Indiana 2023 Regular Session

Indiana House Bill HB1082 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1082
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-4.
7	7	Synopsis: Assessment procedures. Requires a township or county
8	8	assessor to document any changes made to the parcel characteristics of
9	9	real property from the previous year's assessment in an assessment of
10	10	the real property. Provides that in an appeal of the assessment, the
11	11	township or county assessor has the burden of proving the validity of
12	12	any change to the parcel characteristics. Allows a taxpayer to submit
13	13	a preferred appraisal approach for assessment of certain rental
14	14	property. Provides that, on appeal, if a township or county assessor has
15	15	failed to use the preferred appraisal approach, the taxpayer shall be
16	16	awarded reasonable attorney's fees, court costs, and other reasonable
17	17	expenses.
18	18	Effective: July 1, 2023.
19	19	Teshka, Manning
20	20	January 9, 2023, read first time and referred to Committee on Ways and Means.
21	21	2023 IN 1082—LS 6499/DI 125 Introduced
22	22	First Regular Session of the 123rd General Assembly (2023)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2022 Regular Session of the General Assembly.
32	32	HOUSE BILL No. 1082
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning
34	34	taxation.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 6-1.1-4-4.9 IS ADDED TO THE INDIANA CODE
37	37	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
38	38	3 1, 2023]: Sec. 4.9. (a) This section applies to an assessment:
39	39	4 (1) under section 4.2 or 4.5 of this chapter or another law; and
40	40	5 (2) occurring after December 31, 2023.
41	41	6 (b) If the township assessor, or the county assessor if there is no
42	42	7 township assessor for the township, changes the underlying parcel
43	43	8 characteristics, including age, grade, or condition, of a property
44	44	9 from the previous year's assessment date, the township or county
45	45	10 assessor shall document:
46	46	11 (1) each change; and
47	47	12 (2) the reason that each change was made.
48	48	13 In any appeal of the assessment, the township or county assessor
49	49	14 has the burden of proving that each change was valid.
50	50	15 SECTION 2. IC 6-1.1-4-39, AS AMENDED BY P.L.111-2014,
51	51	16 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
52	52	17 JULY 1, 2023]: Sec. 39. (a) For assessment dates after February 28,
53	53	2023 IN 1082—LS 6499/DI 125 2
54	54	1 2005, except as provided in subsections (c) and (e), and subject to
55	55	2 subsection (f), the true tax value of real property regularly used to rent
56	56	3 or otherwise furnish residential accommodations for periods of thirty
57	57	4 (30) days or more and that has more than four (4) rental units is the
58	58	5 lowest valuation determined by applying each of the following
59	59	6 appraisal approaches:
60	60	7 (1) Cost approach that includes an estimated reproduction or
61	61	8 replacement cost of buildings and land improvements as of the
62	62	9 date of valuation together with estimates of the losses in value
63	63	10 that have taken place due to wear and tear, design and plan, or
64	64	11 neighborhood influences.
65	65	12 (2) Sales comparison approach, using data for generally
66	66	13 comparable property.
67	67	14 (3) Income capitalization approach, using an applicable
68	68	15 capitalization method and appropriate capitalization rates that are
69	69	16 developed and used in computations that lead to an indication of
70	70	17 value commensurate with the risks for the subject property use.
71	71	18 (b) The gross rent multiplier method is the preferred method of
72	72	19 valuing:
73	73	20 (1) real property that has at least one (1) and not more than four
74	74	21 (4) rental units; and
75	75	22 (2) mobile homes assessed under IC 6-1.1-7.
76	76	23 (c) A township assessor (if any) or the county assessor is not
77	77	24 required to appraise real property referred to in subsection (a) using the
78	78	25 three (3) appraisal approaches listed in subsection (a) if the assessor
79	79	26 and the taxpayer agree before notice of the assessment is given to the
80	80	27 taxpayer under section 22 of this chapter to the determination of the
81	81	28 true tax value of the property by the assessor using one (1) of those
82	82	29 appraisal approaches.
83	83	30 (d) To carry out this section, the department of local government
84	84	31 finance may adopt rules for assessors to use in gathering and
85	85	32 processing information for the application of the income capitalization
86	86	33 method and the gross rent multiplier method. If a taxpayer wishes to
87	87	34 have the income capitalization method or the gross rent multiplier
88	88	35 method used in the initial formulation of the assessment of the
89	89	36 taxpayer's property, the taxpayer must submit the necessary information
90	90	37 to the assessor not later than the assessment date. However, the
91	91	38 taxpayer is not prejudiced in any way and is not restricted in pursuing
92	92	39 an appeal, if the data is not submitted by the assessment date. A
93	93	40 taxpayer must verify under penalties for perjury any information
94	94	41 provided to the township or county assessor for use in the application
95	95	42 of either method. All information related to earnings, income, profits,
96	96	2023 IN 1082—LS 6499/DI 125 3
97	97	1 losses, or expenditures that is provided to the assessor under this
98	98	2 section is confidential under IC 6-1.1-35-9 to the same extent as
99	99	3 information related to earnings, income, profits, losses, or expenditures
100	100	4 of personal property is confidential under IC 6-1.1-35-9.
101	101	5 (e) The true tax value of low income rental property (as defined in
102	102	6 section 41 of this chapter) is not determined under subsection (a). The
103	103	7 assessment method prescribed in section 41 of this chapter is the
104	104	8 exclusive method for assessment of that property. This subsection does
105	105	9 not impede any rights to appeal an assessment.
106	106	10 (f) If a taxpayer wishes to have a preferred appraisal approach
107	107	11 used in the assessment of a taxpayer's property described in
108	108	12 subsection (a), the taxpayer must submit the necessary information
109	109	13 to the assessor not later than the assessment date. If a taxpayer
110	110	14 requests the application of a preferred appraisal approach under
111	111	15 this subsection, the township or county assessor shall use the
112	112	16 preferred appraisal approach in the assessment of the taxpayer's
113	113	17 property.
114	114	18 (g) If, on appeal or judicial review of an assessment described
115	115	19 in this section, the county property tax assessment board of
116	116	20 appeals, Indiana board, or court, as applicable, finds that the
117	117	21 township or county assessor failed to use the preferred appraisal
118	118	22 approach as timely submitted by the taxpayer under subsection (f),
119	119	23 the county property tax assessment board of appeals, Indiana
120	120	24 board, or court, as applicable, shall award the taxpayer reasonable
121	121	25 attorney's fees, court costs, and other reasonable expenses in an
122	122	26 amount not to exceed five thousand dollars ($5,000).
123	123	27 SECTION 3. [EFFECTIVE JULY 1, 2023] (a) IC 6-1.1-4-39, as
124	124	28 amended by this act, applies to assessment dates occurring after
125	125	29 December 31, 2023.
126	126	30 (b) This SECTION expires July 1, 2026.
127	127	2023 IN 1082—LS 6499/DI 125