CHAPTER 8. TAXATION OF PUBLIC UTILITY COMPANIES
IC 6-1.1-8
Chapter 8. Taxation of Public Utility Companies
IC 6-1.1-8-1
Property owned or used by public utility company
Sec. 1. The property owned or used by a public utility companyshall be taxed in the manner prescribed in this chapter. Property usedby a public utility company consists of property which the companyuses under an agreement whereby the company exercises thebeneficial rights of ownership for the major part of a year. Whenreference is made in this chapter to the "property of" a public utilitycompany or to the public utility "company's property", the referenceincludes the property owned or used by that company.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-8-2
Definitions
Sec. 2. As used in this chapter:
(1) The term "bridge company" means a company which owns oroperates a toll bridge or an approach or facility operated inconnection with such a bridge.
(2) The term "bus company" means a company (other than a streetrailway company) which is principally engaged in the business oftransporting persons for hire by bus in or through two (2) or moretownships of this state.
(3) The term "definite situs" means a permanent location in one(1) taxing district or a customary location for use in one (1) taxingdistrict.
(4) The term "express company" means a company which isengaged in the business of transporting property by land, air, orwater, and which does not itself operate the vehicles (except forterminal pickup and delivery vehicles) of transportation.
(5) The term "light, heat, or power company" means a companywhich is engaged in the business of furnishing light, heat, or powerby electricity, gas, or steam.
(6) The term "pipe line company" means a company which isengaged in the business of transporting or transmitting any gas orfluid (except water) through pipes.
(7) The term "property" includes both tangible and intangibleproperty.
(8) The term "public utility company" means a company which issubject to taxation under this chapter regardless of whether thecompany is operated by an individual, a partnership, an association,a corporation, a limited liability company, a fiduciary, or any otherentity.
(9) The term "railroad company" means a company which ownsor operates:
(i) a steam or electric railroad;
(ii) a suburban or interurban railroad;
(iii) a switching or terminal railroad; (iv) a railroad station, track, or bridge; or
(v) a facility which is part of a railroad system.
(10) The term "railroad car company" means a company (otherthan a railroad company) which owns or operates cars for thetransportation of property on railroads.
(11) The term "sleeping car company" means a company (otherthan a railroad company) which owns or operates cars for thetransportation of passengers on railroads.
(12) The term "street railway company" means a company whichoperates a passenger transportation business principally within one(1) or more municipalities regardless of whether the transportationvehicles operate on tracks, by means of electric power transmittedthrough wires, or by means of automotive equipment.
(13) The term "system" means all property owned or used by apublic utility company or companies and operated as one (1) unit infurnishing a public utility service.
(14) The term "telephone, telegraph, or cable company" means acompany which is principally engaged in the business ofcommunicating by electrical transmission.
(15) The term "tunnel company" means a company which ownsor operates a toll tunnel.
(16) The term "unit value" means the total value of all theproperty owned or used by a public utility company.
(17) The term "water distribution company" means a companywhich is engaged in the business of selling or distributing water bypipe, main, canal, or ditch.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.10; Acts 1981, P.L.66, SEC.1; Acts 1982, P.L.43, SEC.1;P.L.64-1983, SEC.1; P.L.59-1985, SEC.1; P.L.8-1993, SEC.79.
IC 6-1.1-8-3
Companies subject to taxation
Sec. 3. (a) Except as provided in subsection (c), the followingcompanies are subject to taxation under this chapter:
(1) Each company which is engaged in the business oftransporting persons or property.
(2) Each company which is engaged in the business of sellingor distributing electricity, gas, steam, or water.
(3) Each company which is engaged in the business oftransmitting messages for the general public by wire orairwaves.
(4) Each company which is engaged in the business of operatinga sewage system or a sewage treatment plant.
(b) The companies which are subject to taxation under thischapter include, but are not limited to:
(1) bridge companies;
(2) bus companies;
(3) express companies;
(4) light, heat, or power companies;
(5) pipeline companies; (6) railroad companies;
(7) railroad car companies;
(8) sleeping car companies;
(9) street railway companies;
(10) telephone, telegraph, or cable companies;
(11) tunnel companies; and
(12) water distribution companies.
(c) The following companies are not subject to taxation under thischapter:
(1) Aviation companies.
(2) Broadcasting companies.
(3) Television companies.
(4) Water transportation companies.
(5) Companies which are operated by a municipality or amunicipal corporation, except those utility companies owned orheld in trust by a first class city.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,P.L.8, SEC.51; Acts 1981, P.L.66, SEC.2; P.L.64-1983, SEC.2;P.L.59-1985, SEC.2.
IC 6-1.1-8-4
Companies within and partially outside state; tax determinations
Sec. 4. (a) If a public utility company operates a system partiallywithin and partially without this state, the company's property whichis subject to taxation under this chapter is:
(1) that property which has a definite situs in this state; and
(2) that property which does not have a definite situs either inthis state or in any other state and which the department of localgovernment finance determines is taxable in this state.
