Reprinted
March 1, 2005
SENATE BILL No. 327
_____
DIGEST OF SB 327
(Updated February 28, 2005 5:16 pm - DI 52)
Citations Affected: IC 6-1.1; noncode.
Synopsis: Property tax. Delays the next general reassessment of real
property by two years and requires general reassessments every five
years thereafter. Delays until 2006 implementation of annual
adjustments of real property tax assessments. Amends the factors to be
included in the annual adjustment rule of the department of local
government finance (DLGF). Allows assessors to employ professional
appraisers to assist with annual adjustments. Requires the DLGF to: (1)
review and certify annual adjustments; (2) establish local deadlines in
the determination of annual adjustments; (3) provide training to
assessors and county auditors in the verification of sales; (4) approve
a determination by assessors to not employ a professional appraiser for
a general reassessment; and (5) adopt rules for the establishment of a
statewide integrated property tax management system. Allows the
DLGF to take over local assessment, reassessment, or annual
adjustment activities if it determines that the activities are not being
performed properly. Allows the filing of an assessment registration
notice with the county assessor or the area plan commission. Renames
the assessment training fund as the assessment training and
administration fund, extends for four years the $10 sales disclosure
form filing fee, requires deposit of 40% of the revenue from the fee in
that fund instead of the state general fund, and allows the Indiana board
of tax review to use money in the fund to conduct appeal activities.
(Continued next page)
Effective: Upon passage; July 1, 2005.
Hume, Kenley
January 6, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
February 15, 2005, amended, reported favorably _ Do Pass.
February 28, 2005, read second time, amended, ordered engrossed.
Digest Continued
Eliminates the county property tax reassessment fund and provides for
funding of assessment activities through the general fund. Directs the
department of state revenue to withhold state property tax replacement
fund distributions to counties for various reasons. Prohibits an
appraiser or a technical advisor that serves a township or county from
representing taxpayers in the county. Authorizes a refund of property
taxes paid by an exempt sorority that meets certain criteria.
Reprinted
March 1, 2005
First Regular Session 114th General Assembly (2005)
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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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 2004 Regular Session of the General Assembly.
SENATE BILL No. 327
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 6-1.1-4-4; (05)SB0327.2.1. -->
SECTION 1. IC 6-1.1-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) A general
reassessment, involving a physical inspection of all real property in
Indiana, shall begin July 1, 2000, and be the basis for taxes payable in
2003.
(b) A general reassessment, involving a physical inspection of all
real property in Indiana, shall begin July 1,
2007, 2009, and each
fourth
fifth year thereafter. Each reassessment under this subsection:
(1) shall be completed on or before March 1, of the
immediately
following odd-numbered year
that succeeds by two (2) years the
year in which the general reassessment begins; and
(2) shall be the basis for taxes payable in the year following the
year in which the general assessment is to be completed.
(c) In order to ensure that assessing officials and members of each
county property tax assessment board of appeals are prepared for a
general reassessment of real property, the department of local
government finance shall give adequate advance notice of the general
reassessment to the county and township taxing officials of each
county.
SOURCE: IC 6-1.1-4-4.5; (05)SB0327.2.2. -->
SECTION 2. IC 6-1.1-4-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.5. (a) The
department of local government finance shall adopt rules establishing
a system for annually adjusting the assessed value of real property to
account for changes in value in those years since a general
reassessment of property last took effect.
(b) The system must be applied to adjust assessed values beginning
with the 2005 2006 assessment date and each year thereafter that is not
a year in which a reassessment becomes effective.
(c) The system must have rules adopted under subsection (a)
must include the following characteristics in the system:
(1) Promote uniform and equal assessment of real property within
and across classifications.
(2) Apply all objectively verifiable factors used in mass valuation
techniques that are reasonably expected to affect the value of real
property in Indiana.
(3) Prescribe as many adjustment percentages and whatever
categories of percentages the department of local government
finance finds necessary to achieve objectively verifiable updated
just valuations of real property. An adjustment percentage for a
particular classification may be positive or negative.
(2) Require that assessing officials:
(A) reevaluate the factors that affect value;
(B) express the interactions of those factors
mathematically;
(C) use mass appraisal techniques to estimate updated
property values within statistical measures of accuracy;
and
(D) provide notice to taxpayers of an assessment increase
that results from the application of annual adjustments.
(4) (3) Prescribe procedures including computer software
programs, that permit the application of the adjustment
percentages in an efficient manner by assessing officials.
(d) The department of local government finance must review
and certify each annual adjustment determined under this section.
SOURCE: IC 6-1.1-4-4.7; (05)SB0327.2.3. -->
SECTION 3. IC 6-1.1-4-4.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4.7. (a) For purposes of this section,
"assessor" means:
(1) a township assessor; or
(2) a county assessor who assumes the responsibility for
verifying sales under 50 IAC 21-3-2(b).
(b) The department of local government finance shall provide
training to assessors and county auditors with respect to the
verification of sales disclosure forms under 50 IAC 21-3-2.
SOURCE: IC 6-1.1-4-16; (05)SB0327.2.4. -->
SECTION 4. IC 6-1.1-4-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) For
purposes of making a general reassessment of real property or annual
adjustments under section 4.5 of this chapter, any township assessor
and any county assessor may employ:
(1) deputies;
(2) employees; and
(3) technical advisors who are:
(A) qualified to determine real property values;
(B) professional appraisers certified under 50 IAC 15; The
assessor may employ a technical advisor and
(C) employed either on a full-time or a part-time basis,
subject to sections 18.5 and 19.5 of this chapter.
(b) The county council of each county shall appropriate the funds
necessary for the employment of deputies, employees, or technical
advisors employed under subsection (a) of this section.
SOURCE: IC 6-1.1-4-17; (05)SB0327.2.5. -->
SECTION 5. IC 6-1.1-4-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 17. (a) Subject to the
approval of the department of local government finance and the
requirements of section
18(a) 18.5 of this chapter, a:
(1) township assessor; or
(2) group consisting of the county assessor and the township
assessors in a county;
may employ professional appraisers as technical advisors.
A decision
by one (1) or more assessors referred to in subdivisions (1) and (2)
to not employ a professional appraiser as a technical advisor in a
general reassessment is subject to approval by the department of
local government finance.
(b) After notice to the county assessor and all township assessors in
the county, a majority of the assessors authorized to vote under this
subsection may vote to:
(1) employ a professional appraiser to act as a technical advisor
in the county during a general reassessment period;
(2) appoint an assessor or a group of assessors to:
(A) enter into and administer the contract with a professional
appraiser employed under this section; and
(B) oversee the work of a professional appraiser employed
under this section.
Each township assessor and the county assessor has one (1) vote. A
decision by a majority of the persons authorized to vote is binding on
the county assessor and all township assessors in the county. Subject
to the limitations contained in section 18(a) 18.5 of this chapter, the
assessor or assessors appointed under subdivision (2) may contract
with a professional appraiser employed under this section to supply
technical advice during a general reassessment period for all townships
in the county. A proportionate part of the appropriation to all townships
for assessing purposes shall be used to pay for the technical advice.
(c) As used in this chapter, "professional appraiser" means an
individual or firm that is certified under IC 6-1.1-31.7.
SOURCE: IC 6-1.1-4-27.5; (05)SB0327.2.6. -->
SECTION 6. IC 6-1.1-4-27.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27.5. (a) For
calendar year 2005 and each preceding calendar year, the auditor
of each county shall establish a property reassessment fund. The county
treasurer shall deposit all collections resulting from the property taxes
that the county is required to levy under this section in levies for the
county's property reassessment fund.
