Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 145
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-1.1-4-43.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2023]: Sec. 43.5. (a) This section applies
to a commercial property with a structure, or a portion thereof,
that:
(1) is at least one hundred thousand (100,000) square feet in
area;
(2) is used for retail purposes;
(3) is occupied by a single retailer; and
(4) is assessed for the first time after December 31, 2022.
(b) This section does not apply to a property described in
subsection (a) that:
(1) was vacated by the original occupant for which the
property was constructed;
(2) was constructed more than five (5) years prior to the
assessment date; or
(3) was substantially and adversely impacted by a change in
a roadway or traffic pattern.
(c) If a single retailer leases or subleases small undivided
portions of a structure, the structure shall still be considered
occupied by a single retailer.
(d) For assessment dates beginning after December 31, 2022, the
true tax value of a commercial property subject to this section shall
SEA 145 — Concur 2
be determined by application of the cost approach. In applying the
cost approach, estimates of depreciation and obsolescence shall not
be based on data derived from the sales comparison or income
capitalization approaches. The department of local government
finance shall establish a standard construction cost per square foot
for the purpose of applying the cost approach to commercial
property subject to this section. The department shall update the
standard construction cost per square foot annually. When
requesting a review of an assessment under this section, a taxpayer
may present an appraisal based on the cost approach as evidence
that the taxpayer's actual construction cost was lower than the
department's determined standard construction cost per square
foot that was used to assess the property. Notwithstanding this
section, the value of the land component may be determined based
on the sales comparison approach.
(e) If the entire commercial property is occupied by a single
retailer as a single economic unit, the entire commercial property
shall be valued under this section. If only a portion of the
commercial property forms a single economic unit occupied by a
single retailer, then only that portion of the commercial property
shall be valued under this section.
(f) Notwithstanding subsections (c), (d), and (e), the parties to
any appeal filed under IC 6-1.1-15 may enter into a written
agreement to stipulate to the true tax value of the property under
appeal.
(g) If a taxpayer files a notice under IC 6-1.1-15 requesting a
review of the assessment of the taxpayer's commercial property
that is subject to this section, the fiscal officer of the county may
establish a separate account for purposes of the review. The fiscal
officer shall deposit in the account the greater of the tax receipts
that are attributable to:
(1) the property tax assessment that is the subject of the
review minus the tax receipts attributable to the property tax
assessment in the immediately prior year; or
(2) twenty-five percent (25%) of the tax receipts attributable
to the property tax assessment that is the subject of the
review.
Money transferred to an account is not considered miscellaneous
revenue. Both the taxing units and the department of local
government finance shall disregard any balance in the account in
the determination of the taxing units' property tax levy, property
tax rate, and budget until the calendar year in which the money is
SEA 145 — Concur 3
released from the account. The fiscal officer of the county,
following a final determination of the review, or final judgment on
an appeal if the review is appealed, shall disburse the money
deposited in the account in accordance with the final determination
or final judgment.
SEA 145 — Concur President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 145 — Concur