reglab/statecodes huggingface dataset:
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 8-2 - "Capital and operating leases" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31
Sec. 2.
(a) Types of
				leases. Generally, agreements which convey the right to use property for a
				stated period of time are termed leases and are usually classified as either
				capital leases or operating leases.
(b) "Capital leases" includes sales-type
				leases, direct financing leases, and leveraged leases. These leases must meet
				one (1) or more of the following conditions to be so classified and are or
				should be capitalized by the lessee for federal income tax purposes:
(1) Ownership of the property is transferred
				to the lessee at or before the end of the lease term.
(2) The lease permits the lessee to purchase
				the property or renew the lease at a price or rental which is substantially
				less than the estimated market value or fair rental of the leased property at
				the time the option to purchase or renew the lease is exercised.
(3) The lease term is equal to seventy-five
				percent (75%) or more of the estimated economic life of the leased
				property.
(4) The present value of
				the minimum lease payments equals or exceeds ninety percent (90%) of the fair
				market value of the leased property at the inception of the lease.
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 8-3 - Operating leases

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-2-4
Sec. 3.
(a) Operating
				leases must be reported for assessment and taxation by the owner (lessor) of
				the personal property on Form 103 ( 50 IAC 4.2-2-9 ), Schedule A, in the taxing
				district where the property was situated as of the assessment date.
(b) In addition to the reporting requirement
				stated in subsection (a), the owner is required to furnish a complete listing,
				on Form 103-O ( 50 IAC 4.2-2-9 ), of all their personal property that was the
				subject of an operating lease on the assessment date in each taxing district
				where the property is located 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.
(c) The person holding,
				possessing, or controlling (lessee) tangible personal property subject to the
				conditions of an operating lease shall file and attach with their return in the
				taxing district where such property was situated a complete listing, on Form
				103-N ( 50 IAC 4.2-2-9 ), of all not owned (leased) personal property. The
				listing must include the name and address of the owner (lessor), model,
				description, location, quantities on hand, date of installation, and value (if
				known) per this article.
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 8-4 - Capital leases

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-2-4
Sec. 4.
(a) Capital
				leases must be reported for assessment and taxation by the person holding,
				possessing, or controlling (lessee) the personal property on Form 103 ( 50 IAC
				4.2-2-9 ), Schedule A, in the taxing district where the property was situated
				as of the assessment date. The value of the property must be computed in
				accordance with sections 7 through 9 of this rule, rather than 50 IAC 4.2-Sec.
				4.
(b) In addition to the reporting
				requirement stated in subsection (a), the lessee is required to furnish a
				complete listing, of all not owned personal property, on Form 103-N ( 50 IAC
				4.2-2-9 ), in each taxing district where the property was situated. This
				listing must include the name and address of the owner (lessor), model,
				description, location, quantities on hand, date of installation, and value per
				this article.
(c) The owner of
				personal property that is termed capital leases above must file a complete
				listing showing the name and address of the person or persons in possession,
				model, description, location, quantities, date of installation, and value per
				this article, on Form 103-O ( 50 IAC 4.2-2-9 ), in each taxing district where
				the property was situated as of the assessment date.
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 8-5 - Liability for taxes

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-2-4; IC 6-1.1-31
Sec. 5.
(a) The owner
				(lessor) of personal property covered by operating leases has the
				responsibility for reporting such property for assessment and taxation in the
				taxing district where the property was situated on the assessment date. This
				section does not relieve the person holding, possessing, or controlling
				personal property covered by operating leases of the responsibility to file a
				complete listing, on Form 103-N ( 50 IAC 4.2-2-9 ), of not owned personal
				property and the responsibility to pay such taxes if they are not paid by the
				owner of the property as provided in 50 IAC 4.2-2-2.
(b) The person holding, possessing, or
				controlling (lessee) personal property covered by capital leases has the
				responsibility for reporting such property for assessment and taxation in the
				taxing district where the property was situated on the assessment date. This
				section does not relieve the owner (lessor) of the responsibility to file a
				complete listing, on Form 103-O ( 50 IAC 4.2-2-9 ), in the taxing district
				where the property was situated on the assessment date of all owned personal
				property which was in the possession of another person nor does it relieve the
				owner of the tax liability if not paid by the lessee.
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 8-6 - Assessment of leased personal property

