Introduced Version






HOUSE BILL No. 1337

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1; IC 36-2; IC 36-6-8-5; IC 6-1.1-30-9.

Synopsis: Various property tax matters. Requires the state tax board to review 1/8 of the personal property tax returns for taxpayers that have significant amounts of personal property assessed value and make any corrections in assessed value the board finds are necessary. Allows the state tax board to impose additional conditions for the orderly performance of a reassessment. Reestablishes the county land valuation commission. Provides for the assessment of industrial facilities by the state tax board. Makes various changes concerning property tax appeals and assessor training.

Effective: Upon passage; July 1, 1999 (retroactive); January 1, 2000 (retroactive); July 1, 2000; January 1, 2001; January 1, 2002; January 1, 2004.





Espich




    January 11, 2000, read first time and referred to Committee on Ways and Means.







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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 1999 General Assembly.

HOUSE BILL No. 1337



    A BILL FOR AN ACT to amend the Indiana Code concerning property taxation and to make an appropriation.

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

SOURCE: IC 6-1.1-3-14.5; (00)IN1337.1.1. -->     SECTION 1. IC 6-1.1-3-14.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 14.5. (a) The state board of tax commissioners shall review each year one-eighth (1/8) of the personal property tax returns for taxpayers that have significant amounts of personal property assessed value and make any corrections in assessed value the board finds are necessary.
     (b) The state board of tax commissioners shall adopt rules under IC 4-22-2 before July 1, 2001, to implement this section.
SOURCE: IC 6-1.1-4-9; (00)IN1337.1.2. -->     SECTION 2. IC 6-1.1-4-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: Sec. 9. (a) In order to maintain a just and equitable valuation of real property, the state board of tax commissioners may adopt a resolution declaring its belief that it is necessary to reassess all or a portion of the real property located within this state. If the board adopts a reassessment resolution and if either a township or a larger area is involved, the board shall hold a hearing concerning the necessity for

the reassessment at the courthouse of the county in which the property is located. The board shall give notice of the time and place of the hearing in the manner provided in section 10 of this chapter. After the hearing, or if the area involved is less than a township after the adoption of the board's resolution, the board may order any reassessment it deems necessary, including the imposition of any conditions of this section on the next regularly scheduled general reassessment conducted under section 4 of this chapter. The order shall specify the time within which the reassessment must be completed and the date the reassessment will become effective and may add conditions that the board considers appropriate for the orderly performance of the reassessment, including outside supervision of the reassessment by the board or its designees.
    (b) All costs of a special reassessment shall be paid from the county's reassessment fund. The board may increase the reassessment fund levy of the county under section 27 of this chapter to meet the costs of a reassessment ordered under this section, and the board is entitled to reimbursement for its expenses from the fund. All expenditures relating to a reassessment ordered under this section shall be made under a budget approved in advance by the board.

SOURCE: IC 6-1.1-4-22; (00)IN1337.1.3. -->     SECTION 3. IC 6-1.1-4-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 22. (a) If any assessing official or any county property tax assessment board of appeals assesses or reassesses any real property under the provisions of this article, the official or county property tax assessment board of appeals shall give notice to the taxpayer and the county assessor, by mail, of the amount of the assessment or reassessment. For assessment dates after February 28, 2002, the notice required under this section must state the true tax value of the taxpayer's property.
    (b) During a period of general reassessment, each township assessor shall mail the notice required by this section within ninety (90) days after he:
        (1) completes his appraisal of a parcel; or
        (2) receives a report for a parcel from a professional appraiser or professional appraisal firm.
SOURCE: IC 6-1.1-4-13.6; (00)IN1337.1.4. -->     SECTION 4. IC 6-1.1-4-13.6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.6. (a) As used in this section, "commission" refers to a county land valuation commission established under subsection (b).
    (b) A county land valuation commission is established in each county for the purpose of determining the value of commercial,

