reglab/statecodes huggingface dataset:
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 2 - Filing Requirements › Section 2-5 - Full disclosure

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7
Sec. 5.
(a) The
				taxpayer shall, in completing the return, make a full and complete disclosure
				of such information as may be required by the department, relating to the
				value, nature, and location of all the personal property of which the taxpayer
				was the owner or which the taxpayer held, possessed, or controlled, in any
				capacity whatsoever, on the assessment date of the current year.
(b) The owner of any personal property
				subject to assessment and taxation on the assessment date has the
				responsibility for reporting such property for assessment and taxation on their
				personal property tax return on Form 102 or Form 103 (section 9 of this rule),
				in the taxing district where the property had a tax situs as of the assessment
				date. In addition to the above reporting requirement, the owner of property,
				under circumstances in which possession is transferred to another person, but
				ownership is retained, shall be required to furnish in the taxing district
				where the property is located a complete listing on Form 103-O (section 9 of
				this rule), of such property showing the name and address of the person or
				persons in possession, model, description, location, quantities, date of
				installation, and value per this article reported for assessment and taxation
				in order to provide a means of verification and cross reference by the
				assessing official or officials that all property is being properly reported
				for assessment and taxation. (See special instructions in 50 IAC 4.2-8 for
				reporting leased personal property.)
(c) The person holding, possessing, or
				controlling any tangible property in any capacity, which personal property is
				subject to taxation under this rule, is required to file and attach with the
				return a complete listing on Form 103-N (section 9 of this rule), of all not
				owned property. The listing is to be filed in the taxing district where the
				property is located and must include the name and address of the owner, model,
				description, location, quantities on hand, date of installation, value (if
				known) per this article and any other information requested on the appropriate
				form. (See special instructions in 50 IAC 4.2-8 for reporting leased personal
				property.)
(d) A Form 103-N
				(section 9 of this rule), is required to be filed by the possessor even if the
				owner is liable for the taxes under a contract to assure that the assessing
				official has the necessary information to correctly assess the property in
				question.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 2 - Filing Requirements › Section 2-5.1 - Amended returns

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-3-7;
				  IC
				  6-1.1-3-7.5
Sec. 5.1.
(a) A
				taxpayer may file an amended personal property tax return after the later of
				the following:
(1) If no extension was granted
				under IC
				6-1.1-3-7(b),
				an amended return must be filed within twelve (12) months of the due date of
				the original timely filed return.
(2) If an extension was granted under IC
				6-1.1-3-7(b),
				an amended return must be filed within twelve (12) months of the extended
				filing date.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 2 - Filing Requirements › Section 2-8 - Short form returns

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7
Sec. 8.
When the assessed value of personal property required to be
				  reported in a township is less than one hundred fifty thousand dollars
				  ($150,000), the taxpayer may elect to file Form 103-Short Form (section 9 of
				  this rule) if:
(1) the business is not
				a manufacturer or processor;
(2) no
				exemptions or deductions are claimed that affect the business personal property
				assessment; and
(3) no special
				valuation adjustments, such as equipment not placed in service, special
				tooling, permanently retired equipment, interstate carrier mileage allocation,
				or abnormal obsolescence, are claimed in determining the value of the business
				personal property.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 2 - Filing Requirements › Section 2-9 - Authorized forms

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-3; IC
				  6-1.1-10-10;
				  IC
				  6-1.1-10-44;
				  IC 6-1.1-12.1; IC 6-1.1-12.7; IC
				  6-1.1-37-3;
				  IC 6-1.1-45
Sec. 9.
(a) The
				department is required by statute to adopt tax return forms and schedules for
				personal property assessment purposes.
(b) The following are the authorized return
				forms provided for personal property assessment purposes pursuant to this
				article:
No.
Forms
102
Farmer's Tangible Personal Property Assessment
						  Return
103-SR
Single Return - Business Tangible Personal Property
103-Short
Business Tangible Personal Property Return (Short
						  Form)
103-Long
Business Tangible Personal Property Return (Long
						  Form)
103-CTP
Schedule of Deduction from Assessed Valuation Personal
						  Property in Certified Technology Park
103-CTP/EL
Equipment List for New Additions to CTP Deduction
						  Personal Property in Certified Technology Park
103-EL
Equipment List for New Additions to ERA Deductions
						  Personal Property in Economic Revitalization Area
103-I
Return for Interstate Carriers
103-IT
Claim for Exemption of Enterprise Information Technology
						  Equipment
103-N
Information Return of Not Owned Personal Property
103-O
Information Return of Owned Personal Property
103-P
Claim for Exemption of Air or Water Pollution Control
						  Facilities
103-P5
Business Tangible Personal Property Depreciable Assets
						  in Pool 5
103-SPD
Supporting Schedule for Deduction of Assessed Valuation
						  on a Personal Property Solar Power Device
103-T
Return of Special Tools
104
Business Tangible Personal Property Return
104-SR
Single Return Business Tangible Personal Property
106
Schedule of Adjustments to Business Tangible Personal
						  Property Return
(c)
				In lieu of using the actual return form prescribed in subsection (b), a
				taxpayer may use a computer or machine prepared substitute tax return form or
				schedule if that substitute:
(1) contains all
				of the information as set forth in the prescribed form; and
(2) properly identifies the form or schedule
				being substituted.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 3.1 - Review Process and Appeal Procedures › Section 3.1-5 - Change of assessed value; notice