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-2-4
Sec. 6.
The assessor, county property tax assessment board of
				  appeals, or the department shall assess leased or rented personal property in
				  the manner described in sections 3 through 5 of this rule in the taxing
				  district where the property is situated as of the assessment date.
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 8-7 - Valuation; base year value defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 7.
(a) The base
				year value of the leased or rented property plus freight and installation costs
				must be utilized in determining the value of leased or rented property subject
				to assessment.
(b) "Base year
				value" means the amount, measured in money, that a willing buyer in an arm's
				length transaction would pay to acquire the item of tangible personal property
				subject to the lease under consideration at the time the lease or bailment was
				first consummated. For purposes of applying this definition to a specific
				factual situation, the amount stated in the agreement as the amount which the
				lessee would have had to pay to acquire the leased property instead of leasing
				the property will be deemed to be the base year value, provided that the
				department does not determine that such amount is unrealistically low in
				relation to the other terms contained in the agreement.
(c) If an alternative acquisition cost is not
				shown in the lease agreement, the base year value will be the factory delivered
				price for the tangible personal property subject to the lease plus freight,
				installation costs, and a profit factor.
(d) If the factory delivered price cannot be
				determined, the base year value will be the present value of the lease payments
				at the inception of the lease computed in accordance with 50 IAC
				4.2-15-14.
(e) If the present value
				of the lease payments cannot be determined, the following alternative factors
				will be used to determine the base year value:
(1) the insurable value in the year the lease
				was first consummated; or
(2) the
				capitalized value at eight (8) times the annual lease or rental
				payments.
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 8-8 - Pools for base year values; summation by year placed in service

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 8.
(a) The base
				year value of all leased personal property being reported in a tax return is
				required to be segregated for Indiana property tax purposes into four (4)
				separate pools. The determination of the proper classification of the pool in
				which leased property should be included is to be based upon the useful life of
				property determined in accordance with the ADR regulation guideline life
				published by the Internal Revenue Service in Regulation 1.167(a)-11. The pools
				to be utilized for Indiana property tax purposes are:
(1) Pool No. 1: One (1) through four (4) year
				life.
(2) Pool No. 2: Five (5)
				through eight (8) year life.
(3)
				Pool No. 3: Nine (9) through twelve (12) year life.
(4) Pool No. 4: Thirteen (13) year or longer
				life.
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 8-9 - Determination of true tax value

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 9.
(a)
				Computation. The true tax value of leased personal property for Indiana
				property tax purposes is computed by multiplying the base year values of leased
				personal property in the respective pool by the percentage factor obtained in
				subsection (b). The percentage factor in the table automatically reflects all
				adjustments, except for abnormal obsolescence, as provided in section 10 of
				this rule.
(b) Table to compute
				true tax value of leased personal property. The following table provides for
				each of the four (4) pools, the percentage factors of which, when applied to
				base year value, compute true tax value. The sum of the true tax values in each
				of the four (4) pools is the true tax value of the leased personal property at
				the tax situs in question.
TABLE TO DETERMINE TRUE TAX VALUE FOR LEASED PERSONAL
				  PROPERTY BY PERCENTAGE OF BASE YEAR VALUE
Year Leased Property is Placed In Service
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)
				Limitation of the total valuation of a taxpayer's depreciable personal
				property.
(1) General limitation.
				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.
(2)
				Exception. This limitation shall be applied prior to any special adjustment for
				abnormal obsolescence as provided in section 10 of this rule. This limitation
				does not apply to equipment not placed in service, special tooling, and
				permanently retired equipment.
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 8-10 - Abnormal obsolescence adjustment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 10.
(a) The
				tentative true tax value computed in section 9 of this rule should be adjusted
				for abnormal obsolescence to the extent that the property meets the
				qualifications as set forth in 50 IAC 4.2-9-3.
(b) Adjustment. For the purposes of this
				section, abnormal obsolescence will be determined in accordance with the
				provisions of 50 IAC 4.2-9-3. Providing a taxpayer has abnormal obsolescence,
				as defined in 50 IAC 4.2-9-3, they may claim an adjustment for abnormal
				obsolescence for leased personal property at the tax situs in question subject
				to the requirements, conditions, and provisions of 50 IAC 4.2-9-3. In no event
				shall any adjustment for abnormal obsolescence exceed the true tax value of the
				specific unit or units of property involved.
(c) Limitation. No adjustment will be allowed
				for normal obsolescence, as defined in 50 IAC 4.2-9-2. The table contained in
				section 9 of this rule automatically reflects this type of
				obsolescence.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-1 - "Obsolescence" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 1.
"Obsolescence" means the reduction in value of business
				  personal property that occurs through use, technological improvements, passage
				  of time, changes in market values, and physical deterioration or
				  destruction.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-2 - "Normal obsolescence" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 2.
"Normal obsolescence" means the anticipated or expected
				  reduction in the value of business personal property that can be foreseen by a
				  reasonable, prudent businessman when property is acquired and placed into
				  service. In general, it includes the expected, declining value through use,
				  gradual decline in value because of expected technological improvements, the
				  gradual deterioration or obsolescence through the mere passage of time, and the
				  general assumption that such property will have a minimum value at the end of
				  its useful life.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-4 - Allowance of obsolescence claim

