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