Section 6-1.1-3-23.5 - Election of valuation method for mini-mill equipment(a) For purposes of this section: (1) "adjusted cost" has the meaning set forth in section 23(b)(1) of this chapter;(2) "depreciable personal property" has the meaning set forth in section 23(b)(2) of this chapter;(3) "mini-mill" means a person, including a subsidiary of a corporation, that produces steel using an electric arc furnace in Indiana;(4) "permanently retired depreciable personal property" has the meaning set forth in section 23(b)(5) of this chapter;(5) "pool" has the meaning set forth in section 23(b)(6) of this chapter; (6) "mini-mill equipment" means depreciable personal property, other than special tools and permanently retired depreciable personal property, that is owned, leased, or used by a mini-mill or an entity that is at least fifty percent (50%) owned by an affiliate of a mini-mill in the production of steel;(7) "special tools" has the meaning set forth in section 23(b)(8) of this chapter; and(8) "year of acquisition" for purposes of applying the table in section 23(c) of this chapter, has the meaning set forth in section 23(b)(9) of this chapter.(b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50 IAC 4.2-4-7, beginning with the January 1, 2023, assessment date, a taxpayer may elect to calculate the true tax value of the taxpayer's mini-mill equipment by multiplying the adjusted cost of that equipment by the applicable percentage set forth in the table designated as "Pool No. 5" under section 23(c) and 23(d) of this chapter.(c) The percentage factors in the table under section 23(c) of this chapter automatically reflect all adjustments for depreciation and obsolescence, including abnormal obsolescence, for mini-mill equipment. The equipment is entitled to all exemptions, credits, and deductions for which it qualifies.(d) The minimum valuation limitations under 50 IAC 4.2-4-9 do not apply to mini-mill equipment valued under this section. The value of the equipment is not included in the calculation of that minimum valuation limitation for the taxpayer's other assessable depreciable personal property in the taxing district.(e) An election to value mini-mill equipment under this section:(1) must be made by reporting the equipment under this section on a business personal property tax return;(2) applies to all of the taxpayer's mini-mill equipment located in the state (whether owned or leased, or used as an integrated part of the equipment); and(3) is binding on the taxpayer for the assessment date for which the election is made. The department of local government finance shall prescribe the forms to make the election beginning with the January 1, 2023, assessment date. Any mini-mill equipment acquired by a taxpayer that has made an election under this section is valued under this section.
(f) If fifty percent (50%) or more of the adjusted cost of a taxpayer's property that would, notwithstanding this section, be reported in a pool other than "Pool No. 5" (as designated under section 23 of this chapter) is attributable to mini-mill equipment, the taxpayer may elect to calculate the true tax value of all of that property as mini-mill equipment. The true tax value of property for which an election is made under this subsection is calculated under subsections (b) through (e).Amended by P.L. 236-2023,SEC. 13, eff. 5/4/2023.Added by P.L. 138-2022,SEC. 2, eff. 7/1/2022.