industrial, and residential land (including farm homesites) in the county.
    (c) The county assessor is chairman of the commission.
    (d) The following are members of the commission:
        (1) The county assessor.
        (2) Each township assessor, when the respective township land values for that township assessor's township are under consideration. A township assessor serving under this subdivision shall vote on all matters relating to the land values of that township assessor's township.
        (3) One (1) township assessor from the county to be appointed by a
majority vote of all the township assessors in the county. The county assessor may only cast a vote to break a tie.
        (4) One (1) county resident who:
            (A) holds a license under IC 25-34.1-3 as a salesperson or broker; and
            (B) is appointed by the county executive (as defined in IC 36-1-2-5).
        (5) Four (4) individuals who:
            (A) are appointed by the county executive (as defined in IC 36-1-2-5) and recommended by the county assessor; and
            (B) represent one (1) of the following four (4) kinds of land in the county:
                (i) Agricultural.
                (ii) Commercial.
                (iii) Industrial.
                (iv) Residential.
            Each of the four (4) kinds of land in the county must be represented by one (1) individual appointed under this subdivision.
        (6) One (1) individual who:
            (A) is appointed by the county executive (as defined in IC 36-1-2-5); and
            (B) represents financial institutions in the county.
    (e) The term of each member of the commission begins November 1, two (2) years before the general reassessment commences under IC 6-1.1-4-4, and ends January 1 of the year the general reassessment commences under IC 6-1.1-4-4. The appointing authority may fill a vacancy for the remainder of the vacated term.

     (f) The township assessor commission shall determine the values of all classes of commercial, industrial, and residential land (including farm homesites) in the township county using guidelines determined

by the state board of tax commissioners. Not later than November 1 of the year preceding the year in which a general reassessment becomes effective, the assessor commences, the commission determining the values of land shall submit the values, all data supporting the values, and all information required under rules of the state board of tax commissioners relating to the determination of land values to the county property tax assessment board of appeals. Not later than December January 1 of the year preceding the year in which a general reassessment becomes effective, commences, the county property tax assessment board of appeals shall hold a public hearing in the county concerning those values. The property tax assessment board of appeals shall give notice of the hearing in accordance with IC 5-3-1 and shall hold the hearing after March 31 of the year preceding the year in which the general reassessment commences and before December January 1 of the year preceding the year in which the general reassessment under IC 6-1.1-4-4 becomes effective. commences.
    (b) (g) The county property tax assessment board of appeals shall review the values, data, and information submitted under subsection (a) (f) and may make any modifications it considers necessary to provide uniformity and equality. The county property tax assessment board of appeals shall coordinate the valuation of property adjacent to the boundaries of the county with the county property tax assessment boards of appeals of the adjacent counties using the procedures adopted by rule under IC 4-22-2 by the state board of tax commissioners. If the county assessor or township assessor commission fails to submit land values under subsection (a) (f) to the county property tax assessment board of appeals before November January 1 of the year before the date the general reassessment under IC 6-1.1-4-4 becomes effective, commences, the county property tax assessment board of appeals shall determine the values. If the county property tax assessment board of appeals fails to determine the values before the general reassessment becomes effective, the state board of tax commissioners shall determine the values.
     (h) The county property tax assessment board of appeals shall give notice to the county and township assessors of its decision on the values. The notice must be given before March 1 of the year the general reassessment under IC 6-1.1-4-4 commences. Within twenty (20) days after that notice, the county assessor or a township assessor in the county may request that the county property tax assessment board of appeals reconsider the values. The county property tax assessment board of appeals shall hold a hearing on the reconsideration in the county. The county property

tax assessment board of appeals shall give notice of the hearing under IC 5-3-1.
    (i) Within twenty (20) days after notice to the county and township assessor is given under subsection (h), a taxpayer may request that the county property tax assessment board of appeals reconsider the values. The county property tax assessment board of appeals may hold a hearing on the reconsideration in the county. The county property tax assessment board of appeals shall give notice of the hearing under IC 5-3-1.
    (j) A taxpayer may appeal the value determined under this section as applied to the taxpayer's land as part of an appeal filed under IC 6-1.1-15-1 after the taxpayer has received the notice under section 22 of this chapter. If a taxpayer that files an appeal under IC 6-1.1-15 requests the values, data, or information received by the county property tax assessment board of appeals under subsection (f), the county property tax assessment board of appeals shall satisfy the request. The state board of tax commissioners may modify the taxpayer's land value and the value of any other land in the township, in the county where the taxpayer's land is located, or in the adjacent county, if the state board of tax commissioners determines it is necessary to provide uniformity and equality.

    (c) (k) The county assessor shall notify all township assessors in the county of the values as modified by the county property tax assessment board of appeals. determined by the commission and as modified by the county property tax assessment board of appeals or state board under this section. Township assessors shall use the values determined under this section.

