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

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.