(b) To determine the value of an interstate public utilitycompany's property which does not have a definite situs either in thisstate or in any other state and which is taxable in this state, thedepartment of local government finance shall consider the value ofall the company's property which does not have a definite situs andshall allocate a reasonable portion of that property to this state. Thedepartment of local government finance shall make the allocation ina manner which is fair to both the state and the company.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.11; P.L.90-2002, SEC.57.
IC 6-1.1-8-5
Fixed property; definite-situs distributable property;indefinite-situs distributable property
Sec. 5. The property owned or used by the various public utilitycompanies is classified under sections 6 through 18 of this chapteras fixed property, definite-situs distributable property, orindefinite-situs distributable property. When a reference is made inthis chapter to fixed property, definite-situs distributable property, orindefinite-situs distributable property, the classifications containedin sections 6 through 18 of this chapter apply.(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-8-6
Bridge companies
Sec. 6. (a) The fixed property of a bridge company consists of realproperty which is not part of a bridge head or right-of-way of thecompany. The remainder of the bridge company's property isdistributable property.
(b) A bridge company's definite-situs distributable propertyconsists of:
(1) bridges;
(2) land on which bridge heads are located; and
(3) the company's rights-of-way.
(c) A bridge company's property which is not described insubsection (a) or (b) is indefinite-situs distributable property. Thedepartment of local government finance shall apportion anddistribute the assessed valuation of this property among the taxingdistricts in which the company has property that is described in eithersubsection (a) or (b). The amount which the department of localgovernment finance shall distribute to a taxing district equals theproduct of (1) the total assessed valuation of the bridge company'sindefinite-situs distributable property, multiplied by (2) a fraction,the numerator of which is the value of the company's property whichis located in the taxing district and which is described in eithersubsection (a) or (b), and the denominator of which is the value ofthe company's property which is located in this state and which isdescribed in either subsection (a) or (b).
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.12; P.L.90-2002, SEC.58.
IC 6-1.1-8-7
Bus companies
Sec. 7. (a) The fixed property of a bus company consists of realproperty.
(b) A bus company's property which is not described in subsection(a) is indefinite-situs distributable property. This property includes,but is not limited to, buses and other mobile equipment. Thedepartment of local government finance shall apportion anddistribute the assessed valuation of this property among the taxingdistricts in or through which the company operates its system. Theamount which the department of local government finance shalldistribute to a taxing district equals the product of (1) the totalassessed valuation of the bus company's indefinite-situs distributableproperty, multiplied by (2) a fraction, the numerator of which is thecompany's average daily regularly scheduled passenger vehicle routemiles in the taxing district, and the denominator of which is thecompany's average daily regularly scheduled passenger vehicle routemiles in this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.59; P.L.182-2009(ss), SEC.93.
IC 6-1.1-8-8
Express companies
Sec. 8. (a) The fixed property of an express company consists ofreal property. The remainder of the express company's property isindefinite-situs distributable property.
(b) The department of local government finance shall apportionand distribute the assessed valuation of an express company'sindefinite-situs distributable property among the taxing districts inwhich the fixed property of the company is located. The amountwhich the department of local government finance shall distribute toa taxing district equals the product of (1) the total assessed valuationof the express company's indefinite-situs distributable property,multiplied by (2) a fraction, the numerator of which is the value ofthe company's fixed property which is located in the taxing district,and the denominator of which is the value of the company's fixedproperty which is located in this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.60; P.L.182-2009(ss), SEC.94.
IC 6-1.1-8-9
Light, heat, or power companies
Sec. 9. (a) The fixed property of a light, heat, or power companyconsists of real property which is not part of the company'sright-of-ways, transmission system, or distribution system.
(b) A light, heat, or power company's property which is notdescribed as fixed property in subsection (a) of this section isdefinite-situs distributable property. This property includes, but isnot limited to, turbo-generators, boilers, transformers, transmissionlines, distribution lines, and pipe lines.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended byP.L.182-2009(ss), SEC.95.
IC 6-1.1-8-10
Pipe line companies
Sec. 10. (a) The fixed property of a pipe line company consists ofreal property which is not part of a pipe line or right-of-way of thecompany.
(b) A pipe line company's property which is not described insubsection (a) is indefinite-situs distributable property. Thedepartment of local government finance shall apportion anddistribute the assessed valuation of this property among the taxingdistricts in which the company's pipe lines are located. The amountwhich the department of local government finance shall distribute toa taxing district equals the product of (1) the total assessed valuationof the pipe line company's indefinite-situs distributable property,multiplied by (2) a fraction, the numerator of which is the length ofthe company's pipe lines in the taxing district, and the denominatorof which is the length of the company's pipe lines in this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.61; P.L.182-2009(ss), SEC.96.
