Machinery and equipment should be valued at which level when installed and operating at highest and best use?

Machinery and equipment are best valued at the consumer level when they are installed and operating at their highest and best use. This approach reflects the market value of the property as it is utilized in a specific operational context, emphasizing the value to the end user or the business that is actively using it.

Valuing at the consumer level means considering what a business would be willing to pay for functioning equipment in a competitive market. This method thus includes the costs related to installation and operational capability, which are significant when determining true economic value.

The retail level focuses on the value of machinery and equipment as they might be sold directly to consumers, which may not accurately convey the value for business use since businesses often face different considerations, such as bulk purchasing and operational integration. The manufacturer level reflects the cost of production or wholesale price and does not capture the machinery's full market potential when operational. The wholesale level, similarly, pertains to bulk transactions and might not convey the accurate valuation when considering the installed and operational scenario specific to a particular business's needs.