Introduced Version
HOUSE BILL No. 1257
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-4-4.5.
Synopsis: Real property assessed values and trending. Requires that
annual adjustments in the assessed value of real property for property
tax purposes must be based on appropriate market factors. Transfers
the responsibility for establishing market factors for the annual
adjustment of property assessments to the department of local
government finance (DLGF). Requires the DLGF to base adjustment
factors on an analysis of value changes occurring to large samples of
similarly situated properties located in more than one county. Allows
the county assessor to adjust a market factor with the DLGF's approval.
Makes other related changes.
Effective: January 16, 2010 (retroactive).
Espich
January 12, 2010, read first time and referred to Committee on Rules and Legislative
Procedures.
Introduced
Second Regular Session 116th General Assembly (2010)
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HOUSE BILL No. 1257
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 6-1.1-4-4.5; (10)IN1257.1.1. -->
SECTION 1. IC 6-1.1-4-4.5, AS AMENDED BY P.L.136-2009,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 16, 2010 (RETROACTIVE)]: 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), 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) For assessment dates before January 16, 2010, 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) For assessment dates after January 15, 2010, 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 under this section
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, 2010, the
department of local government finance must review and certify each
annual adjustment determined under this section. For assessment
dates occurring after January 15, 2010, the department of local
government finance shall, subject to subsection (f), 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) After January 15, 2010, this subsection applies only to
determining the market value in the 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) For assessment dates after December 31, 2009, an adjustment in
the assessed value of real property under this section shall be based on
the estimated true tax value of the property on the assessment date that
is the basis for taxes payable on that real property.
(g) 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.
(h) A county assessor may adjust a market factor established
under subsection (d) if:
(1) the county assessor determines that the adjustment is
necessary; and
(2) the department of local government finance approves the
adjustment.
SOURCE: ; (10)IN1257.1.2. -->
SECTION 2.
An emergency is declared for this act.