IC 6-1.1-8-11
Railroad companies
Sec. 11. (a) The fixed property of the railroad company consistsof real property which is not required for the operation of therailroad. The remaining property of the railroad company isdistributable property.
(b) A railroad company's definite-situs distributable propertyconsists of the company's:
(1) rights-of-way and road beds;
(2) station and depot grounds;
(3) yards, yard sites, superstructures, turntable, and turnouts;
(4) tracks;
(5) telegraph poles, wires, instruments, and other appliances,which are located on the right-of-ways; and
(6) any other buildings or fixed situs personal property used inthe operation of the railroad.
(c) A railroad company's property which is not described insubsection (a) or (b) is indefinite-situs distributable property. Thisproperty includes, but is not limited to, rolling stock. The departmentof local government finance shall apportion and distribute theassessed valuation of this property among the taxing districts inwhich the railroad company operates its system. The amount whichthe department of local government finance shall distribute to ataxing district equals the product of (1) the total assessed valuationof the railroad company's indefinite-situs distributable property,multiplied by (2) a fraction, the numerator of which is the relativevalue of the company's main lines, branch lines, main tracks, secondmain tracks, and sidetracks, including all leased lines and tracks,which are located in the taxing district, and the denominator of whichis the relative value of the company's main lines, branch lines, maintracks, second main tracks, and sidetracks, including all leased linesand tracks, which are located in this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.62; P.L.182-2009(ss), SEC.97.
IC 6-1.1-8-12
Railroad car companies
Sec. 12. (a) The fixed property of a railroad car company consistsof real property. The remainder of the railroad car company'sproperty is indefinite-situs distributable property.
(b) The department of local government finance shall assess arailroad car company's indefinite-situs distributable property on thebasis of the average number of cars owned or used by the companywithin this state during the twelve (12) months of the calendar yearpreceding the year of assessment. The average number of cars withinthis state equals the product of:
(1) the sum of "M" plus "E"; multiplied by
(2) a fraction, the numerator of which is "N", and thedenominator of which is the number two (2).
"M" equals the mileage traveled by the railroad car company's cars
in this state divided by the mileage traveled by the company's carsboth within and outside this state. "E" equals the earnings generatedby the company's cars in this state divided by the earnings generatedby the company's cars both within and outside this state. "N" equalsthe total number of cars owned or used by the company both withinand outside this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.13; P.L.78-1987, SEC.1; P.L.90-2002, SEC.63;P.L.182-2009(ss), SEC.98.
IC 6-1.1-8-12.5
Repealed
(Repealed by P.L.59-1985, SEC.37.)
IC 6-1.1-8-13
Sleeping car companies
Sec. 13. (a) The fixed property of a sleeping car company consistsof real property.
(b) A sleeping car company's property which is not described insubsection (a) is indefinite-situs distributable property. Thedepartment of local government finance shall apportion anddistribute the assessed valuation of this property among the taxingdistricts in or through which the company operates cars. Thedepartment of local government finance shall make theapportionment in a manner which it considers fair.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.64; P.L.182-2009(ss), SEC.99.
IC 6-1.1-8-14
Street railway companies
Sec. 14. (a) The fixed property of a street railway companyconsists of real property which is not part of the company's tracks orrights-of-way.
(b) A street railway company's property which is not described insubsection (a) is distributable property. This property includes, butis not limited to:
(1) rights-of-way of the company;
(2) tangible personal property which is located on aright-of-way of the company; and
(3) rolling stock.
(c) The department of local government finance shall apportionand distribute the assessed valuation of a street railway company'sindefinite-situs distributable property among the taxing districts in orthrough which the company operates its system. The amount whichthe department of local government finance shall distribute to ataxing district equals the product of (1) the total assessed valuationof the street railway company's indefinite-situs distributable property,multiplied by (2) a fraction, the numerator of which is the company'saverage daily regularly scheduled passenger vehicle route miles inthe taxing district, and the denominator of which is the company's
average daily regularly scheduled passenger vehicle route miles inthis state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.14; P.L.90-2002, SEC.65; P.L.182-2009(ss), SEC.100.
IC 6-1.1-8-15
Telephone, telegraph, or cable companies
Sec. 15. (a) The fixed property of a telephone, telegraph, or cablecompany consists of real property which is not part of the company'srights-of-way or distribution system.
(b) A telephone, telegraph, or cable company's property which isnot described under subsection (a) is indefinite-situs distributableproperty. The department of local government finance shallapportion and distribute the assessed valuation of this propertyamong the taxing districts in which the company's lines or cables,including laterals, are located. The amount which the department oflocal government finance shall distribute to a taxing district equalsthe product of (1) the total assessed valuation of the telephone,telegraph, or cable company's indefinite-situs distributable property,multiplied by (2) a fraction, the numerator of which is the length ofthe company's lines and cables, including laterals, which are locatedin the taxing district, and the denominator of which is the length ofthe company's lines and cables, including laterals, which are locatedin this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.66; P.L.182-2009(ss), SEC.101.