SOURCE: IC 6-1.1-8.5; (00)IN1337.1.5. -->     SECTION 5. IC 6-1.1-8.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]:
     Chapter 8.5. Assessment of Industrial Facilities
    Sec. 1. As used in this chapter, "industrial company" means an owner or user of industrial property.
    Sec. 2. As used in this chapter, "industrial facility" means a company's real property that:
        (1) has been classified as industrial property under the rules of the state board of tax commissioners; and
        (2) has an estimated true tax value of at least twenty-five million dollars ($25,000,000) in a county.
The term includes real property that is used under an agreement under which the user exercises the beneficial rights of ownership

for the majority of a year. The term does not include real property assessed under IC 6-1.1-8.
    Sec. 3. An industrial facility shall be assessed in the manner prescribed in this chapter.
    Sec. 4. Before January 1, 2001, and before January 1 each year that a general reassessment commences under IC 6-1.1-4-4, each county assessor shall provide the state board of tax commissioners with a list of each industrial facility located in the county.
    Sec. 5. (a) Each township assessor shall notify the state board of tax commissioners of a newly constructed industrial facility that is located in the township served by the township assessor.
    (b) The state board of tax commissioners shall schedule an assessment under this chapter of a newly constructed industrial facility not later than six (6) months after receiving notice of the construction from the appropriate township assessor.
    Sec. 6. For purposes of the general reassessment under IC 6-1.1-4-4 or a new assessment, the state board of tax commissioners shall assess each industrial facility.
    Sec. 7. The county assessor of a county in which an industrial facility is located shall provide support to the state board of tax commissioners's assessor during the course of the assessment of the industrial facility.
    Sec. 8. (a) When the state board of tax commissioners determines its final assessments of an industrial facility, the board shall certify the true tax values to the county assessor and the county auditor of the county where the industrial facility is located. In addition, if an industrial company has appealed the board's final assessment of the industrial facility, the board shall notify the county auditor of the appeal.
    (b) The county assessor shall review the certification of the state board of tax commissioners to determine if any of an industrial company's property has been omitted and notify the board of additions the county assessor finds are necessary. The board shall consider the county assessor's findings and make any additions to the certification the board finds are necessary. The county auditor shall enter for taxation the assessed valuation of an industrial facility that is certified by the board.
    Sec. 9. (a) A taxpayer or the county assessor of the county where an industrial facility is located may appeal an assessment by the state board of tax commissioners made under this chapter to the division of appeals. An appeal under this section shall be conducted in the same manner as an appeal under IC 6-1.1-15-4 through IC 6-1.1-15-8. An assessment made under this chapter that

is not appealed under this section is a final unappealable order of the state board of tax commissioners.
    (b) The division of appeals shall hold a hearing on an appeal filed under this chapter, and issue an order within one (1) year of the date the appeal is filed.
    Sec. 10. The state board of tax commissioners shall adopt rules under IC 4-22-2 to provide just valuations of industrial facilities under this chapter.
    Sec. 11. This chapter provides special rules for the assessment and taxation of industrial facilities. If any provision of this chapter conflicts with a provision of another chapter of this article, the provision of this chapter controls with respect to the assessment and taxation of an industrial facility.

SOURCE: IC 6-1.1-15-1; (00)IN1337.1.6. -->     SECTION 6. IC 6-1.1-15-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: Sec. 1. (a) A taxpayer may obtain a review by the county property tax assessment board of appeals of a county or township official's action with respect to the assessment of the taxpayer's tangible property if the official's action requires the giving of notice to the taxpayer. At the time that notice is given to the taxpayer, he shall also be informed in writing of:
        (1) his opportunity for review under this section; and
        (2) the procedures he must follow in order to obtain review under this section.
    (b) In order to appeal a current assessment and have a change in the assessment effective for the most recent assessment date, the taxpayer must file a petition with the assessor of the county in which the action is taken:
        (1) within forty-five (45) days after notice of a change in the assessment is given to the taxpayer; or
        (2) May 10 of that year;
whichever is later. The county assessor shall notify the county auditor and the state board of tax commissioners that the assessment is under appeal. In addition, a notice shall be sent to each affected taxing unit when the appealed items constitute at least one percent (1%) of the taxing unit's total gross certified assessed value for the immediately preceding year. The notice must include the appellant's name and address, the assessed value for the assessment date the year before the appeal, and the assessed value on the most recent assessment date. The county assessor shall compile a list of all units that must be notified under this subsection and shall forward the list and the information included on the

notice to the state board of tax commissioners with any petition for review filed under section 3 of this chapter.
    (c) A change in an assessment made as a result of an appeal filed:
        (1) in the same year that notice of a change in the assessment is given to the taxpayer; and
        (2) after the time prescribed in subsection (b);
becomes effective for the next assessment date.
    (d) A taxpayer may appeal a current real estate assessment in a year even if the taxpayer has not received a notice of assessment in the year. If an appeal is filed on or before May 10 of a year in which the taxpayer has not received notice of assessment, a change in the assessment resulting from the appeal is effective for the most recent assessment date. If the appeal is filed after May 10, the change becomes effective for the next assessment date.
    (e) The state board of tax commissioners shall prescribe the form of the petition for review of an assessment determination by a township assessor. The board shall issue instructions for completion of the form. The form and the instructions must be clear, simple, and understandable to the average individual. An appeal of such a determination must be made on the form prescribed by the board. The form must require the petitioner to specify the following:
        (1) The physical characteristics of the property in issue that bear on the assessment determination.
        (2) All other facts relevant to the assessment determination.
        (3) The reasons why the petitioner believes that the assessment determination by the township assessor is erroneous.
    (f) The state board of tax commissioners shall prescribe a form for a response by the township assessor to the petition for review of an assessment determination. The board shall issue instructions for completion of the form. The form must require the township assessor to indicate:
        (1) agreement or disagreement with each item indicated on the petition under subsection (e); and
        (2) the reasons why the assessor believes that the assessment determination is correct.
    (g) Immediately upon receipt of a timely filed petition on the form prescribed under subsection (e), the county assessor shall forward a copy of the petition to the township assessor who made the challenged assessment. The township assessor shall, within thirty (30) days after the receipt of the petition, attempt to hold a preliminary conference with the petitioner and resolve as many issues as possible. Within ten (10) days after the conference, the township assessor shall forward to

the county auditor and county assessor a completed response to the petition on the form prescribed under subsection (f). The county assessor shall immediately forward a copy of the response form to the petitioner and the county property tax assessment board of appeals. If the county auditor determines that the appealed items on which there is disagreement constitute at least one percent (1%) of the total gross certified assessed value of the immediately preceding year for any particular unit, the county auditor shall immediately notify the fiscal officer of the unit. If after the conference there are items listed in the petition on which there is disagreement, the property tax assessment board of appeals shall hold a hearing as follows:
         (1) For a petition filed after December 31, 1999, and before January 1, 2002, the board of appeals shall, at its earliest opportunity, conduct a hearing on the assessment either in the year in which the petition is filed or in the following year.
        (2) For a petition filed after December 31, 2001, the board of appeals shall hold a hearing
within ninety (90) days of the filing of the petition on those items of disagreement, except as provided in subsection (h).
The taxpayer may present the taxpayer's reasons for disagreement with the assessment. The township assessor or county assessor for the county must present the basis for the assessment decision on these items to the board of appeals at the hearing and the reasons the petitioner's appeal should be denied on those items. The board of appeals shall have a written record of the hearing and prepare a written statement of findings and a decision on each item within sixty (60) days of the hearing except as provided in subsection (h). If the township assessor does not attempt to hold a preliminary conference, the board shall accept the appeal of the petitioner at the hearing.
     (h) For a petition filed after December 31, 2001, the county property tax assessment board of appeals shall hold its hearing within one hundred eighty (180) days of the filing of the petition instead of within ninety (90) days in a county having a population of more than four hundred thousand (400,000). The board of appeals shall make a written record of the hearing and prepare a written statement of findings and a decision on each item not later than one hundred twenty (120) days after the hearing.

SOURCE: IC 6-1.1-15-4; (00)IN1337.1.7. -->     SECTION 7. IC 6-1.1-15-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: Sec. 4. (a) After receiving a petition for review which is filed under section 3 of this chapter, the division of appeals of the state board of tax commissioners shall conduct a hearing at its earliest opportunity.

