"Inventory" defined; "dealer" defined; "established place of
business" defined; average method election; place of assessment of
dealer inventory
Sec. 11. (a) For purposes of this section, "inventory" means:
(1) materials held for processing or for use in production;
(2) finished or partially finished goods of a manufacturer or
processor; and
(3) property held for sale in the ordinary course of trade or
business.
(b) For purposes of this section, "dealer" has the meaning set forth
in IC 9-13-2-42.
(c) For purposes of this section, "established place of business"
refers to a place of business that meets the minimum standards
prescribed by the bureau of motor vehicles under rules adopted under
IC 4-22-2.
(d) If the inventory owned or held by a taxpayer on the assessment
date of a year does not, in the taxpayer's opinion, fairly represent the
average inventory carried by the taxpayer, the taxpayer may elect to
list the taxpayer's inventory for assessment on the basis of the
average true tax value of the inventory owned or held by the taxpayer
during the preceding calendar year, or during the portion of the
preceding calendar year that the taxpayer was engaged in business.
(e) If a taxpayer elects to use the average method, the taxpayer
shall notify the township assessor of the election at the time the
taxpayer files the taxpayer's personal property return. The election,
once made, is binding on the taxpayer for the tax year in question
and for each year thereafter unless permission to change is granted
by the department of local government finance.
(f) If a taxpayer elects to use the average method, the taxpayer
shall use that method for reporting the value of all the taxpayer's
inventories which are located in this state.
(g) Inventory owned by a dealer shall be assessed at the dealer's
established place of business.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.24-1986,
SEC.3; P.L.90-2002, SEC.26; P.L.74-2003, SEC.2.
Last modified: May 28, 2006