Section 50IAC5.1-4-1. Tentative assessment

   (a) Each year the state board shall determine the true tax value of the property of each public utility company. Except for railroad car companies, the state board shall determine the true tax value by first determining the approximate unit value of each public utility company. The value of the distributable property of a public utility company, other than a railroad car company, equals the remainder of:

(1) the unit value of the company; minus

(2) the value of the company's fixed property.

  (b) The value of the distributable property of a railroad car company equals the value of all of the company's distributable property multiplied by the allocation factor provided in IC 6-1.1-8-12(b).

  (c) In order to determine the unit value of a public utility company, the state board may consider the following:

(1) Book value.

(2) The cost of replacement or reproduction, less depreciation.

(3) The cost of establishing and developing the business.

(4) The amount and market value or sales price of outstanding securities.

(5) Valuations determined by another governmental agency or indicated by a judicial decision, including, but not limited to, determinations made for rate making purposes.

(6) Statistics and reports prepared or filed by the company.

(7) Statistics and reports prepared by another governmental agency or by a private organization if the organization is considered reliable by investors and investment dealers.

(8) Earnings capitalized at a reasonable rate.

(9) Any other information which the state board considers relevant.

  (d) Except for railroad car companies, the state board shall notify each public utility company of its tentative assessment on or before June 1. The state board shall notify each railroad car company of its tentative assessment on or before September 1. (Department of Local Government Finance; 50 IAC 5.1-4-1; filed Dec 15, 1993, 5:00 p.m.: 17 IR 957; reinstated by IC 6-1.1-8-44, eff Jul 1, 2003)