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Show State Passes Average Inventory Inven-tory Law The 1937 session of the legislature passed the average inventory law, which becomes effective with the valuation of merchandise for assessment assess-ment in 1938. The average inventory law is a new law passed toy the 1937 session of the Utah legislature, and has reference to the assessment of merchandise mer-chandise inventories for property tax purposes. The objectives of the law are to equalize the assessment of property. In brief the law provides that the assessed value of merchandise merchan-dise be based upon the average monthly inventory for the preceding preced-ing year. In the past, the merchandise as- sessment has been based on the inventory in-ventory as of January 1, rather than the average for the preceding year. The law applies to all manufacturers, manufactur-ers, wholesalers, retailers, etc., who have personal property in the state which they are holding for sale. It becomes effective with the valuation val-uation of property for assessment in 1938. The returns should be field with the county assessor. Forms for making the returns will be furnished fur-nished by the county assessor. In making the returns a full 100 per cent value should be used. The equalized value for essessment will be computed by the county assessor. The merchandise inventory on hand at the end of each month during the year enter into the computation of the "Average Inventory." The average inventory is to be computed as follows: If physical inventories in-ventories have been taken on a monthly basis, simply add the 12 monthly inventories and divi.i.e by 12. (If a business has been operated oper-ated for less than a full year, compute com-pute the average inventory on the basis of the number of months the business has been operated.) If inventories in-ventories have been taken only on a quarterly, semi-annual or annual basis, the monthly inventory will need to be computed. A simolrt method of computing the monthly inventory is outlined onthe '.'Merchants '.'Mer-chants Statement of Personal Property." Prop-erty." Detailed instructions on the use of this form will be furnished upon request by the county assessors. o |