In addition, the division of appeals of the state board may assess the property in question, correcting any errors which may have been made. The division of appeals of the state board shall give notice of the date fixed for the hearing, by mail, to the taxpayer and to the appropriate township assessor, county assessor, and county auditor. The division of appeals of the state board shall give these notices at least ten (10) days before the day fixed for the hearing.
    (b) If a petition for review does not comply with the state board of tax commissioners' instructions for completing the form prescribed under section 3 of this chapter, the division of appeals of the state board of tax commissioners shall return the petition to the petitioner and include a notice describing the defect in the petition. The petitioner then has thirty (30) days from the date on the notice to cure the defect and file a corrected petition. The division of appeals of the state board of tax commissioners shall deny a corrected petition for review if it does not substantially comply with the state board of tax commissioners' instructions for completing the form prescribed under section 3 of this chapter.
    (c) The state board of tax commissioners shall prescribe a form for use in processing petitions for review of actions by the county property tax assessment board of appeals. The state board shall issue instructions for completion of the form. The form must require the division of appeals of the state board to indicate agreement or disagreement with each item that is:
        (1) indicated on the petition submitted under section 1(e) of this chapter;
        (2) included in the township assessor's response under section 1(g) of this chapter; and
        (3) included in the county property tax assessment board of appeals' findings, record, and determination under section 2.1(d) of this chapter.
The form must also require the division of appeals of the state board to indicate the issues in dispute and its reasons in support of its resolution of those issues.
    (d) After the hearing the division of appeals of the state board shall give the petitioner, the township assessor, the county assessor, and the county auditor:
        (1) notice, by mail, of its final determination;
        (2) a copy of the form completed under subsection (c); and
        (3) notice of the procedures they must follow in order to obtain court review under section 5 of this chapter.
     (e) This subsection applies only to petitions filed with the state

board of tax commissioners after December 31, 1999, and before January 1, 2002. If the state board of tax commissioners fails to conduct a hearing and make a final determination required under this section within twelve (12) months after the state board receives a petition for review, the person who petitioned for review may request the tax court to grant an appeal under section 5 of this chapter, as if the state board had made a final determination affirming the board of appeal's action with respect to the assessment. A person may file a request for an appeal on a form prescribed by the state board of tax commissioners, requesting the tax court to consider a petition that is not heard by the state board of tax commissioners within the period prescribed by this subsection. Not later than sixty (60) days after the filing of a request for an appeal, the tax court shall inform the person filing the request whether the tax court will allow the appeal under section 5 of this chapter. The tax court has complete and sole discretion as to whether to allow or deny an appeal request filed under this subsection. If the tax court denies the appeal request, the state board of tax commissioners shall conduct a hearing and make the final determination required under this section not more than twelve (12) months after the appeal request is denied.
    (e) (f) This subsection applies only to petitions filed with the state board of tax commissioners after December 31, 2001. The division of appeals of the state board of tax commissioners shall conduct a hearing within six (6) months after a petition in proper form is filed with the division, excluding any time due to a delay reasonably caused by the petitioner. The division of appeals shall make a determination within the later of forty-five (45) days after the hearing or the date set in an extension order issued by the chairman of the state board of tax commissioners. However, the state board of tax commissioners may not extend the final determination date by more than one hundred eighty (180) days. Except as provided in subsection (g):
        (1) the failure of the division of appeals to make a determination within the time allowed by this subsection shall be treated as a final determination of the state board of tax commissioners to deny the petition; and
        (2) a final decision of the division of appeals is a final determination of the state board of tax commissioners.
    (g) A final determination of the division of appeals is not a final determination of the state board of tax commissioners if the state board of tax commissioners:


