Information Release

PP 2003-01 - New Valuation Schedule for Stand-Alone Computers - February 14, 2003  

The purpose of this information release is to explain the new personal property tax valuation schedule for stand-alone computers. The new true value schedule can be used for stand-alone computers beginning with the 2003 tax year. The new true value schedule cannot be used for tax years prior to 2003. Ohio Revised Code sections 5711.18 and 5727.11, along with Administrative Rules 5703-3-10 and 5703-3-11, provide the authority for the Tax Commissioner to issue modified true value schedules that only apply on a prospective basis for all personal property, including public utilities.

Stand-alone computers include computers, as well as related hardware and peripheral equipment, used for general business purposes such as data processing, payroll, tracking sales data, maintaining accounting information and tracking orders (hereinafter referred to as qualifying computer equipment). Qualifying computer equipment excludes computers and related equipment used as part of the manufacturing process or point of sale equipment, or computers and related equipment used directly in the rendition of a public utility service. Computers and related equipment used in these processes will continue to be valued using the appropriate valuation schedule.

The new schedule for qualifying computer equipment, including those previously purchased, is as follows.

AGE OF COMPUTER

(IN YEARS)

TRUE VALUE PERCENTAGE OF ORIGINAL COST

1

75.0%

2

60.0%

3

45.0%

4

30.0%

5 OR MORE

15.0%

All qualifying computer equipment, whenever purchased, will be valued using the above schedule. For example, when completing the tax return for tax year 2003, if a taxpayer has qualifying computer equipment it purchased in 2000, the taxpayer should determine the true value of that computer equipment using a 45% valuation percentage. If a taxpayer has qualifying computer equipment it purchased in 2002, the taxpayer should determine the true value of that computer equipment using a 75% valuation percentage.

Any questions can be directed to the Personal Property Tax Division at 614-466-3280 or the Public Utility Tax Division at 614-466-7371.