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-3-20;
				  IC 6-1.1-9; IC
				  6-1.1-16-1
Sec. 5.
(a) A
				township assessor, if any, must make a change in the assessed value and give
				notice of the change on or before the later of:
(1) September 15 of the year for which the
				assessment is made; or
(2) four (4)
				months from the date the personal property return is filed.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 3.1 - Review Process and Appeal Procedures › Section 3.1-6 - Examination of property

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7.5; IC 6-1.1-15
Sec. 6.
Upon receiving a notification of estimated value from the
				  township assessor, if any, or the county assessor, the taxpayer may elect to
				  file a personal property return within thirty (30) days from the date of the
				  written notice of assessment by the assessor subject to the penalties imposed
				  under
				  50 IAC
				  4.2-2-10. This return cannot be amended by the
				  taxpayer under IC
				  6-1.1-3-7.5.
				  The notice shall instruct the taxpayer on the procedures necessary to obtain a
				  review before the county property tax assessment board of appeals.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 3.1 - Review Process and Appeal Procedures › Section 3.1-7 - Direct review of assessment by county property tax assessment board of appeals

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-13-1;
				  IC
				  6-1.1-13-3;
				  IC 6-1.1-16
Sec. 7.
(a) The
				county property tax assessment board of appeals or the county assessor may
				review, at its own discretion, any assessment of any taxpayer within the county
				as described in IC
				6-1.1-13-3.
(b) The county property tax assessment board
				of appeals may contract with a private vendor to assist in the
				review.
(c) The county property tax
				assessment board of appeals shall give the proper notice as described in IC
				6-1.1-13-1.
(d) After the property tax assessment board
				of appeals has completed the review of the taxpayer's assessment, it shall
				notify the taxpayer by mail of the assessment on Form 115.
(e) When conducting a review of a taxpayer's
				personal property tax return, a county assessor or a county property tax
				assessment board of appeals must make a change in the assessed value, including
				the final determination by the board of an assessment changed by a township
				assessor, if any, or the county assessor, and give the notice of the change on
				or before the later of:
(1) October 30 of the
				year for which the assessment is made; or
(2) five (5) months from the date the
				personal property return is filed.
If the taxpayer fails to file a return, a notice of
				  assessment must be given within the ten (10) year period after the date on
				  which the return should have been filed. If a fraudulent return has been filed,
				  there is no limitation of time within which it may act. If the taxpayer fails
				  to file a personal property return that substantially complies with the
				  provisions of this article, the assessment may be increased if notice is given
				  within three (3) years after the date the return is filed. These time
				  limitations apply to the review function of the property tax assessment board
				  of appeals, but not the appeal function under IC 6-1.1-15.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 3.1 - Review Process and Appeal Procedures › Section 3.1-8 - Direct review by the department

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-14-10
Sec. 8.
(a) The
				department, on its own initiative, may conduct an audit to review a taxpayer's
				personal property assessment under IC
				6-1.1-14-10.
(b) A notice of audit of assessment will be
				mailed to the taxpayer advising the taxpayer at least ten (10) days in advance
				of the date, time, and place of the scheduled audit.
(c) The taxpayer is required to make
				available to the auditor of the department sufficient books, records, federal
				and state income tax returns, and related data to determine the assessment of
				the property in question. If the books, records, tax returns, and related data
				are not made available, a subpoena or a subpoena duces tecum will be issued to
				obtain this information unless in the judgment of the department other action
				would be more appropriate.
(d) Upon
				the completion of the audit, the auditor from the department shall make his or
				her findings and proposed assessed valuation known to the taxpayer.
(e) Upon the completion of the audit, the
				auditor from the department shall make a report to the department that includes
				recommendations and proposed assessed valuation.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 3.1 - Review Process and Appeal Procedures › Section 3.1-9 - Final determination of the department

