Applicability of personal property deduction entitlement;
calculation of deduction amount; filing requirements
Effective 1-1-2006.
Sec. 3. (a) For purposes of this section, an increase in the assessed
value of personal property is determined in the same manner that an
increase in the assessed value of new manufacturing equipment is
determined for purposes of IC 6-1.1-12.1.
(b) This subsection applies only to personal property that the
owner purchases after March 1, 2005, and before March 2, 2009.
Except as provided in sections 4, 5, and 8 of this chapter, an owner
that purchases personal property other than inventory (as defined in
50 IAC 4.2-5-1, as in effect on January 1, 2005) that:
(1) was never before used by its owner for any purpose in
Indiana; and
(2) creates or retains employment;
is entitled to a deduction from the assessed value of the personal
property.
(c) The deduction under this section is first available in the year in
which the increase in assessed value resulting from the purchase of
the personal property occurs and continues for the following two (2)
years. The amount of the deduction that a property owner may
receive with respect to personal property located in a county for a
particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the purchase
of the personal property; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the personal property, the amount
of the deduction is adjusted to reflect the percentage decrease that
results from the appeal.
(e) A property owner must claim the deduction under this section
on the owner's annual personal property tax return. The township
assessor shall:
(1) identify the personal property eligible for the deduction to the
county auditor; and
(2) inform the county auditor of the deduction amount.
(f) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
As added by P.L.193-2005, SEC.8.
Last modified: May 28, 2006