How is Personal Property Valued and Assessed?
Commercial Businesses : The Kansas Constitution provided that commercial and industrial personal property will be appraised at its “retail cost when new” and straight line depreciated over a maximum of seven years. If the economic life of the property is less then seven years old, it will be depreciated straight line over the shorter life. The economic life that is assigned to commercial assets comes from guidelines issued by the State of Kansas, Internal Revenue Service (IRS) publications and the Marshall & Swift Valuation Services. However, so long as the property is “being used” the appraised value shall not be less than 20% of the retail cost when new of such property. “Retail cost when new,” means the dollar amount an item would cost when new to a purchaser at the retail level of trade. It does not include sales tax or freight and installation charges that are separate and readily discernible from the set retail price. The classification of this property is 2.05 and assessed at 25
