January 18, 2000
HOUSE BILL No. 1005
_____
DIGEST OF HB 1005
(Updated January 14, 2000 3:55 PM - DI 92)
Citations Affected: IC 6-1.1; noncode.
Synopsis: Reassessment delay. Postpones the general reassessment of
real property scheduled to begin July 1, 1999, to July 1, 2001 (effective
for the March 1, 2003, assessments). Requires the state board of tax
commissioners to adopt, before July 1, 2001, the rules necessary to
carry out the general reassessment that will begin July 1, 2001.
Provides for the annual adjustment of assessed value of real property
beginning with the 2004 assessment date. Provides that the portion of
the sales disclosure fee paid to the county must be used for the
verification of the information contained on the sales disclosure form.
Provides that the portion of the sales disclosure fee paid to the state
must be used for the training of assessment officials and employees of
the state board of tax commissioners. Provides that an assessing official
is not required to issue a notice of change to a taxpayer's assessment (a
state board of tax commissioner's Form 11) as a result of changing the
definition of assessed value from one-third (1/3) of the true tax value
of property to one hundred percent (100%) of the true tax value.
Requires each county treasurer to establish a county sales disclosure
fund. Establishes the assessment training fund. Requires the treasurer
of state to transfer $500,000 from the state's share of sales disclosure
form fees to the assessment training fund.
Effective: July 1, 1999 (retroactive); upon passage; January 1, 2000;
July 1, 2000; July 1, 2003.
Welch, Bauer, Denbo
November 23, 1999, read first time and referred to Committee on Ways and Means.
January 18, 2000, minority report rejected; majority report amended, reported _ Do Pass.
January 18, 2000
Second Regular Session 111th General Assembly (2000)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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Conflict reconciliation: Text in a statute in
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between statutes enacted by the 1999 General Assembly.
HOUSE BILL No. 1005
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-4-4; (00)HB1005.1.1. -->
SECTION 1. IC 6-1.1-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 1999 (RETROACTIVE)]: Sec. 4.
(a) A general reassessment, involving a physical inspection of all real
property in Indiana, shall begin July 1, 1999, 2001, and each fourth
year thereafter. Each reassessment shall be completed on or before
March 1 of the immediately following odd-numbered year, and 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 and members of each
county property tax assessment board of appeals are prepared for a
general reassessment of real property, the state board of tax
commissioners shall give adequate advance notice of the general
reassessment to the county and township taxing officials of each
county.
SOURCE: IC 6-1.1-4-4.5; (00)HB1005.1.2. -->
SECTION 2. IC 6-1.1-4-4.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]:
Sec. 4.5. (a) The state board of tax commissioners 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 general reassessment of property last took
effect.
(b) The system must be applied to adjust assessed values
beginning with the 2004 assessment date and each year thereafter
that is not a year in which a reassessment becomes effective.
(c) The system must have the following characteristics:
(1) Promote uniform and equal assessment of real property
within and across classifications.
(2) Apply all objectively verifiable factors used in mass
valuation techniques that are reasonably expected to affect
the value of real property in Indiana.
(3) Prescribe as many adjustment percentages and whatever
categories of percentages the board finds necessary to achieve
objectively verifiable updated just valuations of real property.
An adjustment percentage for a particular classification may
be positive or negative.
(4) Prescribe procedures, including computer software
programs, that permit the application of the adjustment
percentages in an efficient manner by assessing officials.
SOURCE: IC 6-1.1-4-27; (00)HB1005.1.3. -->
SECTION 3. IC 6-1.1-4-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 1999 (RETROACTIVE)]: Sec. 27.
(a) The auditor of each county shall establish a property reassessment
fund. The county treasurer shall deposit all collections resulting from
the property taxes that the county is required to levy under this section
in the county's property reassessment fund.
(b) With respect to the general reassessment of real property which
is to commence on July 1, 1999, the county council of each county
shall, for property taxes due in the year in which the general
reassessment is to commence and the three (3) years immediately
preceding that year, levy against all the taxable property of the county
an amount equal to three-fourteenths (3/14) of the estimated cost of the
general reassessment.
(c) (b) With respect to a general reassessment of real property that
is to commence on July 1,
2003, 2005, and each fourth year thereafter,
the county council of each county shall, for property taxes due in the
year that the general reassessment is to commence and the three (3)
years preceding that year, levy against all the taxable property in the
county an amount equal to one-fourth (1/4) of the estimated cost of the
general reassessment.
(d) (c) The state board of tax commissioners shall give to each
county council notice, before January 1, of the tax levies required by
this section.
(e) (d) The state board of tax commissioners may raise or lower the
property taxes levied under this section for a year if they determine it
is appropriate because the estimated cost of the general reassessment
has changed.