IC 6-1.1-8-16
Tunnel companies
Sec. 16. (a) The fixed property of a tunnel company consists ofreal property which is not part of a right-of-way of the company. Theremainder of the tunnel company's property is distributable property.
(b) A tunnel company's definite-situs distributable propertyconsists of the company's tunnels and rights-of-way.
(c) A tunnel company's property which is not described insubsection (a) or (b) is indefinite-situs distributable property. Thedepartment of local government finance shall apportion anddistribute the assessed valuation of this property among the taxingdistricts in which the company has property that is described in eithersubsection (a) or (b). The amount which the department of localgovernment finance shall distribute to a taxing district equals theproduct of (1) the total assessed valuation of the tunnel company'sindefinite-situs distributable property, multiplied by (2) a fraction,the numerator of which is the value of the company's property whichis located in the taxing district and which is described in eithersubsection (a) or (b), and the denominator of which is the value ofthe company's property which is located in this state and which isdescribed in either subsection (a) or (b).
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.67.
IC 6-1.1-8-17
Water distribution companies
Sec. 17. (a) The fixed property of a water distribution companyconsists of real property which is not part of the company'srights-of-way or distribution system. A well, settling basin, orreservoir (except an impounding reservoir) is not fixed property ofa water distribution company if it is used to store treated water orwater in the process of treatment.
(b) A water distribution company's property which is notdescribed as fixed property under subsection (a) is indefinite-situsdistributable property. The department of local government financeshall apportion and distribute the assessed valuation of this propertyamong the taxing districts in which the company's water mains,including feeder and distribution mains, are located. The amountwhich the department of local government finance shall distribute toa taxing district equals the product of (1) the total assessed valuationof the water distribution company's indefinite-situs distributableproperty, multiplied by (2) a fraction, the numerator of which is thelength of the company's water mains, including feeder anddistribution mains, which are located in the taxing district, and thedenominator of which is the length of the company's water mains,including feeder and distribution mains, which are located in thisstate.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.68; P.L.182-2009(ss), SEC.102.
IC 6-1.1-8-18
Other companies
Sec. 18. For a public utility company which is not within one (1)of the classes of companies whose property is described in sections6 through 17 of this chapter, the fixed property of the companyconsists of real property. The remainder of the company's propertyis indefinite-situs distributable property. The department of localgovernment finance shall, in a manner which it considers fair,apportion and distribute the assessed valuation of the company'sindefinite-situs distributable property among the taxing districts inwhich the company operates its system.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.69; P.L.182-2009(ss), SEC.103.
IC 6-1.1-8-19
Statement of value and description of property; filing deadline
Sec. 19. Each year a public utility company shall file a statementconcerning the value and description of the property which is eitherowned or used by the company on the assessment date of that year.The company shall file this statement with the department of localgovernment finance on the form prescribed by the department. Thedepartment of local government finance may extend the due date fora statement. Unless the department of local government financegrants an extension, a public utility company shall file its statement
for a year:
(1) on or before March 1st of that year unless the company is arailroad car company; or
(2) on or before May 1st of that year if the company is arailroad car company.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.66, SEC.4; P.L.59-1985, SEC.3; P.L.90-2002, SEC.70.
IC 6-1.1-8-20
Failure to file statement; penalty; action by attorney general
Sec. 20. (a) If a public utility company does not file a statementwith the department of local government finance on or before thedate prescribed under section 19 of this chapter, the company shallpay a penalty of one hundred dollars ($100) per day for each day thatthe statement is late.
(b) The department of local government finance shall notify theattorney general if a public utility company fails to file a statementon or before the due date. The attorney general shall then bring anaction in the name of this state to collect the penalty due under thissection.
(c) The state auditor shall deposit amounts collected under thissection in the state treasury for credit to the state general fund.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.64-1983,SEC.4; P.L.59-1985, SEC.4; P.L.90-2002, SEC.71.
IC 6-1.1-8-21
Copies of various reports; requests from department of localgovernment finance
Sec. 21. The department of local government finance may ask apublic utility company to provide the department with copies of anyreports which the company has filed with a state or federal agency if:
(1) the reports are related to the valuation, assessment, ortaxation of the company's property; and
(2) the agency has either regulatory or taxing authority.
If the department of local government finance makes such a request,the company shall provide the department with copies of the reports.The department of local government finance may also inspect theoriginal reports filed by the company regardless of whether or not thedepartment has obtained copies of the reports from the company. Inaddition, the department of local government finance may inspect apublic utility company's property, books, and records.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.72.
IC 6-1.1-8-22
Assessment by department of local government finance
Sec. 22. The department of local government finance shall assessthe property of a public utility company based upon the informationavailable to the department if the company:
(1) does not file a statement which is required under section 19
of this chapter;
(2) does not permit the department to examine the company'sproperty, books, or records; or
(3) does not comply with a summons issued by the department.
