18.1.3.060 Valuation.

(a) Utilities. Valuation of a possessory interest shall be determined in accordance with the appropriate methods set out in the New Mexico Property Tax Code, Sections 7-36-1, et seq., NMSA (1978), as amended, and regulations pursuant thereto.

(b) All Other Business Property. Valuation of a possessory interest shall be determined in accordance with a cost method of valuation. The cost method of valuation is a method for valuing improvements by determining the cost of reproduction or replacement of the property with property which is as good as, but not better than, the improvement being valued. The reproduction of replacement may be duplicate or equally good substitute property. If the improvement being valued is not in a new condition, the value of a new reproduction or replacement should, as circumstances justify, be depreciated to determine the value of the used items. Trending may be used to implement the cost method of valuation.