STATE OF OHIO
DEPARTMENT OF TAXATION
P. 0. BOX 530
COLUMBUS, OHIO 43266-0030
(614) 466-8122

ADMINISTRATION OF THE PERSONAL PROPERTY TAX

Each County Auditor places on their county's general tax list the values presented by each single county tax-payer as filed on the annual returns, and the inter-county values preliminarily assessed by the Tax Commissioner. A duplicate of this list is presented to the respective County Treasurer for the preparation and mailing of tax bills, and the subsequent collections.

Preliminarily assessed values of general business personal property are determined by the taxpayer, based upon requirements of the Ohio Revised Code, Ohio Administrative Code and the directives and guidelines prescribed by the Tax Commissioner. Businesses with taxable personal property in one Ohio county file a County Return of Taxable Business Property, Form 920, in duplicate with the respective County Auditor. Businesses with taxable personal property in more than one county file an Inter-County Return of Taxable Business Property, Form 945, with the Tax Commissioner.

Personal Property Tax collections are distributed by the County Auditor to the local jurisdictions, e.g. county governments, municipalities, townships, school districts, and special districts according to the allocated value times the total millage levied by each Jurisdiction. Approximately 70% of the collected revenue is allocated to primary and secondary education.

In completing a Return of Taxable Business Property you are required to disclose the valuation methods used for determining "true value" of your personal property. Disclosure of valuation methods used should not be construed as "prime facie" acceptance by the Tax Commissioner of their use.

The Tax Commissioner is also responsible for assessing all unreported personal property and auditing the preliminary assessments to determine that taxable property values are based upon "true value in money".

It you discover an error after filing a Return of Taxable Business Property, an Application For Final Assessment may be filed with the Tax Commissioner to initiate a review of the values assessed.

Common questions and answers are contained in the following pages of this booklet. If you need further assistance, please call or visit your local county auditor, or call or visit one of the district offices of the Ohio Department of Taxation.

You may also visit the Department's Home Page on the Internet at http://www.ohio.gov/tax.

Telephone assistance is provided for the hearing impaired through the Ohio Relay Service (ORS). TTY/TDD users may contact County Auditors or the Tax Department's Tax Payers Service Centers by contacting ORS operators at 1-800-750-0750. All other telephone inquiries should be directed to 1-888-644-6778.

GENERAL INFORMATION

WHAT IS PERSONAL PROPERTY?

Personal Property is every tangible thing which is owned, except real property. Real Property is defined as land, growing crops, all buildings, structures, improvements and fixtures on the land.

WHO MUST FILE?

If you are engaged in business in Ohio and have property located in Ohio on January 1 (and have a total listed value of more than $10,000), you must file a return.

WHAT FORMS MUST BE FILED?

Form 920, County Return of Taxable Property and Form 921, Ohio Balance Sheet must be filed in duplicate. Other forms, described later, may also be required.

WHEN IS THE RETURN FILED?

The return is filed between February 15 and April 30. An extension of time to June 15 (45 days) may be requested from the County Auditor in the county where the return is required to be filed.

WHERE IS THE RETURN FILED?

The return is filed with the County Auditor in the county in which the business is located. Taxpayers located in more than one county must file a combined return (Form 945) with the Tax Commissioner.

WHAT PROPERTY IS TAXED?

Tangible personal property used in business is taxed. This includes machinery and equipment, furniture and fixtures, small tools, supplies and inventory held for manufacture or resale.

WHAT IS THE $10,000 EXEMPTION?

Each taxpayer is entitled to an exemption not greater than $10,000 of listed value. This exemption is deducted from the total listed value in the taxing district with the greatest listed value. If there is an excess, the balance is deducted from the district with the next greatest listed value.

HOW IS THE TAX CALCULATED?

The tax is based on the true or market value of the property. In the case of fixed assets, the value is the cost less an allowance for depreciation depending on age. In the case of inventory, the average of the cost of inventory on hand at the end of each month is the value. The values are reduced to taxable or listed values and multiplied by the local tax rate. This tax rate varies according to location and is based on the tax rates for real property.

WHICH TAXING DISTRICT SHOULD I USE?

