La. Admin. Code tit. 61 § V-501

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-501 - Guidelines for Ascertaining Fair Market Value of Loan and Finance Company Personal Property

A. The taxable personal property of loan and finance companies includes office equipment, office furniture and fixtures, repossessed property and certain credits (loans which are not secured by property located in Louisiana; Column 3, loans secured by personal endorsement; Column 5, and signature loans; Column 6). Loans secured by mortgages on property located in Louisiana are exempted from taxation by authority of the Louisiana Constitution.

B. Each parish assessor shall provide loan and finance companies with copies of LAT Form 5 and LAT Form 6.

1. LAT Form 5 should be utilized to identify the existence and value of office furniture and equipment. When using the cost approach in appraisal of the property, these items are to be brought to present day values and depreciated according to the effective age of the items in compliance with the appropriate tables in §2503 for office equipment and office furniture and fixtures, respectively.

2. LAT Form 6 shall be utilized to identify and value repossessed property, which shall be assessed at 15 percent of fair market value. The value of repossessed property is determined in accordance with the appropriate Section of these rules and regulations.

3. LAT Form 6 shall also be utilized to identify and value taxable credits. Such credits shall be offset and lessened by the actual bona fide accounts payable, bills payable and other liabilities of a similar character (R.S. 47:1962). This is accomplished by determining the percentage taxable receivables (sum of average of third, fifth and sixth columns on face of form) are to average total receivables, then deducting that percentage of allowable payables (sum of average of first, second and third columns on reverse of form) from total taxable receivables. This remainder shall be assessed at 15 percent of fair market value.

La. Admin. Code tit. 61, § V-501

Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 8:102 (February 1982), amended LR 10:922 (November 1984), LR 16:1063 (December 1990).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1962.