Introduced Version






SENATE BILL No. 493

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-31.

Synopsis: Shelter allowance adjustment. Provides that the state board of tax commissioners may by rule provide for a shelter allowance adjustment to the valuation of owner-occupied housing. Provides that a shelter allowance adjustment must ensure that the amount of property wealth attributable to an owner-occupied residence does not include the amount necessary to sustain life at a subsistence level.

Effective: July 1, 2000.





Young R




    January 10, 2000, read first time and referred to Committee on Finance.







Introduced

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 this style type, and deletions will appear in this style type.
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SENATE BILL No. 493



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 6-1.1-31-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 6. (a) With respect to the assessment of real property, the rules of the state board of tax commissioners shall provide for:
        (1) the classification of land on the basis of:
            (i) acreage;
            (ii) lots;
            (iii) size;
            (iv) location;
            (v) use;
            (vi) productivity or earning capacity;
            (vii) applicable zoning provisions;
            (viii) accessibility to highways, sewers, and other public services or facilities; and
            (ix) any other factor that the board determines by rule is just and proper; and
        (2) the classification of improvements on the basis of:


            (i) size;
            (ii) location;
            (iii) use;
            (iv) type and character of construction;
            (v) age;
            (vi) condition;
            (vii) cost of reproduction; and
            (viii) any other factor that the board determines by rule is just and proper.
    (b) With respect to the assessment of real property, the rules of the state board of tax commissioners shall include instructions for determining:
        (1) the proper classification of real property;
        (2) the size of real property;
        (3) the effects that location and use have on the value of real property;
        (4) the depreciation, including physical deterioration and obsolescence, of real property;
        (5) the cost of reproducing improvements;
        (6) the productivity or earning capacity of land; and
        (7) the true tax value of real property based on the factors listed in this subsection and any other factor that the board determines by rule is just and proper.
    (c) With respect to the assessment of real property, true tax value does not mean fair market value. True tax value is the value determined under the rules of the state board of tax commissioners.
     (d) With respect to the assessment of real property, the rules of the state board of tax commissioners may include a shelter allowance adjustment described in section 6.5 of this chapter.
    SECTION 2. IC 6-1.1-31-6.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 6.5. (a) The general assembly finds that a basic level of shelter is different than property wealth, because other types of assets cannot be substituted for that basic level of shelter.
    (b) The state board of tax commissioners may by rule provide for a shelter allowance adjustment to the valuation of owner-occupied housing.
    (c) A rule adopted under subsection (b) must ensure that the amount of property wealth attributable to an owner-occupied residence does not include the amount necessary to sustain life at a subsistence level, as determined by the state board of tax

commissioners and based on objectively verifiable information.