This bill amends the existing law regarding ad valorem taxation by establishing specific guidelines for the valuation of tangible personal property. It mandates that the fair market value of such property be determined using valuation indexes and depreciation schedules as prescribed by the Department of Revenue. The bill introduces the concept of a "depreciation floor," defined as twenty percent (20%) of the reported installed cost of the property, and stipulates that once tangible personal property reaches this depreciation floor, the trending factor will remain constant until the property is removed from service. Additionally, it clarifies that "tangible personal property" does not include items valued under a different statute or mobile homes that require titling.

To facilitate the implementation of these changes, the Department of Revenue is tasked with promulgating all necessary rules. The act is set to take effect on January 1, 2026, with certain sections becoming effective immediately upon the completion of legislative processes required for a bill to become law.

Statutes affected:
Introduced: 39-13-103
Engrossed: 39-13-103
Enrolled: 39-13-103