An assessment which is made by the department of local governmentfinance under this section is final unless the company establishes thatthe department committed actual fraud in making the assessment.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.73.
IC 6-1.1-8-23
Repealed
(Repealed by P.L.182-2009(ss), SEC.460.)
IC 6-1.1-8-24
Township assessor or county assessor determination of assessedvalues
Sec. 24. (a) Each year, a township assessor, or the county assessorif there is no township assessor for the township, shall assess thefixed property that as of the assessment date of that year is:
(1) owned or used by a public utility company; and
(2) located in the township or county.
(b) The township or county assessor shall determine the assessedvalue of fixed property. A township assessor shall certify theassessed values to the county assessor on or before April 1 of theyear of assessment. However, in a county with a township assessorin every township, the township assessor shall certify the list to thedepartment of local government finance. The county assessor shallreview the assessed values and shall certify the assessed values to thedepartment of local government finance on or before April 10 of thatyear.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.24-1986,SEC.11; P.L.6-1997, SEC.31; P.L.90-2002, SEC.75; P.L.88-2005,SEC.10; P.L.146-2008, SEC.98.
IC 6-1.1-8-25
Assessment of distributable property
Sec. 25. (a) Each year the department of local government financeshall assess the distributable property which as of the assessmentdate of that year is owned or used by a public utility company. Thedepartment of local government finance shall determine the assessedvalue of distributable property. The department of local governmentfinance shall equalize its assessments of distributable property in thesame manner that it equalizes assessments of tangible property underIC 6-1.1-14.
(b) The department of local government finance shall distributethe assessed valuation of definite-situs distributable property to thetaxing district in which the property is located. Except as providedin section 35 of this chapter, the department of local governmentfinance shall apportion and distribute the assessed valuation of
indefinite-situs distributable property in the manner prescribed insections 6 through 18 of this chapter. However, this subsection doesnot apply to that distributable property which is taxed under section35 of this chapter.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.66, SEC.5; Acts 1981, P.L.67, SEC.1; P.L.24-1986, SEC.12;P.L.6-1997, SEC.32; P.L.90-2002, SEC.76.
IC 6-1.1-8-26
Valuation of company property
Sec. 26. (a) On or before June 1st of each year, the department oflocal government finance shall determine the just value of theproperty of each public utility company. Except for railroad carcompanies, the department of local government finance shalldetermine that just value by first determining the approximate unitvalue of each public utility company. The value of the distributableproperty of a public utility company, other than a railroad carcompany, equals the remainder of:
(1) the unit value of the company; minus
(2) the value of the company's fixed property.
The value of the distributable property of a railroad car companyequals the value of all of the company's distributable propertymultiplied by the adjustment factor provided under section 12 of thischapter.
(b) In order to determine the unit value of a public utilitycompany, the department of local government finance may consider:
(1) book value;
(2) cost of replacement or reproduction, less depreciation;
(3) cost of establishing and developing the business;
(4) amount and market value or sales price of outstandingsecurities;
(5) valuations determined by another governmental agency orindicated by a judicial decision, including but not limited todeterminations made for rate making purposes;
(6) statistics and reports prepared or filed by the company;
(7) statistics and reports prepared by another governmentalagency or by a private organization if the organization isconsidered reliable by investors and investment dealers;
(8) earnings capitalized at a reasonable rate; and
(9) any other information which the department considersrelevant.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.66, SEC.6; Acts 1982, P.L.43, SEC.3; P.L.59-1985, SEC.5;P.L.90-2002, SEC.77.
IC 6-1.1-8-27
Certification of assessed value; notification of appeal; review bycounty assessor
Sec. 27. (a) As soon as the department of local governmentfinance determines its final assessments of distributable property, the
department shall certify to the county assessor and the county auditorof each county the distributable property assessed values which thedepartment determines are distributable to the taxing districts of thecounty. In addition, if a public utility company has appealed thedepartment of local government finance's final assessment of thecompany's distributable property, the department shall notify thecounty auditor of the appeal.
(b) The county assessor shall review the department of localgovernment finance's certification to determine if any of a publicutility company's property which has a definite situs in the countyhas been omitted. The county auditor shall enter for taxation theassessed valuation of a public utility company's distributableproperty which the department distributes to a taxing district of thecounty.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.78; P.L.256-2003, SEC.2.
IC 6-1.1-8-28
Tentative assessment by the department; appeal opportunity
Sec. 28. (a) Each year the department of local government financeshall notify each public utility company of:
(1) the department's tentative assessment of the company'sdistributable property; and
(2) the value of the company's distributable property used by thedepartment to determine the tentative assessment.
(b) The department of local government finance shall give thenotice required by subsection (a) not later than:
(1) September 1 in the case of railroad car companies; and
(2) June 1 in the case of all other public utility companies.
