CHAPTER 3. PROCEDURES FOR PERSONAL PROPERTY ASSESSMENT
IC 6-1.1-3
Chapter 3. Procedures for Personal Property Assessment
IC 6-1.1-3-1
Residents and nonresidents; place of assessment; evidence of filing
Sec. 1. (a) Except as provided in subsection (c), personal propertywhich is owned by a person who is a resident of this state shall beassessed at the place where the owner resides on the assessment dateof the year for which the assessment is made.
(b) Except as provided in subsection (c), personal property whichis owned by a person who is not a resident of this state shall beassessed at the place where the owner's principal office within thisstate is located on the assessment date of the year for which theassessment is made.
(c) Personal property shall be assessed at the place where it issituated on the assessment date of the year for which the assessmentis made if the property is:
(1) regularly used or permanently located where it is situated;or
(2) owned by a nonresident who does not have a principal officewithin this state.
(d) If a personal property return is filed pursuant to subsection (c),the owner of the property shall provide, within forty-five (45) daysafter the filing deadline, a copy or other written evidence of the filingof the return to the assessor of the township in which the ownerresides or to the county assessor if there is no township assessor forthe township. If such evidence is not filed within forty-five (45) daysafter the filing deadline, the township or county assessor for the areawhere the owner resides shall determine if the owner filed a personalproperty return in the township or county where the property issituated. If such a return was filed, the property shall be assessedwhere it is situated. If such a return was not filed, the township orcounty assessor for the area where the owner resides shall notify theassessor of the township or county where the property is situated, andthe property shall be assessed where it is situated. This subsectiondoes not apply to a taxpayer who:
(1) is required to file duplicate personal property returns undersection 7(c) of this chapter and under regulations promulgatedby the department of local government finance with respect tothat section; or
(2) is required by the department of local government financeto file a summary of the taxpayer's business tangible personalproperty returns.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1979,P.L.48, SEC.1; Acts 1980, P.L.35, SEC.1; P.L.2-1998, SEC.14;P.L.90-2002, SEC.21; P.L.74-2003, SEC.1; P.L.146-2008, SEC.51.
IC 6-1.1-3-2
Property held by trustee, party, or receiver
Sec. 2. If residence determines the place of assessment of personal
property and the property is held by a trustee, guardian, or receiver,the residence of the trustee, guardian, or receiver is the place ofassessment.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-3-3
Estate of deceased individuals
Sec. 3. If residence determines the place of assessment of personalproperty which is part of the estate of a deceased individual, theresidence of the decedent immediately before his death is the placeof assessment until the property is distributed to the heirs or otherpersons entitled to it.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-3-4
Conflicts involving assessment location; settlement
Sec. 4. (a) If a question arises as to the proper place to assesspersonal property, the county assessor shall determine the place if:
(1) two (2) or more townships in the county are served bytownship assessors and the conflict involves two (2) or more ofthose townships; or
(2) the conflict does not involve any other county and none ofthe townships in the county is served by a township assessor.
If the conflict involves different counties, the department of localgovernment finance shall determine the proper place of assessment.
(b) A determination made under this section by the department oflocal government finance is final.
(c) If taxes are paid to a county which is not entitled to collectthem, the department of local government finance may direct theauthorities of the county which wrongfully collected the taxes torefund the taxes collected and any penalties charged on the taxes.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.5-1988,SEC.41; P.L.90-2002, SEC.22; P.L.146-2008, SEC.52.
IC 6-1.1-3-5
Assessment books and blanks; delivery
Sec. 5. Before the assessment date of each year, the county auditorshall deliver to each township assessor (if any) and the countyassessor the proper assessment books and necessary blanks for thelisting and assessment of personal property.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.146-2008,SEC.53.
IC 6-1.1-3-6
Return; furnishing to taxpayer
Sec. 6. Between the assessment date and the filing date of eachyear, the appropriate township assessor, or the county assessor ifthere is no township assessor for the township, shall furnish eachperson whose personal property is subject to assessment for that yearwith a personal property return.(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1995,SEC.19; P.L.146-2008, SEC.54.
IC 6-1.1-3-7
Filing returns; extension of time; consolidated returns
Sec. 7. (a) Except as provided in subsections (b) and (d), ataxpayer shall, on or before the filing date of each year, file apersonal property return with:
(1) the assessor of each township in which the taxpayer'spersonal property is subject to assessment; or
(2) the county assessor if there is no township assessor for atownship in which the taxpayer's personal property is subject toassessment.
