(A) The Department of Motor Vehicles annually shall assess, equalize, and apportion the valuation of all large commercial motor vehicles and buses of motor carriers registered for use in this State under the International Registration Plan or otherwise pursuant to Section 56-3-190. The valuation must be based on fair market value for the motor vehicles and an assessment ratio of nine and one-half percent as provided by Section 12-43-220(g). Fair market value is determined by depreciating the gross capitalized cost of each motor carrier's large commercial motor vehicle or bus by an annual percentage depreciation allowance down to ten percent of the cost as follows:

(1) Year One - .90 (2) Year Two - .80 (3) Year Three - .65 (4) Year Four - .50 (5) Year Five - .35 (6) Year Six - .25 (7) Year Seven - .20 (8) Year Eight - .15 (9) Year Nine - .10

(B) "Gross capitalized cost", as used in this section, means the original cost upon acquisition for income tax purposes, not to include taxes, interest, or cab customizing. However, for a motor vehicle which is fueled wholly or partially by alternative fuel as defined in Section 12-28-110(1), and that was acquired after 2015 but before 2026, the gross capitalized cost is reduced by the differential costs of a comparable diesel or gasoline powered vehicle, not to exceed thirty percent of the total acquisition cost of the motor vehicle. This reduction shall apply for the first ten property tax years for which tax is due following the acquisition of the vehicle.

HISTORY: 1996 Act No. 461, Section 1; 1997 Act No. 125, Section 1B; 1998 Act No. 442, Section 12B; 2016 Act No. 269 (S.1122), Section 2.A, eff June 6, 2016; 2017 Act No. 40 (H.3516), Section 8.A, eff January 1, 2019.

Editor's Note

2016 Act No. 269, Section 2.B, provides as follows:

"B. This SECTION [amending (B)] first applies to property tax years beginning after 2015."

2017 Act No. 40, Sections 8.L, 8.M, provide as follows:

"L. (1) Notwithstanding any provision to the contrary within this SECTION, a person who registers a vehicle for use in this State pursuant to Article 23, Chapter 37, Title 12, as amended by this act, must register his vehicle during calendar year 2019 and is required to pay the road fees calculated based on the fair market value of the vehicle as specified in Sections 12-37-2820 and 12-37-2850 at the time the vehicle's registration fees are paid.

"(2) Notwithstanding the provisions in Section 12-37-2865(B) and (C), as contained in this SECTION, to the contrary, during calendar year 2019, the first four hundred thousand dollars of fee revenue collected pursuant to Section 12-37-2865 must be retained by the Department of Motor Vehicles to defray programming costs.

"(3) The initial millage required by Section 12-37-2850 must be calculated on or before June 1, 2018.

"M. This SECTION takes effect January 1, 2019, except that the Department of Revenue, in consultation with the Revenue and Fiscal Affairs Office, shall calculate the millage to be used to calculate the road use fee provided in Section 12-37-2850 by July 1, 2018."

Effect of Amendment

2016 Act No. 269, Section 2.A, in (B), added the last two sentences, relating to alternative fuel.

2017 Act No. 40, Section 8.A, in (A), substituted "Department of Motor Vehicles" for "Department of Revenue", "large commercial motor vehicles and buses of motor carriers registered for use in this State under the International Registration Plan or otherwise pursuant to Section 56-3-190" for "motor vehicles of motor carriers", and "motor carrier's large commercial motor vehicle or bus" for "motor vehicle".