Ohio Admin. Code 5703-3-12 - Tangible personal property tax; true value; exhaustion method; presumed disposals
(A) As used in this rule, "exhaustion method"
means a procedure for valuing tangible personal property of a business in which
the cost and accumulated depreciation reserves of furniture, fixtures, and
machinery and equipment are shown on the taxpayer's books and records as fully
depreciated, and the taxpayer maintains no records of actual disposals of such
property.
(B) Retail merchants and
other taxpayers who follow the practice of showing fully depreciated assets on
the books, whether or not physically disposed of, must value and list these
assets for taxation as long as they are held for use in business. If the
taxpayer maintains no records of disposals of fully depreciated assets, the
exhaustion method may be used to compute the true value of this property for
the purposes of the tangible personal property tax.
(C) A taxpayer who meets the requirements of
paragraph (B) of this rule shall calculate the true value of furniture,
fixtures, and machinery and equipment as follows: The costs of fully
depreciated assets acquired during each of the ten years preceding the year for
which that class of property reaches its minimum utility value as shown on the
composite annual allowance procedure for the current year, as determined
pursuant to rule
5703-3-11
of the Administrative Code, shall be included. To reflect estimated disposals,
the cost shall be reduced by ten per cent for each year that the year of
acquisition precedes the year of minimum utility value for the current tax
year. The property is considered to be totally disposed of if acquired more
than nine years before the year of minimum utility value for the current tax
year. The value of this property is computed using the reduced cost and the
minimum utility value percentage for that class of property for the current tax
year.
(D) The tax commissioner may
publish detailed instructions or examples to assist taxpayers in applying the
provisions of this rule.
Notes
Promulgated Under: 119.03
Statutory Authority: 5703.05
Rule Amplifies: 5711.03, 5711.18, 5711.21, 5711.22
Prior Effective Dates: 2/3/86
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.