(b) With respect to a general reassessment of real property that is to
commence on July 1, 2007, and each fourth year thereafter, the county
council of each county shall, for property taxes due in the year that the
general reassessment is to commence and the three (3) years preceding
that year, levy against all the taxable property in the county an amount
equal to one-fourth (1/4) of the estimated cost of the general
reassessment.
(c) The department of local government finance shall give to each
county council notice, before January 1 in a year, of the tax levies
required by this section for that year.
(b) For property taxes first due and payable in 2006 and each
subsequent calendar year, the fiscal body of each county shall
impose a property tax levy sufficient, after consideration of other
funds available for the purpose, to pay costs referred to in section
28.5(a) of this chapter in the calendar year.
(d) (c) The department of local government finance may raise or
lower the property tax levy under this section for a year if the
department determines it is appropriate because the estimated cost of:
(1) a general reassessment; including a general reassessment to be
completed for the March 1, 2002, assessment date, or
(2) making annual adjustments under section 4.5 of this
chapter;
has changed.
(e) If the county council determines that there is insufficient money
in the county's reassessment fund to pay all expenses (as permitted
under sections 28.5 and 32 of this chapter) relating to the general
reassessment of real property commencing July 1, 2000, the county
may, for the purpose of paying expenses (as permitted under sections
28.5 and 32 of this chapter) relating to the general reassessment
commencing July 1, 2000, use money deposited in the fund from the
tax levy under this section for 2000 or a later year.
(d) The county assessor or township assessor may petition the
county fiscal body to increase the levy under subsection (b) to pay
for the costs of:
(1) a general reassessment;
(2) verification of sales disclosure forms forwarded to the
county assessor under IC 6-1.1-5.5-3; or
(3) processing annual adjustments under section 4.5 of this
chapter.
The assessor must document the needs and reasons for the
increased funding.
(e) If the county fiscal body denies a petition under subsection
(d), the assessor may appeal to the department of local government
finance. The department of local government finance shall:
(1) hear the appeal; and
(2) determine whether the additional levy is necessary.
SOURCE: IC 6-1.1-4-28.5; (05)SB0327.2.7. -->
SECTION 7. IC 6-1.1-4-28.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28.5. (a) Money
assigned to a property reassessment fund under section 27.5 of this
chapter
and money from property taxes imposed under section
27.5(b) of this chapter may be used only to pay the costs of:
(1) the general reassessment of real property, including the
computerization of assessment records;
(2) payments to county assessors, members of property tax
assessment boards of appeals, or assessing officials under
IC 6-1.1-35.2;
(3) the development or updating of detailed soil survey data by
the United States Department of Agriculture or its successor
agency;
(4) the updating of plat books;
and
(5) payments for the salary of permanent staff or for the
contractual services of temporary staff who are necessary to assist
county assessors, members of a county property tax assessment
board of appeals, and assessing officials;
(6) making annual adjustments under section 4.5 of this
chapter; and
(7) the verification of sales disclosure forms forwarded to the
county assessor under IC 6-1.1-5.5-3.
(b) All counties shall use modern, detailed soil maps in the general
reassessment of agricultural land.
(c) The county treasurer of each county shall, in accordance with
IC 5-13-9, invest any money accumulated in the property reassessment
fund. until the money is needed to pay general reassessment expenses.
Any interest received from investment of the money shall be paid into
the property reassessment fund. The county treasurer shall transfer
the balance in the county property reassessment fund as of
December 31, 2005, to the county general fund.
(d) An appropriation under this section must be approved by the
fiscal body of the county after the review and recommendation of the
county assessor. However, in a county with an elected township
assessor under IC 36-6-5-1 in every township, the county assessor does
not review an appropriation under this section, and only the fiscal body
must approve an appropriation under this section.
SOURCE: IC 6-1.1-4-31; (05)SB0327.2.8. -->
SECTION 8. IC 6-1.1-4-31 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 31. (a) The department
of local government finance shall periodically check the conduct of:
(1) a general reassessment of property;
(2) work required to be performed by local officials under
50 IAC 21; and
(3) other property assessment activities in the county, as
determined by the department.
The department of local government finance may inform township
assessors, county assessors, and the presidents of county councils in
writing if its check reveals that the general reassessment is or other
property assessment activities are not being properly conducted,
work required to be performed by local officials under 50 IAC 21
is not being properly conducted, or if property assessments under the
general reassessment are not being properly made.
(b) The failure of the department of local government finance to
inform local officials under subsection (a) shall not be construed as an
indication by the department that:
(1) the general reassessment is or other property assessment
activities are being properly conducted;
(2) work required to be performed by local officials under 50
IAC 21 is being properly conducted; or that
(3) property assessments under the general reassessment are being
properly made.
(c) If the department of local government finance:
(1) determines under subsection (a) that a general
reassessment or other assessment activities for a general
reassessment year or any other year are not being properly
conducted; and
(2) informs:
(A) the township assessor or each affected township;
(B) the county assessor; and
(C) the president of the county council;
in writing under subsection (a);
the department may order a state conducted assessment or
reassessment under section 31.5 of this chapter.
(d) If the department of local government finance:
(1) determines under subsection (a) that work required to be
performed by local officials under 50 IAC 21 is not being
properly conducted; and
(2) informs:
(A) the township assessor or each affected township;
(B) the county assessor; and
(C) the president of the county council;
in writing under subsection (a);
the department may conduct the work or contract to have the work
conducted.
(e) If the department of local government finance contracts to
have work conducted under subsection (d), the department shall
forward the bill for the services to the county and the county shall
pay the bill under the same procedures that apply to county
payments of bills for assessment or reassessment services under
section 31.5 of this chapter.
SOURCE: IC 6-1.1-4-31.5; (05)SB0327.2.9. -->
SECTION 9. IC 6-1.1-4-31.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 31.5. (a) As used in this
section, "assessment official" means any of the following:
(1) A county assessor.
(2) A township assessor.
(3) A township trustee-assessor.
(b) As used in this section, "department" refers to the
department of local government finance.
(c) If the department makes a determination and informs local
officials under section 31(c) of this chapter, the department may
order a state conducted assessment or reassessment in the county.
(d) If the department orders a state conducted assessment or
reassessment in a county, the department shall assume the duties
of the county's assessment officials. Notwithstanding sections 15
and 17 of this chapter, an assessment official in a county subject to
an order issued under this section may not assess property or have
property assessed for the assessment or general reassessment. Until
the state conducted assessment or reassessment is completed under
this section, the assessment or reassessment duties of an assessment
official in the county are limited to providing the department or a
contractor of the department the support and information
requested by the department or the contractor.
(e) Before assuming the duties of a county's assessment officials,
the department shall transmit a copy of the department's order
requiring a state conducted assessment or reassessment to the
county's assessment officials, the county fiscal body, the county
auditor, and the county treasurer. Notice of the department's
actions must be published one (1) time in a newspaper of general
circulation published in the county. The department is not required
to conduct a public hearing before taking action under this section.
(f) Township and county officials in a county subject to an order
issued under this section shall, at the request of the department or
the department's contractor, make available and provide access to
all:
(1) data;
(2) records;
(3) maps;
(4) parcel record cards;
(5) forms;
(6) computer software systems;
(7) computer hardware systems; and
(8) other information;
related to the assessment or reassessment of real property in the
county. The information described in this subsection must be
provided at no cost to the department or the contractor of the
department. A failure to provide information requested under this
subsection constitutes a failure to perform a duty related to an
assessment or a general reassessment and is subject to
IC 6-1.1-37-2.
