The “Special Method” is outlined in the Property Tax Code, Section 7-36-33 NMSA 1978. The method is a cost approach. The statute calls for using the “tangible property cost or ” the “actual cost of acquisition or construction of property including additions, retirements, adjustments and transfers.” Depreciation must be considered. Calculate depreciation using the straight-line method to compute the depreciation allowance over the useful life of the item of property. The useful life is the class life defined in Section 167 of the United States Internal Revenue Code of 1954. Search US Tax Code.