Tax Rules: Final: 5703-3
5703-3-22- Tangible personal
property tax; valuation of idle equipment
(A) Tangible personal property that is being held for
disposal and is no longer being held for use in business on
tax listing day may be valued separately from that personal
property kept or maintained as part of a plant or business
that is capable of operation. To be so valued, such personal
property must be:
(1) Located in closed-off buildings or rooms or otherwise
segregated, if physically possible, from areas where
manufacturing or other business is being conducted;
(2) Rendered functionally inoperative; and
(3) Held for disposal on tax listing date.
(B) Property meeting the requirements of paragraph (A) of
this rule shall be valued as follows:
(1) If component parts have been removed or the item is
otherwise incapable of use in its present form, the actual
scrap or salvage value shall be taken as the true value.
(2) If it has been offered for sale, a bona fide asking price
shall be taken as the true value. If it has been sold within
one year of the tax listing date through an arm's-length
transaction, the selling price shall be taken as the true
(3) If it has not been offered for sale and visual inspection
confirms that its useful life has not ended, the true value
shall be the greater of its depreciated book value or the
actual salvage value.
(C) Property that is temporarily idle for purpose of overhaul
or repair or due to seasonal or economic fluctuations or
other temporary circumstance does not qualify for separate
valuation under this rule.
(D) Property being separately valued under this rule must be
separately identified on the tax return, with an explanation
of the circumstances and the basis for the valuation. If the
value reported is less than the depreciated book value, a
claim for deduction from book value must be submitted in
writing at the time the return is filed, pursuant to
paragraph (C) of rule 5703-3-10 of the Administrative Code.
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5711.01, 5711.03, 5711.09, 5711.16, 5711.18