(g) The department may enter into a contract with a
professional appraising firm to conduct an assessment or
reassessment under this section. If a county or a township located
in the county entered into a contract with a professional appraising
firm to conduct the county's assessment or reassessment before the
department orders a state conducted assessment or reassessment
in the county under this section, the contract:
(1) is as valid as if it had been entered into by the department;
and
(2) shall be treated as the contract of the department.
(h) After receiving the report of assessed values from the
appraisal firm acting under a contract described in subsection (g),
the department shall give notice to the taxpayer and the county
assessor, by mail, of the amount of the assessment or reassessment.
The notice of assessment or reassessment:
(1) is subject to appeal by the taxpayer under section 31.7 of
this chapter; and
(2) must include a statement of the taxpayer's rights under
section 31.7 of this chapter.
(i) The department shall forward a bill for services provided
under a contract described in subsection (g) to the auditor of the
county in which the state conducted reassessment occurs. The
county shall pay the bill under the procedures prescribed by
subsection (j).
(j) A county subject to an order issued under this section shall
pay the cost of a contract described in subsection (g), without
appropriation, from county funds. A contractor may periodically
submit bills for partial payment of work performed under the
contract. Notwithstanding any other law, a contractor is entitled to
payment under this subsection for work performed under a
contract if the contractor:
(1) submits to the department a fully itemized, certified bill in
the form required by IC 5-11-10-1 for the costs of the work
performed under the contract;
(2) obtains from the department:
(A) approval of the form and amount of the bill; and
(B) a certification that the billed goods and services have
been received and comply with the contract; and
(3) files with the county auditor:
(A) a duplicate copy of the bill submitted to the
department;
(B) proof of the department's approval of the form and
amount of the bill; and
(C) the department's certification that the billed goods and
services have been received and comply with the contract.
The department's approval and certification of a bill under
subdivision (2) shall be treated as conclusively resolving the merits
of a contractor's claim. Upon receipt of the documentation
described in subdivision (3), the county auditor shall immediately
certify that the bill is true and correct without further audit,
publish the claim as required by IC 36-2-6-3, and submit the claim
to the county executive. The county executive shall allow the claim,
in full, as approved by the department, without further
examination of the merits of the claim in a regular or special
session that is held not less than three (3) days and not more than
seven (7) days after the completion of the publication requirements
under IC 36-2-6-3. Upon allowance of the claim by the county
executive, the county auditor shall immediately issue a warrant or
check for the full amount of the claim approved by the department.
Compliance with this subsection constitutes compliance with
IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination and
payment of a claim in compliance with this subsection is not
subject to remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9
do not apply to a claim submitted under this subsection.
IC 5-11-10-1.6(d) applies to a fiscal officer who pays a claim in
compliance with this subsection.
(k) Notwithstanding IC 4-13-2, a period of seven (7) days is
permitted for each of the following to review and act under
IC 4-13-2 on a contract of the department entered into under this
section:
(1) The commissioner of the Indiana department of
administration.
(2) The director of the budget agency.
(3) The attorney general.
(l) If county funds are insufficient to pay for an assessment or
reassessment conducted under this section, the department may
increase the tax rate and tax levy of the county to pay the cost and
expenses related to the assessment or reassessment.
(m) The department or the contractor of the department shall
use the land values determined under section 13.6 of this chapter
for a county subject to an order issued under this section to the
extent that the department or the contractor finds that the land
values reflect the true tax value of land, as determined under this
article and the rules of the department. If the department or the
contractor finds that the land values determined for the county
under section 13.6 of this chapter do not reflect the true tax value
of land, the department or the contractor shall determine land
values for the county that reflect the true tax value of land, as
determined under this article and the rules of the department.
Land values determined under this subsection shall be used to the
same extent as if the land values had been determined under
section 13.6 of this chapter. The department or the contractor of
the department shall notify the county's assessment officials of the
land values determined under this subsection.
(n) A contractor of the department may notify the department
if:
(1) a county auditor fails to:
(A) certify the contractor's bill;
(B) publish the contractor's claim;
(C) submit the contractor's claim to the county executive;
or
(D) issue a warrant or check for payment of the
contractor's bill;
as required by subsection (j) at the county auditor's first legal
opportunity to do so;
(2) a county executive fails to allow the contractor's claim as
legally required by subsection (j) at the county executive's
first legal opportunity to do so; or
(3) a person or an entity authorized to act on behalf of the
county takes or fails to take an action, including failure to
request an appropriation, and that action or failure to act
delays or halts progress under this section for payment of the
contractor's bill.
(o) The department, upon receiving notice under subsection (n)
from a contractor of the department, shall:
(1) verify the accuracy of the contractor's assertion in the
notice that:
(A) a failure occurred as described in subsection (n)(1) or
(n)(2); or
(B) a person or an entity acted or failed to act as described
in subsection (n)(3); and
(2) provide to the treasurer of state the department's approval
under subsection (j)(2)(A) of the contractor's bill with respect
to which the contractor gave notice under subsection (n).
(p) Upon receipt of the department's approval of a contractor's
bill under subsection (o), the treasurer of state shall pay the
contractor the amount of the bill approved by the department from
money in the possession of the state that would otherwise be
available for distribution to the county, including distributions
from the property tax replacement fund or distribution of
admissions taxes or wagering taxes.
(q) The treasurer of state shall withhold from the money that
would be distributed under IC 4-33-12-6, IC 4-33-13-5,
IC 6-1.1-21-4(b), or any other law to a county described in a notice
provided under subsection (n) the amount of a payment made by
the treasurer of state to the contractor of the department under
subsection (p). Money shall be withheld first from the money
payable to the county under IC 6-1.1-21-4(b) and then from all
other sources payable to the county.
(r) Compliance with subsections (n) through (q) constitutes
compliance with IC 5-11-10.
(s) IC 5-11-10-1.6(d) applies to the treasurer of state with
respect to the payment made in compliance with subsections (n)
through (q). This subsection and subsections (n) through (q) must
be interpreted liberally so that the state shall, to the extent legally
valid, ensure that the contractual obligations of a county subject to
this section are paid. Nothing in this section shall be construed to
create a debt of the state.
(t) The provisions of this section are severable as provided in
IC 1-1-1-8(b).
SOURCE: IC 6-1.1-4-31.6; (05)SB0327.2.10. -->
SECTION 10. IC 6-1.1-4-31.6 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 31.6. (a) Subject to the other
requirements of this section, the department of local government
finance may:
(1) negotiate an addendum to a contract referred to in section
31.5(g) of this chapter that is treated as a contract of the
department; or
(2) include provisions in a contract entered into by the
department under section 31.5(g) of this chapter;
to require the contractor of the department to represent the
department in appeals initiated under section 31.7 of this chapter
and to afford to taxpayers an opportunity to attend an informal
hearing.
(b) The purpose of the informal hearing referred to in
subsection (a) is to:
(1) discuss the specifics of the taxpayer's assessment or
reassessment;
(2) review the taxpayer's property record card;
(3) explain to the taxpayer how the assessment or
reassessment was determined;
(4) provide to the taxpayer information about the statutes,
rules, and guidelines that govern the determination of the
assessment or reassessment;
(5) note and consider objections of the taxpayer;
(6) consider all errors alleged by the taxpayer; and
(7) otherwise educate the taxpayer about:
(A) the taxpayer's assessment or reassessment;
(B) the assessment or reassessment process; and
(C) the assessment or reassessment appeal process under
section 31.7 of this chapter.
