“Bare bones” cost approach falls short in property tax appeal for assisted living care facility, where the valuation expert failed to consider “indirect” or “soft” costs and “entrepreneurial profit.” The assessor’s “sound value” assessment was upheld.

A valuation expert’s failure to quantify "indirect" or "soft" costs and entrepreneurial profit were key mistakes at the heart of the Indiana Board of Tax Review’s decision denying property tax appeals for an assisted living facility in Marion, Indiana.  In Assisted Living Concepts, Inc. v. Grant … [Read more...]

You’ve Got (Non-Taxable) E-Mail: Indiana Department of Revenue rules that Sales Tax did not apply to fees for generating E-Mails

The Department of Revenue found that fees charged to Taxpayer by a vendor ("Company R" in the ruling) that provided mass e-mail services were not subject to sales tax.  See http://1.usa.gov/LuElY6.  Company R provided a licensed software package for emailing Taxpayer's clients and prospects, and it … [Read more...]

Indiana Department of Revenue rules that Contract between Imaging Company and Medical Provider for Equipment and Operators was a Lease subject to Use Tax

In Letter of Findings No. 04-20110484 (June, 2012), an Indiana medical practice (the "Practice") contracted with an unrelated third party ("Imaging Company") to provide imaging equipment and operators.  See http://1.usa.gov/P1ZVZO.  The Department of Revenue audited Practice for the 2008 – 2010 tax … [Read more...]

Indiana Department of Revenue’s Ruling is Out of This World: Meteorites acquired in Casual Sales were not subject to Use Tax

Following an audit in which the Indiana Department of Revenue left no (otherworldly) stone unturned, the Department assessed an Indiana business (herein, "MetCo") use tax relating to its acquisitions of meteorites in 2008 to 2010.  See http://1.usa.gov/LY2qWO  Caught between a (space) rock and a … [Read more...]

Indiana Property Tax Assessment Appeals 101 – Department of Local Government Finance publishes memo addressing common procedural questions

On June 22, 2012, the Department of Local Government Finance (DLGF) issued a memo titled "Assessment Appeals 101."  The memo walks the reader through a series of basic property tax appeal procedural questions.  The memo can be viewed at http://1.usa.gov/MJfhyh (last visited June 30, 2012).  On … [Read more...]

Crusher Yes! Loaders No! – Indiana Limestone Processor receives partial Sales Tax Exemption for its Equipment

In Indiana, we love our limestone.  As noted by State Symbols USA:  "Indiana designated limestone as the official state stone in 1971. Bedford, Indiana is known as the 'Limestone Capital of the World.' Limestone quarried and carved in Bedford is featured on famous buildings across America, including the … [Read more...]