(b) The township assessor or county assessor may grant a taxpayeran extension of not more than thirty (30) days to file the taxpayer'sreturn if:
(1) the taxpayer submits a written application for an extensionprior to the filing date; and
(2) the taxpayer is prevented from filing a timely return becauseof sickness, absence from the county, or any other good andsufficient reason.
(c) If the sum of the assessed values reported by a taxpayer on thebusiness personal property returns which the taxpayer files with thetownship assessor or county assessor for a year exceeds one hundredfifty thousand dollars ($150,000), the taxpayer shall file each of thereturns in duplicate.
(d) If:
(1) a taxpayer has personal property subject to assessment inmore than one (1) township in a county; and
(2) the total assessed value of the personal property in thecounty is less than one million five hundred thousand dollars($1,500,000);
the taxpayer filing a return shall file a single return with the countyassessor and attach a schedule listing, by township, all the taxpayer'spersonal property and the property's assessed value. The taxpayershall provide the county assessor with the information necessary forthe county assessor to allocate the assessed value of the taxpayer'spersonal property among the townships listed on the return, includingthe street address, the township, and the location of the property.
(e) The county assessor shall provide to each affected townshipassessor (if any) in the county all information filed by a taxpayerunder subsection (d) that affects the township.
(f) The county assessor may refuse to accept a personal propertytax return that does not comply with subsection (d). For purposes ofIC 6-1.1-37-7, a return to which subsection (d) applies is filed on thedate it is filed with the county assessor with the schedule required bysubsection (d) attached.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.61-1983,SEC.1; P.L.56-1985, SEC.1; P.L.54-1991, SEC.1; P.L.41-1993,SEC.4; P.L.25-1995, SEC.12; P.L.6-1997, SEC.9; P.L.198-2001,
SEC.5; P.L.146-2008, SEC.55.
IC 6-1.1-3-7.5
Amended returns; tax adjustments; credits
Sec. 7.5. (a) A taxpayer may file an amended personal propertytax return, in conformity with the rules adopted by the department oflocal government finance, not more than six (6) months after the laterof the following:
(1) The filing date for the original personal property tax return,if the taxpayer is not granted an extension in which to file undersection 7 of this chapter.
(2) The extension date for the original personal property taxreturn, if the taxpayer is granted an extension under section 7 ofthis chapter.
(b) A tax adjustment related to an amended personal property taxreturn shall be made in conformity with rules adopted underIC 4-22-2 by the department of local government finance.
(c) If a taxpayer wishes to correct an error made by the taxpayeron the taxpayer's original personal property tax return, the taxpayermust file an amended personal property tax return under this sectionwithin the time required by subsection (a). A taxpayer may claim onan amended personal property tax return any adjustment orexemption that would have been allowable under any statute or ruleadopted by the department of local government finance if theadjustment or exemption had been claimed on the original personalproperty tax return.
(d) Notwithstanding any other provision, if:
(1) a taxpayer files an amended personal property tax returnunder this section in order to correct an error made by thetaxpayer on the taxpayer's original personal property tax return;and
(2) the taxpayer is entitled to a refund of personal propertytaxes paid by the taxpayer under the original personal propertytax return;
the taxpayer is not entitled to interest on the refund.
(e) If a taxpayer files an amended personal property tax return fora year before July 16 of that year, the taxpayer shall pay taxespayable in the immediately succeeding year based on the assessedvalue reported on the amended return.
(f) If a taxpayer files an amended personal property tax return fora year after July 15 of that year, the taxpayer shall pay taxes payablein the immediately succeeding year based on the assessed valuereported on the taxpayer's original personal property tax return. Ataxpayer that paid taxes under this subsection is entitled to a creditin the amount of taxes paid by the taxpayer on the remainder of:
(1) the assessed value reported on the taxpayer's originalpersonal property tax return; minus
(2) the finally determined assessed value that results from thefiling of the taxpayer's amended personal property tax return.
Except as provided in subsection (k), the county auditor shall apply
the credit against the taxpayer's property taxes on personal propertypayable in the year that immediately succeeds the year in which thetaxes were paid.
(g) If the amount of the credit to which the taxpayer is entitledunder subsection (f) exceeds the amount of the taxpayer's propertytaxes on personal property payable in the year that immediatelysucceeds the year in which the taxes were paid, the county auditorshall apply the amount of the excess credit against the taxpayer'sproperty taxes on personal property in the next succeeding year.
