50 IAC 4.2-4-7 True tax value determination; exception

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% $1,600 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 $20,000 $6,550 $80,000 $24,120 Pool No. 1 $6,550 True tax value of all depreciable personal property $30,670 (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.