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 4.
(a) Abnormal
				obsolescence should be recognized to the extent that the property qualifies for
				the adjustment and the taxpayer is able to substantiate the facts,
				circumstances, and amount of the claim in order to properly determine the true
				tax value of the subject property.
(b) A taxpayer wishing to claim an adjustment
				for abnormal obsolescence must provide documentation of the resulting valuation
				of the personal property at the tax situs in question on the assessment date on
				a going concern basis.
(c) The
				adjustment for abnormal obsolescence must be computed in accordance with this
				rule and 50 IAC 4.2-4-8, 50 IAC 4.2-8-10, or 50 IAC 4.2-10-Sec. 4.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-5 - Full disclosure

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 5.
When the reporting requirements for an adjustment for
				  abnormal obsolescence have been met (a full disclosure), but for some reason
				  the adjustment is not allowed or the value is changed, the amount disallowed is
				  considered to be an interpretive difference and is not subject to the
				  undervalued personal property tax penalty as set forth in 50 IAC
				  4.2-2-10(d).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-6 - Adjustment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 6.
No adjustment will be allowable for normal obsolescence. The
				  methods of valuation of business tangible personal property automatically
				  reflect this type of obsolescence by using historic cost, short depreciable
				  life, and accelerated depreciation on depreciable assets. An adjustment for
				  abnormal obsolescence will be allowed provided a taxpayer can substantiate
				  abnormal obsolescence. The provisions of this part of the regulation and the
				  specific portions of this regulation applicable to the class of property
				  involved must be followed and the books and records of the taxpayer must not
				  have reflected the abnormal obsolescence on the assessment date.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 9 - Obsolescence › Section 9-7 - Administrative adjudication on adjustment for abnormal obsolescence

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC
				  6-1.1-31-7
Sec. 7.
(a) The
				taxpayer may, prior to the filing of the property tax return for the year in
				question, petition the department for an administrative adjudication
				determination regarding an abnormal obsolescence adjustment. If this
				determination is granted, it will be effective only for the tax year in
				question and will not be effective for subsequent assessments.
(b) If an administrative adjudication
				determination is obtained, a copy of the determination is required to be
				attached to the tax return claiming the adjustment. If the taxpayer has not
				requested an administrative adjudication determination, the taxpayer may, if
				the taxpayer's circumstances meet the requirements contained in this section,
				request an adjustment on the form prescribed by the department when filing the
				tax return for the year in question. The adjustment or adjustments, if
				requested, must:
(1) identify specifically all
				property for which an adjustment is requested;
(2) indicate the original cost of the
				property;
(3) indicate the true tax
				value of the property if no adjustment would be allowed; and
(4) quantify and document the true tax value
				of the property as a result of the requested adjustment.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 10 - Interstate Carriers › Section 10-1 - Valuation of carriers' property