(h) Not later than December 31 of the year in which a credit isapplied under subsection (g), the county auditor shall refund to thetaxpayer the amount of any excess credit that remains afterapplication of the credit under subsection (g).
(i) The taxpayer is not required to file an application for:
(1) a credit under subsection (f) or (g); or
(2) a refund under subsection (h).
(j) Before August 1 of each year, the county auditor shall provideto each taxing unit in the county an estimate of the total amount ofthe credits under subsection (f) or (g) that will be applied againsttaxes imposed by the taxing unit that are payable in the immediatelysucceeding year.
(k) A county auditor may refund a credit amount to a taxpayerbefore the time the credit would otherwise be applied againstproperty tax payments under this section.
As added by P.L.6-1997, SEC.8. Amended by P.L.198-2001, SEC.6;P.L.90-2002, SEC.23.
IC 6-1.1-3-8
Vending machine owners
Sec. 8. (a) The owner of a vending machine shall place on the faceof the machine an identificatiion device which accurately reveals theowner's name and address, and he shall include the machine in hisannual personal property return.
(b) For purposes of this section, the term "vending machine"means a machine which dispenses goods, wares, or merchandisewhen a coin is deposited in it and which by automatic action canphysically deliver goods, wares, or merchandise to the depositor ofthe coin.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-3-9
Return; necessary information
Sec. 9. (a) In completing a personal property return for a year, ataxpayer shall make a complete disclosure of all information requiredby the department of local government finance that is related to thevalue, nature, or location of personal property:
(1) that the taxpayer owned on the assessment date of that year;or
(2) that the taxpayer held, possessed, or controlled on theassessment date of that year. (b) The taxpayer shall certify to the truth of:
(1) all information appearing in a personal property return; and
(2) all data accompanying the return.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.24.
IC 6-1.1-3-10
Property located in two or more townships or taxing districts;additional or separate returns
Sec. 10. (a) If a taxpayer owns, holds, possesses, or controlspersonal property which is located in two (2) or more townships, thetaxpayer shall file any additional returns with the county assessorwhich the department of local government finance may require byregulation.
(b) If a taxpayer owns, holds, possesses, or controls personalproperty which is located in two (2) or more taxing districts withinthe same township, the taxpayer shall file a separate personalproperty return covering the property in each taxing district.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.25; P.L.219-2007, SEC.10.
IC 6-1.1-3-11
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-3-12
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-3-13
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-3-14
Verification of returns
Sec. 14. The township assessor, or the county assessor if there isno township assessor for the township, shall:
(1) examine and verify; or
(2) allow a contractor under IC 6-1.1-36-12 to examine andverify;
the accuracy of each personal property return filed with the townshipor county assessor by a taxpayer. If appropriate, the assessor orcontractor under IC 6-1.1-36-12 shall compare a return with thebooks of the taxpayer and with personal property owned, held,possessed, controlled, or occupied by the taxpayer.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.178-2002,SEC.4; P.L.146-2008, SEC.56.
IC 6-1.1-3-15
Failure to file return; alternative assessment procedures; election
to file
Sec. 15. (a) In connection with the activities required by section14 of this chapter, or if a person owning, holding, possessing, orcontrolling any personal property fails to file a personal propertyreturn with the township or county assessor as required by thischapter, the township or county assessor may examine:
(1) the personal property of the person;
(2) the books and records of the person; and
(3) under oath, the person or any other person whom theassessor believes has knowledge of the amount, identity, orvalue of the personal property reported or not reported by theperson on a return.
(b) After such an examination, the assessor shall assess thepersonal property to the person owning, holding, possessing, orcontrolling that property.
(c) As an alternative to such an examination, the township orcounty assessor may estimate the value of the personal property ofthe taxpayer and shall assess the person owning, holding, possessing,or controlling the property in an amount based upon the estimate.Upon receiving a notification of estimated value from the townshipor county assessor, the taxpayer may elect to file a personal propertyreturn, subject to the penalties imposed by IC 6-1.1-37-7.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.63, SEC.1; P.L.57-1985, SEC.1; P.L.146-2008, SEC.57.