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-14; IC
				  6-1.1-16-1
Sec. 9.
(a) The
				report required by section 8(e) of this rule, proposed assessment, and related
				information shall be considered by the department in determining the assessment
				of the taxpayer.
(b) If the
				taxpayer does not agree with the assessment recommended by the auditor, the
				taxpayer may petition the department to consider additional information,
				provided that the petition is made before the determination of the final
				assessment.
(c) If the taxpayer
				wants a hearing, the taxpayer must submit a letter requesting an administrative
				hearing to the department. Accompanying the letter should be a written brief or
				statement, along with any evidence, supporting the taxpayer's request for a
				hearing. The brief or statement should include a concise statement of the
				question in dispute and a summary of laws, regulations, and facts in support of
				such question.
(d) The department
				may hold an administrative hearing or appoint personnel to hold an
				administrative hearing at its discretion provided that the taxpayer has
				properly requested a hearing and the department determines that the taxpayer's
				facts and circumstances warrant an administrative hearing. The discussion at
				the hearing will be limited to the issues presented in the request for hearing
				unless, at the discretion of the department, it determines other issues should
				be discussed.
(e) If a hearing is
				held by the department, the department shall issue written findings of fact and
				conclusions of law related to the administrative hearing.
(f) A written notice of the final assessment
				will be given to the taxpayer, township assessor (if one exists), county
				assessor, and county auditor when an audit was conducted by the department on
				its own initiative.
(g) Except as
				provided in subsection (h), the department must make any preliminary change in
				the assessed value and give notice of the change on or before the later of:
(1) October 1 of the year immediately
				following the year for which the assessment is made; or
(2) sixteen (16) months from the date the
				personal property tax return is filed if the return is filed after the filing
				date for the personal property tax return.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-1 - "Depreciable personal property" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-1-11
Sec. 1.
In general, "depreciable personal property", as used in this
				  article, is all tangible personal property that is used in a trade or business,
				  used for the production of income, or held as an investment that should be or
				  is subject to depreciation for federal income tax purposes, except to the
				  extent that property is treated otherwise in this article. In general, except
				  as otherwise provided in this article, personal property will be deemed to
				  become depreciable property when a depreciation deduction is allowable for
				  federal income tax purposes.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-2 - Book cost determinative

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 2.
(a) The cost
				of depreciable property, both real and personal, as recorded on the taxpayer's
				books and records, must be utilized in determining the value of the depreciable
				personal property subject to assessment.
(b) The cost of all depreciable property of a
				taxpayer shall be the total amount reflected on the books and records of the
				taxpayer as of the assessment date except as provided in section 3 of this
				rule. Per the provisions of this article and the Internal Revenue Code, the
				cost of depreciable personal property must include, but not be limited to,
				direct costs and an appropriate portion of indirect costs attributable to its
				production or acquisition and preparation for use. The cost of machinery,
				furniture, tools, computers (excluding application software), and other plant
				assets includes all costs necessary to place the asset in condition and in
				place, ready for use. These costs include, but are not limited to, the purchase
				price, transportation costs to the place of use, and installation costs,
				foundations and electrical wiring, interest incurred during construction and
				installation, and sales tax. If the asset is constructed by the company, the
				original cost must be made up of, but not limited to, the following costs:
(1) Direct and indirect labor costs and
				fringe benefits.
(2) Direct
				material costs.
(3)
				Designing.
(4)
				Supervision.
(5)
				Insurance.
(6) Depreciation of
				equipment used in construction.
(7)
				Claims for damage during construction not compensated for by
				insurance.
(8) Taxes and insurance
				during construction.
(9) Interest
				incurred during construction.
(10)
				Sales taxes.
(11) Other costs
				directly chargeable to construction.
No profit should be added to the actual costs since the
				  company cannot make a profit on itself. Any credits in the form of sales of
				  scrap materials, discounts received on purchases of materials, and return
				  premiums on surrender of insurance policies should be subtracted from the gross
				  costs of construction to determine the actual cost of the asset.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-3 - Fully depreciated, retired, or nominally valued property; computer equipment; report and valuation

