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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />DEPRECIATION <br />Find the depreciation schedule in the Appendix for the appropriate Improvement Type. For those with improvement types <br />indicating residential and /or non income use of average, below average and above average quality, locate the proper exterior <br />wall type and then record the annual and initial percent depreciation rates. <br />Depreciation is calculated for each separate stage of the life cycle of an improvement. The tables in the appendix have five <br />ranges of age as columns. These ages are determined differently for each improvement type and may be different for each <br />year. <br />RESIDENTIAL AND /OR NON INCOME PROPERTY depreciation is also determined in the table by the row on which the <br />exterior wall is contained. To determine the total depreciation, you must calculate each age range independently. <br />For example, (assume we are using the following table): <br />DEPRECIATION SCHEDULES <br />EXTERIOR <br />WALL TYPE <br />INCREMENTAL AGING PERIODS <br />From - To <br />1 -2 <br />3 -11 <br />12 -19 <br />20 -34 <br />35 & over <br />1 - 4 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />5 - 7 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />8 - 11 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />12 - 15 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />16 - 20 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />21 - 22 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />23 - 28 <br />2.00 <br />1.00 <br />1.00 <br />1.00 <br />1.00 <br />If our improvement were 24 years old, determined by subtracting the EFFECTIVE AGE from the EFFECTIVE <br />REAPPRAISAL YEAR, we find the total depreciation by calculating each aging period separately and summing the <br />depreciation. Using an exterior wall type 17, (CB Stucco), we calculate the total depreciation as follows: <br />FIRST 2 YEARS = 4.00 2 X 1.00 <br />NEXT 22 YEARS = 22.00 22 X 1.00 <br />24 YEARS = 26% TOTAL DEPRECIATION <br />The maximum normal depreciation normally allowed is 70% or a residual of 30% good. As we have not exceeded this figure, <br />the 26% depreciation from normal physical deterioration is not over ridden. <br />FOR RESIDENTIAL OR INCOME PROPERTIES WITH A MINIMUM OR EXCELLENT QUALITY FACTOR another <br />table has been constructed which bases the amount of depreciation for a particular property on its useful life, meaning that age <br />at which a property ceases to be functional. For example, IMPROVEMENT USE CODE 23 has a typical life expectancy of 25 <br />years. Therefore when the building is 25 years old, it has been depreciated down to the lowest point of 30% condition or 70% <br />depreciation. <br />Cabarrus County - 2012 Revaluation CALCULATION OF 7-7 <br />SYSTEM VALUES 8/9/11 <br />Attachment number 8 <br />G -6 Page 270 <br />