Bill Text: IN HB1062 | 2012 | Regular Session | Introduced
Bill Title: Assessment of real property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-09 - First reading: referred to Committee on Ways and Means [HB1062 Detail]
Download: Indiana-2012-HB1062-Introduced.html
Citations Affected: IC 6-1.1-4; IC 6-1.1-35.5-6.
Synopsis: Assessment of real property. Provides that the assessed
value of property determined in an appraisal submitted by a taxpayer
shall be substituted in an appeal for the assessed value determined by
any other method. Limits for four years the amount by which the
assessed value of property can increase after the assessed value is
determined in an appeal.
Effective: Upon passage.
January 4, 2012, read first time and referred to Committee on Ways and Means.
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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) 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.
(c) Subject to section 46 of this chapter, for a general reassessment that begins on or after July 1, 2010, the assessed value of
real property, including land, shall be based on the estimated true tax
value of the property on the assessment date that is the basis for taxes
payable in the year following the year in which the general
reassessment is to be completed.
(b) Subject to subsection (e) and section 46 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 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) is licensed or certified as a real estate appraiser under IC 25-34.1-8;
(2) is certified as a level one or level two appraiser under IC 6-1.1-35.5; and
(3) is not under contract with any county under this chapter;
the appraised value of the property, as determined by the appraiser, shall be substituted for that year for the assessed value determined by any other method.
(b) This subsection does not apply to any part of a change in an assessment directly applicable to an improvement or enlargement of property. In each of the next four (4) years after an assessment date for which the assessed value of property is determined in an appeal initiated under IC 6-1.1-15-1, an assessing official may not increase the assessed value of the property by more than the lesser of the following:
(1) The amount determined under the last STEP of the following formula:
STEP ONE: Determine the assessed valuation of the property for the immediately preceding year, as determined after applying the decision in the appeal and this subsection.
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,
one and three hundredths (1.03).
(2) The increase in true tax value of the property determined
by any other method permitted under this article.
An assessing official shall apply this subsection without the
initiation of an appeal by the taxpayer.
(b) The department of local government finance shall revoke the certification of an individual if the department reasonably determines that the individual committed fraud or misrepresentation with respect to:
(1) the preparation, administration, or taking of the examination for level one or level two certification;
(2) completion of the curriculum for level three certification; or
(3) an appraisal submitted to an assessing official under IC 6-1.1-4-46.
The department of local government finance shall give notice and hold a hearing to consider all of the evidence about the fraud or misrepresentation before deciding whether to revoke the individual's certification.