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-1-11;
				  IC 6-1.1-3
Sec. 3.
(a)
				Depreciable personal property that has not been retired from use must be
				reported for personal property assessment purposes whether or not the cost of
				the property has been:
(1) removed
				from;
(2) recorded on; or
(3) recorded at a nominal value on; the
				taxpayer's books and records.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-4 - Adjustments to cost

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 4.
(a) The
				adjusted costs of the assessable depreciable personal property as computed in
				subsection (d) must be reported at the tax basis of such property as defined in
				the Internal Revenue Code unadjusted by Sections 167 (depreciation) and 179
				(expense deduction) of that Code or any credits (such as investment tax credit)
				that diminished the cost basis of the property. Therefore, if the tax basis of
				the taxpayer's assessable depreciable personal property is different than the
				cost per books of such property, except for the depreciable personal property
				defined and required to be reported by section 3 of this rule, an adjustment
				must be made to the cost per books of the assessable depreciable personal
				property reported on the Indiana property tax return.
(b) The adjustment from book to tax basis
				must be computed on Form 106 ( 50 IAC 4.2-2-9 ) and shown in the taxpayer's
				return on line 2 of Form 103 - Long Form ( 50 IAC 4.2-2-9 ), Schedule
				A.
(c) The adjustment is required
				to be made regardless of whether it is an increase or decrease of the cost per
				books.
(d) The adjusted cost of
				depreciable personal property is the resultant amount obtained by adjusting the
				cost per books, as defined in section 2 of this rule (cost per books), 50 IAC
				4.2-11.1-3 (air pollution control system), and 50 IAC 4.2-11.1-4 (industrial
				waste control facility).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-5 - Pools of property; determination of costs by acquisition year

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 5.
(a) The
				adjusted cost of depreciable personal property as computed in section 4 of this
				rule is required to be segregated for Indiana property tax purposes into four
				(4) separate pools. The depreciable life utilized for federal income tax
				purposes determines the pool to be utilized for Indiana property tax purposes.
				The pools to be utilized for Indiana property tax purposes are as follows:
(1) Pool No. 1: All assets that have a life
				of one (1) through four (4) years for federal income tax purposes.
(2) Pool No. 2: All assets that have a life
				of five (5) through eight (8) years for federal income tax purposes.
(3) Pool No. 3: All assets that have a life
				of nine (9) through twelve (12) years for federal income tax
				purposes.
(4) Pool No. 4: All
				assets that have a thirteen (13) years or longer life for federal income tax
				purposes.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-6 - Determination of the year of acquisition

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 6.
(a) After
				the allocation of adjusted cost of depreciable tangible personal property, as
				provided in section 5 of this rule, it will be necessary to determine the cost
				by year of acquisition for each pool. The number of years that are required to
				be segregated by year of acquisition will depend upon the particular
				pool.
(b) Each pool is required to
				be segregated as follows:
(1) Pool No. 1
				requires the cost to be determined by year of acquisition for the three (3)
				years immediately preceding the assessment date. The balance of the cost of the
				assets in this pool will be includable in the fourth category.
(2) Pool No. 2 requires the cost by year of
				acquisition be determined for the six (6) years preceding the assessment date.
				The balance of the cost would be includable in the seventh category.
(3) Pool No. 3 requires that cost by year of
				acquisition be determined for the ten (10) years preceding the assessment date.
				The balance of such account would be includable in the eleventh
				category.
(4) Pool No. 4 requires
				that the cost by year of acquisition be determined for the twelve (12) years
				preceding the assessment date with the balance of the cost of such pool
				includable in the thirteenth category.
For Indiana property tax purposes it will be presumed that
				  the disposal of depreciable personal property occurs on a first-in, first-out
				  basis unless the taxpayer establishes that such was not the case. Therefore,
				  absent evidence to the contrary, all disposals will be deemed to occur from the
				  remaining category in each pool.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-7 - True tax value determination; exception

