Election of valuation method for special integrated steel mill or oil
refinery; petrochemical equipment
Sec. 23. (a) For purposes of this section:
(1) "adjusted cost" refers to the adjusted cost established in 50
IAC 4.2-4-4 (as in effect on January 1, 2003);
(2) "depreciable personal property" has the meaning set forth in
50 IAC 4.2-4-1 (as in effect on January 1, 2003);
(3) "integrated steel mill" means a person, including a
subsidiary of a corporation, that produces steel by processing
iron ore and other raw materials in a blast furnace in Indiana;
(4) "oil refinery/petrochemical company" means a person that
produces a variety of petroleum products by processing an
annual average of at least one hundred thousand (100,000)
barrels of crude oil per day;
(5) "permanently retired depreciable personal property" has the
meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,
2003);
(6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as
in effect on January 1, 2003);
(7) "special integrated steel mill or oil refinery/petrochemical
equipment" means depreciable personal property, other than
special tools and permanently retired depreciable personal
property:
(A) that:
(i) is owned, leased, or used by an integrated steel mill or
an entity that is at least fifty percent (50%) owned by an
affiliate of an integrated steel mill; and
(ii) falls within Asset Class 33.4 as set forth in IRS Rev.
Proc. 87-56, 1987-2, C.B. 647; or
(B) that:
(i) is owned, leased, or used as an integrated part of an oil
refinery/petrochemical company or its affiliate; and
(ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS
Rev. Proc. 87-56, 1987-2, C.B. 647;
(8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2
(as in effect on January 1, 2003); and
(9) "year of acquisition" refers to the year of acquisition
determined under 50 IAC 4.2-4-6 (as in effect on January 1,
2003).
(b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50 IAC
4.2-4-7, a taxpayer may elect to calculate the true tax value of the
taxpayer's special integrated steel mill or oil refinery/petrochemical
equipment by multiplying the adjusted cost of that equipment by the
percentage set forth in the following table:
Year of Acquisition Percentage
1 40%
2 56%
3 42%
4 32%
5 24%
6 18%
7 15%
8 and older 10%
(c) The department of local government finance shall designate the
table under subsection (b) as "Pool No. 5" on the business personal
property tax return.
(d) The percentage factors in the table under subsection (b)
automatically reflect all adjustments for depreciation and
obsolescence, including abnormal obsolescence, for special
integrated steel mill or oil refinery/petrochemical equipment. The
equipment is entitled to all exemptions, credits, and deductions for
which it qualifies.
(e) The minimum valuation limitations under 50 IAC 4.2-4-9 do
not apply to special integrated steel mill or oil refinery/petrochemical
equipment valued under this section. The value of the equipment is
not included in the calculation of that minimum valuation limitation
for the taxpayer's other assessable depreciable personal property in
the taxing district.
(f) An election to value special integrated steel mill or oil
refinery/petrochemical equipment under this section:
(1) must be made by reporting the equipment under this section
on a business personal property tax return;
(2) applies to all of the taxpayer's special integrated steel mill or
oil refinery/petrochemical equipment located in the state
(whether owned or leased, or used as an integrated part of the
equipment); and
(3) is binding on the taxpayer for the assessment date for which
the election is made.
The department of local government finance shall prescribe the
forms to make the election beginning with the March 1, 2003,
assessment date. Any special integrated steel mill or oil
refinery/petrochemical equipment acquired by a taxpayer that has
made an election under this section is valued under this section.
(g) If fifty percent (50%) or more of the adjusted cost of a
taxpayer's property that would, notwithstanding this section, be
reported in a pool other than Pool No. 5 is attributable to special
integrated steel mill or oil refinery/petrochemical equipment, the
taxpayer may elect to calculate the true tax value of all of that
property as special integrated steel mill or oil refinery/petrochemical
equipment. The true tax value of property for which an election is
made under this subsection is calculated under subsections (b)
through (f).
As added by P.L.120-2003, SEC.1. Amended by P.L.228-2005,
SEC.2; P.L.246-2005, SEC.59.
Last modified: May 28, 2006