Introduced Version






SENATE BILL No. 475

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-4-39; IC 6-1.1-7-2.

Synopsis: Property tax assessment of mobile homes. Requires the department of local government finance to adopt rules for the property tax valuation of a mobile home (other than a rental unit) using certain prescribed standards. Requires the use of the gross rent multiplier method for the valuation of a mobile home rental unit.

Effective: July 1, 2005.





Simpson




    January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.







Introduced

First Regular Session 114th General Assembly (2005)


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SENATE BILL No. 475



    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 6-1.1-4-39; (05)IN0475.1.1. -->     SECTION 1. IC 6-1.1-4-39 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 39. (a) For assessment dates after February 28, 2005, except as provided in subsection (c), the true tax value of real property regularly used to rent or otherwise furnish residential accommodations for periods of thirty (30) days or more and that has more than four (4) rental units is the lowest valuation determined by applying each of the following appraisal approaches:
        (1) Cost approach that includes an estimated reproduction or replacement cost of buildings and land improvements as of the date of valuation together with estimates of the losses in value that have taken place due to wear and tear, design and plan, or neighborhood influences.
        (2) Sales comparison approach, using data for generally comparable property.
        (3) Income capitalization approach, using an applicable capitalization method and appropriate capitalization rates that are developed and used in computations that lead to an indication of

value commensurate with the risks for the subject property use.
    (b) The gross rent multiplier method is the preferred method of valuing:
        (1) real property that has at least one (1) and not more than four (4) rental units; and
        (2) mobile homes:
            (A) regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30) days; and
            (B)
assessed under IC 6-1.1-7.
    (c) A township assessor is not required to appraise real property referred to in subsection (a) using the three (3) appraisal approaches listed in subsection (a) if the township assessor and the taxpayer agree before notice of the assessment is given to the taxpayer under section 22 of this chapter to the determination of the true tax value of the property by the assessor using one (1) of those appraisal approaches.
    (d) To carry out this section, the department of local government finance may adopt rules for assessors to use in gathering and processing information for the application of the income capitalization method and the gross rent multiplier method. A taxpayer must verify under penalties for perjury any information provided to the assessor for use in the application of either method.

SOURCE: IC 6-1.1-7-2; (05)IN0475.1.2. -->     SECTION 2. IC 6-1.1-7-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) The department of local government finance may shall adopt rules in order to provide a method for assessing mobile homes. These
     (b) The rules adopted under subsection (a) must:
         (1) be consistent with this article, including the factors required under IC 6-1.1-31-7; and
        (2) with respect to a mobile home other than a mobile home referred to in IC 6-1.1-4-39(b)(2), provide for determination of the assessed value in an amount that is the least of:
            (A) subject to subsection (c), the value determined using:
                (i) the National Automobile Dealers Association Guide; or
                (ii) a similar valuation guide prescribed by the department of local government finance;
            (B) the value determined using the factor required under IC 6-1.1-31-7(b)(6); or
            (C) the value determined using any other valuation method prescribed by the department of local government finance.

     (c) The department of local government finance may provide in

the rules adopted under subsection (a) for adjustment of the values referred to in subsection (b)(2)(A) to account for features of a mobile home that are not considered in the determination of those values.

SOURCE: ; (05)IN0475.1.3. -->     SECTION 3. [EFFECTIVE JULY 1, 2005] IC 6-1.1-4-39 and IC 6-1.1-7-2, both as amended by this act, apply only to assessment dates after December 31, 2005.