California BOE Releases Lien Date 2022 Vessel Valuation Factors

VESSEL VALUATION FACTORS FOR LIEN DATE 2022

January 19, 2022

TO COUNTY ASSESSORS:

The attached vessel valuation factors and examples are for lien date 2022. These valuation factors may be applied to historic costs of vessels purchased during the 2021 calendar year, as appropriate, and to the 2021 lien date values for vessels that were previously determined by application of the State Board of Equalization (BOE) valuation factors.

Current data indicates that the average retail sale prices for powerboats, sailboats, and personal watercraft (jet skis) have all experienced a large appreciation in value as compared to last year. This may be largely due to the COVID-19 pandemic, where the popularity of outdoor boating activities has increased substantially and a decrease in production has caused the demand for vessels to exceed the supply.

While this large appreciation in value should not affect annual valuation factors for vessels that are already on the roll, it is important to note that when using first year valuation factors for newly enrolled vessels, the Assessor must take into consideration when the vessel was purchased during calendar year 2021. For example, if the vessel was purchased earlier in the year, then it may be appropriate to use the first year valuation factor when determining the value for the 2022 lien date, as the factor represents a full year of appreciation. However, if the vessel was purchased later in the year, using the first year valuation factor to determine the value for lien date 2022 may not be appropriate and may result in an overassessment.

The 2022 lien date valuation factor table includes categories for:

Based on data provided by County Assessors, the powerboat valuation factors were derived using the following types/makes of vessels:

The valuation factors are intended as a guide in the mass appraisal of vessels when determining value for property taxation purposes. However, relevant data pertinent to the assessment of specific property should always be reviewed and considered. We trust that the information presented will prove useful and promote uniformity in assessments.

As this is an annual study, your input and assistance are welcomed, so that we may provide you with the most representative and useful information possible.

If you have any questions regarding the vessel factors, please contact Mr. Dau Chieng at: dau.chieng@boe.ca.gov or 1-916-274-3435.

Sincerely,

David Yeung
Deputy Director
Property Tax Department

Attachment

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VESSEL VALUATION FACTORS
January 1, 2022 Lien Date

The valuation factors below may be applied to the prior year's assessed values or to reported costs of vessels purchased during the 2021 calendar year, as appropriate.

(See examples on following page.)

POWERBOATS* — Inboard/Outboard/Stern Drive Under 30 Feet
First year valuation factor for new models purchased in 2021		1.22
Valuation factor for used models purchased in 2021		1.24
Annual valuation factor for all vessels currently on the roll		1.24
POWERBOATS — Inboard/Outboard/Stern Drive 30 Feet and Over
First year valuation factor for new models purchased in 2021		1.21
Valuation factor for used models purchased in 2021		1.23
Annual valuation factor for all vessels currently on the roll		1.23
*Bass	Sports Fisher
Center Console	Ski
Cruiser	Sports Runabout
Day Cruiser	Trawler
Fish and Ski	Utility Cruiser
Racer	Utility Runabout
Runabout	Utility
Sports Cruiser	Yacht
SAILBOATS
First year valuation factor for new models purchased in 2021		1.20
Valuation factor for used models purchased in 2021		1.21
Annual valuation factor for all vessels currently on the roll		1.21
PERSONAL WATERCRAFT (Jet Ski)
First year valuation factor for new models purchased in 2021		1.22
Valuation factor for used models purchased in 2021		1.25
Annual valuation factor for all vessels currently on the roll		1.25

Example 1

A 36-foot powerboat was purchased used in 2009 for $200,000. Trending the original historical purchase price and subsequent enrolled values by the valuation factors provided by the BOE for each year results in the following 2022 lien date value:

Example 2

A 28-foot powerboat was purchased new for $300,000 during the 2021 calendar year. Trending the purchase price of this vessel by the appropriate BOE valuation factor results in the calculation of the following 2022 lien date value: