Form 920 Rev. 11/07 2008 County Return of Taxable Business Property Additional copies of this return may be downloaded from the Ohio Department of Taxation's Web site at tax.ohio.gov. Due to the phase-out of the personal property tax in Ohio, the 2008 tax return will be the final annual personal property tax return required to be filed. Filing Requirement – File this return in duplicate with your county auditor, with check attached for at least one-half of the tax, made payable to your county treasurer, between Feb. 15 and April 30, unless extended. There is no filing requirement if the listed value is $10,000 or less. No payment is required if the total tax due is less than $2. Penalty for Late Filing – To be considered filed timely the return must be received by the county auditor on or before the due date. The mailing of a return, except by certified mail, does not constitute timely filing. To ensure timely delivery to and receipt by the county auditor, certified mail should be used, or the return may be filed in person with the county auditor. If the return is filed late, the assessor may add a penalty of up to 50% of the remaining listed value after the full $10,000 exemption is applied. Taxing Districts – You must list your property in the taxing district where it is located and show the complete name and number of the taxing district. Taxing district names normally consist of a township, city or village and school district. Cities may have more than one school district. Taxing district numbers vary by county and from county to state. If you do not know your taxing district name or number, check your real property tax bill or contact your county auditor. American LegalNet, Inc. www.FormsWorkflow.com Administration of the Property Tax Each county auditor places on their county's general tax list the values presented by each single county taxpayer 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 determin- ing "true value" of your personal property. Disclosure of valuation methods used should not be construed as "prima 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." If 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. Visit the department's Web site at tax.ohio.gov. 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 Taxpayer Service Centers by contacting ORS operators at 1-800-7500750. All other telephone inquiries should be directed to 1888-644-6778. American LegalNet, Inc. www.FormsWorkflow.com What's New for 2008 Due to the phase-out of the personal property tax, the 2008 return is the final annual return required to be filed by most general taxpayers except public utility lessors (see below). Return Year 2008 2009 2010 2011 Tangible Personal Property Telephone and inter-exchange telecommunications companies – previously classified as public utility taxpayers – have been redefined as general business taxpayers under Ohio Revised Code (R.C.) section 5711.01(B), effective with the 2007 tax return. List Percentage 15% 10% 5% 0% Note that the new manufacturing definitions apply to property required to be listed in Schedule 2. Only taxpayers meeting the new manufacturing definitions should report the value of manufacturing or mining equipment, placed in service before Jan. 1, 2005, in Schedule 2. All other equipment should be reported in Schedule 4. The taxable property reported by telephone and interexchange telecommunications companies will be listed and assessed under R.C. 5711 while the taxable value of telephone and inter-exchange telecommunications personal property will continue to be apportioned under R.C. 5727. All telephone and inter-exchange telecommunications companies will use the same composite allowances and other valuation procedures as prescribed by the tax commissioner for such property for 2006 in tax year 2007 and subsequent tax years, unless otherwise notified of any changes. Am. Sub. H.B. 66 changed the method used to calculate the interest rate applied to personal property tax underpayments and overpayments, effective July 1, 2005. Previously, the interest rate was equal to the federal short-term rate plus 3%. Under revised law, the interest rate will be equal to the federal short-term rate without any adjustment. Even if a telephone or interexchange telecommunications company has property in only one Ohio county, form 945TL, 945IX (long distance) or 945IX (other) must be filed so that the value of the property reported can be accurately apportioned. These forms are required to be filed between Feb. 15 and April 30 (June 15 as extended) each year. The assessment of telephone and interexchange tele-communications companies personal property will be phased out over a four-year period at the following percentages: Form 945S has been revised to include a restatement of the listed values computed at 6.25% as opposed to the 2007 listing percentage of 12.5%. This restatement will allow for a comparison of taxable value at the same listing percentages. Changes greater than $500,000 will be a result of an actual change in true value and not caused by the decreased listing percentage. Starting in 2009 Beginning with tax year 2009, any person or entity that is not a public utility or an interexchange telecommunications company and that leases its personal property to a public utility will be considered a “public utility lessor” and will be required to report and pay tax on its property in the same manner as the utility to which it leases its property. This treatment applies to all such leased property that would otherwise be subject to public utility property tax if it were owned and used directly by the utility except 1) property leased to public utility in a sale and leaseback transaction, and 2) property leased to a railroad, water transportation, telephone or telegraph company. See R.C. 5727.01(M) and 5727.06 for more information. Further updates will follow on reporting requirements and the forms to be used by public utility lessors, as well as how to report tangible personal property leased to a telephone or interexchange telecommunications company for return years 2009 and 2010. Additionally, R.C. 5727.031 requires a taxpayer that produces electricity for its own (nonutility) business and sells excess electricity to others to be treated as an electric company for property taxation purposes. Those taxpayers are required to report and pay the tax on a percentage of the true value of their eligible equipment based on the amount of electricity generated in the preceding year that was sold to other parties. -3- American LegalNet, Inc. www.FormsWorkflow.com Reminders When Filing Form 920 one county will be forwarded to the appropriate county auditor for assessment. The taxpayer will be notified immediately of this action since at least one-half of the total tax due will need to be submitted to that county within 10 days of the county’s receipt of the reported values to avoid a late-filing penalty. • Within Ohio’s 88 counties there are more than 4,000 possible taxing jurisdiction combinations. They are composed of unique combinations of cities, townships, villages, school districts, safety districts, etc. Each district is identified by a unique number within each county and also at the state level for the inter-county return. As a local source of revenue, the personal property tax rates are also unique for each jurisdiction. To ensure that your personal property is listed in the correct taxing district and your tax liability is computed based upon the correct tax rate, you should 1) contact your local county auditor to verify – by address – the correct taxing district in which your property is located; or 2) refer to last year’s personal property preliminary or amended assessment certificate or real estate bills for the correct taxing district name and number. • By Ohio law, all assessments and bills must be sent to the taxpayer. In every case, the taxpayer’s mailing address of record must be recorded on the face of the return. 3 Commonly used 2008 personal property tax forms are available on the Department of Taxation's Web site at tax.ohio.gov, most in both downloadable and fill-in formats. 3 Please check with your local county auditor’s office for the preferred method for submitting an application for an extension of time to file form 920. Please note that all form 920 extension requests must be received by the appropriate county auditor on or before April 30 to be considered. The U.S. postmark date will not be accepted as the date of receipt. However, as with the tax return itself, if the extension application is sent by certified mail or an authorized delivery service the date of mailing (postmark) will be accepted as the date received by the appropriate county auditor and/or tax commissioner. • A personal property tax return (form 920 or form 945) is no longer required to be filed if the listed value before exemption is $10,000 or less. • For those using a software package to create your personal property tax return, remember to incorporate into your existing data any amended assessments showing taxing district changes made subsequent to filing your original 2007 personal property tax return. • Taxpayers having tangible personal property used in business and located in only one Ohio county must file form 920 with the appropriate county auditor. Taxpayers having personal property used in business and located in more than one Ohio county must file form 945 with the tax commissioner. An inter-county tax return filed with the tax commissioner reporting personal property values in only 3 The 2008 Tax Rate Booklet and Guidelines Book will not be available as printed publications. However, both publications will be available on the Department of Taxation’s Web site by March 2008. Again, the Tax Rate Booklet will contain both the county version and the corresponding state taxing district numbers. -4- American LegalNet, Inc. www.FormsWorkflow.com General Information for 2008 Returns What is personal property? Personal property is every tangible thing that 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 Jan. 1 (and have a total listed value of more than $10,000), you must file a return. What tax return forms should I use? Where do I obtain forms? 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 or on the Ohio Department of Taxation's Web site. If property is located in more than one county, form 945, Inter-County Return of Taxable Business Property, must be filed. This form can also be obtained from Ohio Department of Taxation's Web site. When is the return filed? Form 920 is filed between Feb. 15 and April 30. An extension of time to June 16, 2008 may be requested from the county auditor in the county where the return is required to be filed. The postmark date does not constitute timely filing of the return unless certified mail or an approved delivery system is used. Otherwise, the return must be received by the county auditor on or before the due date to be considered timely filed. Where is the return filed? Form 920 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. See page 7 for additional exceptions. 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. See page 7 for additional exemption information. 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 for your proper taxing district information. 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 form 920 is filed, one-half of the total tax must be paid, and the second half must be paid by Sept. 20. A bill is mailed by the county treasurer to indicate the amount due. -5- American LegalNet, Inc. www.FormsWorkflow.com Is there a minimum amount of tax? If the total tax due is less than $2, then no payment is required. If the total listed value of the return is less than $10,000, no return is required to be filed. What if I file after the due date? If the return is filed late, the assessor may 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 Jan. 1? Those taxpayers who begin business after Jan. 1 must file a "new taxpayer return" (form 920NT) 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 Jan. 1? If business stops or property is sold after Jan. 1, a full return is still due. However, a return will not be required for the following year. Are other forms required? Form 310, For Storage Only Calculation Worksheet: File this form to calculate and claim exemption of inventory that is being held for storage purposes only in any type of warehouse in Ohio where actual figures are not available. 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 or a Hazardous Substance Reclamation Area: This form is required when an agreement is in place to claim exemption for certain property located in an enterprise zone and to also 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. What approved delivery services can I use to mail my return? Approved delivery services include: • Federal Express Corp – FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2nd Day Air • United Parcel Service – UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M. Tax forms may be obtained from your county auditor. They may also be downloaded from the Ohio Department of Taxation's Web site at tax.ohio.gov. -6- American LegalNet, Inc. www.FormsWorkflow.com Instructions for Listing and Valuing Personal Property Listing Tangible Personal Property Inventories 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 Dec. 31 is used for IRS 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 12 months before that year end, then you must use Dec. 31 (Ohio Adm. Code 5703-3-04). 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. Example: 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 (Ohio Adm. Code 5703-3-16). Depreciable Assets The value of manufacturing inventory must include the costs of raw material, goods-in-process and finished goods. Goodsin-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 leases, repairs and maintenance, depreciation and amortization (Ohio Adm. Code 5703-3-27). 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. 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. List in Schedule 2 all assets used in manufacturing or mining. List in Schedule 4 all other assets, except inventories. For the 2008 return, list in Schedule 5 the cost of all manufacturing equipment first used in business after Jan. 1, 2007, and meeting the definition of manufacturing equipment found in R.C. 5711.16. Inventories of repair and maintenance parts, as well as equipment held as spare parts, are valued at 100% of the cost of the amount on hand at year end reported in Schedule 4, and listed at 6.25%. The supply items of a manufacturer, the costs of which are not absorbed in the cost of the final product, and supply items of all other taxpayers are to be valued at the cost of the amount on hand at year end reported in Schedule 4, and listed at 6.25%. Such inventories include those of mines, quarries, laundries, dry cleaners, contractors, repair shops, garages, etc. This also includes office supplies and supplies used in the normal business activities. Exempt Property Includes property used in agriculture; property for which an exempt facility certificate has been applied for or has been certified exempt; patterns, jigs, dies and drawings not held for sale; construction in progress not capable of use; registered motor vehicles and aircraft. Leased Property Taxing Districts 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, Public Utilities 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. 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. -7- American LegalNet, Inc. www.FormsWorkflow.com Line Instructions for Completing Form 920 Taxpayer Identification and Recapitulation Enter all identification information. Please indicate the taxpayer name as registered with the Ohio secretary of state or with the local county auditor if only 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 1A ............................ Taxing District Number ........................... Enter the correct state taxing district number. Line 1B ............................ Taxing District Name .............................. 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 *Please note that the listing percentage changed to 6.25%. nearest $10). Line 3 ............................... Schedule 3 .............................................. Enter the listed value by taxing district (rounded to the *Please note that the listing percentage changed to 6.25%. nearest $10). Line 4 ............................... Schedule 3A ............................................ Enter the listed value by taxing district (rounded to the *Please note that the listing percentage changed to 6.25%. nearest $10). Line 5 ............................... Schedule 4 .............................................. Enter the listed value by taxing district (rounded to the *Please note that the listing percentage changed to 6.25%. nearest $10). 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. 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. Since tax rates are expressed in dollars per $1,000 of taxable valuation, you must multiply the "taxable value" on line 8 by the "tax rate" on line 9 and enter it here (i.e., rate of $65.50 converts to .06550). Line 11 ............................... Enter the Amount Paid With the Return (minimum of half total tax) Line 12 ............................... Enter Balance Due for Each Taxing District Line 13 ............................... Schedule 5 .............................................. For the 2008 return, enter the cost of all manufacturing equipment first used in business in Ohio after Jan. 1, 2007, and meeting the definition of manufacturing equipment in R.C. 5711.16 -8- American LegalNet, Inc. www.FormsWorkflow.com Form 920 2008 Rev. 11/07 County County Return of Taxable Business Property For accounting period to 2007 Taxpayer name File No. (If corporation, LP or LLC, as registered with the Ohio secretary of state) Taxpayer address (required) County Auditor's Received Stamp City, state, ZIP code Doing business as (DBA) Physical location of taxable property Date business started in Ohio Description of business Time Extension Permit Ohio charter/registration number Federal employer identification number NAICS code number Date incorporated or qualified in Ohio Social security number Ohio vendor's license number Type of business: Filing includes: Corporation Form 902 Partnership Form 913EX LP LLC Sole proprietor Other Consolidated (submit list of company names) No. granted to 2008 1A. State taxing district number .......... 1B. Taxing district name (township, city and school district) ...................... 2. Schedule 2 (nearest $10) ........... 3. Schedule 3 (nearest $10) ........... 4. Schedule 3A (nearest $10) ......... 5. Schedule 4 (nearest $10) ........... 6. Total listed value ......................... 7. $10,000 exemption ..................... 8. Taxable value ............................. 9. Tax rate ...................................... 10. Tax ............................................. 11. Amount paid with return ............... 12. Balance ...................................... 