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Page 1 of 2 Pages <br />EXPLANATION OF THE <br />ACTUAL DIRECT LOSSES OF TANGIBLE PERSONAL PROPERTY <br />BENEFIT <br />Actual direct losses of tangible personal property are allowed when persons displaced <br />from their place of business, farm, or non-profit organization are entitled to relocate <br />such prope~ty in whole or in part but elect not to do so. Payment for actual direct <br />losses may only be made after a bona fide effort has been made by the owners to <br />sell the item(s) involved. When the item(s) is sold, the payment will be determined in <br />accordance with (1) or (2) below. The sale prices, if any, and the actual reasonable <br />costs of advertisin~ and conducting the sale must be supported by a copy of the bills of <br />sale or similar documents and by copies of any advertisements, offers to sell, auction <br />records and other data suppo~ting the bona fide natu~e of the sale. <br />(1) If the business is to be reestablished and an item of personal property which is <br />used in connection with the business is not moved but promptly replaced with a <br />comparable item at the new location, the reimbursement shatl be the lesser of: <br />a. the replacement cost minus the net proceeds of the sale, or trade-in <br />allowance; or <br />b. the estimated cost of moving, not to exceed 50 miles. <br />(2) If the business is being discontinued or the item is not to be replaced in the <br />reestablished business, the payment will be the lesser of: <br />a. the difference between the fair market value of the personal property for <br />continued use at its location, less the net proceeds of its sale; or <br />b. the estimated cost of moving the item to the replacement site but not to <br />exceed 50 miles. <br />(3) If a bona fide sale is not effected under (1) or (2) above because no one has <br />made an offer for the p~operty, the maximum payment shall be the lesser of the <br />State's estimate of the fair market value in place or the sum of the reasonable <br />expenses of the sale and the cost of moving the item. The claimant should <br />arrange to have the personal property removed from the premises at no cost. <br />Hazardous materials shall not be abandoned. <br />When personal property is abandoned with no effo~t being made by the owner to <br />dispose of it by sale or rembval at no cost, as specified in the above paragraphs, the <br />owner will not be entitled to moving expenses or losses, for the items involved. <br />Form 206 (11/95) LOSS OF TANGIBLE PERSONAL PROPERTY <br />