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Wireless/Cell Towers Centrally Assessed by NCDOR

Wireless/Cell Towers Centrally Assessed by NCDOR. Bill Wilkes, NCDOR Greg Wood, NCDOR Michael Connolly, NCDOR. NC Map of Cell Tower Cites. (Some Boxes Contain Multiple Towers). Cell Towers. Can you find the Cell Tower?. HB 1050. Law Changes. HB 1050.

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Wireless/Cell Towers Centrally Assessed by NCDOR

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  1. Wireless/Cell Towers Centrally Assessed by NCDOR Bill Wilkes, NCDOR Greg Wood, NCDOR Michael Connolly, NCDOR

  2. NC Map of Cell Tower Cites (Some Boxes Contain Multiple Towers)

  3. Cell Towers • Can you find the Cell Tower?

  4. HB 1050 Law Changes

  5. HB 1050 • House Bill 1050 changed how Wireless Companies and Cell Tower companies will be appraised in North Carolina starting in 2015. • No longer will they be locally assessed, but instead they will be centrally assessed, at the State Level by the North Carolina Department of Revenue.

  6. NCGS 105-333(9a) • 105-333(9a) Mobile Telecommunication Company – A company providing a mobile telecommunications service as defined in GS 105-164.3. • (Language in RED is newly added for 2015)

  7. NCGS 105-333(14) • Public service company. – A railroad company, a pipeline company, a gas company, an electric power company, an electric membership corporation, a telephone company, a bus line company, an airline company, or a motor freight carrier company. company, a mobile telecommunications company, or a tower aggregator company. The term also includes any company performing a public service that is regulated by the United States Department of Energy, the United States Department of Transportation, the Federal Communications Commission, the Federal Aviation Agency, or the North Carolina Utilities Commission, except that the term does not include a water company, a cable television company, or a radio or television broadcasting company. • Removes the following language from company types not included: providers of mobile telecommunications service as defined in G.S. 105-164.3 • (Language in RED is newly added for 2015)

  8. NCGS 105-333(17a) • (17a) Tangible personal property of a mobile telecommunications company. – All tangible personal property located in this State that is owned by a mobile telecommunications company or is leased to and capitalized on the books of a mobile telecommunications company in accordance with generally accepted accounting principles, including cellular towers, cellular equipment shelters, and site improvements at cellular tower locations. The term does not include FCC licenses or authorizations or other intangible personal property. • (Language in RED is newly added for 2015)

  9. NCGS 105-333(17b) • (17b) Tangible personal property of a tower aggregator company. – All tangible personal property located in this State that is owned by a tower aggregator company or is leased to and capitalized on the books of a tower aggregator company in accordance with generally accepted accounting principles, including cellular towers, cellular equipment shelters, and site improvements at cellular tower locations. • (Language in RED is newly added for 2015)

  10. NCGS 105-333(18) • (18) Telegraph company. – A company engaged in the business of transmitting telegraph messages to, from, within, or through the State. • This statute has been removed.

  11. NCGS 105-333(19) • (19) Telephone company. – A company engaged in the business of transmitting telephone messages and conversations to, from, within, or through this State, except that the term does not include a mobile telecommunications company. • (Language in RED is newly added for 2015)

  12. NCGS 105-333(22) • (22) Tower aggregator company. – A company that provides tower infrastructure for broadcasting and mobile telephony and that leases space on the tower infrastructure to mobile telecommunications companies." • (Language in RED is newly added for 2015)

  13. NCGS 105-335(c)(4) & (5) • 105-335 (c)(4) Property of Mobile Telecommunications Company. – Each year, as of January 1, the Department shall appraise at its true value the tangible personal property of a mobile telecommunications company as provided in G.S. 105-336(c) and G.S. 105-336(d). • 105-335 (c)(5) Property of Tower Aggregator Company. – Each year, as of January 1, the Department shall appraise at its true value the tangible personal property of a tower aggregator company as provided in G.S. 105-336(d)." • (Language in RED is newly added for 2015)

