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 September 18, 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.
