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.
January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
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
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
(2) Sales comparison approach, using data for generally
(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
(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;
(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)
of local government finance
adopt rules in order to provide
a method for assessing mobile homes.
rules adopted under subsection (a)
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;
(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
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.