Legal Resources - Tax Rules

Tax Rules: Final: 5703-3

5703-3-18 - Tangible personal property tax; new taxpayers

(A) A person who engages in business in this state on or after the first day of January in any year shall, for that year, list his taxable personal property, except inventory, as to value, ownership, and taxing district as of the first day he engages in business. Inventory shall be similarly listed, except the value shall be the probable average value intended to be used in business from the first day of business until the first day of the next January.

(B) The valuation of all property to be listed by a new taxpayer shall be calculated by multiplying the value or average value by a fraction whose numerator is the number of full months engaged in business during such first year and whose denominator is twelve.

(C) A new taxpayer who has acquired personal property, other than inventory, need not list such property for the first year of business if he can prove to the assessor, under oath or by producing a copy of the return or assessment, that the same items of property have been listed or assessed for taxation for such year in this state.

(D) A new taxpayer who acquires an on-going business may exclude from his tax return for the first year of business inventory transferred to him by the predecessor if he can prove to the assessor, under oath or by producing a copy of the return or assessment, that the predecessor has listed such inventory for such year. The exclusion is limited to the value of the inventory transferred or the predecessor's average inventory value associated with the inventory transferred, whichever is less.

(E) Paragraphs (C) and (D) of this rule do not apply to personal property acquired in the ordinary course of business.

Effective: 2-3-86

Promulgated under: 5703.14

Authorized by: 5703.05

Amplifies: 5711.03