Section 50 IAC 5.1-6-1 - DefinitionsAuthority: IC 6-1.1-8-42; IC 6-1.1-31-1
Affected: IC 6-1.1-8-26; IC 6-6-6.5
Sec. 1.
(a) The definitions in this section apply throughout this rule.(b) "Adjusted cost of depreciable personal property" means the cost of depreciable personal property adjusted for the cost of the following:(1) Air pollution control systems, exempted under 50 IAC 5.1-12-2.(2) Industrial waste control facilities, exempted under 50 IAC 5.1-12-4.(3) Special tooling, described in 50 IAC 5.1-9-3.(4) Aircraft subject to excise tax under IC 6-6-6.5.(c) "Cost of depreciable personal property" means the sum of direct costs and an appropriate portion of indirect costs attributable to the production or acquisition of depreciable personal property and its preparation for use. The cost of machinery, furniture, tools, computers (excluding application software), and other plant assets include all costs necessary to place the asset in condition and in place, ready for use. These costs include, but are not limited to, the purchase price, transportation costs to the place of use, installation costs, foundations, electrical wiring, interest incurred during construction and installation, and sales tax. If the asset is constructed by the company, the original cost must be made up of, but not limited to, the following costs: (1) Direct and indirect labor costs and fringe benefits.(2) Direct material costs.(6) Depreciation of equipment used in construction.(7) Claims for damage during construction not compensated for by insurance.(8) Taxes and insurance during construction.(9) Interest incurred during construction.(11) Other costs directly chargeable to construction. No profit may be added to the actual costs because the company cannot make a profit on itself. Any credits in the form of sales of scrap materials, discounts received on purchases of materials, and return premiums on surrender of insurance policies must be subtracted from the gross costs of construction to determine the actual cost of the asset.
(d) "Depreciable personal property" means the tangible property, other than locally assessed real property, of a public utility company that is subject to or should be subject to depreciation for federal income tax purposes. The term includes both locally assessed personal property (excluding inventory) and distributable property.(e) "Permanently retired depreciable personal property" means depreciable personal property that has been removed from the manufacturing process on the assessment date, or has been removed from service other than manufacturing on the assessment date, and is awaiting disposition. It must be scheduled to be scrapped, removed, or disposed of and will be considered to be permanently retired providing the taxpayer actually scraps or sells such property.Department of Local Government Finance; 50 IAC 5.1-6-1; filed Dec 15, 1993, 5:00 p.m.: 17 IR 959; reinstated by IC 6-1.1-8-44, eff Jul 1, 2003