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-1-11
Sec. 1.
In general, commercial airlines and commercial buslines, as
				  defined in sections 2 and 3 of this rule, must compute the true tax value of
				  aircraft and transportation equipment required to be reported for the Indiana
				  personal property assessment purposes in accordance with the provisions of 50
				  IAC 4.2-4. However, if such property is leased, the tentative true tax value is
				  required to be computed in accordance with 50 IAC 4.2-8. The tentative true tax
				  value thus computed is then subject to allocation as provided herein.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 10 - Interstate Carriers › Section 10-2 - Commercial airlines; allocation and tax value of aircraft

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31; IC 6-6-6.5
Sec. 2.
(a) In
				general, commercial airlines must value the aircraft required to be reported
				for Indiana property tax purposes pursuant to section 1 of this rule.
(b) "Commercial airlines" means an airline
				with regularly scheduled flights and routes authorized and approved by the
				federal aeronautics administration.
(c) In general, commercial airlines are
				required to report the total value of the fleet of aircraft operating in this
				state. For this purpose, the commercial airline is required to report the value
				of all aircraft which it owns or operates of the type of aircraft operating in
				the taxing district. For example, if the airline owns or operates twenty (20)
				aircraft of type "x", ten (10) aircraft of type "y", and five (5) aircraft of
				type "z" and only type "x" aircraft are operated in the taxing district, the
				commercial airline is required to determine the tentative true tax value of all
				type "x" aircraft in its fleet of aircraft as provided in section 1 of this
				rule and report the value of all type "x" aircraft on its personal property tax
				return.
(d) The value of the
				aircraft required to be reported for Indiana property tax purposes is subject
				to allocation. This allocation must be made for each type of aircraft operated.
				The allocation factor for each type of aircraft is computed by dividing the
				total ground time of each type of aircraft for the preceding twelve (12) months
				in the taxing district by the total ground time of each type of aircraft
				operated in the system. In the example provided in subsection (c), the type "x"
				aircraft would be subject to allocation. The allocation is determined by
				computing a percentage obtained by dividing the total ground time for the
				preceding twelve (12) months of all type "x" aircraft in the taxing district by
				the total ground time for the preceding twelve (12) months of all type "x"
				aircraft in the fleet.
(e) The true
				tax value of the aircraft is determined by multiplying the percentages as
				computed in subsection (d) times the tentative true tax value of the aircraft
				computed in accordance with section 1 of this rule. For example, assume that
				the type "x" aircraft provided in the example in subsection (c) had a tentative
				true tax value of twenty million dollars ($20,000,000). Furthermore, assume
				that the percentage determined in subsection (d) was five percent (5%). The
				true tax value of the aircraft for Indiana property tax purposes would be one
				million dollars ($1,000,000).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 10 - Interstate Carriers › Section 10-3.1 - Commercial busline; allocation and true tax value

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-1-11
Sec. 3.1.
(a) As used
				in this rule, "commercial busline" means a company for hire that is principally
				engaged in the business of transporting persons by bus, and exclusively
				operates charter buses, which do not have scheduled routes.
(b) The fleet of the commercial busline
				includes the buses the taxpayer owns, holds, possesses, or controls that are
				used and operated in interstate commerce.
(c) The fleet of the commercial busline is
				required to be valued pursuant to section 1 of this rule.
(d) The allocation factor for the fleet is
				computed by dividing the total Indiana miles of the fleet for the preceding
				twelve (12) months by the total miles of the fleet for the same
				period.
(e) As an alternative to
				maintaining a mileage log of all trips, individual lessors, who do not maintain
				adequate records to compute their allocation factor, may use the same
				allocation factor as their lessee provided that the lessor's property is
				predominantly leased to that lessee. The lessor must meet the predominant use
				requirement in order to use the lessee's allocation factor. If the lessor does
				not meet the predominant use requirement, the lessor must use the actual
				allocation factor as determined in subsection (d). As used in this section,
				"predominant use" means:
(1) during the course
				of the year, more than fifty percent (50%) of the total mileage logged by the
				lessor's buses is logged by buses under lease to that lessee; or
(2) during the course of the year, the leased
				property is leased to that lessee for more than one-half (1/2) the number of
				days in that year.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 10 - Interstate Carriers › Section 10-4 - Abnormal obsolescence adjustment for commercial airlines and commercial buslines

