Appraising Textile Equipment
& Miscellaneous
Personal Property Topics
NCDOR Advanced Personal Property
Seminars
Greensboro, NC
September 13-15, 2010
Gregg Martin, Property Tax Division
North Carolina Department of
Revenue
Treatment of Textile Mill Equipment
• During the Late 1980s Equipment
manufactured prior to 1985 was
treated differently than other
industries
• Residual value was set at 15 %
• This was due to significant technology
changes in yarn spinning, knitting and
weaving
Treatment of Textile Mill Equipment
• For Tax Year 1990 a modification
occurred
• The application of 15 % residual value was
limited to equipment manufactured prior to
1981
• This treatment continued until Tax Year 2000
Treatment of Textile Mill Equipment
• For Tax Year 2000 a modification
occurred
• Reference to date of manufacture removed
• Residual value remained at 15%
• A separate section of Schedule A was created
for Textile Mill Equipment and Dye and Finish
Equipment
Treatment of Textile Mill Equipment
• For Tax Year 2002 a modification
occurred
• Residual Value was established at 10%
• No reference to year of manufacture
Treatment of Textile Mill Equipment
• For Tax Year 2003 a modification
occurred
• Residual Value was set at 5%
• New Description of Idle Equipment
• The Textile Mill Equipment and Dye and
Finishing Equipment section of Schedule A
decreased percent good factors by 8-15% per
year prior to residual value
Treatment of Textile Mill Equipment
• For Tax years 2004-2009 there were
no modifications to the treatment
of Textile Mill Equipment and Dye
and Finishing Equipment from
guidelines established for Tax Year
2003
Treatment of Textile Mill Equipment
• For Tax Year 2010 a modification
occurred
• Special Sub-schedule for Textile Mill
Equipment and Dye and Finishing Equipment
was moved to memorandum from Schedule A
• Counties encouraged to determine
applicability of Special Sub-schedule
Analysis of Textile Mill Equipment
• Textile mill equipment is used in the
manufacture of Spun Yarn and Woven and
Knit Fabric
• Equipment used in the manufacture of
apparel and other finished products utilizing
yarn and or fabric are appraised using other
guidelines
Analysis of Textile Mill Equipment
• Two methods of producing yarn
• Chemical Process formulates polymer
compounds to extrude single filament yarn
and cut fiber to be used in the mechanical
process
• Mechanical process uses a mechanical
‘spinning’ or ‘twisting process’ to manufacture
yarn by binding cut fibers through friction
Analysis of Textile Mill Equipment
• The special schedules address the equipment
used in the mechanical process
• Ring Spun
• Open End
• Air Jet
• Water Jet
• Vortex
Analysis of Textile Mill Equipment
• Technologies have advanced to increase
operating speeds and output
• Quality issues have resulted in continued use
of Ring Spun technology and actual increases
in this production method during recent years
• Advance in spinning technology have not
resulted in abandoning the oldest technology
Analysis of Textile Mill Equipment
• Woven fabric is manufactured using
mechanical shuttle, air jet and water jet
processes
• Most weaving technology improvements have
been utilized for versatility of manufacturing
Analysis of Textile Mill Equipment
• Fabrics are knit through the mechanical
processes of Circular Knitting or Flat Bed
Knitting
• Advances have been more for versatility of
manufacturing
Analysis of Textile Mill Equipment
• Non-woven fabrics are manufactured using
the latest advances in technology and
materials
• Tyvek
• Handi-wipes
• Specialty fabrics
• This portion of the industry should be
appraised using regular schedules
Analysis of Textile Mill Equipment
• Dye and Finishing Equipment
• Basic mechanical technology has not
seen significant change or advances
• Most significant change has occurred in
the chemical properties of synthetic
fibers and the actual dyes and chemicals
used in the process
Treatment of Textile Mill Equipment
• Establish a separate schedule to avoid
confusion
• Probable that all equipment used in the
mechanical processes of Yarn Spinning; Fabric
Knitting and Weaving; and Dye and Finishing
will receive accelerated depreciation and
lower residual values
Wind Power Equipment
• We are beginning to see limited installation of
Wind Turbines used to generate electricity
• Most probable locations of equipment are in
coastal areas
• Study being undertaken by CAMA
• NC has 14 % of estimated potential wind
power generation capacity in US
Wind Power Equipment
• Presently recommending the use of schedule
T-18
• Generation equipment is very similar to other
mechanical generation method
• As placement increases, better information on
valuation will become available