Property Taxes and Insurance

Annual property taxes are assessed by the local municipality as a percentage of the total depreciable capital, CjDc with a range from 1% for plants located in sparsely populated areas to 3% when located in heavily populated areas. Property taxes are not related to federal income taxes levied by the Internal Revenue Service and considered below. Liability insurance costs depend on the pressure and temperature levels of plant operation and on whether flammable, explosive, or toxic chemicals are involved. The annual cost of insurance is also esti- 

2 Annual Sales Revenues, Production Costs, and the Cost Sheet 577 

For use with approximate profitability measures, as applied here to the preliminary calculation of the annual manufacturing cost, depreciation, D, is estimated as a constant percentage of the total depreciable capital, This type of depreciation is referred to as 

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The property taxes and insurance are independent of how much product is produced. 

Operating costs include the costs of raw materials, direct operating labor, labor supervision, maintenance, plant supplies, utilities (steam, gas, electricity, fuel), property taxes, and insurance. Sometimes certain operating cost components are directly expressed as a fraction of the capital investment cost. Table B.3 is a brief checklist... 

The costs of property taxes and insurance applicable to proved properties and wells and related equipment and facilities ... 

Property taxes and insurance estimated at 2-1/2% of onplot plus offplot per year. 

Property taxes and insurance—typically 1 to 2% of ISBL fixed capital. 

The entries under Fixed Costs appear in six subsections Operations, Maintenance, Operating Overhead, Property Taxes and Insurance, Straight-line Depreciation, and Depletion Allowance. When left-clicking within each subsection, the appropriate dialog box appears, in which the default entries can be replaced when desired. Note that the default entries are those in Table 17.1. However, under Operations, entries must be made for (1) the number of operators per shift, (2) technical... 

Property Taxes and Insurance 2.00% of Total Depreciable Capital... 

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