(c) Following an informal hearing referred to in subsection (b),
the contractor shall:
(1) make a recommendation to the department of local
government finance as to whether a change in the
reassessment is warranted; and
(2) if recommending a change under subdivision (1), provide
to the department a statement of:
(A) how the changed assessment or reassessment was
determined; and
(B) the amount of the changed assessment or reassessment.
(d) To preserve the right to appeal under section 31.7 of this
chapter, a taxpayer must initiate the informal hearing process by
notifying the department of local government finance or its
designee of the taxpayer's intent to participate in an informal
hearing referred to in subsection (b) not later than forty-five (45)
days after the department of local government finance gives notice
under section 31.5(h) of this chapter to taxpayers of the amount of
the reassessment.
(e) The informal hearings referred to in subsection (b) must be
conducted:
(1) in the county where the property is located; and
(2) in a manner determined by the department of local
government finance.
(f) The department of local government finance shall:
(1) consider the recommendation of the contractor under
subsection (c); and
(2) if the department accepts a recommendation that a change
in the assessment or reassessment is warranted, accept or
modify the recommended amount of the changed assessment
or reassessment.
(g) The department of local government finance shall send a
notice of the result of each informal hearing to:
(1) the taxpayer;
(2) the county auditor;
(3) the county assessor; and
(4) the township assessor of the township in which the
property is located.
(h) A notice under subsection (g) must:
(1) state whether the assessment or reassessment was changed
as a result of the informal hearing; and
(2) if the assessment or reassessment was changed as a result
of the informal hearing:
(A) indicate the amount of the changed assessment or
reassessment; and
(B) provide information on the taxpayer's right to appeal
under section 31.7 of this chapter.
(i) If the department of local government finance does not send
a notice under subsection (g) not later than two hundred seventy
(270) days after the date the department gives notice of the amount
of the assessment or reassessment under section 31.5(h) of this
chapter:
(1) the department may not change the amount of the
assessment or reassessment under the informal hearing
process described in this section; and
(2) the taxpayer may appeal the assessment or reassessment
under section 31.7 of this chapter.
(j) The department of local government finance may adopt rules
to establish procedures for informal hearings under this section.
(k) Payment for an addendum to a contract under subsection
(a)(1) is made in the same manner as payment for the contract
under section 31.5(i) of this chapter.
SOURCE: IC 6-1.1-4-31.7; (05)SB0327.2.11. -->
SECTION 11. IC 6-1.1-4-31.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 31.7. (a) As used in this
section, "special master" refers to a person designated by the
Indiana board under subsection (e).
(b) The notice of assessment or reassessment under section
31.5(h) of this chapter is subject to appeal by the taxpayer to the
Indiana board. The procedures and time limitations that apply to
an appeal to the Indiana board of a determination of the
department of local government finance do not apply to an appeal
under this subsection. The Indiana board may establish applicable
procedures and time limitations under subsection (l).
(c) In order to appeal under subsection (b), the taxpayer must:
(1) participate in the informal hearing process under section
31.6 of this chapter;
(2) except as provided in section 31.6(i) of this chapter, receive
a notice under section 31.6(g) of this chapter; and
(3) file a petition for review with the appropriate county
assessor not later than thirty (30) days after:
(A) the date of the notice to the taxpayer under section
31.6(g) of this chapter; or
(B) the date after which the department may not change
the amount of the assessment or reassessment under the
informal hearing process described in section 31.6 of this
chapter.
(d) The Indiana board may develop a form for petitions under
subsection (c) that outlines:
(1) the appeal process;
(2) the burden of proof; and
(3) evidence necessary to warrant a change to an assessment
or reassessment.
(e) The Indiana board may contract with, appoint, or otherwise
designate the following to serve as special masters to conduct
evidentiary hearings and prepare reports required under
subsection (g):
(1) Independent, licensed appraisers.
(2) Attorneys.
(3) Certified level two Indiana assessor-appraisers (including
administrative law judges employed by the Indiana board).
(4) Other qualified individuals.
(f) Each contract entered into under subsection (e) must specify
the appointee's compensation and entitlement to reimbursement
for expenses. The compensation and reimbursement for expenses
are paid from the county property reassessment fund.
(g) With respect to each petition for review filed under
subsection (c), the special masters shall:
(1) set a hearing date;
(2) give notice of the hearing at least thirty (30) days before
the hearing date, by mail, to:
(A) the taxpayer;
(B) the department of local government finance;
(C) the township assessor; and
(D) the county assessor;
(3) conduct a hearing and hear all evidence submitted under
this section; and
(4) make evidentiary findings and file a report with the
Indiana board.
(h) At the hearing under subsection (g):
(1) the taxpayer shall present:
(A) the taxpayer's evidence that the assessment or
reassessment is incorrect;
(B) the method by which the taxpayer contends the
assessment or reassessment should be correctly
determined; and
(C) comparable sales, appraisals, or other pertinent
information concerning valuation as required by the
Indiana board; and
(2) the department of local government finance shall present
its evidence that the assessment or reassessment is correct.
(i) The Indiana board may dismiss a petition for review filed
under subsection (c) if the evidence and other information required
under subsection (h)(1) is not provided at the hearing under
subsection (g).
(j) The township assessor and the county assessor may attend
and participate in the hearing under subsection (g).
(k) The Indiana board may:
(1) consider the report of the special masters under subsection
(g)(4);
(2) make a final determination based on the findings of the
special masters without:
(A) conducting a hearing; or
(B) any further proceedings; and
(3) incorporate the findings of the special masters into the
board's findings in resolution of the appeal.
(l) The Indiana board may adopt rules under IC 4-22-2-37.1 to:
(1) establish procedures to expedite:
(A) the conduct of hearings under subsection (g); and
(B) the issuance of determinations of appeals under
subsection (k); and
(2) establish deadlines:
(A) for conducting hearings under subsection (g); and
(B) for issuing determinations of appeals under subsection
(k).
(m) A determination by the Indiana board of an appeal under
subsection (k) is subject to appeal to the tax court under
IC 6-1.1-15.
SOURCE: IC 6-1.1-5-15; (05)SB0327.2.12. -->
SECTION 12. IC 6-1.1-5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. (a) Except as
provided in subsection (b), before an owner of real property
demolishes, structurally modifies, or improves it at a cost of more than
five hundred dollars ($500) for materials or labor, or both, the owner
or the owner's agent shall file with the area plan commission or the
the county assessor in the county where the property is located an
assessment registration notice on a form prescribed by the department
of local government finance.
(b) If the owner of the real property, or the person performing the
work for the owner, is required to obtain a permit from an agency or
official of the state or a political subdivision for the demolition,
structural modification, or improvement, the owner or the person
performing the work for the owner is not required to file an assessment
registration notice.
(c) Each state or local government official or agency shall, before
the tenth day of each month, deliver a copy of each permit described in
subsection (b) to the assessor of the county in which the real property
to be improved is situated. Each area plan commission shall, before
the tenth day of each month, deliver a copy of each assessment
registration notice described in subsection (a) to the assessor of the
county where the property is located.
(d) Before the last day of each month, the county assessor shall
distribute a copy of each assessment registration notice filed under
subsection (a) or permit received under subsection (b) to the assessor
of the township in which the real property to be demolished, modified,
or improved is situated.
(e) A fee of five dollars ($5) shall be charged by the area plan
commission or the county assessor for the filing of the assessment
registration notice. All fees collected by the county assessor: under
this subsection:
(1) before January 1, 2006, shall be deposited in the county
property reassessment fund; and
(2) after December 31, 2005, shall be deposited in the county
general fund.
(f) A township or county assessor shall immediately notify the
county treasurer if the assessor discovers property that has been
improved or structurally modified at a cost of more than five hundred
dollars ($500) and the owner of the property has failed to obtain the
required building permit or to file an assessment registration notice.
(g) Any person who fails to:
(1) file the registration notice required by subsection (a); or
(2) obtain a building permit described in subsection (b);
before demolishing, structurally modifying, or improving real property
is subject to a civil penalty of one hundred dollars ($100). The county
treasurer shall include the penalty on the person's property tax
statement and collect it in the same manner as delinquent personal
property taxes under IC 6-1.1-23. However, if a person files a late
registration notice, the person shall pay the fee, if any, and the penalty
to the area plan commission or the county assessor at the time the
person files the late registration notice.
SOURCE: IC 6-1.1-5.5-4.7; (05)SB0327.2.13. -->
SECTION 13. IC 6-1.1-5.5-4.7, AS AMENDED BY P.L.1-2004,
SECTION 10, AND AS AMENDED BY P.L.23-2004, SECTION 11,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.7. (a) The assessment training
and administration fund is established for the purpose of receiving
fees deposited under section 4 of this chapter. Money in the fund may
be used by:
(1) the department of local government finance to cover expenses
incurred in the development and administration of programs for
the training of assessment officials and employees of the
department, including the examination and certification program
required by IC 6-1.1-35.5; The fund shall be administered by the
treasurer of state. or
(2) the Indiana board to:
(A) conduct appeal activities; or
(B) pay for appeal services.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) (b) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from these investments shall be deposited into the fund.
(d) (c) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
SOURCE: IC 6-1.1-15-4; (05)SB0327.2.14. -->
SECTION 14. IC 6-1.1-15-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. (a) After receiving
a petition for review which is filed under section 3 of this chapter, the
Indiana board shall conduct a hearing at its earliest opportunity. The
Indiana board may:
(1) assign:
(A) full;
(B) limited; or
(C) no;
evidentiary value to the assessed valuation of tangible property
determined by stipulation submitted as evidence of a comparable
sale; and
(2) correct any errors that may have been made, and adjust the
assessment in accordance with the correction.
If the Indiana board conducts a site inspection of the property as part
of its review of the petition, the Indiana board shall give notice to all
parties of the date and time of the site inspection. The Indiana board is
not required to assess the property in question. The Indiana 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 Indiana board shall give these notices at least thirty (30)
days before the day fixed for the hearing. The property tax assessment
board of appeals that made the determination under appeal under this
section may, with the approval of the county executive, file an amicus
curiae brief in the review proceeding under this section. The expenses
incurred by the property tax assessment board of appeals in filing the
amicus curiae brief shall be paid from the property reassessment fund
or other funds available for assessment or reassessment purposes
under IC 6-1.1-4-27.5. The executive of a taxing unit may file an
amicus curiae brief in the review proceeding under this section if the
property whose assessment is under appeal is subject to assessment by
that taxing unit.
(b) If a petition for review does not comply with the Indiana board's
instructions for completing the form prescribed under section 3 of this
chapter, the Indiana board 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 Indiana board shall deny a corrected
petition for review if it does not substantially comply with the Indiana
board's instructions for completing the form prescribed under section
3 of this chapter.
(c) The Indiana board shall prescribe a form for use in processing
petitions for review of actions by the county property tax assessment
board of appeals. The Indiana board shall issue instructions for
completion of the form. The form must require the Indiana board to
indicate agreement or disagreement with each item that is:
(1) if the county or township official held a preliminary
conference under section 1(f) of this chapter, indicated on the
petition submitted under that section by the taxpayer and the
official; and
(2) included in the county property tax assessment board of
appeals' findings, record, and determination under section 2.1(c)
of this chapter.
The form must also require the Indiana board to indicate the issues in
dispute and its reasons in support of its resolution of those issues.
(d) After the hearing the Indiana 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) Except as provided in subsection (f), the Indiana board shall
conduct a hearing not later than nine (9) months after a petition in
proper form is filed with the Indiana board, excluding any time due to
a delay reasonably caused by the petitioner.
(f) With respect to an appeal of a real property assessment that takes
effect on the assessment date on which a general reassessment of real
property takes effect under IC 6-1.1-4-4, the Indiana board shall
conduct a hearing not later than one (1) year after a petition in proper
form is filed with the Indiana board, excluding any time due to a delay
reasonably caused by the petitioner.
(g) Except as provided in subsection (h), the Indiana board shall
make a determination not later than the later of ninety (90) days after
the hearing or the date set in an extension order issued by the Indiana
board.
(h) With respect to an appeal of a real property assessment that
takes effect on the assessment date on which a general reassessment of
real property takes effect under IC 6-1.1-4-4, the Indiana board shall
make a determination not later than the later of one hundred eighty
(180) days after the hearing or the date set in an extension order issued
by the Indiana board.
(i) Except as provided in subsection (n), the Indiana board may not
extend the final determination date under subsection (g) or (h) by more
than one hundred eighty (180) days. If the Indiana board fails to make
a final determination within the time allowed by this subsection, the
entity that initiated the petition may:
(1) take no action and wait for the Indiana board to make a final
determination; or
(2) petition for judicial review under section 5(g) of this chapter.
(j) A final determination must include separately stated findings of
fact for all aspects of the determination. Findings of ultimate fact must
be accompanied by a concise statement of the underlying basic facts of
record to support the findings. Findings must be based exclusively
upon the evidence on the record in the proceeding and on matters
officially noticed in the proceeding. Findings must be based upon a
preponderance of the evidence.
(k) The Indiana board may limit the scope of the appeal to the issues
raised in the petition and the evaluation of the evidence presented to
the county property tax assessment board of appeals in support of those
issues only if all persons participating in the hearing required under
subsection (a) agree to the limitation. A person participating in the
hearing required under subsection (a) is entitled to introduce evidence
that is otherwise proper and admissible without regard to whether that
evidence has previously been introduced at a hearing before the county
property tax assessment board of appeals.
(l) The Indiana board:
(1) may require the parties to the appeal to file not more than five
(5) business days before the date of the hearing required under
subsection (a) documentary evidence or summaries of statements
of testimonial evidence; and
(2) may require the parties to the appeal to file not more than
fifteen (15) business days before the date of the hearing required
under subsection (a) lists of witnesses and exhibits to be
introduced at the hearing.
(m) A party to a proceeding before the Indiana board shall provide
to another party to the proceeding the information described in
subsection (l) if the other party requests the information in writing at
least ten (10) days before the deadline for filing of the information
under subsection (l).
(n) The county assessor may:
(1) appear as an additional party if the notice of appearance is
filed before the review proceeding; or
(2) with the approval of the township assessor, represent the
township assessor;
in a review proceeding under this section.
(o) The Indiana board may base its final determination on a
stipulation between the respondent and the petitioner. If the final
determination is based on a stipulated assessed valuation of tangible
property, the Indiana board may order the placement of a notation on
the permanent assessment record of the tangible property that the
assessed valuation was determined by stipulation. The Indiana board
may:
(1) order that a final determination under this subsection has no
precedential value; or
(2) specify a limited precedential value of a final determination
under this subsection.
