Citations Affected: IC 6-1.1-4-4.5.
Synopsis: Property tax trending formula. Indicates that annual
adjustments in the assessed value of real property for property tax
purposes must be based on appropriate market factors. Transfers the
responsibility of establishing market factors for the annual adjustment
of property assessments to the department of local government finance.
Requires the department of local government finance to base
adjustment factors on an analysis of value changes occurring to large
samples of similarly situated properties located in more than one
county. Makes other related changes.
Effective: July 1, 2009.
January 14, 2009, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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. market
factors.
(3) For assessment dates after January 15, 2009, establish a
mass appraisal methodology that:
(A) promotes uniform and equal assessment of real
property within and across classifications;
(B) simplifies the methodology used to estimate property
values in a way that promotes broad public understanding
of and agreement with the market factors used to
determine the values assigned to particular parcels of real
property;
(C) estimates property values separately for each class of
property; and
(D) employs, statewide, the smallest number of different
market factors within each classification of property that
will permit compliance with clauses (A), (B), and (C) and
subsection (d).
(4) For assessment dates in each year after 2011 in which a
general reassessment does not become effective, require
assessing officials, technical advisers, and professional
appraisers to do the following:
(A) Use the market factors established by the department
of local government finance for the estimation of property
values.
(B) Provide notice to taxpayers of an assessment increase
that results from the application of annual market factors.
(3) (5) Prescribe procedures that permit the application of the
adjustment percentages in an efficient manner by assessing
officials.
(d) For assessment dates occurring before January 16, 2009, the
department of local government finance must review and certify each
annual market adjustment determined under this section. For
assessment dates occurring after January 15, 2009, the department
of local government finance shall establish the market factors to be
used for each class of property in Indiana. In establishing market
factors, the department of local government finance shall:
(1) reevaluate the market factors that affect value;
(2) express the interactions of those market factors
mathematically; and
(3) use mass appraisal techniques to estimate updated
property values within statistical measures of accuracy;
consistent with the requirement of subsection (c)(3). The
department of local government finance shall base the development
of the market factors on the value changes occurring to large
samples of similarly situated properties located in more than one
(1) county. The department of local government finance shall
provide for the application of the same market factors to similarly
situated properties located in the same county and, to the extent
determined appropriate by the department of local government
finance, to similarly situated properties located in contiguous
counties.
(e) This subsection applies to determining the market value in
use of agricultural land. 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.
(f) This subsection does not restrict the evidence that a person
appealing a property tax assessment may use to demonstrate the
true tax value of property in a timely filed appeal. Except as
expressly provided by statute, an assessing official may not use any
method of adjusting the assessed value of property that does not:
(1) use the market factors established by the department of
local government finance; or
(2) apply the market factors in conformity with the
procedures prescribed by the department of local government
finance.