Tangible personal property is required to be listed in the taxing district where it is physically located on listing date. Refer to your real estate tax bills or contact your County Auditor.

WHAT IS TRUE VALUE?

The true value of depreciable tangible personal property is its book cost less book depreciation, unless the Tax Commissioner or a taxpayer using the prescribed prima facie valuation procedure finds that the depreciated book value is greater or less than the true value of such property.

WHEN ARE THE TAXES PAID?

When the return is filed, one-half of the total tax must be paid, the second-half must be paid by October 10. A bill is mailed by the County Treasurer to indicate the amount due.

IS THERE A MINIMUM AMOUNT OF TAX?

If the total tax due is less than $2.00, then no payment is required. If the total listed value of the return is less than $10,000, no return is required.

 WHAT IF I FILE AFTER THE DUE DATE?

If the return is filed late, the assessor will add a penalty of  up to 50% of the remaining listed value after the full $10,000 exemption is applied.

WHAT IF I MAKE A LATE PAYMENT?

Late paid taxes are subject to a 10% late payment penalty and also to interest charges. The interest is applied monthly and is based on the current market rate.

WHAT IF MY BUSINESS BEGAN AFTER JANUARY 1?

Those taxpayers who begin business after January 1, must file a "new taxpayer return" within 90 days of beginning business. The amount of tax is prorated according to the number of full months left in the calendar year.

WHAT IF MY BUSINESS STOPS AFTER JANUARY 1?

If business stops or property is sold after January 1, a full return is still due. However, a return may not be required for the following year.

WHAT TAX RETURN FORMS SHOULD I USE AND WHERE DO I OBTAIN THE FORM?

Those taxpayers with property in only one county must file Form 920, County Return of Taxable Business Property. Obtain Form 920 from the county auditor in whose county the property is located. If property is located in more than one county, Form 945, Inter-County Return of Taxable Property, must be filed. Obtain this form from the Tax Commissioner, or County Auditor.

ARE OTHER FORMS REQUIRED?

Form 902, Claim for Deduction from Book Value:

File this form if the value you claim is less than depreciated book value, as shown on your books and records. This deduction must be reflected in the “true value” as represented on the return schedules and recapitulation of listed value. 

Form 913EX, Report of Exempt Personal Property located In an Enterprise Zone and Hazardous Substance Reclamation Area:

This form is required when an exemption for property located in an Enterprise Zone is claimed and to calculate the taxable property within a zone.

Form 937, True Value Computation:

This form is required to be filed when using the prescribed True Value Computation.

Form 310, For Storage Only - Inventory held in storage in a private warehouse in Ohio.

CLICK HERE FOR FORMS

OR CONTACT THE TAX COMMISSIONER, P.O. BOX 530, COLUMBUS, OHIO 43266-0030

OR VISIT THEIR WEBSITE AT http://tax.ohio.gov/channels/other/business.stm

INSTRUCTIONS FOR LISTING AND VALUING PERSONAL PROPERTY

LISTING TANGIBLE PERSONAL PROPERTY

All tangible personal property used in business must be listed and assessed unless specifically exempt. Business is defined as all enterprises, except agriculture, conducted for gain, profit or income, and extends to personal service occupations. Property is to be listed as of the last day of December of the preceding calendar year. If a year end other than December 31 is used for Internal Revenue purposes, then that year end must be used for personal property purposes. Use the year ending in the previous calendar year. If you have not been engaged in business in Ohio for twelve months prior to that year end, then you must use December 31.

DEPRECIABLE ASSETS

Depreciable assets should be listed at their TRUE VALUE, which may be greater or less than their book value as of the taxpayer's listing date. The Tax Commissioner has prescribed a method of computing the true value to be used in lieu of book value. This method uses composite annual allowances, varying by business. The composite prima facie valuation procedure for use in filing personal property tax returns may be obtained upon request from the Tax Commissioner. Form 937 is the prescribed form for making this computation.

List in Schedule 2 all assets used in manufacturing, mining, laundries, towel and linen supply and dry cleaning plants, stone and gravel plants and radio and televisions broadcasting. List in Schedule 4 all other assets, except inventories.

