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.
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