Appraisal District - To Fight Or Not?

[Red Baron]

They appraised the 6/1 equipment (personal property) at a car wash I sold 9 months ago for $137,000. The D&S 5000 was about 2 years old, and the SS equipment is 16 years old. 14 vacs. Am I wasting my time, should I just pay them the $3400 and go on to better battles?

Btw, Lubbock, Tx.

 

[Jim L.]

Why are you getting a tax bill for a wash you sold? Shouldn't the new owner be getting the bill?

 

[Whale of a Wash]

Not sure why your still involved, but I wish i had taxes like that. My 5 bay 3vacs in Minnesota is appraised by city at$246K and taxes of $5800. Way too much for this wash .

 

[Red Baron]

Not sure why your still involved, but I wish i had taxes like that. My 5 bay 3vacs in Minnesota is appraised by city at$246K and taxes of $5800. Way too much for this wash .

Is that personal property, or real estate? That's my question, is $137,000 valuation for the equipment I described too much? I know if it were sold it would probably bring about 15-20k.

 

[Whale of a Wash]

Wouldn't an accountant depreciate so much every year, so that you would pay taxes on the smaller amount you described not replacement value.

 

[Jim L.]

Is that personal property, or real estate? That's my question, is $137,000 valuation for the equipment I described too much? I know if it were sold it would probably bring about 15-20k.

In my state it is personal property and taxed at the same rate as real estate.

Yes, $137,000 sounds high for used equipment.

Every year I fill out a form listing the equipment’s original price, age and my guess at to its current value. The first year the valuation was the original price and then went down 7% per year for 10 years and settled at a 30% residual. The county assigned the 10 year useful life and my guess at its current value is ignored. I will pay tax on 30% of the original price until the equipment is taken out of service.

What was the assessed value of the equipment last year? It should be a little lower this year.