        (1) gives notice to the parties that the state board of tax commissioners will review the determination of the division of appeals within fifteen (15) days after the division of appeals gives notice of the determination to the parties or the maximum allowable time for the issuance of a determination under subsection (e) or (f) expires; or
        (2) determines to rehear the determination under section 5 of this chapter.
The state board of tax commissioners shall conduct a review under subdivision (1) in the same manner as a rehearing under section 5 of this chapter.
SOURCE: IC 6-1.1-31-6; (00)IN1337.1.8. -->     SECTION 8. IC 6-1.1-31-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: 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 just valuation of land on the basis of comparable sales for nonagricultural land and income capitalization for agricultural land using classifications and the most recent objectively verifiable data concerning:
            (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 determining reproduction cost and depreciation of improvements on the basis of classifications and objectively verifiable data concerning:
            (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 use the most recent objectively verifiable data at the time the rules are adopted and 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 true tax 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. necessary to provide for the just valuation of property.
    (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.
SOURCE: IC 6-1.1-31-7; (00)IN1337.1.9. -->     SECTION 9. IC 6-1.1-31-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 7. (a) With respect to the assessment of personal property, the rules of the state board of tax commissioners shall provide for the classification just valuation of personal property on the basis of the most recent objectively verifiable data concerning:
        (1) date of purchase;
        (2) location;
        (3) use;
        (4) depreciation, obsolescence, and condition; and
        (5) any other factor that the board determines by rule is just and proper. necessary to provide for the just valuation of property.
    (b) With respect to the assessment of personal property, the rules of the state board of tax commissioners shall use the most recent objectively verifiable data at the time the rules are adopted and include instructions for determining:
        (1) the proper classification of personal property;
        (2) the effect that location has on the true tax value of personal property;
        (3) the cost of reproducing personal property;
        (4) the depreciation, including physical deterioration and obsolescence, of personal property; and
        (5) the true tax value of personal property based on the factors

listed in this subsection and any other factor that the board determines by rule is just and proper. necessary to provide for the just valuation of property.
    (c) In providing for the classification of personal property and the instructions for determining the items listed in subsection (b), the state board of tax commissioners shall not include the value of land as a cost of producing tangible personal property subject to assessment.
     (d) The rules of the state board of tax commissioners must include instructions for determining the starting point for the valuation of used depreciable personal property after a sale or transfer of the property.
    (d) (e) With respect to the assessment of personal 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.

SOURCE: IC 6-1.1-31-11; (00)IN1337.1.10. -->     SECTION 10. IC 6-1.1-31-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 11. (a) Subject to subsection (b), the state board of tax commissioners shall adopt rules under IC 4-22-2 to govern the practice of representatives in proceedings before the property tax assessment board of appeals and the state board of tax commissioners under IC 6-1.1-15.
    (b) A rule adopted under subsection (a) may not:
        (1) restrict the ability of a representative to practice before the property tax assessment board of appeals or the state board of tax commissioners based on the fact that the representative is not an attorney admitted to the Indiana bar; or
        (2) restrict the admissibility of the written or oral testimony of a representative or other witness based upon the manner in which the representative or other witness is compensated.
    (c) This subsection applies to a petition that is filed with the property tax assessment board of appeals or the state board of tax commissioners before the adoption of a rule under subsection (a) that establishes new standards for:
        (1) the presentation of evidence or testimony; or
        (2) the practice of representatives.
The property tax assessment board of appeals or state board of tax commissioners may not dismiss the petition solely for failure to comply with the new rule without providing the petitioner an
opportunity to present evidence, testimony, or representation in compliance with the new rule.
SOURCE: IC 6-1.1-33-3; (00)IN1337.1.11. -->     SECTION 11. IC 6-1.1-33-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 3. The division of

tax review shall:
        (1) conduct continuing studies in the areas in which the state board of tax commissioners operates;
        (2) make periodic field surveys and audits of tax rolls, plat books, building permits, real estate transfers, gross income tax returns, federal income tax returns, and other data which may be useful in checking property valuations or taxpayer returns;
        (3) make test checks of property valuations; and
        (4) furnish the state board of tax commissioners with information which the board requests. The division shall furnish the information in the form and at the time which the board directs; and
        (5) conduct continuing studies of personal and real property tax deductions and abatements used throughout Indiana. The division
in conjunction with the department of commerce shall prepare a biennial report addressing the benefits achieved by granting tax abatements that includes findings, the number and amount of deductions and abatements granted by type of taxpayer and property, and recommendations on retaining or repealing each category of abatement. The state board of tax commissioners shall review and may revise then approve the report. Before May 1 of each even-numbered year, the chairperson of the state board of tax commissioners shall present the report at a meeting of the budget committee and submit the report to the legislative services agency for distribution to the members of the general assembly.