13. Schedule 5 ................................. File this return in duplicate with your county auditor, with check attached and made payable to your county treasurer for at least one-half of tax, between Feb. 15 and April 30. If total listed value (line 6) is less than $10,000 this return is not required to be filed. No payment is required if the total tax due is under $2. Declaration I/we declare under penalties of perjury that this return (including any accompanying schedules and statements) has been examined by me/us and to the best of my/our knowledge and belief is a true, correct and complete return and report. Tax preparer/tax representative Date Signature of taxpayer Address Phone number E-mail address Date Name of taxpayer (please print) Phone number Title E-mail address -9- American LegalNet, Inc. www.FormsWorkflow.com Schedule 2 – Manufacturing Machinery and Equipment. List at 6.25% machinery first used in business in Ohio before Jan. 1, 2005 that is used in manufacturing or mining. If the value of equipment is based on other than book value, attach details of the computation. Taxing District True Value Description % Listed Value 6.25 6.25 6.25 6.25 6.25 6.25 6.25 Total (carry listed value by taxing district to line 2 on front of return) Schedule 4 – Furniture, Fixtures, Machinery and Equipment and Supplies Not Used in Manufacturing. List at 6.25% furniture, fixtures, machinery and equipment, supplies, small tools and repair parts used in laundries, dry cleaning, towel and linen supply, stone and gravel plants, radio and television broadcasting, and any other business not constituting manufacturing, and also inventories of other than a manufacturer or merchant and all domestic animals not used in agriculture. List property used by public utility companies, and other property used in generating and distributing electricity to others at the listing percentage for that type of property. Contact the Property Tax Division for instructions. If the value is based on other than book value, attach details of the computation. Taxing District True Value Description % Listed Value 6.25 6.25 6.25 6.25 6.25 6.25 6.25 Total (carry listed value by taxing district to line 5 on front of return) Schedule 5 – New Investment Manufacturing Equipment. List by taxing district and cost all manufacturing equipment first used in business in Ohio during the calendar or fiscal year ending in 2007. See R.C. 5711.16 for a complete definition of a manufacturer, manufacturing equipment and manufacturing facility to determine if you qualify to list this equipment here or in Schedule 2. Taxing District Date First Used in Business in Ohio Description Cost Total qualifying costs 2008 return (carry cost by taxing district to line 13 on front of return) Qualifying costs reported on 2006 and 2007 returns (net of disposals) Total (carry total cost to line 8c on form 921) - 10 - American LegalNet, Inc. www.FormsWorkflow.com Schedule 3 – Manufacturing Inventories – List at 6.25% of average value all inventories of raw materials, works in process and finished goods used in manufacturing or refining. Finished goods removed from the county of manufacture and inventory held for sale by a merchant must be listed in Schedule 3A. List property separately by the county and taxing district. Use the county number and correct name and number of the taxing district. Round listed values to the nearest $10 and carry forward to line 3. Ohio law requires monthly inventories to be listed. Method of Valuing Inventories Listed Source of Values Listed Perpetual inventory Physical inventory Gross profits method Dates physicals taken Net sales $ FIFO cost Standard cost LIFO cost Other Book Adjustments Date Amount DR/CR Book to physical LIFO reserve Other reserves County No. Taxing District Name & Number January February March April May June July August September October November December Total Values Average Value List @ 6.25% - 11 - American LegalNet, Inc. www.FormsWorkflow.com Form 921 2008 Rev. 11/07 Ohio Balance Sheet (Required to be filed with tax forms 920 and 945) Name Balance sheet as of FEIN/Social Security number 2007 Within Ohio Net Book Values Assets Total Net Book Values 1. Cash and deposits .......................................................................... 2. Notes and accounts receivable ..................................................... 3. Inventories A) Manufacturing .............................................................................. B) Merchandising ............................................................................. C) Supplies – manufacturing ............................................................ D) Supplies – other .......................................................................... E) Consigned ................................................................................... F) Agricultural machinery and equipment (merchandise) .................. G) Exempted inventory (including foreign trade zone) ....................... H) Other inventory ............................................................................ 4. Investments .................................................................................... 5. Land ................................................................................................ Ohio Cost 6. Buildings A) Taxed as real estate ........................................... B) Taxed as personal property ................................. 7. Leasehold improvements A) Taxed as real estate ........................................... B) Taxed as personal property ................................. 