(c) Not later than ten (10) days after a public utility companyreceives the notice required by subsection (a), the company may:
(1) file with the department its objections to the tentativeassessment; and
(2) request that the department hold a preliminary conferenceon the tentative assessment.
(d) If the public utility company does not file its objections undersubsection (c)(1) within the time allowed:
(1) the tentative assessment is considered final; and
(2) the company may appeal the assessment under section 30 ofthis chapter.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.66, SEC.7; P.L.59-1985, SEC.6; P.L.90-2002, SEC.79;P.L.154-2006, SEC.5.
IC 6-1.1-8-29
Preliminary conference; notice of final assessment
Sec. 29. (a) If a public utility company files its objections to atentative assessment within the time allowed under section 28(c) ofthis chapter, the department of local government finance may hold apreliminary conference on the tentative assessment at a time and
place fixed by the department. After the preliminary conference, ifany, the department of local government finance shall:
(1) make a final assessment of the company's distributableproperty; and
(2) notify the company of the final assessment.
(b) The department of local government finance must give noticeof the final assessment under this section not later than:
(1) September 30 in the case of railroad car companies; and
(2) June 30 in the case of all other public utility companies.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.66, SEC.8; P.L.59-1985, SEC.7; P.L.90-2002, SEC.80;P.L.154-2006, SEC.6.
IC 6-1.1-8-30
Appeal to Indiana board; appeal to tax court
Sec. 30. (a) A public utility company may initiate an appeal of thefinal assessment of the company's distributable property by filing apetition with the Indiana board not later than forty-five (45) daysafter:
(1) the public utility company receives notice of the tentativeassessment under section 28(a) of this chapter if the finalassessment becomes final under section 28(d) of this chapter;or
(2) the department of local government finance gives the publicutility company notice of the final determination under section29(a) of this chapter.
(b) A public utility company may petition for judicial review ofthe Indiana board's final determination to the tax court underIC 6-1.1-15-5. However, the company must:
(1) file a petition for judicial review; and
(2) mail to the county auditor of each county in which thepublic utility company's distributable property is located:
(A) a notice that the petition was filed; and
(B) instructions for obtaining a copy of the petition;
not later than forty-five (45) days after the date of the notice of theIndiana board's final determination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.291-1985,SEC.2; P.L.198-2001, SEC.24; P.L.178-2002, SEC.13;P.L.154-2006, SEC.7; P.L.219-2007, SEC.17.
IC 6-1.1-8-31
Appeal of final judgment; court procedure
Sec. 31. When a public utility company petitions for judicialreview under section 30 of this chapter, the tax court shall:
(1) try the case without a jury;
(2) give preference to the case to ensure a prompt trial;
(3) review the Indiana board's final determination;
(4) presume the findings of the Indiana board are correct; and
(5) order the department of local government finance to filecertified copies of the department's records related to the
assessment if the company asks the court to issue such an order.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.78-1987,SEC.3; P.L.198-2001, SEC.25.
IC 6-1.1-8-32
Setting aside final determination; grounds
Sec. 32. When a public utility company initiates an appeal undersection 30 of this chapter, the tax court may set aside the Indianaboard's final determination and direct the Indiana board to refer thematter to the department of local government finance withinstructions to make another assessment if:
(1) the company shows that the department's final assessment,the department's apportionment and distribution of the finalassessment, or the Indiana board's final determination is clearlyincorrect because the department or the Indiana board violatedthe law or committed fraud; or
(2) the company shows that the department's final assessmentis not supported by substantial evidence.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.291-1985,SEC.3; P.L.198-2001, SEC.26.
IC 6-1.1-8-33
Appeal of township or county assessor's assessment of fixedproperty
Sec. 33. A public utility company may appeal a township orcounty assessor's assessment of fixed property in the same mannerthat it may appeal a township or county assessor's assessment oftangible property under IC 6-1.1-15.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.146-2008,SEC.99.
IC 6-1.1-8-34
Rate of tax; time of payment
Sec. 34. Except for:
(1) a railroad car company's indefinite-situs distributableproperty; and
(2) the distributable property of a railroad company thatprovides service within a commuter transportation districtestablished under IC 8-5-15 and utilizes electricity to powersubstantially all of its railroad passenger cars;
the various taxing units shall tax public utility company propertyassessed for a particular year at the same tax rates at which tangibleproperty assessed for that same year is taxed. The public utilitycompanies shall pay the taxes in the year following the year ofassessment at the same time that taxes on tangible property are dueunder IC 6-1.1-22-9.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.67, SEC.2.
IC 6-1.1-8-35 Indefinite-situs distributable property of railroad car companies;distributable property of certain railroads; computation of tax;disposition of tax proceeds
Sec. 35. (a) Each year the department of local government financeshall tax:
(1) the indefinite-situs distributable property of railroad carcompanies; and
(2) the distributable property of a railroad company thatprovides service within a commuter transportation districtestablished under IC 8-5-15 and utilizes electricity to powersubstantially all of its railroad passenger cars.