SOURCE: IC 6-1.1-15-5; (05)SB0327.2.15. -->
SECTION 15. IC 6-1.1-15-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. (a) Not later than
fifteen (15) days after the Indiana board gives notice of its final
determination under section 4 of this chapter to the party or the
maximum allowable time for the issuance of a final determination by
the Indiana board under section 4 of this chapter expires, a party to the
proceeding may request a rehearing before the Indiana board. The
Indiana board may conduct a rehearing and affirm or modify its final
determination, giving the same notices after the rehearing as are
required by section 4 of this chapter. The Indiana board has fifteen (15)
days after receiving a petition for a rehearing to determine whether to
grant a rehearing. Failure to grant a rehearing not later than fifteen (15)
days after receiving the petition shall be treated as a final determination
to deny the petition. A petition for a rehearing does not toll the time in
which to file a petition for judicial review unless the petition for
rehearing is granted. If the Indiana board determines to rehear a final
determination, the Indiana board:
(1) may conduct the additional hearings that the Indiana board
determines necessary or review the written record without
additional hearings; and
(2) shall issue a final determination not later than ninety (90) days
after notifying the parties that the Indiana board will rehear the
final determination.
If of the Indiana board fails to make a final determination within the
time allowed under subdivision (2), the entity that initiated the petition
for rehearing may take no action and wait for the Indiana board to make
a final determination or petition for judicial review under subsection
(g).
(b) A person may petition for judicial review of the final
determination of the Indiana board regarding the assessment of that
person's tangible property. The action shall be taken to the tax court
under IC 4-21.5-5. Petitions for judicial review may be consolidated at
the request of the appellants if it can be done in the interest of justice.
The property tax assessment board of appeals that made the
determination under appeal under this section may, with the approval
of the county executive, file an amicus curiae brief in the review
proceeding under this section. The expenses incurred by the property
tax assessment board of appeals in filing the amicus curiae brief shall
be paid from the property reassessment fund or other funds available
for assessment or reassessment purposes under IC 6-1.1-4-27.5. In
addition, the executive of a taxing unit may file an amicus curiae brief
in the review proceeding under this section if the property whose
assessment is under appeal is subject to assessment by that taxing unit.
The department of local government finance may intervene in an action
taken under this subsection if the interpretation of a rule of the
department is at issue in the action. A township assessor, county
assessor, member of a county property tax assessment board of appeals,
or county property tax assessment board of appeals that made the
original assessment determination under appeal under this section is a
party to the review under this section to defend the determination.
(c) Except as provided in subsection (g), to initiate a proceeding for
judicial review under this section, a person must take the action
required by subsection (b) not later than:
(1) forty-five (45) days after the Indiana board gives the person
notice of its final determination, unless a rehearing is conducted
under subsection (a); or
(2) thirty (30) days after the Indiana board gives the person notice
under subsection (a) of its final determination, if a rehearing is
conducted under subsection (a) or the maximum time elapses for
the Indiana board to make a determination under this section.
(d) The failure of the Indiana board to conduct a hearing within the
period prescribed in section 4(f) or 4(g) of this chapter does not
constitute notice to the person of an Indiana board final determination.
(e) The county executive may petition for judicial review to the tax
court in the manner prescribed in this section upon request by the
county assessor or elected township assessor.
(f) If the county executive determines upon a request under this
subsection to not appeal to the tax court:
(1) the entity described in subsection (b) that made the original
determination under appeal under this section may take an appeal
to the tax court in the manner prescribed in this section using
funds from that entity's budget; and
(2) the petitioner may not be represented by the attorney general
in an action described in subdivision (1).
(g) If the maximum time elapses for the Indiana board to give notice
of its final determination under subsection (a) or section 4 of this
chapter, a person may initiate a proceeding for judicial review by
taking the action required by subsection (b) at any time after the
maximum time elapses. If:
(1) a judicial proceeding is initiated under this subsection; and
(2) the Indiana board has not issued a determination;
the tax court shall determine the matter de novo.
SOURCE: IC 6-1.1-21-4; (05)SB0327.2.16. -->
SECTION 16. IC 6-1.1-21-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Each year the
department shall allocate from the property tax replacement fund an
amount equal to the sum of:
(1) each county's total eligible property tax replacement amount
for that year; plus
(2) the total amount of homestead tax credits that are provided
under IC 6-1.1-20.9 and allowed by each county for that year;
plus
(3) an amount for each county that has one (1) or more taxing
districts that contain all or part of an economic development
district that meets the requirements of section 5.5 of this chapter.
This amount is the sum of the amounts determined under the
following STEPS for all taxing districts in the county that contain
all or part of an economic development district:
STEP ONE: Determine that part of the sum of the amounts
under section 2(g)(1)(A) and 2(g)(2) of this chapter that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the subdivision (1) amount that is
attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the taxes levied in the taxing district that are allocated to
a special fund under IC 6-1.1-39-5.
(b) Except as provided in subsection (e), between March 1 and
August 31 of each year, the department shall distribute to each county
treasurer from the property tax replacement fund one-half (1/2) of the
estimated distribution for that year for the county. Between September
1 and December 15 of that year, the department shall distribute to each
county treasurer from the property tax replacement fund the remaining
one-half (1/2) of each estimated distribution for that year. The amount
of the distribution for each of these periods shall be according to a
schedule determined by the property tax replacement fund board under
section 10 of this chapter. The estimated distribution for each county
may be adjusted from time to time by the department to reflect any
changes in the total county tax levy upon which the estimated
distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall
distribute to the county treasurer or receive back from the county
treasurer any deficit or excess, as the case may be, between the sum of
the distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract
filed with the auditor of state, adjusted for postabstract adjustments
included in the December settlement sheet for the year, and such
additional information as the department may require.
(d) All distributions provided for in this section shall be made on
warrants issued by the auditor of state drawn on the treasurer of state.
If the amounts allocated by the department from the property tax
replacement fund exceed in the aggregate the balance of money in the
fund, then the amount of the deficiency shall be transferred from the
state general fund to the property tax replacement fund, and the auditor
of state shall issue a warrant to the treasurer of state ordering the
payment of that amount. However, any amount transferred under this
section from the general fund to the property tax replacement fund
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
(e) Except as provided in subsection (i) (g) and subject to
subsection (h), the department shall not distribute under subsection (b)
and section 10 of this chapter a percentage determined by the
department of the money attributable to the county's property
reassessment fund that would otherwise be distributed to the county
under subsection (b) and section 10 of this chapter if:
(1) by the date the distribution is scheduled to be made, the
county auditor has not sent a certified statement required to be
sent by that date under IC 6-1.1-17-1 to the department of local
government finance;
(2) by the deadline under IC 36-2-9-20, the county auditor has not
transmitted data as required under that section; or
(3) the county assessor has not forwarded to the department of
local government finance the duplicate copies of all approved
exemption applications required to be forwarded by that date
under IC 6-1.1-11-8(a);
(4) the county assessor has not forwarded to the department
of local government finance in a timely manner sales
disclosure forms under IC 6-1.1-5.5-3(b);
(5) local assessing officials have not provided information to
the department of local government finance in a timely
manner under IC 4-10-13-5(b);
(6) the county auditor has not paid a bill for services under
IC 6-1.1-4-31.5 to the department of local government finance
in a timely manner;
(7) the elected township assessors in the county, the elected
township assessors and the county assessor, or the county
assessor has not transmitted to the department of local
government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships
in the county required to be transmitted under
IC 6-1.1-4-25(b);
(8) the county has not established a parcel index numbering
system under 50 IAC 12-15-1 in a timely manner; or
(9) a township or county official has not provided other
information to the department of local government finance in
a timely manner as required by the department.