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 7.
(a) The true
				tax value for Indiana property tax purposes is computed by multiplying the
				adjusted cost of each year's acquisitions in the respective pool by a
				percentage factor obtained in subsection (b). The percentage factors in the
				table automatically reflect all adjustments for Indiana property tax purposes,
				except abnormal obsolescence, as provided in section 8 of this rule.
(b) Table to compute true tax value. The
				following table provides for each of the four (4) pools by year of acquisition
				the percentage of adjusted cost to compute true tax value. The sum of the true
				tax value for each of the four (4) pools is the true tax value of the personal
				property at the tax situs in question.
TABLE TO DETERMINE TRUE TAX VALUE FOR DEPRECIABLE PERSONAL
				  PROPERTY BY PERCENTAGE OF ORIGINAL COST
Indiana Pools of Assets by Lives Utilized on
						  Federal Tax Return
Year of Acquisition
Pool #1 (1-4 yrs)
Pool #2 (5-8 yrs)
Pool #3 (9-12 yrs)
Pool #4 (13 yrs and longer)
1
65%
40%
40%
40%
2
50%
56%
60%
60%
3
35%
42%
55%
63%
4
20%
32%
45%
54%
5
24%
37%
46%
6
18%
30%
40%
7
15%
25%
34%
8
20%
29%
9
16%
25%
10
12%
21%
11
10%
15%
12
10%
13
5%
(c)
				The true tax value of the depreciable personal property for the taxpayer on a
				December 31 federal tax year making the election to use federal tax year to
				compute the year of acquisition (see the EXAMPLES in sections 5 and 6 of this
				rule) would be computed as follows:
Pool No. 1
Pool No. 3
Jan 1 to March 1, 1989
$None
65 %
$-0-
$4,000
40 %
$1,60 0
1988
3,000
65 %
1,950
12,000
40 %
4,800
1987
4,000
50 %
2,000
10,000
60 %
6,000
1986
None
35 %
-0-
2,000
55 %
1,100
1985
13,000
20 %
2,600
4,000
45 %
1,800
1984
1,000
37 %
370
1983
None
30 %
-0-
1982
5,000
25 %
1,250
1981
30,000
20 %
6,000
1980
None
16 %
-0-
1979
None
12 %
-0-
1978
12,000
10 %
1,200
$20,00
$6,55
$80,00
$24,1
0
0
0
20
Pool No. 1
$6,55 0
True tax value of all depreciable personal
						  property
$30,6
70
(d)
				Exception. If personal property is leased, such property will not be valued for
				Indiana property tax purposes in accordance with this rule. Such personal
				property is to be reported in accordance with the provisions of 50 IAC
				4.2-8.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-9 - Minimum valuation

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 9.
(a)
				Notwithstanding the foregoing provisions of this rule, the total valuation of a
				taxpayer's assessable depreciable personal property in a single taxing district
				cannot be less than thirty percent (30%) of the adjusted cost of all such
				property of the taxpayer.
(b)
				Exception. This limitation shall be applied prior to any special adjustment for
				abnormal obsolescence as provided in section 8 of this rule. The limitation
				does not apply to equipment not placed in service, special tooling, and
				permanently retired depreciable personal property.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 4 - Valuation of Depreciable Tangible Personal Property › Section 4-10 - Determination of property as real or personal

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 10.
(a) The
				following guide is intended to assist in the identification of property as
				either real or personal. The use of a unit of machinery, equipment, or a
				structure determines its classification as real or personal property. If the
				unit is directly used for manufacturing or a process of manufacturing, it is
				personal property. If the unit is a land or building improvement, it is real
				property.
(b) Land improvement -
				Real includes the following:
(1) Retaining
				walls, piling and mats for general improvement of site, private roads, walks,
				paved areas, culverts, bridges, viaducts, subways and tunnels, fencing,
				reservoirs, dikes, dams, ditches, canals, and drainage.
(2) Fixed river, lake, or tidewater wharves
				and docks.
(3) Permanent standard
				gauge railroad trackage, bridges, and trestles.
(4) Walls forming storage yards and fire
				protection dikes.
Note that on-site utility piping, such as sanitary and storm
				  sewers, potable water and fire prevention lines, and gas lines are considered
				  as on-site improvement costs and are valued with the land.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 5 - Valuation of Inventory › Section 5-1 - "Inventory" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1
Sec. 1.
(a) As used
				in this article, "inventory" means the aggregate of those elements of cost
				incurred to acquire or produce items of personal property that are:
(1) held for sale in the ordinary course of
				business;
(2) currently in the
				process of production for subsequent sale;
(3) ultimately to be consumed in the
				production of the goods or services to be available for sale; or
(4) utilized in marketing or distribution
				activities.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 5 - Valuation of Inventory › Section 5-1.1 - Inventory not subject to assessment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-1-11; IC 6-1.1-2-7
Sec. 1.1.
(a)
				Inventory is not subject to assessment and taxation under IC 6-1.1 pursuant to
				IC 6-1.1-2-7.
(b) Inventory is not
				personal property pursuant to IC 6-1.1-1-11.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 5 - Valuation of Inventory › Section 5-7 - Alternative method

