Personal Property Tax

Bulletin

TO: ALL COUNTY AUDITORS BULLETIN NO. 156

FROM: STANLEY J. BOWERS, TAX COMMISSIONER

DATE: JANUARY, 1961

RE: CAPITALIZATION OF SALES AND EXCISE TAXES

It has been ascertained that in some instances corporations and other businesses have not been including the above taxes in the cost of an asset at the time of capitalization.  Taxes of this nature should always be included in the capitalized amount in the same manner as installation, freight costs, etc.

It was found there were two methods whereby these taxes were removed from the cost of an asset.  The first being a direct deduction of the tax amount from each asset, and the second being a percentage deduction from the total asset costs.  Any deduction of such costs from the total cost of an asset is improper.

In each instance the asset costs are to be increased by the amount of such improper deductions.

 

Cross References

Listing by manufacturers, personal property; average value of articles, RC 5711.16

Valuation of accounts and personal property; procedure; income yield, RC 5711.18

Determination of the value of issued and outstanding stock and intangible property; determination of the net income of the corporation, RC 5733.05

County levy of tax; purpose; rate; hearings, RC 5741.021