TABLE TO DETERMINE TRUE TAX VALUE FOR DEPRECIABLE PERSONAL PROPERTY BY PERCENTAGE OF ORIGINAL COST Indiana Pools of Assets by Lives Utilized on Federal Tax Return
Year of Acquisition 1 2 3 4 5 6 7 8 9 10 11 12 13
Pool #1 (1-4 Years) 65% 50% 35% 20%
Pool #2 (5-8 Years) 40% 56% 42% 32% 24% 18% 15%
Pool #3 (9-12 Years) 40% 60% 55% 45% 37% 30% 25% 20% 16% 12% 10%
Pool #4 (13+ Years) 40% 60% 63% 54% 46% 40% 34% 29% 25% 21% 15% 10% 5%
The total true value of all depreciable personal property, after applying the above percentages, cannot be less than thirty percent (30%) of original cost. Special valuation procedures apply to special tooling, property not placed in service, and air and water pollution control equipment. These provisions are: 1. Special tooling qualifies as a special valuation item. The true tax value of first year special tooling is thirty percent (30%) and the value of second year and older special tooling is three percent (3%). Special tooling is not subject to the thirty percent (30%) of cost limitation applied to other depreciable property. Special tooling consists of items such as molds, patterns, and dies acquired for the production of products or product models, which are of such specialized nature that their utility generally ceases with the modification of discontinuance of such product models. 2. Equipment primarily used for the control of air or water pollution is eligible for exemption from taxation. 3. Personal property not placed in service (also known as construction in process) as of the assessment date qualifies as a special valuation item. The true tax of personal property not placed in service is ten percent (10%) of cost.
SOURCE: Indiana Department of Commerce