HOUSE BILL No. 1941
DIGEST OF INTRODUCED BILL
Synopsis: Property tax assessments of certain utilities. Permits a
public utility company that is a general district corporation and its
members that are local district corporations to elect annually to have
their unit values for property tax purposes determined on a
consolidated basis. Establishes procedures for the election to first apply
to the assessment for the March 1, 2000, assessment date.
Effective: Upon passage; March 1, 2000 (retroactive).
Leuck, Crosby, Cherry
January 17, 2001, read first time and referred to Committee on Ways and Means.
First Regular Session 112th General Assembly (2001)
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HOUSE BILL No. 1941
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-8-26; (01)IN1941.1.1. -->
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MARCH 1, 2000 (RETROACTIVE)]: Sec.
26. (a) On or before June
1st 1 of each year, the state board of tax
commissioners shall determine the just value of the property of each
public utility company. Except for railroad car companies, the state
board of tax commissioners shall determine that just value by first
determining the approximate unit value of each public utility company.
The value of the distributable property of a public utility company,
other than a railroad car company, equals the remainder of:
(1) the unit value of the company; minus
(2) the value of the company's fixed property.
The value of the distributable property of a railroad car company equals
the value of all of the company's distributable property multiplied by
the adjustment factor provided under section 12 of this chapter.
(b) In order to determine the unit value of a public utility company,
the state board of tax commissioners may consider:
(1) book value;
(2) cost of replacement or reproduction, less depreciation;
(3) cost of establishing and developing the business;
(4) amount and market value or sales price of outstanding
(5) valuations determined by another governmental agency or
indicated by a judicial decision, including but not limited to
determinations made for rate making purposes;
(6) statistics and reports prepared or filed by the company;
(7) statistics and reports prepared by another governmental
agency or by a private organization if the organization is
considered reliable by investors and investment dealers;
(8) earnings capitalized at a reasonable rate; and
(9) any other information which the board considers relevant.
(c) If an election is made as described in subsection (d), the state
board of tax commissioners shall determine under subsection (e)
the unit value on a consolidated basis of the following public utility
(1) A general district corporation (as defined in
(2) Each local district corporation (as defined in
(b)) that is a member of the general district
corporation under subdivision (1).
(d) The state board of tax commissioners shall determine the
unit value under subsection (e) only upon election of the general
district corporation and all of the local district corporations that
are members of the general district corporation. The corporations
may make the election annually.
(e) The unit value of each company described in subsection (c)
that has made an election under subsection (d) is the amount that
bears the same proportion to the unit value determined on a
consolidated basis of all of the companies that the unit value of the
company determined as the unit value of a separate company bears
to the combined unit values of all of the companies determined as
unit values of separate companies.
SOURCE: ; (01)IN1941.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] (a)
as amended by this act, applies to property taxes first due and
payable after December 31, 2000.
(b) The election provisions of
(d), as added by this
act, apply to assessments for the March 1, 2000, assessment date
and all subsequent assessment dates. Public utility companies may
make an election with respect to the March 1, 2000, assessment
date under that subsection before June 1, 2001. If the election is
made, the state board of tax commissioners shall redetermine the
just value of the affected companies and give a notice to each
company as provided in
before July 1, 2001, of the:
(1) board's tentative assessment of the company's
distributable property; and
(2) value of the company's distributable property used by the
board to determine the tentative assessment.
(c) A public utility company that receives a notice of tentative
assessment under subsection (b) may file objections and demand a
hearing as provided in
(b). The state board of tax
commissioners shall hold a hearing and notify the company of the
final assessment as provided in
before August 1,
2001. The company may appeal the board's final assessment to the
tax court as provided in
IC 6-1.1-6-31 and
apply to an appeal to the tax court filed under this
(d) This SECTION expires January 1, 2002.
SOURCE: ; (01)IN1941.1.3. -->
SECTION 3. An emergency is declared for this act.