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-31-7
Sec. 4.
(a)
				Commercial airlines and the buses of commercial buslines used and operated in
				interstate commerce may claim an adjustment for abnormal obsolescence, as
				defined in 50 IAC 4.2-9-3, on the tangible personal property reported pursuant
				to this section, if the taxpayer follows the procedures and meets the
				requirements regarding an adjustment for abnormal obsolescence contained in 50
				IAC 4.2-9.
(b) No adjustment will
				be allowed for normal obsolescence as defined in 50 IAC 4.2-9. The
				determination of the tentative true tax value pursuant to 50 IAC 4.2-4
				automatically makes an allowance for this type of obsolescence.
(c) The term abnormal obsolescence will be
				strictly construed and limited to a situation where unforeseen changes in
				market values, exceptional technological obsolescence, or where destruction by
				a catastrophe occurs if such events have a direct effect upon the valuation of
				the property at the tax situs in the state of Indiana.
(d) The dollar amount of the adjustment may
				not exceed the allocatable portion of the true tax value of the particular unit
				of property as determined pursuant to this section for which the carrier claims
				an adjustment.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 10 - Interstate Carriers › Section 10-5 - Scope of rule

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 5.
This section is applicable only to the aircraft of the
				  commercial airline and the buses of commercial buslines used and operated in
				  interstate commerce and is not applicable to the other classes of business
				  personal property which the taxpayer may own, possess, or control at the tax
				  situs in question. The other classification of business personal property must
				  be reported and valued pursuant to the other provisions of this article.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 11.1 - Deductions and Exemptions for Business Personal Property › Section 11.1-1 - Stationary or unlicensed mobile air pollution control system

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-10-12; IC 6-1.1-10-13; IC 36-5-1
Sec. 1.
(a) Personal
				property is exempt from property taxation if:
(1) it is part of a stationary or unlicensed
				mobile air pollution control system of a private manufacturing, fabricating,
				assembling, extracting, mining, processing, generating, refining, or other
				industrial facility;
(2) it is not
				primarily used in the production of property for sale;
(3) it is employed predominantly in the
				operation of the air pollution control system;
(4) the air pollution control system is
				designed and used for the improvement of public health and welfare by the
				prevention or elimination of air contamination caused by industrial waste or
				contaminants;
(5) a sanitary
				treatment or elimination service for the waste or contaminants is not provided
				by public authorities; and
(6) it
				is acquired for the purpose of complying with any state, local, or federal
				environmental quality statutes, regulations, or standards.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 11.1 - Deductions and Exemptions for Business Personal Property › Section 11.1-2 - Industrial waste control facility

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-10
Sec. 2.
(a) For
				purposes of this section, "industrial waste control facility" means personal
				property that is:
(1) included either as a
				part of or an adjunct to a privately owned manufacturing or industrial plant or
				coal mining operation; and
(2) used
				predominantly to:
(A) prevent, control,
				reduce, or eliminate pollution of a stream or a public body of water located
				within or adjoining this state by treating, pretreating, stabilizing,
				isolating, collecting, holding, controlling, or disposing of waste or
				contaminants generated by the plant; or
(B) meet state or federal reclamation
				standards for a coal mining operation.
The term includes personal property that is under
				  construction or in the process of installation and that will be used for the
				  purposes described in this subsection when placed in service. The term also
				  includes spare parts held exclusively for installation in or as part of
				  personal property that qualifies for the exemption under this section.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 11.1 - Deductions and Exemptions for Business Personal Property › Section 11.1-5 - Waiver of exemption

