Bill Text: IN HB1026 | 2013 | Regular Session | Introduced
Bill Title: Assessment of real property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-07 - First reading: referred to Committee on Local Government [HB1026 Detail]
Download: Indiana-2013-HB1026-Introduced.html
Citations Affected: IC 6-1.1-4.
Synopsis: Assessment of real property. Provides that after the assessed
value of real property is determined in an appeal, the amount by which
the assessed value of the real property can increase in the next three
years is limited.
Effective: Upon passage.
January 7, 2013, read first time and referred to Committee on Local Government.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) shall be completed on or before March 1 of the year that succeeds by two (2) years the year in which the general reassessment begins; and
(2) subject to section 43 of this chapter, shall be the basis for taxes payable in the year following the year in which the general assessment is to be completed.
(b) In order to ensure that assessing officials are prepared for a general reassessment of real property, the department of local government finance shall give adequate advance notice of the general reassessment to the assessing officials of each county.
UPON PASSAGE]: Sec. 4.5. (a) The department of local government
finance shall adopt rules establishing a system for annually adjusting
the assessed value of real property to account for changes in value in
those years since a reassessment under section 4 or 4.2 of this chapter
for the property last took effect.
(b) Subject to subsection (e) and section 43 of this chapter, the
system must be applied to adjust assessed values beginning with the
2006 assessment date and each year thereafter that is not a year in
which a reassessment under section 4 or 4.2 of this chapter for the
property becomes effective.
(c) The rules adopted under subsection (a) must include the
following characteristics in the system:
(1) Promote uniform and equal assessment of real property within
and across classifications.
(2) Require that assessing officials:
(A) reevaluate the factors that affect value;
(B) express the interactions of those factors mathematically;
(C) use mass appraisal techniques to estimate updated property
values within statistical measures of accuracy; and
(D) provide notice to taxpayers of an assessment increase that
results from the application of annual adjustments.
(3) Prescribe procedures that permit the application of the
adjustment percentages in an efficient manner by assessing
officials.
(d) The department of local government finance must review and
certify each annual adjustment determined under this section.
(e) In making the annual determination of the base rate to satisfy the
requirement for an annual adjustment under subsection (c) for current
property taxes first due and payable in 2011 and thereafter, the
department of local government finance shall determine the base rate
using the methodology reflected in Table 2-18 of Book 1, Chapter 2 of
the department of local government finance's Real Property Assessment
Guidelines (as in effect on January 1, 2005), except that the department
shall adjust the methodology to:
(1) use a six (6) year rolling average adjusted under subdivision
(2) instead of a four (4) year rolling average; and
(2) eliminate in the calculation of the rolling average the year
among the six (6) years for which the highest market value in use
of agricultural land is determined.
(f) For assessment dates after December 31, 2009, an adjustment in
the assessed value of real property under this section shall be based on
the estimated true tax value of the property on the assessment date that
is the basis for taxes payable on that real property.
(1) The amount determined under the last STEP of the following formula:
STEP ONE: Determine the assessed value of the property for the immediately preceding year, as determined after applying the decision in the appeal and this section.
STEP TWO: If the assessed value in the appeal was determined based on the gross rent multiplier method, determine the greater of:
(A) one (1); or
(B) the amount of rent received from the property for the year divided by the amount of rent received from the property in the immediately preceding year.
STEP THREE: Multiply the STEP ONE amount by:
(A) the STEP TWO amount; or
(B) if the assessed value in the appeal was not determined based on the gross rent multiplier method, an amount determined by the assessing official that is not more than one and three-hundredths (1.03).
(2) The increase in the true tax value of the property determined by any other method permitted under this article.
An assessing official shall apply this section without the initiation of an appeal by the taxpayer.