SOURCE: IC 6-1.1-5.5-4; (00)HB1005.1.4. -->
SECTION 4. IC 6-1.1-5.5-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 4. A person filing a
sales disclosure form under this chapter shall pay a fee of five dollars
($5) to the county auditor. Eighty percent (80%) of the revenue shall be
deposited in the county general fund. sales disclosure fund
established under section 4.5 of this chapter. Twenty percent (20%)
of the revenue shall be transferred to the state treasurer for deposit in
the state general fund. assessment training fund established under
section 4.7 of this chapter.
SOURCE: IC 6-1.1-5.5-4.5; (00)HB1005.1.5. -->
SECTION 5. IC 6-1.1-5.5-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2000]: Sec. 4.5. The county treasurer of each
county shall establish a sales disclosure fund. The treasurer shall
deposit into the fund the money received under section 4 of this
chapter. Money in the fund may be expended only for the
administration of this chapter and the verification of the
information contained on a sales disclosure form.
SOURCE: IC 6-1.1-5.5-4.7; (00)HB1005.1.6. -->
SECTION 6. IC 6-1.1-5.5-4.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2000]: Sec. 4.7. (a) The assessment training
fund is established for the purpose of receiving fees deposited
under section 4 of this chapter for the training of assessment
officials and employees of the state board of tax commissioners.
The fund shall be administered by the treasurer of state.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
accrues from these investments shall be deposited into the fund.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
SOURCE: ; (00)HB1005.1.7. -->
SECTION 7. [EFFECTIVE JULY 1, 1999 (RETROACTIVE)]
(a)
The definitions in IC 6-1.1-1 apply throughout this SECTION.
(b) Notwithstanding IC 6-1.1-31-9, the state board of tax
commissioners shall, before July 1, 2001, adopt the rules necessary
to carry out the general reassessment scheduled to begin July 1,
2001, under IC 6-1.1-4-4, as amended by this act. Notwithstanding
IC 6-1.1-31-9, the state board of tax commissioners may not begin
before December 1, 2000, the adoption of rules necessary to carry
out the general reassessment scheduled to begin July 1, 2001, under
IC 6-1.1-4-4, as amended by this act. A rule adopted in violation of
this subsection is void.
(c) The state board of tax commissioners or a local assessing
official may delay any duty imposed by statute or rule that is
related to the general reassessment that was scheduled to begin
July 1, 1999, but is postponed until July 1, 2001, by subsection (d).
An action taken by the state board of tax commissioners or an
assessing official to cancel or otherwise delay any of the duties
imposed for the implementation of a general reassessment of real
property that was to commence on July 1, 1999, is legalized and
validated.
(d) The general reassessment that was scheduled to begin July
1, 1999, under IC 6-1.1-4-4, as effective before the effective date of
this act, is postponed and shall instead begin on July 1, 2001. A
property tax levy imposed under IC 6-1.1-4-27 for the general
reassessment postponed by this subsection is valid. Any
information collected or other analysis performed by an assessing
official or the state board of tax commissioners for the general
reassessment that was scheduled to begin on July 1, 1999, may be
used for the assessment of real property that is to begin July 1,
2001. Money deposited in the general reassessment fund of the
county imposing a property tax under IC 6-1.1-4-27 may be used
by a political subdivision only for the purposes described in
IC 6-1.1-4-28 and to implement this act. The state board of tax
commissioners shall consider any funds accumulated from the tax
imposed under IC 6-1.1-4-27 in 1994, 1995, 1996, 1997, 1998, 1999,
and 2000 in setting tax rates under IC 6-1.1-4-27, as amended by
this act, in 2001.
SOURCE: ; (00)HB1005.1.8. -->
SECTION 8. [EFFECTIVE JANUARY 1, 2000] (a) An assessing
official is not required to issue a notice of change to a taxpayer's
assessment (a state board of tax commissioner's Form 11) as a
result of changing the definition of assessed value from one-third
(1/3) of the true tax value of property to one hundred percent
(100%) of the true tax value under P.L.6-1997. A taxpayer may not
appeal an assessment on the basis that the assessed value of the
property has increased as a result of the change in the definition of
assessed value under P.L.6-1997, or that no Form 11 notice was
issued.
(b) This SECTION expires December 31, 2002.
SOURCE: ; (00)HB1005.1.9. -->
SECTION 9. [EFFECTIVE UPON PASSAGE] (a) The treasurer
of state shall transfer five hundred thousand dollars ($500,000)
from the state's share of the fees collected under IC 6-1.1-5.5 to the
assessment training fund established under IC 6-1.1-5.5-4.7, as
added by this act.
(b) This SECTION expires June 30, 2001.
SOURCE: ; (00)HB1005.1.10. -->
SECTION 10.
An emergency is declared for this act.