8. Machinery and equipment A) Taxed as real estate ........................................... B) Taxed as personal property ................................. C) Exempt manufacturing equipment H.B. 66.......... 9. Furniture and fixtures ........................................... 10. Personal property leased to others A) Taxable ............................................................... B) Nontaxable ......................................................... 11. Capitalized leases ................................................ 12. Exempt personal property located in an enterprise zone (attach form 913EX) or a hazardous substance reclamation area .............. 13. Certified exempt facilities .................................... 14. Patterns, jigs, dies and drawings ........................ 15. Construction in progress A) Real property ...................................................... B) Personal property capable of use ....................... C) Personal property not capable of use .................. 16. Small tools ............................................................ 17. Vehicles and aircraft A) Registered or licensed ........................................ B) Other .................................................................. 18. Other assets .................................................................................... 19. Total assets ..................................................................................... Liabilities and Net Worth 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Notes, accounts payable, bonds and mortgages ............................................................... Accrued expenses ................................................................................................................ Other liabilities, deferred credits ......................................................................................... Preferred stock ...................................................................................................................... Common stock ....................................................................................................................... Additional paid-in capital ..................................................................................................... Retained earnings ................................................................................................................ Appropriated earnings ......................................................................................................... Owner's capital ..................................................................................................................... Other ...................................................................................................................................... Total liabilities and net worth .............................................................................................. - 13 - American LegalNet, Inc. www.FormsWorkflow.com 2008 Exhibits for Balance Sheet Reconciliation and Leased Property/Consigned Inventory Exhibit A – Reconciliation of Balance Sheet Line Numbers 3, 8B, 9, 10, 13, 15B and 16 B/S Line No. Book Value Value Returned Reconcile Differences Difference Exhibit B Please provide a brief description of leasehold improvements and machinery and equipment taxed as real (lines 7A and 8A). B/S Line No. Itemization Amount Exhibit C – Leased Property List all tangible personal property held under lease on tax listing day. Name and Address of Property Owner Lease: Lease: Start Date Ending Date Type of Property Gross Annual Rental Exhibit D – Inventory Held Under Bailment, Consignment, Contract Agreement List all inventories held on consignment or as bailment, or under contract, and in your possession during the reporting period and not listed in this return. Name and Address of Inventory Owner Inventory Type (Mfg or Mer) - 14 - Inventory Location Address Estimated Average Value American LegalNet, Inc. www.FormsWorkflow.com True Value Computation Form 937, True Value Computation, provides for assembling the data necessary to determine the aggregate true value of tangible personal property. A separate computation is necessary for each taxing district involved and, within a given taxing district, for each business activity assigned a different class. Costs of taxable property at the end of the previous year are to be shown by year of acquisition (column 1, column 2). Additions, disposals and transfers occurring during the year are to be entered at cost, opposite the year in which they were acquired (column 3, column 4). The resulting costs remaining at year-end are then listed (column 5); their total must equal the beginning-of-year total plus additions and transfers in, less disposals and transfers out. The valuation percentages for the specified class are then copied into place (column 6). Each year-end cost is then multiplied by the corresponding valuation percentage (column 7). The column total is the