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 7.
(a) As an
				alternative to any other method described in this article, a manufacturer or
				processor in this state who is in possession of inventory on the assessment
				date, which it manufactured or processed at the tax situs for which the return
				is prepared, may value finished goods and work in process inventory as follows:
(1) The cost of raw materials and supplies,
				which must include the total cost directly or indirectly incurred, including
				freight, to bring the property to the location where it will be utilized in the
				manufacturing process. Manufacturers or processors acquiring manufactured
				products from related entities shall include in the accountability cost the sum
				of all costs directly or indirectly incurred in bringing the article to its
				existing condition and location on the assessment date.
(2) The cost of all direct production
				labor.
(3) The thirty-five percent
				(35%) valuation adjustment will not be allowed for work in process and finished
				goods inventory.
(4) Raw materials
				and supplies inventories will qualify for the thirty-five percent (35%)
				valuation adjustment, provided that such items have not entered the
				manufacturing process.
(5) Any
				adjustment taken from inventory valuation must be the same basis on which it
				was included in the tax return.
(6)
				This election must be applied to all locations within this state, except as
				noted in subdivision (7). If this alternative method is elected, the taxpayer
				may not use any other method to value inventory for any subsequent year unless
				a written request has been approved by the department prior to the due date of
				the return.
(7) This election is
				available only for manufacturers' or processors' finished goods or work in
				process inventories to the extent that the goods have not entered another level
				of trade.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 5 - Valuation of Inventory › Section 5-13 - Valuation adjustment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 13.
Thirty-five percent (35%) of the adjusted cost of inventory
				  shall be allowable as a valuation adjustment for Indiana property tax purposes.
				  This adjustment is in lieu of all other valuation adjustments except for the
				  abnormal obsolescence adjustment. The amount of this adjustment constitutes an
				  inventory valuation reserve to provide for the normal valuation aspects
				  provided by statute. The prices for farm products prescribed by the department
				  under
				  50 IAC
				  4.2-7-1 are computed using the alternative method
				  (section 7 of this rule), therefore, the thirty-five percent (35%) valuation
				  adjustment will not be allowed for those items.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-1 - Tangible personal property not placed in service; reporting

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 1.
(a) Tangible
				personal property, other than inventory as defined in
				50 IAC
				4.2-5-1, with a tax situs within the state on the
				assessment date that has not been placed into service must be reported for
				property assessment purposes.
(b)
				"Tangible personal property not placed in service on the assessment date" means
				all property that has not been depreciated and is not eligible for federal
				income tax depreciation under Section 167 of the Internal Revenue Code of 1986.
				Real property as defined by law and rules of the department, inventory, special
				tools, leased property, returnable containers, and property described in
				subsection (d) are not included in this category.
(c) "Construction in process" means "tangible
				personal property not placed in service." This does not include the inventory
				of a contractor that is not a part of the real or personal property under
				construction. A contractor's inventory must be valued and reported as provided
				in
				50 IAC
				4.2-5-1.
(d) Tangible personal property, normally
				assessed as inventory and held in abeyance or stored temporarily, and which
				possession may be transferred to another person to be attached to or become a
				part of an asset subject to assessment for personal property tax purposes, is
				taxable as inventory as provided in
				50 IAC
				4.2-5-1, and is not included in the definition of
				tangible personal property not placed in service.
(e) The value of personal property not placed
				in service, including construction in process as defined in subsection (c), is
				the cost recorded on the taxpayer's books and records that is attributable to
				such personal property including all expenses incurred in acquiring or
				producing the assets not yet placed in service, and includes the following:
(1) Acquisitions. In the event the cost as
				recorded on the regular books and records of the taxpayer does not reflect
				acquisitions and transfers since the end of the financial period immediately
				preceding the assessment date, such acquisitions and transfers are required to
				be included.
(2) Advance payments
				or deposits. If the cost as recorded on the regular books and records of the
				taxpayer reflects advance payments or deposits, and if such amounts were
				attributable to tangible personal property, this amount shall be allowed as a
				deduction from book cost.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-2 - Reporting of special tools