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-11-1
Sec. 5.
An exemption is a privilege which may be waived by a person
				  who owns property that would qualify for the exemption. If the owner does not
				  comply with the statutory procedures for obtaining an exemption, it waives the
				  exemption. If the exemption is waived, the property is subject to taxation (IC
				  6-1.1-11-1 ).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 11.1 - Deductions and Exemptions for Business Personal Property › Section 11.1-6 - Personal property in economic revitalization area

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-3; IC 6-1.1-12.1
Provisions related to personal property in economic
				  revitalization areas are provided under 50 IAC 10.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 14 - Principal Business Activity Codes › Section 14-2 - Principal business activity codes

Current through July 10, 2024
Authority: IC
				  6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 2.
(a) This
				section prescribes the use of the principal business activities and their
				associated six-digit codes based upon the North American Industry
				Classification System (NAICS), and used on a taxpayer's federal tax
				return.
(b) It is a requirement
				that each taxpayer determine the business activity and the associated six-digit
				activity code referenced in subsection (a) and enter it on the front page of
				the Form 102, Form 103-Short, Form 103-Long, Form 103-SR, and Form 104-SR in
				the box titled "NAICS Code number".
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-1 - Subjects covered; incorporation of "directives"; availability

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 1.
The following summarizes the remaining sections of this
				  rule:
50 IAC 4.2-15-4 Assessment of servicemen for personal
				  property
50 IAC 4.2-15-7 Assessment of refined petroleum products,
				  marketing equipment, crude oil, and natural gas at wellhead
50 IAC 4.2-15-8 Assessment of leased data processing
				  equipment
50 IAC 4.2-15-14 Present value of personal property
				  leases
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-2 - Assessment of boats, motors, boat trailers, campers, camping trailers, travel trailers, pick-up truck campers, fold down campers, snowmobiles, off-road vehicles, self-propelled motor homes, nonfactory produced units (homemade), antique cars, and aircraft (Repealed)

Current through July 10, 2024
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-3 - Penalty provisions which apply to Form 101, Individual's Tangible Personal Property Return, place of assessment, and evidence of filing (Repealed)

Current through July 10, 2024
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-7 - Assessment of marketing equipment of refined petroleum products

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 7.
(a) Under 50
				IAC 4.2-7-1, the following procedures will be utilized by the department to
				determine the prices to be used for the assessment of certain marketing
				equipment of petroleum products.
(b) Under 50 IAC 4.2-7-2, the department has
				determined in order to provide for a uniform method of assessment as set out in
				50 IAC 4.2-4-5 and to obtain equalization in the assessment of petroleum
				industry marketing facilities, the department establishes the useful life of
				all tangible personal property used in the marketing of petroleum products as
				being twelve (12) years with all such property being segregated into Pool No. 3
				for Indiana property tax purposes.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-8 - Assessment of leased data processing equipment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 8.
In recognition of the fact that certain intangible charges
				  may be included in the base year value of the subject equipment, the department
				  has authorized the following adjustment procedure:
(1) Base year value for leased data
				processing equipment shall be the current commercial published selling price
				for new equipment.
(2) If the
				current selling price as defined in subdivision (1) includes charges for one
				(1) or more of the following customer support services, such charges shall be
				allowable as an adjustment to base year value in Column B, Form 103-Long (
				50 IAC
				4.2-2-9 ), to the extent that such charges can be
				segregated from the total selling price, supported by adequate records and such
				adjustments clearly shown on Form 106 (
				50 IAC
				4.2-2-9 ). Customer support services shall be limited
				to the following:
(A) Educational services.
				Training and instruction in the use of electronic data processing equipment
				provided to the user thereof, such as on-site education, classroom instruction,
				and educational publications.
(B)
				Maintenance. This would be tests, measurements, replacements, adjustments, and
				repairs intended to keep data processing equipment in satisfactory working
				condition.
(C) Application
				software. The application program is a written sequence of instructions that
				details the operations the equipment is to perform in order to achieve a
				specific objective of the user.
Any adjustment for the purposes in clauses (A) through (C)
				  must be factually documented by the taxpayer and shall not exceed ten percent
				  (10%) of the total base year valuation of subject equipment.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-9 - Assessability of state and federal taxes on liquor, wine, beer, and cigarettes including goods held in bonded warehouse (Repealed)