(f) Except as provided in subsection (i) if the elected township
assessors in the county, the elected township assessors and the county
assessor, or the county assessor has not transmitted to the department
of local government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships in the
county required to be transmitted under IC 6-1.1-4-25(b), the state
board or the department shall not distribute under subsection (b) and
section 10 of this chapter a part of the money attributable to the
county's property reassessment fund. The portion not distributed is the
amount that bears the same proportion to the total potential distribution
as the number of townships in the county for which data was not
transmitted by October 1 as described in this section bears to the total
number of townships in the county.
(g) (f) Except as provided in subsection (i), money not distributed
for the reasons stated in subsection (e)(1) and (e)(2) (e) shall be
distributed to the county when
(1) the county auditor sends to the department of local
government finance the certified statement required to be sent
under IC 6-1.1-17-1; and
(2) the county assessor forwards to the department of local
government finance the approved exemption applications
required to be forwarded under IC 6-1.1-11-8(a);
with respect to which the failure to send or forward resulted in the
withholding of the distribution under subsection (e).
(h) Money not distributed under subsection (f) shall be distributed
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under IC 6-1.1-4-25(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f). determines that the failure to:
(1) provide information; or
(2) pay a bill for services;
has been corrected.
(i) (g) The restrictions on distributions under subsections
subsection (e) and (f) do not apply if the department of local
government finance determines that
(1) the failure of:
(A) a county auditor to send a certified statement; or
(B) a county assessor to forward copies of all approved
exemption applications;
as described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
to:
(1) provide information; or
(2) pay a bill for services;
in a timely manner is justified by unusual circumstances.
(h) The department shall give the county auditor at least thirty
(30) days notice in writing before withholding a distribution under
subsection (e).
(i) Money not distributed for the reason stated in subsection
(e)(6) may be deposited in the fund established by
IC 6-1.1-5.5-4.7(a). Money deposited under this subsection is not
subject to distribution under subsection (f).
SOURCE: IC 6-1.1-31.5-2; (05)SB0327.2.17. -->
SECTION 17. IC 6-1.1-31.5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) Subject to
section 3.5(e) of this chapter, the department shall adopt rules under
IC 4-22-2 to prescribe computer specification standards and for the
certification of:
(1) computer operating systems;
(2) computer software;
(3) software providers;
(4) computer service providers; and
(5) computer equipment providers.
(b) The rules of the department shall provide for:
(1) the effective and efficient administration of assessment laws;
(2) the prompt updating of assessment data;
(3) the administration of information contained in the sales
disclosure form, as required under IC 6-1.1-5.5; and
(4) other information necessary to carry out the administration of
the property tax assessment laws.
(c) After December 31, 1998, subject to section 3.5(e) of this
chapter, a county may contract only for computer software and with
software providers, computer service providers, and equipment
providers that are certified by the department under the rules described
in subsection (a).
(d) The initial rules under this section must be adopted under
IC 4-22-2 before January 1, 1998.
SOURCE: IC 6-1.1-31.5-3.5; (05)SB0327.2.18. -->
SECTION 18. IC 6-1.1-31.5-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3.5. (a) After December
31, 1998,
and until the system described in subsection (e) is
implemented, each county shall maintain a state certified computer
system that has the capacity to:
(1) process and maintain assessment records;
(2) process and maintain standardized property tax forms;
(3) process and maintain standardized property assessment
notices;
(4) maintain complete and accurate assessment records for the
county; and
(5) process and compute complete and accurate assessments in
accordance with Indiana law.
The county assessor with the recommendation of the township
assessors shall select the computer system used by township assessors
and the county assessor in the county except in a county with a
township assessor elected under IC 36-6-5-1 in every township. In a
county with an elected township assessor under IC 36-6-5-1 in every
township, the elected township assessors shall select a computer system
based on a majority vote of the township assessors in the county.
(b) All information on
the a computer system
referred to in
subsection (a) shall be readily accessible to:
(1) township assessors;
(2) the county assessor;
(3) the department of local government finance; and
(4) members of the county property tax assessment board of
appeals.
(c) The certified system
referred to in subsection (a) used by the
counties must be:
(1) compatible with the data export and transmission
requirements in a standard format prescribed by the department
of local government finance;
The certified system must be and
(2) maintained in a manner that ensures prompt and accurate
transfer of data to the department.
(d) All standardized property forms and notices on the certified
computer system referred to in subsection (a) shall be maintained by
the township assessor and the county assessor in an accessible location
and in a format that is easily understandable for use by persons of the
county.
(e) The department shall adopt rules before July 1, 2006, for the
establishment of:
(1) a uniform and common property tax management system
among all counties that:
(A) includes mass appraisal systems integrated with county
auditor systems and county treasurer systems; and
(B) replaces the computer system referred to in subsection
(a); and
(2) a schedule for implementation of the system referred to in
subdivision (1) structured to result in the implementation of
the system in all counties with respect to an assessment date:
(A) determined by the department; and
(B) specified in the rule.
(f) The department shall appoint an advisory committee to assist
the department in the formulation of the rules referred to in
subsection (e). The department shall determine the number of
members of the committee. The committee:
(1) must include at least:
(A) one (1) township assessor;
(B) one (1) county assessor; and
(C) one (1) county auditor; and
(2) shall meet at times and locations determined by the
department.
(g) Each member of the committee appointed under subsection
(f) who is not a state employee is not entitled to the minimum
salary per diem provided by IC 4-10-11-2.1(b). The member is
entitled to reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(h) Each member of the committee appointed under subsection
(f) who is a state employee is entitled to reimbursement for
traveling expenses as provided under IC 4-13-1-4 and other
expenses actually incurred in connection with the member's duties
as provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
(i) The department shall report to the budget committee in
writing the department's estimate of the cost of implementation of
the system referred to in subsection (e).
SOURCE: IC 6-1.1-31.7-3.5; (05)SB0327.2.19. -->
SECTION 19. IC 6-1.1-31.7-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.5. An individual or a firm
that is:
(1) an appraiser; or
(2) a technical advisor under IC 6-1.1-4;
in a county may not serve as a tax representative of any taxpayer
with respect to property subject to property taxes in the county
before the county property tax assessment board of appeals of that
county or the Indiana board of tax review.
SOURCE: IC 6-1.1-33.5-6; (05)SB0327.2.20. -->
SECTION 20. IC 6-1.1-33.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 6. (a) With respect to
any township or county for any year, the department of local
government finance may initiate a review to determine whether to order
a special reassessment under this chapter. The review may apply to real
property or personal property, or both.
(b) If the department of local government finance determines under
subsection (a) of this chapter to initiate a review with respect to the real
property within a township or county, or a portion of the real property
within a township or county, the division of data analysis of the
department shall determine for the real property under consideration
and for the township or county the variance between:
(1) the total assessed valuation of the real property within the
township or county; and
(2) the total assessed valuation that would result if the real
property within the township or county were valued in the manner
provided by law.
(c) If the department of local government finance determines under
subsection (a) of this chapter to initiate a review with respect to
personal property within a township or county, or a part of the personal
property within a township or county, the division of data analysis of
the department shall determine for the personal property under
consideration and for the township or county the variance between:
(1) the total assessed valuation of the personal property within the
township or county; and
(2) the total assessed valuation that would result if the personal
property within the township or county were valued in the manner
provided by law.
(d) The determination of the department of local government
finance under section 2 or 3 of this chapter must be based on a
statistically valid assessment ratio study.