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-23; IC 6-1.1-31
Sec. 2.
(a) "Special
				tools", as defined in
				50 IAC
				4.2-1-1.1(p), must be reported for
				Indiana property assessment purposes at the tax situs where located on the
				assessment date. The owner of any personal property subject to assessment and
				taxation on the assessment date has the responsibility for reporting such
				property for assessment and taxation on the owner's personal property tax
				return.
(b) Special tools are
				assessable whether the taxpayer elects to depreciate, amortize, treat as
				deferred cost, or expense at time of purchase or manufacture, and recovers cost
				through an increased unit price or any other method utilized in recapturing the
				costs. The owner is required to report special tools on Form 103-T (
				50 IAC
				4.2-2-9 ), as an attachment to Form 103 (
				50 IAC
				4.2-2-9 ). In addition to the requirement in this
				subsection, the owner is required to furnish a complete listing on Form 103-T (
				50 IAC
				4.2-2-9 ) of all the owner's special tools in the
				possession of another person under
				50 IAC
				4.2-2-5. The person holding, possessing, or
				controlling special tools, not owned, is required to furnish a complete listing
				on Form 103-T (
				50 IAC
				4.2-2-9 ), of all not owned personal property under
				50 IAC
				4.2-2-5.
(c) The total value of special tools, as
				defined in subsection (b), must be allocated in two (2) groups. The total value
				of special tools acquired between January 2 of the prior year and January 1 of
				the assessment year must be allocated in one (1) group, and the balance of the
				total value of the special tools on hand that were acquired prior to this
				period must be allocated into the other group. For purposes of this section,
				expenditures incurred by a taxpayer to refurbish existing special tools are
				deemed to be special tools acquired during the period in which such special
				tools were refurbished as follows:
(1)
				Special tools owned by taxpayer. The total cost of producing or acquiring
				special tools regardless of the nature, whether capitalized or expensed, must
				be reported on Form 103-T (
				50 IAC
				4.2-2-9 ), and attached to Form 103 (
				50 IAC
				4.2-2-9 ).
(2) Special tools not owned by taxpayer. The
				total value of special tools not owned by the taxpayer must be based on the
				original cost to the owner of such special tools, if available. If the original
				cost to the owner is not available, the value shall be based upon the best
				information available; however, the true tax value of the special tools not
				owned by the taxpayer cannot be less than the insured value of such property.
				Special tools not owned must be reported on Form 103-T (
				50 IAC
				4.2-2-9 ), and attached to Form 103 (
				50 IAC
				4.2-2-9 ).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-3 - Improvement to leased real or personal property

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1
Sec. 3.
(a) Whenever
				a taxpayer makes any expenditure for an improvement to real or personal
				property not owned by such taxpayer, such expenditure shall be assessable as
				personal property to the extent it is not real property.
(b) The following examples of leasehold
				improvements that are personal property:
(1)
				Leasehold improvements to personal property are personal property. Leasehold
				improvements will include, but not be limited to, foundations and pilings
				related to the installation and use of personal property.
(2) Improvements to real property that are
				personal property include, but are not limited to, personal property attached
				to the real property to the extent such items are related to activities or
				processes conducted in the building if the personal property is an integral
				part of such activity. For example, improvements to real property would include
				shelving, bins, counters, and related items; nonpermanent partitions;
				supplemental heating and air conditioning; extraordinary lighting; electrical
				and plumbing facilities; carpeting and draperies.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-4 - Returnable containers; reporting

