Introduced Version
SENATE BILL No. 299
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-4.
Synopsis: Assessed value of homesteads. Provides, for assessment
dates after February 29, 2008, that the assessed value of a homestead
that changes ownership in the preceding year is the sale price of the
homestead. Limits the annual increase in the assessed value of a
homestead that results from trending to the lesser of 3% or the
percentage change in the consumer price index.
Effective: Upon passage.
Mrvan
January 11, 2007, read first time and referred to Committee on Tax and Fiscal Policy.
Introduced
First Regular Session 115th General Assembly (2007)
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SENATE BILL No. 299
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; (07)IN0299.1.1. -->
SECTION 1. IC 6-1.1-4-4, AS AMENDED BY P.L.228-2005,
SECTION 3, 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, 2009, and each fifth year
thereafter. Each reassessment under this subsection:
(1) shall be completed on or before March 1, of the 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;
and
(3) does not apply to the determination of the assessed value
of a homestead for which the assessed value is determined
under section 4.6(b) of this chapter.
(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; (07)IN0299.1.2. -->
SECTION 2. IC 6-1.1-4-4.5, AS AMENDED BY P.L.228-2005,
SECTION 4, 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) Subject to subsection (e) and section 4.6 of this chapter, the
system must be applied to adjust assessed values beginning with the
2006 assessment date and each year thereafter that is not a year in
which a reassessment becomes effective.
(c) The 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) 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.
(3) Prescribe procedures 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.
(e) In making the annual determination of the base rate to satisfy the
requirement for an annual adjustment under subsection (a), the
department of local government finance shall determine the base rate
using the methodology reflected in Table 2-18 of Book 1, Chapter 2 of
the department of local government finance's Real Property Assessment
Guidelines (as in effect on January 1, 2005), except that the department
shall adjust the methodology to use a six (6) year rolling average
instead of a four (4) year rolling average.
SOURCE: IC 6-1.1-4-4.6; (07)IN0299.1.3. -->
SECTION 3. IC 6-1.1-4-4.6 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 4.6. (a) The assessed value of a homestead
(as defined in IC 6-1.1-20.9-1) is determined under this section for
assessment dates after February 29, 2008.
(b) Subject to subsection (e), if ownership of a homestead
changes:
(1) after an assessment date; and
(2) before the immediately succeeding assessment date for
which the assessed value is determined;
the assessed value of the homestead for the immediately succeeding
assessment date is the price of the homestead required to be
disclosed under IC 6-1.1-5.5-5(a)(13). This subsection applies
regardless of whether the immediately succeeding assessment date
for which the assessed value is determined is an assessment date
for which a general reassessment of real property takes effect
under section 4 of this chapter.
(c) The assessed value of a homestead is determined under
subsection (d) for an assessment date that is not an assessment
date:
(1) for which the assessed value of the homestead is
determined under subsection (b); or
(2) for which a general reassessment of real property takes
effect under section 4 of this chapter.
(d) Subject to subsection (e), the assessed value of a homestead
for purposes of subsection (c) is as follows:
(1) For a homestead that was not subject to assessment for the
immediately preceding assessment date, the assessed value as
determined under the rules of the department of local
government finance.
(2) For a homestead other than a homestead described in
subdivision (1), the lesser of the following:
(A) The assessed value determined by applying the annual
adjustment under section 4.5 of this chapter to the assessed
value of the homestead for the immediately preceding
assessment date.
(B) The assessed value determined by increasing the
assessed value of the homestead for the immediately
preceding assessment date by the lesser of the following:
(i) Three percent (3%).
(ii) The percentage change in the Consumer Price Index
for All Urban Consumers, U.S. City Average, all items
1967 equals 100, or a successor report, for the
immediately preceding calendar year as initially
reported by the United States Department of Labor,
Bureau of Labor Statistics.
(e) The assessed value determination for a homestead must take
into account changes to the physical characteristics of the
homestead that occur after:
(1) the date of change of ownership for purposes of subsection
(b); or
(2) the immediately preceding assessment date for purposes
of subsection (d);
and before the assessment date for which the assessed value is
determined.
SOURCE: ; (07)IN0299.1.4. -->
SECTION 4.
An emergency is declared for this act.