Personal Property Tax

County Bulletin

TO:  ALL COUNTY AUDITORS - Bulletin No. 177

FROM:  Stanley J. Bowers, Tax Commissioner

RE:  Uniform Principles - Delinquent and New Taxpayers

DATE: March 26, 1962

During the course of the recently completed county auditor and branch office meetings, a number of differences were observed in the procedures employed in our various offices with delinquent and new taxpayer problems.

To ensure that all offices proceed uniformly in these areas of personal property tax administration, you are advised as follows:

I.  Delinquent Taxpayers

In the instance of individuals or persons engaged in business who have not filed tax returns and who voluntarily seek to comply with the law and make the necessary filings, such persons will be permitted to:

a. Use the federal election method (Form 912) in making their original filing in the case of individual intangible taxpayers, and

b. To file with their returns, in the case of business taxpayers, claims for deductions form depreciated book value (902 claims).

Delinquent taxpayers will be accorded the above considerations unless assessments are made by the Department or by a county auditor prior to the filings on the part of such delinquent taxpayers.  Assessments made, either by the county auditor or by this Department, where no returns are filed, should be based on the ordinary listing methods for intangible property belonging to individual taxpayers (unless of course the provisions of Sec. 5711.10, R.C., are applicable) or on the true value of tangible personal property determined from the taxpayers' books and records in the case of business taxpayers.

Application of Section 5711.03, R.C., to New Taxpayers the provisions of Section 5711.03, R.C., relating to persons or taxpayers engaging in business on or after January 1 of any year, do not apply to individuals, partnerships or corporations who are engaged in business and who extend or expand the scope of their business activities on or after January 1 so long as the original business entity form (single proprietorship, partnership or corporation) is retained in the new business.  The following example will illustrate the position herein intended.

John Smith, dba Smith Hardware, will not be obliged to file a return under the provisions of this section for a business started January 1 and which is known as John Smith, dba Smith Grocery.  If, however, John Smith, who has been doing business as Smith Hardware, forms a partnership with John Doe and commences business after January 1 in any year as John Smith and John Doe, dba S. & D. Laundromat, then the partnership will be responsible for filing of an original return under the provisions of Section 5711.031 R.C., covering the new business activity.

As you can readily surmise the principles enumerated herein do not cover the full spectrum of delinquent or new taxpayer problems; however, we do anticipate that if all offices will proceed in accordance with the principles herein outlined, we will effectively resolve certain differences which presently exist in our various offices.  Your cooperation in the foregoing matters will be greatly appreciate.