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Discount Allowed for Economic Depreciation
Publication year - 1995
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1995.tb06403.x
Subject(s) - depreciation (economics) , earnings , economics , consumption of fixed capital , earnings before interest, taxes, depreciation, and amortization , value (mathematics) , property (philosophy) , property market , property value , market value , monetary economics , microeconomics , accounting , finance , real estate , mathematics , philosophy , epistemology , financial capital , capital formation , profit (economics) , statistics
Southern New Hampshire Water Company (SNHWC) sued the town of Hudson for an abatement of real property taxes assessed on SNHWC's property. At trial, SNHWC advocated a fair market value based on a calculation of the property's capitalized earnings. The town argued a considerably higher figure based on the reproduction cost approach to value. The town's calculation contained deductions for physical and functional, but not economic, depreciation. The trial court adopted the town's calculations but subtracted 10 percent for economic depreciation.