Instructions For Form 22.15 - Harris County Appraisal District Page 3
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7YEAR OF ACQUISITION
The percent good factor (%GD) schedules for the YEAR OF ACQUISITION METHOD
are to be used when original cost is known by year of acquisition. Refer to the property
category, such as Furniture & Fixtures, to determine the appropriate useful life %GD
schedule. The original cost is multiplied by the Index Factor, which equals the
replacement cost then multiply by the %GD for the acquisition year to arrive at a
calculated rendered value for that category.
BOOK VALUE TO MARKET VALUE CONVERSION
If the original cost by year of acquisition is not known, but the original cost and
depreciation are known by category, the tables for BOOK VALUE / MARKET VALUE
CONVERSION are to be used. First, divide the accumulated depreciation by the
original cost to determine the percentage of book depreciation. The percentage of book
depreciation is used to determine which present value factor (PVF) to apply. The
original cost is multiplied by the PVF factor to arrive at a calculated rendered value for
that category.
NET BOOK VALUE
Original cost less accumulated depreciation equals NET BOOK VALUE. The net book
value is calculated and compared to the BOOK VALUE / MARKET VALUE
CONVERSION METHOD of valuation. If the net book value is greater than the book
value / market value method, then the net book value is used to arrive at a calculated
rendered value for that category. The NET BOOK VALUE is not used to override the
YEAR OF ACQUISITION METHOD of valuation.
NEW ASSET MIX (NAM)
The New Asset Mix (NAM) is an obsolescence factor that is applied when most of the
assets in a category are newer, therefore compensating for the age mix being out of
balance. Each year life, the computer schedules, and the specific equipment schedule
have separate NAM factors. Please note the new asset mix schedule does not apply to
vehicles.
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