to the age-based uniform fee under Section 59-2-405.2:
(i) an all-terrain vehicle;
(ii) a camper;
(iii) an other motorcycle;
(iv) an other trailer;
(v) a personal watercraft;
(vi) a small motor vehicle;
(vii) a snowmobile;
(viii) a street motorcycle;
(ix) a tent trailer;
(x) a travel trailer; and
(xi) a vessel, including an outboard motor of the vessel, that is less than 31 feet in length;
(c) a motorhome subject to the uniform statewide fee under Section 59-2-405.3; and
(d) an aircraft subject to the uniform statewide fee under Section 72-10-110.5.
(4) Other taxable personal property that is not included in the listed classes includes:
(a) Equipment leased or rented from inventory is subject to ad valorem tax. Refer to the appropriate property class schedule to determine taxable value.
(b) Property held for rent or lease is taxable, and is not exempt as inventory. For entities primarily engaged in rent-to-own, inventory on hand at January 1 is exempt and property out on rent-to-own contracts is taxable.
(5) Personal property valuation schedules may not be appealed to, or amended by, county boards of equalization.
(6) Taxable personal property, other than personal property subject to an age-based uniform fee under Sections 59-2-405.1 through 59-2-405.3, or a uniform statewide fee under Section 59-2-405, is classified by expected economic life as follows:
(a) Class 1 - Short Life Property.
(i) Property in this class has a typical life of more than one year and less than four years. It is fungible in that it is difficult to determine the age of an item retired from service.
(ii) Property in this class includes:
(A) barricades or warning signs;
(B) library materials;
(C) patterns, jigs and dies;
(D) pots, pans, and utensils;
(E) canned computer software;
(F) hotel linen;
(G) wood and pallets;
(H) video tapes, compact discs, and DVDs; and
(I) uniforms.
(iii) Except as provided in Subsections (6)(a)(iv) and (v), taxable value shall be calculated by applying the percent good factor against the acquisition cost of the property.
(iv) A licensee of canned computer software shall use one of the following substitutes for acquisition cost of canned computer software if no acquisition cost for the canned computer software is available:
(A) retail price of the canned computer software;
(B) if a retail price is unavailable, and the license is a nonrenewable single year license agreement, the total sum of expected payments during that 12-month period; or
(C) if the licensing agreement is a renewable agreement or is a multiple year agreement, the present value of expected licensing fees paid pursuant to the agreement.
(v) Video tapes, compact discs, and DVDs shall be valued at $15 per tape or disc for the first year and $3 per tape or disc thereafter.
Table 1
Short Life Property
Percent Good of Acquisition Cost
(b) Class 2 - Computer Integrated Machinery.
(i) Machinery shall be classified as computer integrated machinery if the following conditions are met:
(A) except as provided in Subsection (6)(b)(iv), equipment is sold as a single unit.
(B) the machinery cannot operate without the computer and the computer cannot perform functions outside the machinery.
(C) the machinery can perform multiple functions and is controlled by a programmable central processing unit.
(D) the total cost of the machinery and computer combined is depreciated as a unit for income tax purposes.
(E) the capabilities of the machinery cannot be expanded by substituting a more complex computer for the original.
(ii) Property in this class includes:
(A) CNC mills;
(B) CNC lathes; or
(C) high-tech medical and dental equipment such as MRI equipment, CAT scanners, and mammography units.
(iii) Taxable value shall be calculated by applying the percent good factor against the acquisition cost of the property.
