How To Fill Out Forms 103-Long & 104

WILLIAM J. FLUTY, JR. VANDERBURGH COUNTY ASSESSOR STATE OF INDIANA Room 227 Civic Center Complex 1 NW Martin Luther King Jr Blvd Evansville, IN 47708-1859 Phone: (812) 435-5180 Fax: (812) 435-5530 How To Fill Out Forms 103-Long & 104 Assessment Date is January 1st We are providing basic information on how to fill out the Business Tangible Personal Property forms. For more details and to read the law, please refer to 50 IAC 4.2, Personal Property Regulation. It is listed on our website, www.vanderburghassessor.org, click continue to enter the website, under Information & Forms, click on Personal Property. On the page you will find more helpful information such as: Frequently Asked Questions, Frequently Asked Questions, under $20,000 Cost Exemption, Street Directory, Tax Districts and a link for the Forms. Businesses with $20,000 cost or more per county (with same Federal Identification Number) are due or postmarked (by the post office, not mailing machine) by May 15 th unless an extension is granted by our office. After the due date, penalties will apply. A $25.00 penalty will be added for being one or more days late plus if the returns are over thirty (30) days late, a 20% of the taxes determined to be due penalty will be applied. If a business does not file the return, they will receive a $25.00 & 20% penalty. Penalties are added to next year s tax bill. Please note: our office does not have the authority to remove penalties, there is no statute for us to do so. Extension Request: Effective January 1, 2017, Vanderburgh County is no longer automatically granting extensions of time to file business personal property returns when requested. Extensions will be granted sparingly to taxpayers demonstrating a hardship or qualifying circumstances. The requests for extensions will be reviewed and granted on a case by case basis. Please visit our website at www.vanderburghassessor.org under personal property section to see obtain directions on requesting an extension. Businesses with less than $20,000 cost per county, automatic exemption (SEA 1, IC 6-1.1-3-7.2, HEA 1169-2016 legislative changes) with the same federal identification number would declare the exemption by using a personal property form (specifically, Form 103-Short, Form 103-Long, or Form 102, as applicable). At the top of the return, please check mark and fill in your total cost for the county (with the same Federal Identification Number), fill in sections I and IV only, then return to our office on or before May 15th or a $25.00 penalty will be applied to next year s tax bill. The law does not give us authorization to remove any penalties. Please note: If you qualify for the under $20,000 exemption, you do not need to file the Form 104 along with the Form 103 or 102. Beginning January 1, 2016, IC 6-1.1-3-7.2 provides an automatic exemption for a taxpayer s business personal property in a county if the acquisition cost of that taxpayer s total business Page 1 of 5

personal property in the county is less than $20,000. House Enrolled Act (HEA 1169-2016) signed 3/24/16, introduces legislative changes concerning the exemption for personal property with an acquisition cost of less than $20,000. Forms 103, 102 & 104 must be completed for all businesses that have equipment in the State of Indiana and reported by taxing district. This is a State law not a Vanderburgh County law. You can also visit the Department of Local Government (DLGF) website for additional information at www.in.gov/dlfg It is best to mail the returns proof of mail, certified return receipt, Fed-ex, UPS, etc., this will give you a receipt. You can hand deliver the forms to our office or fax them to (812) 435-5530. We ask that you provide a phone number and e-mail address in case we cannot read the faxed returns. If you bring in an extra copy of the forms, or want a copy of the front page showing the date stamped, we will be glad to do so. (Forms must be signed or will be returned for a signature). Definition for Depreciable Personal Property: 50 IAC 4.2-1-1 (g): Depreciable Personal Property means all personal property that is used in a trade or business, used for the production of income, or held as an investment that should be or is subject to depreciation for federal income tax purposes. In general, personal property will be deemed to become depreciable property when a depreciation deduction is allowable for federal income tax purposes. Important: business personal property that has been expensed rather than depreciated as permitted by the IRS is still reportable for purposes of Indiana personal property taxation. Examples of Depreciable Personal Property/Equipment: A. Desk & Chairs, Filing cabinets, etc. B. All office equipment: ie: Computers, Printers, Copiers, Scanners, Calculators, Adding Machines, Phone Equipment, Postage Machines, etc. C. Signs including supports & foundation (even if they are attached to the building, signs are Personal Property. D. Rental properties/apartments: Refrigerators, Stoves, Dishwashers, Washers & Dryers, Drapes, blinds or other window coverings, carpeting if installed over a finished floor is considered Pers. Prop., if is not installed over finished floor then it is Real Prop., etc. E. Churches: Pews, Organs & other musical equipment, PA system, books for pews and any other equipment they have. F. Cold Storage Refrigerated Equipment including Prefab walk-in type (but not Built-In cold storage rooms which are Real Property. G. Cranes, Backhoes, Tractors, etc. H. Farm Tractors, Combines, Grain drying equipment (Farm Schedule, Form 102) I. Fire Alarm system is Personal Property but Sprinkler System is Real Property. J. Lighting: Yard, Special Purpose (inside) & Service station lighting (except building) is Personal Property. Lighting in building is Real Property. For a determination of personal property versus real property, see 50 IAC 4.2-4-10. Inventory is Not assessable. (Items for sale or supplies). Page 2 of 5