SOURCE: IC 6-1.1-35.2-2; (00)IN1337.1.12. -->     SECTION 12. IC 6-1.1-35.2-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 2. (a) In any year in which an assessing official, a county assessor, or a member of a county property tax assessment board of appeals takes office for the first time, the state board of tax commissioners shall conduct training sessions determined under the rules adopted by the state board of tax commissioners under IC 4-22-2 for these new officials. These sessions must be held at sufficient convenient locations throughout Indiana and at times that are sufficient to provide each county assessor and assessing official with an opportunity to attend the training.
    (b) Any new assessing official, county assessor, or member of a county property tax assessment board of appeals who attends a required session is entitled to receive the per diem per session set by the state board of tax commissioners by rule adopted under IC 4-22-2 and a mileage allowance from the county in which the official resides.
    (c) A person is entitled to a mileage allowance under this section only for travel between the person's place of work and the training session nearest to the person's place of work.
SOURCE: IC 6-1.1-35.2-3; (00)IN1337.1.13. -->     SECTION 13. IC 6-1.1-35.2-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 3. (a) Each year the state board of tax commissioners shall conduct the continuing education sessions required in the rules adopted by the state board of tax commissioners for all assessing officials, county assessors, and all members of, and hearing officers for, the county property tax assessment board of appeals. These sessions must be conducted at sufficient convenient locations throughout Indiana.
    (b) Sessions must be offered a number of times that are sufficient to provide each level one assessor and level two assessor with an opportunity to attend continuing education sessions every two (2) years to maintain certification for each level under IC 6-1.1-35.5.
     (c) Any assessing official, county assessor, or member of, and hearing officers for, the county property tax assessment board of appeals who attends required sessions is entitled to receive a mileage allowance and the per diem per session set by the state board of tax commissioners by rule adopted under IC 4-22-2 from the county in which the official resides. A person is entitled to a mileage allowance under this section only for travel between the person's place of work and the training session nearest to the person's place of work.
SOURCE: IC 6-1.1-35.2-4; (00)IN1337.1.14. -->     SECTION 14. IC 6-1.1-35.2-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 4. The training programs prescribed by this chapter must be designed so that the attendees at a program are prepared to train their subordinates. In addition, the training programs must include:
        (1) a course on basic assessment administration with an examination; and
        (2) the information necessary to obtain a level one certification under rules adopted by the state board of tax commissioners.

SOURCE: IC 6-1.1-35.5-3; (00)IN1337.1.15. -->     SECTION 15. IC 6-1.1-35.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 3. The state board of tax commissioners shall design two (2) assessor-appraiser examinations, to be called "level one" and "level two". All citizens of Indiana are eligible to apply for and to be examined under "level one" and "level two" examinations, subject only to the resources and limitations of the state board of tax commissioners in conducting the examinations after giving priority to assessing officials. Both

examinations should cover the subjects of real estate appraising, accounting, and property tax law. Successful performance on the level one examination requires the minimum knowledge needed for effective performance as a county or township assessor under this article. Success on the level two examination requires substantial knowledge of the subjects covered in the examination.

SOURCE: IC 6-1.1-35.5-4; (00)IN1337.1.16. -->     SECTION 16. IC 6-1.1-35.5-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 4. (a) The level one examination shall be given in the month of July, and the level two examination shall be given in the month of August. Both level examinations also shall be offered annually immediately following the conference of state board of tax commissioners and at any other times that coordinate with applicable courses of instruction. training sessions conducted under IC 6-1.1-35.2-2. The state board of tax commissioners may also give either or both examinations at other times throughout the year.
    (b) Examinations shall be held each year, at the times prescribed in subsection (a), in Indianapolis at a location and at not less than four (4) other convenient locations chosen by the state board of tax commissioners.
     (c) The state board of tax commissioners may not limit the number of individuals who take the examination and shall provide an opportunity for all enrollees at each session to take the examination at that session.
SOURCE: IC 6-1.1-35.5-6; (00)IN1337.1.17. -->     SECTION 17. IC 6-1.1-35.5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 6. (a) The state board of tax commissioners shall certify all persons who successfully perform on an examination under this chapter and shall furnish them each successful examinee with a certificate that prominently displays the name of the successful examinee and the fact that he the person is a level one or level two certified Indiana assessor-appraiser.
    (b) The state board of tax commissioners shall revoke the certification of an individual if the state board reasonably determines that the individual committed fraud or misrepresentation with respect to the preparation, administration, or taking of the examination. The state board of tax commissioners 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.
SOURCE: IC 36-2-5-3; (00)IN1337.1.18. -->     SECTION 18. IC 36-2-5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 3. (a) The county fiscal body shall fix the compensation of officers, deputies, and other