IC 6-1.1-3-16
Property converted for tax avoidance; assessment
Sec. 16. If, from the evidence before a township or countyassessor, the assessor determines that a person has temporarilyconverted any part of the person's personal property into propertywhich is not taxable under this article to avoid the payment of taxeson the converted property, the township or county assessor shallassess the converted property to the taxpayer.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.146-2008,SEC.58.
IC 6-1.1-3-17
Assessment list; certification to county auditor
Sec. 17. (a) On or before June 1 of each year, each townshipassessor (if any) of a county shall deliver to the county assessor a listwhich states by taxing district the total of the personal propertyassessments as shown on the personal property returns filed with thetownship assessor on or before the filing date of that year and in acounty with a township assessor under IC 36-6-5-1 in every townshipthe township assessor shall deliver the lists to the county auditor asprescribed in subsection (b).
(b) On or before July 1 of each year, each county assessor shallcertify to the county auditor the assessment value of the personalproperty in every taxing district.
(c) The department of local government finance shall prescribe
the forms required by this section.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.10; P.L.90-2002, SEC.28; P.L.146-2008, SEC.59.
IC 6-1.1-3-18
Reports to county assessors and auditors; copies of returns
Sec. 18. (a) Each township assessor of a county (if any) shallperiodically report to the county assessor and the county auditor withrespect to the returns and properties of taxpayers which the townshipassessor has examined. The township assessor shall submit thesereports in the form and on the dates prescribed by the department oflocal government finance.
(b) Each year, the county assessor:
(1) shall review and may audit the business personal propertyreturns that the taxpayer is required to file in duplicate undersection 7(c) of this chapter; and
(2) shall determine the returns in which the assessment appearsto be improper.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1998,SEC.15; P.L.90-2002, SEC.29; P.L.219-2007, SEC.11;P.L.146-2008, SEC.60.
IC 6-1.1-3-19
Information available to county assessor and county property taxassessment board of appeals
Sec. 19. (a) While a county property tax assessment board ofappeals is in session, each township assessor of the county (if any)shall make the following information available to the county assessorand the board:
(1) Personal property returns.
(2) Documents related to the returns.
(3) Any information in the possession of the township assessorthat is related to the identity of the owners or possessors ofproperty or the values of property.
(b) Upon written request of the board, the township assessor shallfurnish information referred to in subsection (a) to any member ofthe board either directly or through employees of the board.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.11; P.L.146-2008, SEC.61.
IC 6-1.1-3-20
Change in valuation; notice
Sec. 20. If an assessing official changes a valuation made by aperson on the person's personal property return or adds personalproperty and its value to a return, the assessing official shall, by mail,immediately give the person notice of the action taken. However, ifa taxpayer lists property on the taxpayer's return but does not placea value on the property, a notice of the action of an assessing officialin placing a value on the property is not required.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.146-2008,
SEC.62.
IC 6-1.1-3-21
Preservation of records; inspection
Sec. 21. Subject to the limitations in IC 6-1.1-35-9, assessmentreturns, lists, and any other documents and information related to thedetermination of personal property assessments shall be preserved aspublic records and open to public inspection. The township assessor,or the county assessor if there is no township assessor for thetownship, shall preserve and maintain these records.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.12; P.L.146-2008, SEC.63.
IC 6-1.1-3-22
Reinstatement of personal property rules; prohibition againstamendment of certain rules for department of local governmentfinance
Sec. 22. (a) Except to the extent that it conflicts with a statute andsubject to subsection (f), 50 IAC 4.2 (as in effect January 1, 2001),which was formerly incorporated by reference into this section, isreinstated as a rule.
(b) Tangible personal property within the scope of 50 IAC 4.2 (asin effect January 1, 2001) shall be assessed on the assessment datesin calendar years 2003 and thereafter in conformity with 50 IAC 4.2(as in effect January 1, 2001).
(c) The publisher of the Indiana Administrative Code shall publish50 IAC 4.2 (as in effect January 1, 2001) in the IndianaAdministrative Code.
(d) 50 IAC 4.3 and any other rule to the extent that it conflictswith this section is void.
(e) A reference in 50 IAC 4.2 to a governmental entity that hasbeen terminated or a statute that has been repealed or amended shallbe treated as a reference to its successor.
(f) The department of local government finance may not amendor repeal the following (all as in effect January 1, 2001):
(1) 50 IAC 4.2-4-3(f).
(2) 50 IAC 4.2-4-7.
(3) 50 IAC 4.2-4-9.
(4) 50 IAC 4.2-5-7.
