Tax Rules: Final: 5703-3
5703-3-11 - Tangible personal
property tax; "true value" or "302" computation
(A) To assist taxpayers in returning the true value of
depreciable tangible personal property used in business in
this state, as required by Chapter 5711. of the Revised Code
and rule 5703-3-10 of the Administrative Code, and to assist
in the efficient administration of the personal property tax,
the tax commissioner shall determine a composite annual
allowance procedure for use in computing the true value of
such property. The application of the composite annual
allowance procedure to the original cost of tangible personal
property may be referred to as the "true value computation"
or the "302 computation."
(B) The valuation determined by the true value computation
shall be the prima facie true value in money of taxable
tangible personal property.
(C) The composite annual allowance procedure shall take into
consideration the type of business conducted, the types and
classes of property, the useful life of the property in such
classes, physical deterioration, functional and economic
obsolescence, repair and maintenance practices, salvage value
of property assigned to such classes, and any other factors
that the commissioner considers proper in determining the
true value of depreciable tangible personal property used in
business in this state.
(D) The commissioner shall publish and make available the
composite annual allowance procedure, with such instructions
and examples as the commissioner deems useful or necessary to
assist taxpayers in computing their proper tax liability.
(E) The commissioner shall review and, if necessary, modify
the composite annual allowance procedure, from time to time,
to assure that such allowance procedure reflects current
technology and business experience.
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5711.03, 5711.18, 5711.21, 5711.22