The department of local government finance shall compute the tax ona railroad car company's indefinite-situs distributable property basedupon the average property tax rate in this state. The average propertytax rate in this state for a year equals (A) the total of the propertytaxes in this state that will come due during that year divided by (B)the total net assessed valuation of property in this state for thepreceding year's assessment. The department of local governmentfinance shall base its computation of the average property tax rate fora year upon information which is available to the department as ofDecember 31 of the preceding year. The department of localgovernment finance shall compute the tax on a railroad company'sdistributable property based upon the average property tax rate thatis imposed by taxing districts that are located in any county in whicha railroad company, that is taxed under this section, provides railroadservices. The average property tax rate of taxing districts that arelocated in any county in which a railroad company that is taxedunder this section equals (i) the total of the property taxes in thosetaxing districts that will come due during that year divided by (ii) thetotal net assessed valuation of property in those districts for thepreceding year's assessment. The department of local governmentfinance shall base its computation on the average property tax ratefor a year upon information which is available to the board as ofDecember 31 of the preceding year.
(b) The department of local government finance shall certify thetax it imposes on indefinite-situs distributable property of railroadcar companies and a railroad company's distributable property taxedunder this section to the department of state revenue. Each of thosecompanies shall pay the tax to the department of state revenue on orbefore December 31of the year the assessment is made. If one (1) ofthose companies does not pay the tax when it is due, the companyshall pay a penalty, in addition to the tax, equal to twenty-fivepercent (25%) of the delinquent tax. When the tax imposed onindefinite-situs distributable property of railroad car companies bythis chapter becomes delinquent, the department of state revenueshall proceed with the collection of the delinquent tax and penalty inaccordance with the provisions of IC 6-8.1-8.
(c) The department of state revenue shall promptly deposit allamounts collected under this section that are derived fromindefinite-situs distributable property of railroad car companies in
the state treasury for credit to the commuter rail service fundestablished by IC 8-3-1.5-20.5 to be used exclusively for debtfinancing of the commuter transportation district's long term capitalneeds.
(d) The department of state revenue shall promptly deposit allamounts collected under this section from a railroad company in thestate treasury for credit to the electric rail service fund established byIC 8-3-1.5-20.6.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1979,P.L.50, SEC.1; Acts 1981, P.L.66, SEC.9; Acts 1981, P.L.67, SEC.3;Acts 1982, P.L.43, SEC.4; P.L.73-1983, SEC.6; P.L.59-1985, SEC.8;P.L.253-1999, SEC.1; P.L.291-2001, SEC.232; P.L.90-2002,SEC.81.
IC 6-1.1-8-35.1
Repealed
(Repealed by P.L.59-1985, SEC.37.)
IC 6-1.1-8-36
Payment of taxes regardless of pending appeal; injunction;reassessment of distributable property
Sec. 36. (a) A public utility company shall pay any taxes whichare based upon the department of local government finance'sassessment of distributable property regardless of whether or not anappeal of the assessment is pending. However, the collection of thetaxes may be enjoined pending an original tax appeal under IC 33-26.
(b) The department of local government finance shall reassessdistributable property and shall certify the reassessment to the countyauditor of each county in which the property is taxable if:
(1) the Indiana board:
(A) sets aside the department's original assessment andorders the department to reassess the distributable property;or
(B) refers the matter to the department under section 32 ofthis chapter with instructions to make another assessment;and
(2) the decision of:
(A) the Indiana board is not appealed to the tax court; or
(B) the tax court in which the matter was referred to thedepartment under section 32 of this chapter is not appealedto the supreme court.
(c) If the tax court sets aside the Indiana board's finaldetermination and the Indiana board reassesses distributableproperty, the Indiana board shall certify the reassessment to thecounty auditor of each county in which the property is taxable if thedecision of the tax court is not appealed to the supreme court.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.291-1985,SEC.4; P.L.90-2002, SEC.82; P.L.98-2004, SEC.70.
IC 6-1.1-8-37 Reassessment of distributable property; refunds or taxes due
Sec. 37. (a) If:
(1) the department of local government finance's reassessmentof distributable property is less than the department's originalassessment; or
(2) the Indiana board's reassessment of distributable property isless than the department's original assessment;
the auditor of each affected county shall compute the tax refund, ifany, which is due the public utility company. The county auditorshall then issue a warrant to the company for the amount of therefund due, and the county treasurer shall pay the warrant, withoutan appropriation for the disbursement.
(b) If:
(1) the department of local government finance's reassessmentof distributable property is greater than the department'soriginal assessment; or
(2) the Indiana board's reassessment of distributable property isgreater than the department's original assessment;
the auditor of each affected county shall enter the difference as anassessment of omitted property. The county auditor shall computeand the county treasurer shall collect the additional tax due in hesame manner that taxes on omitted property are computed andcollect. However, the county officials may not charge penalty orinterest on the additional tax due unless the public utility companydoes not pay the tax within thirty (30) days after the date notice ofthe additional tax due is given to the company.
