Section 50IAC4.2-4-9.1. Election of valuation method for special integrated steel mill or oil refinery/petrochemical equipment

  1. (a) For purposes of this section, the following apply:

(1) "Adjusted cost" refers to the adjusted cost established in section 4 of this rule.

(2) "Depreciable personal property" has the meaning set forth in section 1 of this rule.

(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 section 3 of this rule.

(6) "Pool" refers to a pool established in section 5(a) of this rule.

(7) "Special integrated steel mill equipment" 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) "Year of acquisition" refers to the year of acquisition determined under section 6 of this rule.

  (b) Notwithstanding sections 4, 6, and 7 of this rule, a taxpayer may elect to calculate the true tax value of the taxpayer's special integrated steel mill equipment 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 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 equipment 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 section 9 of this rule do not apply to special integrated steel mill equipment 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 equipment 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 equipment 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 shall prescribe the forms to make the election available. Any special integrated steel mill equipment 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 equipment 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 equipment 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). (Department of Local Government Finance; 50 IAC 4.2-4-9.1; filed Feb 26, 2010, 2:43 p.m.: 20100324-IR-050090576FRA)