26-51-1404. Property values. [Effective January 1, 2021.]

26-51-1404. Property values. [Effective January 1, 2021.] (a)(1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation, or amortization. (2)(A) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a loan is charged off, in whole or in part, for federal income tax purposes, the portion of the loan charged off is not outstanding. (C) A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines that is treated as charged off for federal income tax purposes shall be treated as charged off for purposes of this section. (3)(A) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. (B) If a credit card receivable is charged off, in whole or in part, for federal income tax purposes, the portion of the receivable charged off is not outstanding. (b)(1) The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two (2). (2) If averaging on this basis does not properly reflect average value, the Secretary of the Department of Finance and Administration may require averaging on a more frequent basis. (3) The taxpayer may elect to average on a more frequent basis. (4) When averaging on a more frequent basis is required by the secretary or is elected by the taxpayer, the same method of valuation shall be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the secretary or the secretary requires a different method of determining average value.