(5) 50 IAC 4.2-5-13.
(6) 50 IAC 4.2-6-1.
(7) 50 IAC 4.2-6-2.
(8) 50 IAC 4.2-8-9.
As added by P.L.192-2002(ss), SEC.28. Amended by P.L.245-2003,SEC.2.
IC 6-1.1-3-23
Election of valuation method for special integrated steel mill or oilrefinery; petrochemical equipment
Sec. 23. (a) For purposes of this section: (1) "adjusted cost" refers to the adjusted cost established in 50IAC 4.2-4-4 (as in effect on January 1, 2003);
(2) "depreciable personal property" has the meaning set forth in50 IAC 4.2-4-1 (as in effect on January 1, 2003);
(3) "integrated steel mill" means a person, including asubsidiary of a corporation, that produces steel by processingiron ore and other raw materials in a blast furnace in Indiana;
(4) "oil refinery/petrochemical company" means a person thatproduces a variety of petroleum products by processing anannual average of at least one hundred thousand (100,000)barrels of crude oil per day;
(5) "permanently retired depreciable personal property" has themeaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,2003);
(6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (asin effect on January 1, 2003);
(7) "special integrated steel mill or oil refinery/petrochemicalequipment" means depreciable personal property, other thanspecial tools and permanently retired depreciable personalproperty:
(A) that:
(i) is owned, leased, or used by an integrated steel mill oran entity that is at least fifty percent (50%) owned by anaffiliate of an integrated steel mill; and
(ii) falls within Asset Class 33.4 as set forth in IRS Rev.Proc. 87-56, 1987-2, C.B. 647; or
(B) that:
(i) is owned, leased, or used as an integrated part of an oilrefinery/petrochemical company or its affiliate; and
(ii) falls within Asset Class 13.3 or 28.0 as set forth in IRSRev. Proc. 87-56, 1987-2, C.B. 647;
(8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2(as in effect on January 1, 2003); and
(9) "year of acquisition" refers to the year of acquisitiondetermined under 50 IAC 4.2-4-6 (as in effect on January 1,2003).
(b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50 IAC4.2-4-7, a taxpayer may elect to calculate the true tax value of thetaxpayer's special integrated steel mill or oil refinery/petrochemicalequipment by multiplying the adjusted cost of that equipment by thepercentage set forth in the following table:
Year of Acquisition Percentage
1 40%
2 56%
3 42%
4 32%
5 24%
6 18%
7 15%
8 and older 10% (c) The department of local government finance shall designatethe table under subsection (b) as "Pool No. 5" on the businesspersonal property tax return.
(d) The percentage factors in the table under subsection (b)automatically reflect all adjustments for depreciation andobsolescence, including abnormal obsolescence, for specialintegrated steel mill or oil refinery/petrochemical equipment. Theequipment is entitled to all exemptions, credits, and deductions forwhich it qualifies.
(e) The minimum valuation limitations under 50 IAC 4.2-4-9 donot apply to special integrated steel mill or oil refinery/petrochemicalequipment valued under this section. The value of the equipment isnot included in the calculation of that minimum valuation limitationfor the taxpayer's other assessable depreciable personal property inthe taxing district.
(f) An election to value special integrated steel mill or oilrefinery/petrochemical equipment under this section:
(1) must be made by reporting the equipment under this sectionon a business personal property tax return;
(2) applies to all of the taxpayer's special integrated steel millor oil refinery/petrochemical equipment located in the state(whether owned or leased, or used as an integrated part of theequipment); and
(3) is binding on the taxpayer for the assessment date for whichthe election is made.
The department of local government finance shall prescribe theforms to make the election beginning with the March 1, 2003,assessment date. Any special integrated steel mill or oilrefinery/petrochemical equipment acquired by a taxpayer that hasmade an election under this section is valued under this section.
(g) If fifty percent (50%) or more of the adjusted cost of ataxpayer's property that would, notwithstanding this section, bereported in a pool other than Pool No. 5 is attributable to specialintegrated steel mill or oil refinery/petrochemical equipment, thetaxpayer may elect to calculate the true tax value of all of thatproperty as special integrated steel mill or oil refinery/petrochemicalequipment. The true tax value of property for which an election ismade under this subsection is calculated under subsections (b)through (f).
As added by P.L.120-2003, SEC.1. Amended by P.L.228-2005,SEC.2; P.L.246-2005, SEC.59.