Current through July 10, 2024
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-12.5 - Assessment of outdoor advertising signs

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-24
Sec. 12.5.
(a) The
				outdoor advertising sign valuation schedule issued by the department on a
				quadrennial basis listing signs by structure and type will provide the
				assessing officials adequate information to ensure all signs are being properly
				reported in the corresponding taxing jurisdiction.
(b) The total true tax value from the outdoor
				advertising sign valuation schedule issued by the department on a quadrennial
				basis is to be transferred to Form 103-Long, Schedule A, line 62 or Form
				103-Short, Schedule A, line 14, and added to the value of other depreciable
				property, if any, for each taxing district where the property is
				located.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 15 - Prescribed Methods of Valuation; Specific Types of Property › Section 15-14 - Present value of personal property leases

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3
Sec. 14.
Pursuant to
				  50 IAC
				  4.2-8-7(d), the department has
				  prescribed the following for the computation of the present value of leased
				  personal property:
(1) If ownership of
				the property is transferred to the lessee (or may transfer if one (1) of the
				parties exercises an option) at or before the end of the lease, the term of the
				lease shall be the term used for computation of the present value.
(2) If title to the property is not
				transferred to the lessee, the prescribed federal tax depreciable life of the
				asset at the inception of the lease shall be the term for computing the present
				value.
(3) If the length of the
				lease is not specific, the prescribed federal tax depreciable life of the asset
				at the inception of the lease shall be the term for computing the present
				value.
(4) If the lease contains a
				"balloon" or "bubble" payment, such payment must be included in the present
				value computation. A "balloon" or "bubble" payment is a lump sum payment
				scheduled at the inception of, during, or at the conclusion of the
				lease.
(5) If the lease indicates
				the rate of interest included in the payments, such rate shall be used for
				computing the present value.
(6) If
				no interest rate is stated in the lease, the rate to be used in the computation
				shall be the prime commercial bank loan rate on the January 1 nearest to the
				inception of the lease. The interest rates to be used for January 1 of certain
				years will be issued each year by the department.
(7) If the amount of any payment or payments
				(including balloon payments) is not known at the inception of the lease, the
				present value of the lease payments cannot be computed and therefore may not be
				used as the base year value for personal property tax reporting
				purposes.
(8) If the present value
				computed in accordance with this section does not result in a reasonable
				valuation when other facts and circumstances are considered, the computed
				present value may not be used as the base year value.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 16 - Severability › Section 16-1 - Severability

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 1-1-1-8
Sec. 1.
If any section or part of any rule of this article or the
				  application thereof to any person or circumstance is held invalid, such
				  invalidity shall not affect the other sections, parts, or applications of this
				  article which can be given effect without the invalid section of any rule; and
				  to this end the provisions of this article are severable.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 17 - Business Personal Property Exemption Filing Requirements › Section 17-1 - Business personal property exemption

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7.2
Sec. 1.
(a) The
				business personal property tax exemption under IC 6-1.1-3-7.2 applies to old
				and new personal property located in an applicable county.
(b) In order to be eligible for the business
				personal property tax exemption under IC 6-1.1-3-7.2, the total acquisition
				cost of all business personal property must be below forty thousand dollars
				($40,000) by the assessment date.
(c) The business personal property exemption
				only applies to taxpayers with a countywide business personal property cost of
				less than forty thousand dollars ($40,000).
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 17 - Business Personal Property Exemption Filing Requirements › Section 17-2 - How to file for exemption

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7.2
Sec. 2.
(a) In order
				to claim the business personal property tax exemption, every person, including
				any firm, company, partnership, association, corporation, fiduciary, or
				individual owning, holding, possessing, or controlling business personal
				property with a total acquisition cost that is less than forty thousand dollars
				($40,000) within the county on January 1 of any year is required to declare the
				exemption using a personal property return Form 103-Short, Form 103-Long, Form
				102, or Form 104, as applicable.
(b) An eligible taxpayer is not required to
				complete the entire personal property return to claim the business personal
				property tax exemption. However, a taxpayer claiming the exemption on Form 103
				or Form 102 is required to attach a completed Form 104.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.2 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY › Rule 17 - Business Personal Property Exemption Filing Requirements › Section 17-3 - Changes to personal property assessment

