Introduced House Bill (H)

Authored by

DIGEST

Property tax assessment. Provides that: (1) the true tax value of real property improvements shall be determined by using the cost approach, in which the value of real property improvements is equal to the estimated replacement cost (new) of the real property improvements, less any depreciation; and (2) the true tax value of the land on which the real property improvements are located is equal to the value of vacant land as specified in the land values determined by the county assessor. Requires that the same value of vacant land as specified in the land values must be used for Property tax assessment. Provides that: (1) the true tax value of real property improvements shall be determined by using the cost approach, in which the value of real property improvements is equal to the estimated replacement cost (new) of the real property improvements, less any depreciation; and (2) the true tax value of the land on which the real property improvements are located is equal to the value of vacant land as specified in the land values determined by the county assessor. Requires that the same value of vacant land as specified in the land values must be used for all land within the same geographic neighborhood or geographic territory defined by the county assessor. Provides that this valuation method does not apply to certain real property for which a different method is specified by statute (including real property that has more than four rental units and is regularly used to rent furnish residential accommodations, real property used as a golf course, utility property, and agricultural land). Specifies that the general assembly finds that such a valuation method will achieve the uniform and equal valuation of property required under the Constitution of the state of Indiana. Specifies for purposes of the real property assessment statutes that the determination of whether properties are comparable shall be made using generally accepted appraisal and assessment practices. Lists certain factors that must be considered in the determination. Provides that an assessing official's failure to comply with the procedures of a specific assessing method, the property tax statutes, or any rule of the department of local government finance shall be treated as an incorrect valuation. Requires that sales disclosure forms must include information on: (1) whether the transfer of property includes intangible assets (including goodwill) or leases; and (2) the estimate of the value of any intangible assets (including goodwill) and leases included in the transfer of property. Specifies that if the total price to be paid in exchange for the conveyance, as reported on the sales disclosure form, exceeds the most recent assessed valuation for the property conveyed by more than twenty-five percent (25%), the county assessor shall contact the parties to ensure that the total amount of personal property, intangible assets (including goodwill), or leases included in the transfer was properly reported on the sales disclosure form. Provides that upon request by a taxpayer, an employee of the Indiana board of tax review may assist taxpayers and local officials in their attempts to voluntarily resolve disputes. (Under current law, only county assessors may request such assistance.) ... View more