                                 CODE OF VIRGINIA

GENERAL CLASSIFICATION OF TANGIBLE PERSONAL PROPERTY (§ 58.1-3503)

A. Tangible personal property is classified for valuation purposes according to
the following separate categories which are not to be considered separate
classes for rate purposes:

   1. Farm animals, except as exempted under &#xA7; 58.1-3505.

   2. Farm machinery, except as exempted under &#xA7; 58.1-3505.

   3. Automobiles, except those described in subdivisions 7, 8, and 9 of this
   subsection and in subdivision A 8 of &#xA7; 58.1-3504, which shall be valued
   by means of a recognized pricing guide or if the model and year of the
   individual automobile are not listed in the recognized pricing guide, the
   individual vehicle may be valued on the basis of percentage or percentages of
   original cost. In using a recognized pricing guide, the commissioner shall use
   either of the following two methods. The commissioner may use all applicable
   adjustments in such guide to determine the value of each individual
   automobile, or alternatively, if the commissioner does not utilize all
   applicable adjustments in valuing each automobile, he shall use the base value
   specified in such guide which may be either average retail, wholesale, or loan
   value, so long as uniformly applied within classifications of property. If the
   model and year of the individual automobile are not listed in the recognized
   pricing guide, the taxpayer may present to the commissioner proof of the
   original cost, and the basis of the tax for purposes of the motor vehicle
   sales and use tax as described in &#xA7; 58.1-2405 shall constitute proof of
   original cost. If such percentage or percentages of original cost do not
   accurately reflect fair market value, or if the taxpayer does not supply proof
   of original cost, then the commissioner may select another method which
   establishes fair market value.

   4. Trucks of less than two tons, which may be valued by means of a recognized
   pricing guide or, if the model and year of the individual truck are not listed
   in the recognized pricing guide, on the basis of a percentage or percentages
   of original cost.

   5. Trucks and other vehicles, as defined in &#xA7; 46.2-100, except those
   described in subdivisions 4, and 6 through 10 of this subsection, which shall
   be valued by means of either a recognized pricing guide using the lowest value
   specified in such guide or a percentage or percentages of original cost.

   6. Manufactured homes, as defined in &#xA7; 36-85.3, which may be valued on
   the basis of square footage of living space.

   7. Antique motor vehicles, as defined in &#xA7; 46.2-100, which may be used
   for general transportation purposes as provided in subsection D of &#xA7;
   46.2-730.

   8. Taxicabs.

   9. Motor vehicles with specially designed equipment for use by individuals
   with disabilities, which shall not be valued in relation to their initial
   cost, but by determining their actual market value if offered for sale on the
   open market.

   10. Motorcycles, mopeds, all-terrain vehicles, and off-road motorcycles as
   defined in &#xA7; 46.2-100, campers and other recreational vehicles, which
   shall be valued by means of a recognized pricing guide or a percentage or
   percentages of original cost.

   11. Boats weighing under five tons and boat trailers, which shall be valued by
   means of a recognized pricing guide or a percentage or percentages of original
   cost.

   12. Boats or watercraft weighing five tons or more, which shall be valued by
   means of a percentage or percentages of original cost.

   13. Aircraft, which shall be valued by means of a recognized pricing guide or
   a percentage or percentages of original cost.

   14. Household goods and personal effects, except as exempted under &#xA7;
   58.1-3504.

   15. Tangible personal property used in a research and development business,
   which shall be valued by means of a percentage or percentages of original
   cost.

   16. Programmable computer equipment and peripherals used in business which
   shall be valued by means of a percentage or percentages of original cost to
   the taxpayer, or by such other method as may reasonably be expected to
   determine the actual fair market value.

   17. Computer equipment and peripherals used in a data center, as defined in
   subdivision A 43 of &#xA7; 58.1-3506, which shall be valued by means of a
   percentage or percentages of original cost, or by such other method as may
   reasonably be expected to determine the actual fair market value.

   18. All tangible personal property employed in a trade or business other than
   that described in subdivisions 1 through 17, which shall be valued by means of
   a percentage or percentages of original cost.

   19. Outdoor advertising signs regulated under Article 1 (&#xA7; 33.2-1200 et
   seq.) of Chapter 12 of Title 33.2.

   20. All other tangible personal property.

B. Methods of valuing property may differ among the separate categories, so long
as each method used is uniform within each category, is consistent with
requirements of this section and may reasonably be expected to determine actual
fair market value as determined by the commissioner of revenue or other
assessing official; however, assessment ratios shall only be used with the
concurrence of the local governing body. A commissioner of revenue shall upon
request take into account the condition of the property. The term
&#8220;condition of the property&#8221; includes, but is not limited to,
technological obsolescence of property where technological obsolescence is an
appropriate factor for valuing such property. The commissioner of revenue shall
make available to taxpayers on request a reasonable description of his valuation
methods. Such commissioner, or other assessing officer, or his authorized agent,
when using a recognized pricing guide as provided for in this section, may
automatically extend the assessment if the pricing information is stored in a
computer. For any locality in which the commissioner of revenue or other
assessing official adjusts the valuation of property described in subdivision A
3 to account for the amount of mileage on such vehicles, such adjustment shall
also be provided to motorcycles described in subdivision A 10.

HISTORY: Code 1950, §§ 58-829, 58-829.3, 58-829.5; 1960, c. 418; 1970, cc.
325, 655; 1974, c. 445; 1975, cc. 47, 541; 1976, c. 567; 1978, cc. 155, 178,
656, 843; 1979, c. 576; 1980, c. 412; 1981, c. 236; 1982, c. 633; 1984, cc. 675,
689; 1985, c. 105; 1987, c. 568; 1991, cc. 253, 255; 1994, c. 827; 1996, c. 529;
1997, cc. 192, 250, 433, 457; 2006, c. 896; 2013, cc. 287, 652, 783; 2018, cc.
28, 292; 2022, c. 655; 2023, cc. 148, 149.