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

Universal Citation: 50 IN Admin Code 6-2

Current through December 25, 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) .

(d) The total true tax value of special tools is the sum of thirty percent (30%) of the total valuation of "special tools" acquired between January 2 of the prior year and January 1 of the current assessment year which are on hand on the assessment date and three percent (3%) of the total valuation of all other special tools on hand.

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