Office of Planning, Environment, & Realty (HEP)

# Presentations of Uniform Act Final Rule Implementation

## Let's See How It Works

Please refer to example entitled:

Working with Tangible Property Loss

Notes:

### Explanation/Example

SUBPART D Reference § 24.301(g)(14)

Working with Tangible Property Loss

The Maxtop Company has a large drill press that is personal property. Compute the eligible moving cost under each of the following scenarios. The press is worth about \$2,500 installed in place, and has about a \$1,500 auction value.

If Maxtop chooses to move the drill press: Cost to haul \$200; cost to take-down (including water and electrical disconnects) \$180; set-up with all utilities and floor mounting \$250. The drill press will also require an enhanced personnel safety barrier (code required) at the new location. This modification will add another \$400 to the set-up cost. Allowable moving cost is \$1,030.

1. Assume Maxtop has modified its operation and no longer has a need for the drill press. They will not move it and want to apply for the Tangible Property Loss payment. They have arranged to sell the machine for \$400. Allowable moving cost: \$__________

This is also the lesser of two calculated numbers:

1. The in-place value less sale, \$2,500 - \$400 = \$2,100

2. The moving cost (since the item is in use and the business is continuing, it is full move cost, but without code modifications) \$630.

So the correct answer is \$630.

2. Maxtop has another similar drill press in storage that is not currently functional, and they have decided not to move it. They want to claim a Tangible Property Loss payment for this drill press. Allowable moving cost: \$_____________

This is also the lesser of two calculated numbers:

1. The in-place value as is, \$1,500

2. The moving cost without reconnect (it is in storage, not connected to utilities), \$200 (hauling)

So the correct answer is \$200.

This is the same payment available to Maxtop if they would terminate their business and use the Direct Loss payment to receive compensation for the equipment. A fifty mile move would be assumed in that case.

Updated: 04/02/2013
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