FROM:  Stanley J. Bowers, Tax Commissioner

RE:  Assessment of house trailers and contents thereof used in business in Ohio as tangible personal property.

DATE:  March 4, 1962

Several inquiries have been received by the Department concerning the provisions of Section 4503.06 (F) (1), Revised Code, effective January 1, 1962, which provides:

"(F) A house trailer is not subject to the provisions of this section (section 4503.06 Revised Code, which levies an excise tax on all house trailers used or occupied in Ohio) when:

(1) It is taxable as personal property pursuant to the provisions of Section 5709.01 of the Revised Code" (Bracketed language added)

To assist you in making determinations as to when and to what extent a house trailer and the contents thereof is subject to the personal property tax, the following tests are to be used.

I.  If the house trailer and the machinery and equipment and/or furniture and fixtures thereof is used totally in business in Ohio, AND

A.  If the house trailer is required to be and is, in fact, licensed pursuant to the provisions of Section 4503.02, Revised Code.
THEN.

1) The machinery and equipment and/or furniture adn fixtures used in business are taxed as tangible personal property; AND
2) The trailer (body shell, carriage, etc.) would be the basis for and subject to house trailer tax, Section 4503.06 et seq., Revised Code, and the tax computed pursuant to Section 4503.06(E), Revised Code.

B.  If the houes trailer is not required to be or is, in fact, not licensed pursuant to the provisions of Section 4503.02, Revised Code; THEN,
1) The house trailer, including machinery and equipment and/or furniture and fixtures, is taxable as tangible personal property.

II.  If a part of the house trailer and a portion of the contents thereof are used in business in Ohio, AND

A.  Whether or not the house trailer is required to be or is, or is not licensed pursuant to the provisions of Section 4503.02, Revised  Code, THEN,

1) That portion of the machinery and equipment and/or furniture and fixtures which is used in business is taxed as tangible personal property; AND
2) The house trailer (body shell, carriage, etc.) plus the remaining personal property not used in business is subject to the house trailer tax, Section 4503.06, et seq., Revised Code, and the tax computed pursuant to Section 4503.06 (E), Revised Code.

For purposes of determining the true value of the house trailer subject to personal property tax in accordance with Sections 5711.18 and 5711.22, Revised Code, a tentative annual prima facie rate of depreciation of 10% utilized in connection with the "302 method" of computation is hereby prescribed.