42-14403. Determining valuation;
definitions
A. On or before August 31 of each year, the department shall determine the
valuation as of January 1 of the property of all telecommunications companies operating
in this state at its full cash value. Real estate shall be valued at market value, and
personal property shall be valued on a unitary basis at its cost less depreciation. In
addition, the taxpayer may submit documentation showing the need for, and the department
shall consider, an additional adjustment to recognize obsolescence using standard
appraisal methods and techniques.
B. For the purposes of this section:
1. Depreciation shall be computed on a straight line basis using the lives set
forth as follows:
(a) Buildings with a twenty-five year life.
(b) Cable with a fifteen year life.
(c) Telecommunications equipment with a five year life.
(d) Any other telecommunications property that is not included in subdivisions (a),
(b) and (c) with a seven year life.
2. The computation prescribed in paragraph 1 of this subsection shall not reduce
the valuation of property valued pursuant to subdivision (a) below twenty per cent of
cost and shall not reduce the valuation of property valued pursuant to subdivisions (b),
(c) and (d) below ten per cent of cost.
3. For cellular or other wireless telecommunications companies, the taxable unit is
the applicable metropolitan statistical area or rural statistical area and does not
include the value of any license that is issued by the federal communications commission.
C. For the purposes of this section:
1. "Cost" means the original cost as reported on the company's books and records.
2. "Obsolescence" means a reduction in the value of an asset resulting from
functional or economic obsolescence.
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