Ohio Admin. Code 5703-3-10 - Tangible personal property tax; true value of depreciable assets; application of "true value" or "302" computation
(A) Tangible personal property used in
business in this state must be returned, for purposes of the personal property
tax, at its true value in money. The true value of depreciable tangible
personal property is its book cost less book depreciation, unless the tax
commissioner finds that the depreciated book value is greater or less than the
true value of such property.
(B)
Application of the composite annual allowance procedure provided for in rule
5703-3-11
of the Administrative Code shall determine the prima facie true value of
depreciable tangible personal property used in business. The prima facie
valuations can be rebutted by probative evidence of higher or lower valuation.
(1) When an item of tangible personal
property is acquired in an arms-length transaction, its true value at the time
of purchase is the acquisition cost, including all costs incurred to put the
property in place and make it capable of operation, which are normally
capitalized in accordance with generally accepted accounting
principles.
(2) The true value in
money of any tangible personal property may be proved by establishing the
amount for which the property would sell in an open market by a willing seller
to a willing buyer in an arm's-length transaction. If market value is estimated
by an appraisal, the property must be appraised as part of an ongoing business
unless the taxpayer can demonstrate that the property is more accurately
appraised on the basis of piecemeal liquidation or disposal.
(3) If a taxpayer believes that the composite
annual allowance procedure as determined by the commissioner does not
accurately reflect the true value in money of the taxpayer's depreciable
tangible personal property on hand, the taxpayer may establish more accurate
annual allowances by probative evidence.
(a)
Such evidence must show that the published composite annual allowance
procedures are inappropriate because they cause an unjust or unreasonable
result, or must be modified because of special or unusual
circumstances.
(b) Such evidence
may include, but is not limited to, an aging of disposals study and any other
studies, data, or documentation the taxpayer wishes to submit for consideration
by the commissioner.
(c) Such
evidence must cover a sufficient number of years to demonstrate a pattern in
the history of the useful life of the subject property.
(C) A taxpayer must file a claim
for deduction from book value for every tax return on which depreciable
tangible personal property is returned at a value less than depreciated book
value. Such claim must be made in writing at the time of filing the return on
form 902, as prescribed by the commissioner, or in a format containing
substantially all information as required on form 902.
Notes
Promulgated Under: 119.03
Statutory Authority: 5703.05
Rule Amplifies: 5711.02, 5711.03, 5711.09, 5711.18
Prior Effective Dates: 2/21/86
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