(e) If a determination of the department of local government finance
to order a special reassessment under this chapter is based on a
coefficient of dispersion study, the department shall publish the
coefficient of dispersion study for the township or county in accordance
with IC 5-3-1-2(j).
(f) If:
(1) the variance determined under subsection (b) or (c) exceeds
twenty percent (20%); and
(2) the department of local government finance determines after
holding hearings on the matter that a special reassessment should
be conducted;
the department shall contract for a special reassessment to be
conducted to correct the valuation of the property.
(g) If the variance determined under subsection (b) or (c) is twenty
percent (20%) or less, the department of local government finance shall
determine whether to correct the valuation of the property under:
(1) IC 6-1.1-4-9 and IC 6-1.1-4-10; or
(2) IC 6-1.1-14.
(h) The department of local government finance shall give notice to
a taxpayer, by individual notice or by publication at the discretion of
the department, of a hearing concerning the department's intent to
cause the assessment of the taxpayer's property to be adjusted under
this section. The time fixed for the hearing must be at least ten (10)
days after the day the notice is mailed or published. The department
may conduct a single hearing under this section with respect to
multiple properties. The notice must state:
(1) the time of the hearing;
(2) the location of the hearing; and
(3) that the purpose of the hearing is to hear taxpayers' comments
and objections with respect to the department's intent to adjust the
assessment of property under this chapter.
(i) If the department of local government finance determines after
the hearing that the assessment of property should be adjusted under
this chapter, the department shall:
(1) cause the assessment of the property to be adjusted;
(2) mail a certified notice of its final determination to the county
auditor of the county in which the property is located; and
(3) notify the taxpayer as required under IC 6-1.1-14.
(j) A reassessment or adjustment may be made under this section
only if the notice of the final determination is given to the taxpayer
within the same period prescribed in IC 6-1.1-9-3 or IC 6-1.1-9-4.
(k) If the department of local government finance contracts for a
special reassessment of property under this chapter, the department
shall forward the bill for services of the reassessment contractor to the
county auditor, and the county shall pay the bill from the county
reassessment fund
or other funds available for assessment or
reassessment purposes.
SOURCE: IC 6-1.1-35.2-5; (05)SB0327.2.21. -->
SECTION 21. IC 6-1.1-35.2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. A county that is
required to make a payment to an assessing official, a county assessor,
or member of, and hearing officers for, the county property tax
assessment board of appeals under this chapter must make the payment
regardless of an appropriation. The payment may be made from the
county's cumulative reassessment fund or other funds available for
assessment or reassessment purposes.
SOURCE: ; (05)SB0327.2.22. -->
SECTION 22. P.L.245-2003, SECTION 37, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: (a)
Notwithstanding IC 6-1.1-5.5-4(a), a person filing a sales disclosure
form under IC 6-1.1-5.5 with respect to a sale of real property that
occurs:
(1) after December 31, 2003; and
(2) before January 1,
2006; 2010;
shall pay a fee of ten dollars ($10) to the county auditor.
(b) Notwithstanding IC 6-1.1-5.5-4(b) and IC 6-1.1-5.5-12(d), fifty
percent (50%) of the revenue collected under:
(1) subsection (a); and
(2) IC 6-1.1-5.5-12;
for the period referred to in subsection (a) shall be deposited in the
county sales disclosure fund established under IC 6-1.1-5.5-4.5. Ten
percent (10%) of the revenue
collected before July 1, 2005, shall be
transferred to the treasurer of state for deposit in the assessment
training
and administration fund established under IC 6-1.1-5.5-4.7.
Forty percent (40%) of the revenue
collected before July 1, 2005,
shall be transferred to the treasurer of state for deposit in the state
general fund.
Fifty percent (50%) of the revenue collected after
June 30, 2005, shall be transferred to the assessment training and
administration fund established under IC 6-1.1-5.5-4.7.
(c) The department of local government finance may provide
training of assessment officials and employees of the department
through the Indiana chapter of the International Association of
Assessing Officers on various dates and at various locations in Indiana.
(d) This SECTION expires January 1, 2007. 2010.
SOURCE: ; (05)SB0327.2.23. -->
SECTION 23. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding subsection (b) or the amendments to
IC 6-1.1-4-4.5 by this act, county assessors, township assessors, and
township trustee assessors shall:
(1) verify sales disclosure forms forwarded to the county
assessor under IC 6-1.1-5.5-3; and
(2) proceed with other duties under 50 IAC 21;
so that the completion of those actions is accomplished on a
schedule that is as close as possible to the schedules for completion
of those actions under 50 IAC 21 that applied before the
amendment of IC 6-1.1-4-4.5 by this act.
(b) Notwithstanding 50 IAC 21-3-2(b), the department of local
government finance shall notify each county assessor of a deadline
for:
(1) the determination of annual adjustments in the county
under 50 IAC 21-3-2 for the 2006 assessment date; and
(2) the submission of the annual adjustments to the
department for review and certification under IC 6-1.1-4-4.5,
as amended by this act.
(c) This SECTION expires January 1, 2008.
SOURCE: ; (05)SB0327.2.24. -->
SECTION 24. [EFFECTIVE UPON PASSAGE]
(a) The definitions
in IC 6-1.1-1 apply throughout this SECTION.
(b) As used in this SECTION, "taxpayer" means a nonprofit
corporation that is an owner of land and improvements:
(1) that were granted an exemption under IC 6-1.1-10 from
property taxes first due and payable in 2001;
(2) that were owned by a sorority and used by the sorority to
carry out its purposes during the period relevant to the
determination of exemption from property taxes under
IC 6-1.1-10-16 or IC 6-1.1-10-24 for the assessment dates in
2002 and 2003;
(3) for which a property tax liability was imposed for
property taxes first due and payable in 2003 and 2004 that in
total exceeded sixty thousand dollars ($60,000); and
(4) that would have qualified for an exemption under
IC 6-1.1-10-16 or IC 6-1.1-10-24 from property taxes first due
and payable in 2003 and 2004 if the owner had complied with
the filing requirements for the exemption in a timely manner.
(c) The land and improvements described in subsection (b) are
exempt from property taxes first due and payable in 2003 and
2004, notwithstanding that the taxpayer failed to make a timely
application for the exemption for those years.
(d) The taxpayer may file claims with the county auditor for a
refund for the amounts paid toward property taxes on the land and
improvements described in subsection (b) that were billed to the
taxpayer for property taxes first due and payable in 2003 and 2004.
The claim must be filed as set forth in IC 6-1.1-26-1(1) through
IC 6-1.1-26-1(3). The claims must present sufficient facts for the
county auditor to determine:
(1) whether the claimant meets the qualifications described in
subsection (b); and
(2) the amount that should be refunded to the taxpayer.
(e) Upon receiving a claim filed under this SECTION, the
county auditor shall determine whether the claim is correct. If the
county auditor determines that the claim is correct, the county
auditor shall submit the claim under IC 6-1.1-26-3 to the county
board of commissioners for review. The only grounds for
disallowing the claim under IC 6-1.1-26-4 are that the claimant is
not a person that meets the qualifications described in subsection
(b) or that the amount claimed is not the amount due to the
taxpayer. If the claim is allowed, the county auditor shall, without
an appropriation being required, issue a warrant to the claimant
payable from the county general fund for the amount due the
claimant under this SECTION. The amount of the refund must
equal the amount of the claim allowed. Notwithstanding
IC 6-1.1-26-5, no interest is payable on the refund.
(f) This SECTION expires December 31, 2008.
SOURCE: ; (05)SB0327.2.25. -->
SECTION 25.
An emergency is declared for this act.