59-2-108 - Depreciation schedule for certain taxable tangible personal property. - Utah Statutes

59-2-108. Depreciation schedule for certain taxable tangible personal property.
(1) As used in this section:
(a) (i) "Acquisition cost" means all costs required to put an item of tangible personalproperty into service; and
(ii) includes:
(A) the purchase price for a new or used item;
(B) the cost of freight and shipping;
(C) the cost of installation, engineering, erection, or assembly; and
(D) sales and use taxes.
(b) "Expensed personal property" means an item of taxable tangible personal propertythat:
(i) has an acquisition cost of $1,000 or less; and
(ii) a person elects to have assessed according to a schedule described in Subsection (4).
(c) (i) "Item of taxable tangible personal property" does not include an improvement toreal property or a part that will become an improvement.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules defining the term "item of taxable tangible personal property."
(d) (i) "Short life expensed personal property" means expensed personal property that isthe same type as the following personal property:
(A) short life property;
(B) short life trade fixtures; or
(C) computer hardware.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules defining the following terms:
(A) "short life property";
(B) "short life trade fixtures"; and
(C) "computer hardware."
(e) "Taxable tangible personal property" means tangible personal property that is subjectto taxation under this chapter.
(2) (a) A person may elect to designate taxable tangible personal property as expensedpersonal property.
(b) A county shall not require a person to:
(i) itemize expensed personal property on the signed statement described in Section59-2-306; and
(ii) track expensed personal property.
(c) If a taxpayer's expensed personal property is audited in accordance with Subsection59-2-306(3), a taxpayer shall provide proof of the acquisition cost of the expensed personalproperty.
(3) (a) An election to designate taxable tangible personal property as expensed personalproperty under this section may not be revoked.
(b) Except as provided in Subsection (3)(d), if an item of taxable tangible personalproperty is designated as expensed personal property, the person must pay taxes according to thetaxable value determined by the schedule for a term designated by a schedule described inSubsection (4).
(c) If a person sells or otherwise disposes of an item of expensed personal property prior

to the time period described in Subsection (3)(b) or (d), the person shall continue to pay taxesaccording to the schedule described in Subsection (4).
(d) If a person elects to designate an item of taxable tangible personal property acquiredbefore December 31, 2008, as expensed personal property at a time after the first year after theitem is acquired, the person must pay taxes according to the taxable value determined by theschedule for a time period that equals:
(i) the time period designated in Subsection (3)(b); less
(ii) the time period beginning when the person acquired the item of expensed personalproperty and ending when the person designated the item as short life expensed personalproperty.
(e) If a person elects to designate taxable tangible personal property as expensed personalproperty in accordance with Subsection (2)(a), the person may not appeal the values described inSubsection (4).
(4) (a) For the taxable year beginning on January 1, 2009 and ending on December 31,2009, the taxable value of short life expensed personal property is calculated by applying thepercent good factor against the acquisition cost of the property as follows:

Short Life Expensed Personal Property Schedule
Year of Percent Good of
Acquisition Acquisition Cost
2008 69%
2007 52%
2006 30%
2005 17%
2004 11%
(b) For taxable years beginning on or after January 1, 2010, the taxable value of short lifeexpensed personal property shall be assessed according to a schedule developed by thecommission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

Enacted by Chapter 61, 2008 General Session