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018 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Age d <br /> ACTION AGENDA ITEM ABSTRACT Item No. <br /> � <br /> Meeting Date: MARCH 15, 1988 <br /> SUBJECT: DAIRY CATTLE VALUATION <br /> DEPARTMENT: COUNTY MANAGER <br /> TAX SUPERVISOR PUBLIC HEARING: Yes X No <br /> ATTACHMENT(S) : INFORMATION CONTACT: MANAGER'S <br /> OFFICE, X501, KERMIT LLOYD, X424 <br /> TELEPHONE NUMBER: <br /> Hillsborough - 732-8181 <br /> Chapel Hill - 968-4501 <br /> Mebane - 227-2031 <br /> Durham - 688-7331 <br /> PURPOSE: To receive dairy cattle valuation report. <br /> BACKGROUND: With regard to the appeal from dairy farmers on the pricing of <br /> producing dairy cows at $900/each, another alternative is <br /> being pursued by Tax Assessor. <br /> According to North Carolina State University, the average age <br /> of the first calving of a dairy cow is 26 months, and the <br /> average age that a dairy cow leaves the herd is 54 months, <br /> which is an average of 2 1/2 lactations per cow. It was also <br /> found that approximately 1/3 of the cows held for replacement <br /> are never kept in the herd, either for breeding, production or <br /> health problems. <br /> This means that 40% of a dairy herd is sold each year for <br /> beef. Therefore, it is practical to consider only 60% of the <br /> dairy cows taxable when we look at the whole year rather than <br /> January 1 only. <br /> If this were done, the $900 value on a producing dairy cow <br /> could be reduced by 40% to $540, which also corresponds very <br /> closely with the salvage value of a dairy cow when sold for <br /> beef. <br /> With indication of Board consensus, the Tax Assessment Office <br /> will lower the price of dairy cows from $900 to $540, and the <br /> price of two year olds (not-yet-producing) from $450 to $300 <br /> with the effective date of January 1, 1988. <br /> RECOMMENDATION(S) : <br /> County Manager Recommendation: i concur with the proposed <br /> action by the Tax Assessor and recommend Board consensus with <br /> this report. <br />