Bill Text: IN HB1286 | 2011 | Regular Session | Introduced
Bill Title: Property tax assessment issues.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Ways and Means [HB1286 Detail]
Download: Indiana-2011-HB1286-Introduced.html
Citations Affected: IC 6-1.1; IC 6-1.5-4-3.
Synopsis: Property tax assessment issues. Requires that sales ratio
studies must identify the sales adjustment factor used for each sale used
in the study. Provides that a retroactive reassessment of undervalued
property may be conducted only to correct for physical changes in the
property. Requires the department of local government finance to adopt
rules to govern gathering and processing information for the
application of the income capitalization method and the gross rent
multiplier method. Indicates that a rule of the department of local
government finance that conflicts with a statute is void. Specifies that
any failure to comply with the procedures of a specific assessing
method, this article or any rule of the department of local government
finance that is not in conflict with this article shall be treated as an
incorrect valuation. Specifies that failure of an assessing official to
comply with statutory appeal procedures, including the requirement
that assessing officials bear the burden of proof of proving the validity
of an assessment change results in invalidation of the assessment
change.
Effective: Upon passage.
January 12, 2011, 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.
(b) Subject to subsection (e), 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.
adjustment factors.
(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.
Beginning with sales ratio studies prepared for an annual
adjustment after December 31, 2011, the department of local
government finance shall review and certify each annual
adjustment submitted as part of the county's sales ratio study
determined under this section. Counties shall state the annual
adjustment factor used to adjust the assessed value for each sold
property identified on a sales ratio study used in the county before
the department of local government finance certification.
(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) omitted from; or
(2) undervalued as a result of physical change in the property;
on the assessment rolls or the tax duplicate for any year or years, the
official or board shall give written notice under IC 6-1.1-3-20 or
IC 6-1.1-4-22 of the assessment or increase in assessment. The notice
shall contain a general description of the property and a statement
describing the taxpayer's right to a review with the county property tax
assessment board of appeals under IC 6-1.1-15-1.
(b) If a taxpayer files a personal property return for a particular year, the assessed value of personal property that is undervalued on the return may be increased only if:
(1) the notice required under section 1 of this chapter is given within three (3) years after the date the return is filed; and
(2) for actions taken for an assessment date after January 15, 2011, the undervaluation results from a physical change in the property.
However, if the taxpayer's personal property return for a particular year substantially complies with this article and the rules of the department of local government finance, an assessing official or a county property tax assessment board of appeals may change the assessed value claimed by the taxpayer on the return only within the time prescribed in IC 6-1.1-16-1.
property may be assessed or its assessed value increased, for a prior
year under this chapter only if the notice required by section 1 of this
chapter is given within three (3) years after the assessment date for that
prior year.
(b) This subsection applies to actions taken for an assessment
date after January 15, 2011. The assessed value of undervalued
real property may be increased for a prior year under this chapter
only if:
(1) the notice required under section 1 of this chapter is given
within three (3) years after the date the return is filed; and
(2) for actions taken for an assessment date after January 15,
2011, the undervaluation results from a physical change in the
property.
(b) (c) With respect to real property which is owned by a bona fide
purchaser without knowledge, no lien attaches for any property taxes
which result from an assessment, or an increase in assessed value,
made under this chapter for any period before his purchase of the
property.
(b) Assessing officials shall:
(1) comply with this article (including IC 6-1.1-4-4.4 and IC 6-1.1-15-1) and the rules, appraisal manuals, bulletins, and directives adopted by the department of local government finance;
(2) use the property tax forms, property tax returns, and notice forms prescribed by the department; and
(3) collect and record the data required by the department.
(c) In assessing tangible property, the assessing officials may consider factors in addition to those prescribed by the department of local government finance if the use of the additional factors is first approved by the department. Each assessing official shall indicate on the official's records for each individual assessment whether:
(1) only the factors contained in the department's rules, forms, and
returns have been considered; or
(2) factors in addition to those contained in the department's rules,
forms, and returns have been considered.
(d) Any failure to comply with the procedures of a specific
assessing method, this article, or any rule of the department of
local government finance that is not in conflict with this article
shall be treated as an incorrect valuation.
(b) If rules for the appraisal of real property in a general reassessment are timely adopted under subsection (a) and are then disapproved by the attorney general for any reason under IC 4-22-2-32, the department of local government finance may modify the rules to cure the defect that resulted in disapproval by the attorney general, and may then take all actions necessary under IC 4-22-2 to readopt and to obtain approval of the rules. This process may be repeated as necessary until the rules are approved.
(c) The department of local government finance shall adopt rules under IC 4-22-2 for assessing officials to follow in gathering and processing information for the application of the income capitalization method and the gross rent multiplier method when required by IC 6-1.1-4 for assessment dates after January 15, 2012. The initial rules adopted under this subsection must be adopted before March 1, 2012.
(b) If:
(1) a petitioner appeals the assessed value of property to the Indiana board and demonstrates to the Indiana board that an assessing official has not complied with:
(A) IC 6-1.1-4-4.4;
(B) IC 6-1.1-15-1; or
(C) both IC 6-1.1-4-4.4 and IC 6-1.1-15-1; and
(2) the assessing official cannot prove that the assessed value is not correct;
the Indiana board shall find that the assessed valuation for the assessment date subject to appeal is equal to the assessed value finally determined for the immediately preceding assessment date and order the assessing official to change the assessed value back to the assessed value finally determined for the immediately preceding assessment date.
(1) The date specified in the temporary rule.
(2) The date another temporary rule or a permanent rule supersedes or repeals the previously adopted temporary rule.
(3) January 1, 2013.
(b) This SECTION expires January 1, 2013.
