Indiana 2025 Regular Session

Indiana Senate Bill SB0194 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 194
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-4-47.
7	7	Synopsis: Assessment of certain commercial property. Establishes
8	8	certain assessment requirements for commercial property with a
9	9	structure that is not more than 100,000 square feet in area and that is:
10	10	(1) used for retail purposes; (2) a maintenance or service shop; and (3)
11	11	detached or offsite storage property or facilities used in relation to
12	12	those uses. Requires the assessor to annually determine the assessed
13	13	value of those properties using each of the following approaches: (1)
14	14	Cost approach. (2) Sales comparison approach. (3) Income
15	15	capitalization approach. Requires the assessor to use the department of
16	16	local government finance cost schedules without additional modifiers,
17	17	adjustments, or other trending factors beyond the location cost
18	18	multiplier adjustments developed by the department. Prohibits the use
19	19	of locally developed cost schedules, location cost multipliers, and
20	20	market or trending adjustments. Requires the assessor to report to the
21	21	taxpayer each of the values under the three approaches. Provides that
22	22	the assessor has the burden of proof to establish that the assessed value
23	23	of the property is the lowest value under the three approaches. Requires
24	24	the assessor making the assessment to personally provide an
25	25	explanation to the taxpayer concerning how the assessed value of the
26	26	property was calculated if requested.
27	27	Effective: July 1, 2025.
28	28	Niemeyer
29	29	January 8, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
30	30	2025 IN 194—LS 6468/DI 120 Introduced
31	31	First Regular Session of the 124th General Assembly (2025)
32	32	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
33	33	Constitution) is being amended, the text of the existing provision will appear in this style type,
34	34	additions will appear in this style type, and deletions will appear in this style type.
35	35	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
36	36	provision adopted), the text of the new provision will appear in this style type. Also, the
37	37	word NEW will appear in that style type in the introductory clause of each SECTION that adds
38	38	a new provision to the Indiana Code or the Indiana Constitution.
39	39	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
40	40	between statutes enacted by the 2024 Regular Session of the General Assembly.
41	41	SENATE BILL No. 194
42	42	A BILL FOR AN ACT to amend the Indiana Code concerning
43	43	taxation.
44	44	Be it enacted by the General Assembly of the State of Indiana:
45	45	1 SECTION 1. IC 6-1.1-4-47 IS ADDED TO THE INDIANA CODE
46	46	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
47	47	3 1, 2025]: Sec. 47. (a) This section applies to a commercial property
48	48	4 with a structure that is not more than one hundred thousand
49	49	5 (100,000) square feet in area and that is:
50	50	6 (1) used for retail purposes;
51	51	7 (2) a maintenance and service shop; or
52	52	8 (3) detached or offsite storage property or facilities used in
53	53	9 relation to subdivision (1) or (2).
54	54	10 (b) Notwithstanding section 4.5 of this chapter, the county
55	55	11 assessor or township assessor shall annually perform an
56	56	12 assessment of the property subject to this section and shall
57	57	13 annually determine a valuation of the property using each of the
58	58	14 following approaches:
59	59	15 (1) Cost approach that includes an estimated reproduction or
60	60	16 replacement cost of buildings and land improvements as of
61	61	17 the date of valuation together with estimates of the losses in
62	62	2025 IN 194—LS 6468/DI 120 2
63	63	1 value that have taken place due to wear and tear, design and
64	64	2 plan, or neighborhood influences.
65	65	3 (2) Sales comparison approach, using data for generally
66	66	4 comparable property.
67	67	5 (3) Income capitalization approach, using an applicable
68	68	6 capitalization method and appropriate capitalization rates
69	69	7 that are developed and used in computations that lead to an
70	70	8 indication of value commensurate with the risks for the
71	71	9 subject property use.
72	72	10 The county assessor or township assessor shall annually report to
73	73	11 the taxpayer each of the values under those approaches as
74	74	12 determined by the assessor on a form as prescribed under
75	75	13 subsection (e). The assessor shall use the department cost schedules
76	76	14 without additional modifiers, adjustments, or other trending
77	77	15 factors beyond the location cost multiplier adjustments developed
78	78	16 by the department for the cost schedules used under this section.
79	79	17 The use of locally developed cost schedules, location cost
80	80	18 multipliers, and market or trending adjustments is prohibited.
81	81	19 (c) The county assessor or township assessor making the
82	82	20 assessment of property subject to this section has the burden of
83	83	21 proof to establish that the assessed value is the lowest value of
84	84	22 those determined using the three (3) appraisal approaches
85	85	23 performed by the county assessor or township assessor regardless
86	86	24 of the percentage change in the assessed value.
87	87	25 (d) Upon request of the taxpayer, the county assessor or
88	88	26 township assessor making the assessment shall provide an
89	89	27 explanation to the taxpayer concerning how the assessed value of
90	90	28 the property was calculated.
91	91	29 (e) The department shall prescribe a specific form for property
92	92	30 subject to this section.
93	93	2025 IN 194—LS 6468/DI 120