EXEMPT PROPERTY

Includes property used in agriculture, pollution control facilities certified as exempt, energy conversion facilities certified exempt, patterns, jigs, dies and drawings not held for sale, construction in progress not capable of use, and registered motor vehicles and aircraft.

LEASED PROPERTY

Must be listed by the owner, regardless of the terms of the lease. If the lessee is obligated to purchase the property, then he is deemed to be the owner, otherwise the lessor is deemed to be the owner. If you lease property to a public utility or an interexchange telecommunications company, contact The Department of Taxation, Property Tax Division for instructions. Lessees must list all tangible personal property held under lease on tax listing date on Tax Form 921 Ohio Balance Sheet Exhibit C.

INVENTORIES

Ohio law requires inventories of manufacturers and merchants to be listed on the average monthly basis. The average value is determined by dividing the sum of the month-end values in each taxing district by the number of months engaged in business in Ohio in that year. Ex: A merchant moving from taxing district 'A' to taxing district 'B' during the year would report the monthly values for each taxing district separately and divide the total of each by the number of months in business in Ohio. If monthly inventory records are not maintained, a gross profits computation may be used. (Rule 5703-3-16)

The value of manufacturing inventory must include the costs of raw material, goods-in-process and finished goods. Goods-in-process and finished goods must include all factory burden and overhead costs attributable to the manufacturing facilities and process. Such costs include, but shall not be limited to, indirect labor, insurance, utilities, taxes, transportation, rents and losses, repairs and maintenance, depreciation and amortization. (Rule 5703-3-27)

The value of merchandising inventory must include the costs to acquire the inventory, taxes and freight. Inventories carried at retail must be restated at cost. Consigned manufacturing or merchandising inventory must be listed by the owner, but inventory consigned to a merchant from outside Ohio must be listed by the merchant.

Supply inventories of a manufacturer must be listed in Schedule 3 on the average basis. All other supply inventories must be listed as of the listing date in Schedule 4. inventories of taxpayers other than manufacturers and merchants must be listed as of listing date in Schedule 4. Such inventories include those of mines, quarries, laundries, dry cleaners, contractors, repair shops, garages, etc.

TAXING DISTRICTS

Property must be listed in the taxing district where it is located. Taxing district names normally consist of a township, city or village and school district. Cities may have more than one taxing district. If you do not know your taxing district, check your real estate bills or contact your County Auditor.

LINE INSTRUCTIONS FOR COMPLETING FORM 920

TAXPAYER IDENTIFICATION

Enter all identification information. Please indicate the taxpayer name as registered with the Ohio Secretary of State if a corporation or with the local county auditor if a vendor's license is held. Indicate the type of business organization, if not a corporation, indicate whether it is a sole proprietorship, partnership, joint venture, etc.

LINE 1.....TAXING DISTRICT.....Enter the full exact taxing district name. (Township, City and School District)

LINE 2.....SCHEDULE 2.....Enter the listed value by taxing district. (Rounded to the nearest $10.00)

LINE 3.....SCHEDULE 3.....Enter the listed value by taxing district. (Rounded to the nearest $10.00)
                                                Please note listing percentage remains 6.25%

LINE 4.....SCHEDULE 3A.....Enter the listed value by taxing district. (Rounded to the nearest $10.00)
                                                Please note listing percentage remains 6.25%

LINE 5.....SCHEDULE 4.....Enter the listed value by taxing district. (Rounded to the nearest $10.00)

LINE 6.....TOTAL LISTED VALUE.....Add the listed values from Lines 2, 3, 4 and 5 and enter here.
                                                                  If the total listed value is less than $10,000, no return is required.

LINE 7.....$10,000 EXEMPTION.....Enter the allowable exemption by taxing district.

LINE 8.....TAXABLE VALUE.....Subtract the amount on Line 7 from the amount on line 6 and enter here. Zero is the minimum amount.

LINE 9.....TAX RATE.....Enter the tax rate for the taxing district.

LINE 10.....TAX.....Multiply the amount on Line 8 by the amount on Line 9 and enter here.

LINE 11.....ENTER THE AMOUNT PAID WITH THE RETURN (MINIMUM OF ½ TOTAL TAX)

LINE 12.....ENTER BALANCE DUE FOR EACH TAXING DISTRICT.