Cost Per Books & Records: 50 IAC 4.2-4-2, states that the cost of the equipment includes: the purchase price of the equipment, freight, installation costs, foundations, wiring, air lines, water lines, etc. (The equipment must be installed & placed in service). Please note: If an original cost is unknown, you need to report an Insurable Value. Form 103-Long: Confidential Form 1. Please read all Instructions and information listed on each page. This will assist in filling out the forms. 2. Fill in all information on page 1, except if you are declaring under $20,000 cost, then in the box at the top of the page, you will check mark box & fill in your total cost per county with the same FEIN (not assessed value), and Sections I & IV ONLY. A. For name under which business is conducted please list the name the business goes by (not the business where you may have equipment located). B. Federal ID Number (FEIN) must be provided unless a Social Security number is being used, then provide only the last four (4) digits. 3. Start with the pools on page 3 and work backwards to page 2 then to page 1 to come up with the correct assessed value. 4. Pool 1 is for computers, laptops, copiers, printers, calculators, etc. that only have a short life of 1 to 4 Year Life. Pool 2 is for 5 to 8 Year Life, Pool 3 is for 9 to 12 Year Life & Pool 4 is for 13 & Longer Pool Life. Check the Federal Return to determine the pool life of the assets. If they are unsure, the majority of businesses use Pool 2. 5. Put Original Cost in Column A and C using the correct year of acquisition. Important: New Assets start on top line in the pools. Do not put in a depreciated value. The State forms account for depreciation per the TTV% (True Tax Value %). The cost should come from what is reported on the Federal return unless the asset(s) have been fully depreciated. Important: If the asset(s) have been fully depreciated on the Federal return, the assets still must be reported on the Business Tangible Personal Property forms until the assets are disposed of or sold. Note: Column B is for any adjustments from the prior year, disposed/sold assets. If assets are disposed of, please provide a letter or a Form 106 giving the reason why the cost in the pools decreased. 6. Take the cost times (X) the TTV% on the forms to equal the True Tax Value Column D. Example: 20,125 X.40 = 8,050. Then add up all columns down to the Total Pool Number line for each pool. Add up all Total Pool Numbers and fill in Line 52, columns A, B, C & D. 7. On page 2, you will also see a Line 52. Carry Line 52 from page 3 to page 2 Line 52. Page 3 of 5

8. On page 2, top section, it is best to actually work from line 12 to line 1 to get the correct total cost for line 1. Line 1 will include all equipment for lines 4-7 but then it is subtracted out (Deduct Exempt Property) on line 8. Important: for Line 12, (add Lines 8, 9, 10 and 11. Line 12 must agree with Line 52 Column A). 9. Under Pooling Summary section, Line 53, take 30% of the adjusted cost (Line 52, Column C). Example: 862,497 X.30 = 258,749. 10. Line 54, greater of Lines 52D or 53. 11. Adjustments to True Tax Value, Lines 55-59. (To see if any equipment qualifies for an adjustment, please read the 50 IAC code provided on each line. 12. Line 60, add up Line 54 plus Line 59. 13. Line 61, Abnormal Obsolescence per Form 106. Obsolescence is not automatic, please read 50 IAC 4.2-4-8. 14. Line 62 is the Total True Tax Value of personal property. 15. Carry Line 62 to Page 1 of the Form 103-Long towards the bottom of the page SUMMARY (darkened area) under Reported by Taxpayer (Round all numbers to the nearest $10.00), will go on the Schedule A Personal Property line and then also on the Final Assessed Valuation line. 16. The Final Assessed Valuation is what is carried over to the Form 104 under Summary section under Reported by Taxpayer. 17. The bottom of the page, needs filled out, signature, telephone number, date signed, name & printed name & title of authorized person and e-mail contact. The bottom line is for the Accountant/Preparer information. 18. Information of Not-Owned and Owned Personal Property: To Be Assessed to the Owner of Property : Form 103-N Schedule I, (Not Owned), including Operating Leases and Form 103-O Schedule I, (Owned), including Operating Leases. Form 103-N Schedule I, (lessee, person holding, possessing or controlling property, NOT responsible to report & pay taxes). OR Form 103-O Schedule I, (lessor, owner of property and IS responsible to report & pay taxes). On page 4, bottom section, this section is for reporting of two (2) or less lease agreements. For more than two (2), the Form 103-N Schedule I or Form 103-O Schedule I should be utilized. For more information, see 50 IAC 4.2-8 19. Information of Not-Owned and Owned Personal Property: To Be Assessed to the Person in Possession of Property : Form 103-N Schedule II (Not Owned), including Capital Leases and Form 103-O Schedule II (Owned), including Capital Leases: Form 103-N Schedule II, (lessee, person holding, possessing or controlling property, IS responsible to report & pay taxes). OR Page 4 of 5

Form 103-O Schedule II, (lessor, owner of property and is NOT responsible to report & pay taxes). For more information, see 50 IAC 4.2-8 20. The Form 104 also needs completed and filed along with the Form 103. This is because the Form 103 is confidential & the Form 104 is not. If someone wants any information from our office, we can only give them information that is listed on the Form 104. Form 104: Not A CONFIDENTIAL FORM 1. Fill in all information on page 1 and answer the question on page 2. For name under which business is conducted please list the name the business goes by (not the business where you may have equipment located). 2. If are declaring on Form 102, Form 103-Short or 103-Long the exemption for personal property with an acquisition cost of less than $20,000, you do Not need to complete and submit the Form 104. 3. At the top right corner, fill in the year of the assessment. 4. Under Total Tangible Personal Property, (Please check one) Form 103. Under reported by Taxpayer, Schedule A & Final Assessed Value is what was reported on the Form 103. 5. The bottom of the page needs filled out, signature, date signed, printed name authorized person & title. The bottom two lines are for the Accountant/Preparer information. If you need additional information, please call our office, (812) 435-5180. Page 5 of 5