true value and should be carried to the appropriate schedule (Schedule 2 or 4) in the tax return. Column (5) totals must reconcile with ledger accounts, except that property written off the records but still physically on hand must be included in the computation; property disposed of but not written off the records should be deducted; and any costs that are to be included as full costs may not have been capitalized on the ledger account. These exceptions should Age Stand-Alone Computers 1 2 75.0 60.0 3 4 45.0 30.0 5 6 7 be separately identified in the computation. Cost for nontaxable property such as registered motor vehicles, licensed aircraft, property taxed as real estate or certified pollution control facilities should not be included. Full costs must be shown. Cost must include inbound freight, millwrighting, overhead, investment credits, assembly and installation labor, material and expenses, and sales and use taxes. Premium pay and payroll taxes are includible in labor costs. Costs may not be reduced by trade-in allowances. Cost of major overhauls are to be treated as capitalized and listed as acquisitions in the year in which they occur. Form 937 or a facsimile is required to be filed with the tax return. Listed below are the valuation percentages for the six class lives and stand-alone computers. For assets used in manufacturing, listed in Schedule 2, Class V is the most common class. Assets used in retail trade, nonmanufacturing activities and general office equipment listed in schedule 4, are most often valued using Class III. To determine the prescribed class life for your business activity(s), consult the department's publication "True Value of Tangible Personal Property." The smallest percentage in each class determines the minimum acceptable value so long as the property is held for use in business. Class I Class II Class III Class IV Class V Class VI 90.0 92.0 93.2 93.9 94.3 94.4 63.3 44.0 76.3 60.6 82.8 72.4 86.3 78.7 88.1 81.8 88.9 83.3 15.0 32.0 20.0 46.1 37.9 62.0 51.5 71.1 63.5 75.6 69.3 77.8 72.2 15.0 15.0 20.0 20.0 29.8 21.6 42.2 36.3 55.8 48.2 63.1 56.9 66.7 61.1 8 9 20.0 20.0 30.5 24.6 40.6 35.4 50.6 44.4 55.6 50.0 10 20.0 18.8 31.1 38.2 44.4 18.8 18.8 26.8 22.5 32.8 29.5 38.9 33.3 6.0 yrs. 18.3 17.4 26.2 22.9 28.9 26.2 11 12 13 Composite Group – Life Ranges Class At Least Less Than 14 15 II 6.0 yrs. 8.4 " 17.4 19.6 23.5 16 III 8.4 " 11.6 " 17.4 17 18 IV 11.6 " 14.8 " 16.3 16.3 20.8 18.1 V 14.8 " 17.2 " 16.3 19 20+ VI 17.2 " 15.4 15.4 I 15.4 Note: Personal property leased to a public utility in Ohio must be valued the same as if owned by the public utility. Please contact the department for the appropriate valuation method. - 15 American LegalNet, Inc. www.FormsWorkflow.com Form 937 Rev. 11/07 True Value Computation Machinery and Equipment State of Ohio Furniture and Fixtures Class Public Utility Property Return Year 2008 Stand-Alone Computers Company Taxing District Number and Name (1) (2) (3) (4) (5) (6) (7) Year Acquired Cost At End Of 2006 Additions and Transfers In 2007 Disposals and Transfers Out 2007 Cost At End Of 2007 Per Cent True Value Amount $ Totals Remarks List @ 6.25 % - 16 American LegalNet, Inc. www.FormsWorkflow.com 2008 GEAUGA COUNTY RATES OF TAXATION TAX YEAR 2007 Form Form 920 Taxing District Name Rates 945 01 Auburn Township-Kenston LSD 115.760 28-0010 02 Bainbridge Township-Kenston LSD 128.340 28-0020 03 Bainbridge Township-Chagrin Falls EVSD 148.150 28-0260 04 Burton Township-Berkshire LSD 77.150 28-0030 05 Burton Village-Berkshire LSD 79.650 28-0040 06 Chardon Township-Chardon LSD 95.180 28-0050 07 Chardon Township-Concord LSD 82.950 28-0270 08 Chardon Township-Kirtland LSD 96.140 28-0280 09 Chardon Township-Mentor EVSD 99.125 28-0290 10 City of Chardon-Chardon LSD 99.480 28-0060 11 Chester Township-West Geauga LSD 90.400 28-0070 12 Claridon Township-Berkshire LSD 79.300 28-0080 13 Claridon Township-Chardon LSD 97.880 28-0090 14 Aquilla Village-Chardon LSD 103.480 28-0100 15 Hambden Township-Chardon LSD 99.280 28-0110 16 Huntsburg Township-Cardinal LSD 82.250 28-0120 17 Huntsburg Township-Ledgemont LSD 80.410 28-0130 18 Middlefield Township-Cardinal LSD 82.670 28-0140 19 Middlefield Village-Cardinal LSD 82.900 28-0150 20 Montville Township-Ledgemont LSD 82.110 28-0160 21 Munson Township-Chardon LSD 100.730 28-0170 22 Munson Township-West Geauga LSD 84.050 28-0180 23 Newbury Township-Newbury LSD 85.590 28-0190 24 Newbury Township-Kenston LSD 113.290 28-0200 25 Parkman Township-Cardinal LSD 80.550 28-0210 26 Russell Township-West Geauga LSD 93.900 28-0220 27 Hunting Valley Village-West Geauga LSD 76.900 28-0310 28 Russell Township-Chagrin Falls EVSD 146.500 28-0300 29 South Russell Village-Chagrin Falls EVSD 136.350 28-0320 30 Thompson Township-Ledgemont LSD 83.910 28-0230 31 Thompson Township-Madison LSD 87.910 28-0330 32 Troy Township-Berkshire LSD 82.400 28-0240 33 Troy Township-Cardinal LSD 85.750 28-0250 American LegalNet, Inc. www.FormsWorkflow.com