Section 50 IAC 4.2-8-9 - Determination of true tax valueAuthority: 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.Department of Local Government Finance; 50 IAC 4.2-8-9; filed Dec 7, 1988, 9:35 a.m.: 12 IR 862, eff Mar 1, 1989; reinstated by IC 6-1.1-3-22, eff Jul 1, 2003