Nev. Admin. Code § 361.1375 — 361.1375

NAC 361.1375    Determination of expected life, cost-index factors and
depreciation. ( NRS
360.090 , 360.250 , 361.227 )
1.  Personal property must be categorized by
the specific type of property that it is or by the type of industry in which it
is used. Each category must be assigned to a schedule of expected life which is
based on commonly available sources of information, including, without
limitation, the life expectancy guidelines published by the Marshall and Swift
Valuation Service and any other sources published in the Personal Property
Manual .
2.  The cost-index factors published in the Personal
Property Manual must be determined by calculating the average change in
costs over time. The Department shall identify the sources used to calculate
the average change.
3.  For purposes of calculating the amount of
applicable depreciation, personal property must be assigned to one of the
following expected lives:
(a) Three-year life;
(b) Five-year life;
(c) Seven-year life;
(d) Ten-year life;
(e) Fifteen-year life;
(f) Twenty-year life; or
(g) Thirty-year life.
4.  Depreciation must be calculated over the
expected life of the personal property by using the declining balance method,
except that tables which provide a method other than the declining balance
method for calculating depreciation may be used if the tables have been
approved by the Commission and included in the Personal Property Manual .
5.  For purposes of calculating the rate of
depreciation, a residual amount of 5 percent must be used. Percent-good tables
using a residual amount other than 5 percent may be adopted by the Commission
if the Department has conducted a market study or has otherwise obtained
information which indicates that a different residual amount is appropriate for
the category in which the personal property is placed pursuant to subsection 1.
(Added to NAC by Tax Comm’n by R034-03, eff. 12-4-2003)