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 4.
(a)
				Returnable containers, as defined in subsection (b), must be reported for
				property assessment purposes at the tax situs where located on the assessment
				date by the taxpayer owning the returnable containers. In addition to the
				filing requirement above, the owner is required to furnish a complete listing,
				on Form 103-O ( 50 IAC 4.2-2-9 ), of all their personal property which is in
				possession of another person(s) pursuant to 50 IAC 4.2-2-5. The person(s)
				holding, possessing, or controlling returnable containers, not owned, is
				required to furnish a complete listing on Form 103-N ( 50 IAC 4.2-2-9 ), of all
				not owned personal property pursuant to 50 IAC 4.2-2-5.
(b) "Returnable containers" means those items
				of tangible personal property which are used to package inventory or other
				property while in transit which are reusable. Returnable containers include,
				but are not limited to, cooperage, skids, bottles, cases, and other packaging
				devices.
(c) Valuation. The owner
				of any personal property subject to assessment and taxation on the assessment
				date has the responsibility for reporting such property for assessment and
				taxation pursuant to 50 IAC 4.2-2-5. The value of returnable containers is
				computed by extending the quantity of such property on hand by:
(1) the amount of deposit required for such
				item;
(2) the refund entitled
				thereto when such returnable containers are returned to the owner;
(3) the sales price of the returnable
				property; or
(4) the cost of such
				returnable containers in the hands of the owner since the owner is liable to
				assessment.
The resultant cost must then be valued pursuant to 50 IAC
				  4.2-4-5 through 50 IAC 4.2-4-7, in the same manner as any other depreciable
				  personal property.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-5 - Duties of assessing officials

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-2-4
Sec. 5.
The township assessor, if any, or county assessor, county
				  property tax assessment board of appeals, or the department shall assess
				  personal property in the name of the owner of the property in the taxing
				  district where the property is situated as of the assessment date to the extent
				  that the owner of said property is identified. However, if as of the filing
				  date (May 15 with extension) the owner of the property as of the assessment
				  date is unknown by the assessor, said property shall be assessed to the person
				  in possession of such property. The complete reporting requirements for
				  property not in the owner's possession are contained in 50 IAC 4.2-2-5.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 6 - Valuation of Other Tangible Personal Property › Section 6-6 - Reporting critical spare parts

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 6.
(a) Critical
				spare parts must be reported for Indiana property assessment purposes at the
				tax situs where located on the assessment date. The owner of any personal
				property subject to assessment and taxation on the assessment date has the
				responsibility for reporting such property for assessment and taxation on their
				personal property tax return. Critical spare parts are assessable whether the
				taxpayer elects to depreciate, amortize, treat as deferred cost, or expense at
				time of purchase or manufacture and recovers cost through an increased unit
				price or any other method utilized in recapturing the costs.
(b) The owner of any personal property
				subject to assessment and taxation on the assessment date has the
				responsibility for reporting such property for assessment and taxation pursuant
				to section 1(e) of this rule.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 7 - Other › Section 7-1 - Lists of readily ascertainable values

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3; IC 6-1.1-31-7
Sec. 1.
(a) In the
				case of certain types of personal property, which it determines has a readily
				ascertainable value, the department may determine the true tax value of such
				property and so designate in
				50
				IAC 4.2-15 or issue memorandums and guidance documents
				for the unit valuations of such property to be used for personal property tax
				purposes.
(b) The unit valuations
				will be issued pursuant to
				50 IAC
				4.2-1-5. However, in providing for the classification
				of personal property and included in the factors used to determine the true tax
				value of personal property the department shall not include the value of land
				as a cost of producing tangible personal property subject to
				assessment.
(c) The types of
				personal property to be valued pursuant to this section will be so designated
				in
				50
				IAC 4.2-15 or a memorandum or guidance
				document.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 7 - Other › Section 7-2 - Uniform useful lives of assets; publication

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 2.
The department may prescribe and publish the useful life of
				  assets if it determines that a uniform life should be required for all
				  taxpayers in order to obtain equalization of assessments as provided in 50 IAC
				  4.2-4-5 and 50 IAC 4.2-4-6.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 8 - Valuation of Leased Personal Property › Section 8-1 - "Leased personal property" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1
Sec. 1.
In general, leased personal property includes those units of
				  tangible personal property, excluding inventory, as defined in 50 IAC 4.2-5-1,
				  special tools, as defined in 50 IAC 4.2-6-2, and returnable containers, as
				  defined in 50 IAC 4.2-6-4, which are leased, rented, or otherwise made
				  available to a person other than the owner under a bailment agreement, written
				  or unwritten, on the assessment date. Leased personal property includes, but is
				  not limited to, business machines, postage meters, machinery, equipment,
				  furniture, fixtures, coin-operated devices, tools, burglar alarms, signs and
				  other advertising devices, and motor vehicles to the extent taxable as personal
				  property which are loaned, leased, used, or otherwise held in the possession of
				  a person other than the owner on the assessment date whether or not any fees
				  are charged.