employees whose compensation is payable from the county general fund, county highway fund, county health fund, county park and recreation fund, aviation fund, or any other fund from which the county auditor issues warrants for compensation. This includes the power to:
        (1) fix the number of officers, deputies, and other employees;
        (2) describe and classify positions and services;
        (3) adopt schedules of compensation; and
        (4) hire or contract with persons to assist in the development of schedules of compensation.
    (b) The county fiscal body shall fix the compensation of a county assessor who has attained a level two certification under IC 6-1.1-35.5 at an amount that is one thousand dollars ($1,000) more than the compensation of an assessor who has not attained a level two certification.
     (c) Notwithstanding subsection (a), the board of each local health department shall prescribe the duties of all its officers and employees, recommend the number of positions, describe and classify positions and services, adopt schedules of compensation, and hire and contract with persons to assist in the development of schedules of compensation.
    (c) (d) This section does not apply to community corrections programs (as defined in IC 11-12-1-1 and IC 35-38-2.6-2).

SOURCE: IC 36-2-7-13; (00)IN1337.1.19. -->     SECTION 19. IC 36-2-7-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 13. The county fiscal body may grant to the county assessor, in addition to the compensation fixed under IC 36-2-5, a per diem for each day that the assessor is engaged in general reassessment activities, including service on the county land valuation commission. This section applies regardless of whether professional assessing services are provided under a contract to one (1) or more townships in the county.
SOURCE: IC 36-6-8-5; (00)IN1337.1.20. -->     SECTION 20. IC 36-6-8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 5. (a) When performing the real property reassessment duties prescribed by IC 6-1.1-4, an elected a township assessor may receive per diem compensation, in addition to salary, at a rate fixed by the county fiscal body, for each day that he is engaged in reassessment activities, including service on the county land valuation commission.
    (b) Subsection (a) applies regardless of whether professional assessing services are provided to a township under contract.
SOURCE: IC 6-1.1-30-9; (00)IN1337.1.21. -->     SECTION 21. IC 6-1.1-30-9 IS REPEALED [EFFECTIVE UPON PASSAGE].
SOURCE: ; (00)IN1337.1.22. -->     SECTION 22. [EFFECTIVE JANUARY 1, 2001] (a) The

commission on state tax and financing policy (IC 2-5-3) shall study the issue of annual adjustments to the true tax values of real property in Indiana and the need for periodic physical inspections of real property. The commission may recommend to the general assembly any statutory changes necessary or desirable to implement a system for making annual adjustments and any changes to the laws governing general reassessments when an annual adjustment system is in place.
    (b) This SECTION expires January 1, 2002.

SOURCE: ; (00)IN1337.1.23. -->     SECTION 23. [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: IC 6-1.1-15-1 and IC 6-1.1-15-4, both as amended by this act, apply to property taxes first due and payable after December 31, 1999.
SOURCE: ; (00)IN1337.1.24. -->     SECTION 24. [EFFECTIVE UPON PASSAGE] There is appropriated from the state general fund to the state board of tax commissioners the amount necessary, as determined by the budget agency, to eliminate the backlog of appeals before January 1, 2003.
SOURCE: ; (00)IN1337.1.25. -->     SECTION 25. P.L.63-1993, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 1999 (RETROACTIVE)] SECTION 2. (a) Notwithstanding IC 5-14-3, a sales disclosure form under IC 6-1.1-5.5, as added by this act, is not a public record and may only be used by the state board of tax commissioners or persons acting on behalf of the state board of tax commissioners for the purpose of performing a study under SECTION 3 of this act. Information contained on the form may not be used in a:
        (1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13, IC 6-1.1-14, or IC 6-1.1-15;
        (2) petition for a correction of error under IC 6-1.1-15-12; or
        (3) petition for refund under IC 6-1.1-26.
    (b) Notwithstanding IC 6-1.1-5.5-8, as added by this act, the county recorder shall maintain a sales disclosure form filed under IC 6-1.1-5.5-3 until the state board of tax commissioners issues permission to destroy the form.
    (c) This SECTION expires December 31, 1999. 2001.
SOURCE: ; (00)IN1337.1.26. -->     SECTION 26. An emergency is declared for this act.