  14. NCGS 105-336(c) • (c) Appraising Tangible Personal Property of Mobile Telecommunications Companies. – In determining the true value of the tangible personal property of a mobile telecommunications company (excluding towers), the Department of Revenue shall consider the original cost of the property as reflected in the books of account maintained by the company in accordance with generally accepted accounting principles. The Department of Revenue may also consider what it would cost to replace or reproduce the property. In either case, an appropriate deduction shall be made for all forms of depreciation, including physical deterioration, functional obsolescence, and external or economic obsolescence. • (Language in RED is newly added for 2015)

  15. NCGS 105-336(d) • (d) Appraising Tangible Personal Property of Tower Aggregator Companies and Certain Property of Mobile Telecommunications Companies. – In determining the true value of the tangible personal property of a tower aggregator company (excluding towers), the Department of Revenue shall consider the original cost of the property as reflected in the books of account maintained by the company in accordance with generally accepted accounting principles and may also consider what it would cost to replace or reproduce the property. In determining the true value of a tower of a tower aggregator company or a mobile telecommunications company, the Department of Revenue shall consider what it would cost to replace or reproduce the tower, based on tower height and type, as determined by a nationally recognized cost service commonly utilized by appraisers. For all property, an appropriate deduction shall be made for all forms of depreciation, including physical deterioration, functional obsolescence, and external or economic obsolescence." • (Language in RED is newly added for 2015)

  16. Tower Companies

  17. Cell Tower Sites • You (the County) will still assess & appraise the Cell Tower Sites (land only). • NCDOR will assess the Tower, Fencing, Shelters and any other improvements. • All Tower & Equipment will be assigned to the location of the tower.

  18. Cell Tower Values • Replacement Cost New will be determined by utilizing Marshall & Swift ranges of Cost Per Foot by Tower Type. • Depreciation will be determined by year of construction trended by B25 schedule from the NC Cost Index & Depreciation Schedules. • Shelters / Fencing will be determined by national average by size.

  19. Cell Tower Values • Remember – Statutes limit us to Cost Approach. Income stream cannot be used. • Idle Towers – Don’t foresee this being an issue. • CWIP – Will be 100% allocated to the location of the Tower.

  20. Cell Towers • We are expecting thousands of towers to be filed with our office.

  21. Wireless Companies

  22. Wireless Companies • You (the County) will still assess & appraise all REAL PROPERTY owned or leased by the Wireless Companies. • NCDOR will assess all tangible personal property owned or leased by the Wireless Company.

  23. Wireless Company Values • NCDOR will assess the Wireless Companies utilizing the trend schedules for Cellular Equipment per the NC Cost Index & Depreciation Schedules. • In theory – If we appraised these companies, our 2014 value should match your 2014 value. • Remember the statutes – states cost approach only. We are not allowed to consider the Income Approach!

  24. Wireless Company Values • Towers owned or leased by Wireless Companies will be treated the same as Towers owned or leased by Tower Companies.

  25. When does all of this start? • HB1050 takes affect on January 1, 2015. • Any previous audits are still valid for that period.

  26. Hurdles / Concerns • Our number one concern is making sure no counties/districts are harmed (loss in value) due to the law change. • Law makers made it clear to the communication companies that they did not want winners and losers with this new law.

  27. Hurdles / Concerns • Companies don’t have Municipalities / Districts associated with their property. • In years past, they file a return by address with their equipment – and the county has assigned the correct taxing district. • NCDOR does not have this information. We are looking into possibly using VTS data for this.

  28. Hurdles / Concerns • Name Changes – • The names you were use to getting, will more than likely change.

  29. Same Company / Different Name?? • SBA has 94 different listings in 35 Counties • All of these would probably be under the same name.

  30. Hurdles / Concerns • Should you “The County” send out Business Personal Property listings for 2015? • If you can identify actual Wireless and Tower Companies, go ahead and pull them out from your batch mailing. If you can’t go ahead and send and let the companies respond that they are now state assessed.

  31. Cell Towers • Can you find the Cell Tower (part 2)?

  32. Questions?

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