50 Ind. Admin. Code 5.1-4-1

Current through November 6, 2024

Section 50 IAC 5.1-4-1 - Tentative assessment

Authority: IC 6-1.1-8-42; IC 6-1.1-31-1

Affected: IC 6-1.1-2-4; IC 6-1.1-8-12; IC 6-1.1-8-28

Sec. 1.

(a) Each year the department shall determine the true tax value of the property of each public utility company. Except for railcar companies, the department shall determine the true tax value by first determining the approximate unit value of each public utility company. The value of the distributable property of a public utility company, other than a railcar company, equals the remainder of:

(1) the unit value of the company; minus

(2) the value of the company's fixed property.

(b) The value of the distributable property of a railcar company equals the value of all of the company's distributable property multiplied by the allocation factor provided in IC 6-1.1-8-12(b).

(c) In order to determine the unit value of a public utility company, the department may consider the following:

(1) Book value.

(2) The cost of replacement or reproduction, less depreciation.

(3) The cost of establishing and developing the business.

(4) The amount and market value or sales price of outstanding securities.

(5) Valuations determined by another governmental agency or indicated by a judicial decision, including, but not limited to, determinations made for rate making purposes.

(6) Statistics and reports prepared or filed by the company.

(7) Statistics and reports prepared by another governmental agency or by a private organization if the organization is considered reliable by investors and investment dealers.

(8) Earnings capitalized at a reasonable rate.

(9) Any other information that the department considers relevant.

(d) Except for railcar companies, the department shall notify each public utility company of its tentative assessment on or before June 1. The department shall notify each railcar company of its tentative assessment on or before September 1.

50 IAC 5.1-4-1

Department of Local Government Finance; 50 IAC 5.1-4-1; filed Dec 15, 1993, 5:00 p.m.: 17 IR 957; reinstated by IC 6-1.1-8-44, eff Jul 1, 2003

Filed 11/2/2020, 9:34 a.m.: 20201202-IR-050190636FRA