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-3-7.2; IC 6-1.1-15
Sec. 3.
(a) If a
				taxpayer timely files a fully completed personal property tax return with a
				countywide total acquisition cost of less than forty thousand dollars ($40,000)
				and does not claim the business personal property tax exemption, the assessor
				shall reduce the assessment to zero ($0).
(b) If the assessor reduces an assessment as
				outlined in subsection (a), Form 113/ PP shall be sent to the taxpayer
				notifying the taxpayer of this change in assessment.
(c) Taxpayers that wish to claim the business
				personal property tax exemption may submit an amended personal property tax
				return.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 4.3 - ASSESSMENT OF TANGIBLE PERSONAL PROPERTY (VOIDED)

Current through July 10, 2024
Under P.L. 192-2002 (ss), SECTION 28, 50 IAC 4.3 and any other
				rule to the extent that it conflicts with IC 6-1.1-3-22, is void. Effective
				January 1, 2003.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 5.1 - PUBLIC UTILITY ASSESSMENT › Rule 1 - Definitions › Section 1-1 - Applicability

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-8-2
Sec. 1.
(a) The
				definition
[sic.]
in this rule apply throughout this
				article.
(b) Unless otherwise
				indicated, the definitions contained in 50 IAC 4.2-1-1 also apply to this
				article. However, if a definition in 50 IAC 4.2-1-1 conflicts with a definition
				contained in this article, the definition under this article controls with
				respect to the assessment and taxation of public utility property.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 5.1 - PUBLIC UTILITY ASSESSMENT › Rule 1 - Definitions › Section 1-2 - "Annual report" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-8-2; IC 6-1.1-8-19
Sec. 2.
"Annual report" means the statement required by IC
				  6-1.1-8-19.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 5.1 - PUBLIC UTILITY ASSESSMENT › Rule 1 - Definitions › Section 1-3 - "Base year value" defined

Current through July 10, 2024
Authority: IC 6-1.1-8-42; IC 6-1.1-31-1
Affected: IC 6-1.1-8-2
Sec. 3.
"Base year value" means the amount, measured in money, that a
				  willing buyer in an arm's-length transaction would pay to acquire the item of
				  property subject to the lease under consideration at the time the lease or
				  bailment was first consummated. For purposes of applying this definition to a
				  specific factual situation, the amount stated in the agreement as the amount
				  that the lessee would have had to pay to acquire the leased property instead of
				  leasing the property will be deemed to be the base year value, provided that
				  the department does not determine that such amount is unrealistically low in
				  relation to the other terms contained in the agreement. If the alternative
				  acquisition cost is not shown in the lease agreement, the base year value shall
				  be computed in the following order of preference:
(1) The factory delivered price for the
				tangible personal property subject to the lease plus freight, installation
				costs, and a profit factor.
(2) The
				present value of the lease payments at the inception of the lease computed in
				accordance with
				50
				IAC 4.2-15-14.
(3) The insurable value in the year the lease
				was first consummated.
(4) The
				capitalized value at eight (8) times the annual lease or rental
				payments.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 5.1 - PUBLIC UTILITY ASSESSMENT › Rule 1 - Definitions › Section 1-4 - "Bridge company" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-8-2
Sec. 4.
"Bridge company" means a company that owns or operates a toll
				  bridge or an approach or facility operated in connection with a toll
				  bridge.
Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 5.1 - PUBLIC UTILITY ASSESSMENT › Rule 1 - Definitions › Section 1-5 - "Bus company" defined

Current through July 10, 2024
Authority: IC 6-1.1-31-1
Affected: IC 6-1.1-8-2
Sec. 5.
"Bus company" means a company (other than a street railway
				  company) that is principally engaged in the business of transporting persons
				  for hire by bus on regularly scheduled routes in or through two (2) or more
				  townships of this state. The term does not include a company that exclusively
				  operates charter buses, which do not have scheduled routes.