(c) The accounts of the various taxing units shall be credited orcharged with each unit's proportionate share of additional taxescollected and refunds made under this section.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.83.
IC 6-1.1-8-38
Lien; collection of delinquent taxes; penalties
Sec. 38. (a) Taxes which are based upon an assessment which ismade under this chapter are a lien upon the property assessed. Thislien accrues on the assessment date of the year of assessment. Inaddition, the taxes are a personal debt of the public utility companyin whose name the property is assessed.
(b) If a public utility company does not pay the taxes when theyare due, the county treasurer shall notify the prosecuting attorney ofthat fact. The prosecuting attorney shall then bring an action againstthe company to recover the delinquent taxes or to enforce the lienupon the property, or both. In such an action, the judgment shallinclude a penalty equal to fifty percent (50%) of the delinquent taxes.This subsection does not apply to taxes on a railroad car company'sindefinite-situs distributable property.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-8-39 Omitted property; assessment
Sec. 39. The annual assessments of a public utility company'sproperty are presumed to include all the company's property whichis subject to taxation under this chapter. However, this presumptiondoes not preclude the subsequent assessment of a specific item oftangible property which is clearly shown to have been omitted fromthe assessments for that year. The appropriate township assessor, orthe county assessor if there is no township assessor for the township,shall make assessments of omitted fixed property. The department oflocal government finance shall make assessments of omitteddistributable property. However, the department of local governmentfinance may not assess omitted distributable property after theexpiration of ten (10) years from the last day of the year in which theassessment should have been made.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.84; P.L.146-2008, SEC.100.
IC 6-1.1-8-40
Omitted property; rate of assessment; interest
Sec. 40. When the department of local government financeassesses distributable property which was omitted from theassessment for a particular year, the department shall, as nearly aspossible, assess the omitted distributable property in the samemanner that the department assesses other distributable property. Thetaxes due on the omitted distributable property shall be calculated byusing the same tax rates which were applicable for the tax year thatthe distributable property was omitted from the assessment. Thepublic utility company shall pay interest on the taxes due on theomitted distributable property at the rate of two percent (2%) permonth, or fraction of a month. The interest due shall be calculated onthe period of time beginning with January 1 of the year following theyear in which the property was omitted from the assessment andending with the day the taxes are paid. However, the department oflocal government finance may waive any portion of the interest dueunder this section at the time the department makes its finalassessment of the omitted distributable property.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.64-1983,SEC.3; P.L.90-2002, SEC.85.
IC 6-1.1-8-41
Valuation methods used in other states
Sec. 41. The department of local government finance shall keepitself informed about the methods which other states use to valuepublic utility companies.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.86.
IC 6-1.1-8-42
Rules and regulations; promulgation
Sec. 42. (a) The department of local government finance shall
promulgate rules and regulations to provide equal treatment for thepublic utility companies within each classification. These rules andregulations may not:
(1) prohibit the assessment and taxation of a company'sproperty which is subject to taxation under this chapter; or
(2) prohibit the department of local government finance frommaking adjustments in those cases where the rules andregulations would result in an assessment that would be unfairto the state or to the public utility company.
(b) The department of local government finance may adopt rulesand regulations to carry out the intent and provisions of this chapter.The rules and regulations must be consistent with this chapter.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.87.
IC 6-1.1-8-43
Purpose of chapter; conflicting provisions
Sec. 43. This chapter is designed to provide special rules for theassessment and taxation of public utility company property. If aprovision of this chapter conflicts with any provision of anotherchapter of this article, the provision of this chapter controls withrespect to the assessment and taxation of public utility companyproperty.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-8-44
Reinstatement of utility property rules; prohibition againstamendment of certain rules by department of local governmentfinance
Sec. 44. (a) Except to the extent that it conflicts with a statute andsubject to subsection (f), 50 IAC 5.1 (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 5.1 (asin effect January 1, 2001) shall be assessed on the assessment datesin calendar years 2003 and thereafter in conformity with 50 IAC 5.1(as in effect January 1, 2001).
(c) The publisher of the Indiana Administrative Code shall publish50 IAC 5.1 (as in effect January 1, 2001) in the IndianaAdministrative Code.
(d) 50 IAC 5.2 and any other rule to the extent that it conflictswith this section is void.
(e) A reference in 50 IAC 5.1 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 5.1-6-6.
(2) 50 IAC 5.1-6-7.
(3) 50 IAC 5.1-6-8. (4) 50 IAC 5.1-6-9.
(5) 50 IAC 5.1-8-1.
(6) 50 IAC 5.1-9-1.
(7) 50 IAC 5.1-9-2.
As added by P.L.192-2002(ss), SEC.29. Amended by P.L.245-2003,SEC.7.