January 4, 2012, read first time and referred to Committee on Appropriations.
Digest Continued
property tax refund or credit because an assessment is decreased after
a determination of the Indiana board or the Indiana tax court (tax
court), the Indiana board or the tax court may waive any interest that
the taxpayer would otherwise be entitled to receive, if: (1) during the
proceedings of the Indiana board or the tax court the taxpayer
introduces evidence that had not been introduced at a hearing before
the county board; and (2) the determination of the Indiana board or the
tax court is based in whole or in part on that evidence.
Introduced
Second Regular Session 117th General Assembly (2012)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2011 Regular Session of the General Assembly.
SENATE BILL No. 142
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 6-1.1-4-39; (12)IN0142.1.1. -->
SECTION 1. IC 6-1.1-4-39, AS AMENDED BY P.L.146-2008,
SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 39. (a) For assessment dates after February 28,
2005, except as provided in subsections (c) and (e), the true tax value
of real property regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more and that has
more than four (4) rental units is the lowest valuation determined by
applying each of the following appraisal approaches:
(1) Cost approach that includes an estimated reproduction or
replacement cost of buildings and land improvements as of the
date of valuation together with estimates of the losses in value
that have taken place due to wear and tear, design and plan, or
neighborhood influences.
(2) Sales comparison approach, using data for generally
comparable property.
(3) Income capitalization approach, using an applicable
capitalization method and appropriate capitalization rates that are
developed and used in computations that lead to an indication of
value commensurate with the risks for the subject property use.
(b) The gross rent multiplier method is the preferred method of
valuing:
(1) real property that has at least one (1) and not more than four
(4) rental units; and
(2) mobile homes assessed under IC 6-1.1-7.
(c) A township assessor (if any) or the county assessor is not
required to appraise real property referred to in subsection (a) using the
three (3) appraisal approaches listed in subsection (a) if the assessor
and the taxpayer agree before notice of the assessment is given to the
taxpayer under section 22 of this chapter to the determination of the
true tax value of the property by the assessor using one (1) of those
appraisal approaches.
(d) To carry out this section, the department of local government
finance may shall adopt rules for assessors to use in gathering and
processing information for the application of the income capitalization
method and the gross rent multiplier method. The rules adopted by
the department must specify:
(1) the information that must be provided to the appropriate
assessor by a taxpayer that wishes to have or is required to
have the taxpayer's property assessed through the use of the
income capitalization method or the gross rent multiplier
method; and
(2) the deadline for a taxpayer to provide the information
described in subdivision (1).
A taxpayer must verify under penalties for perjury any information
provided to the township or county assessor for use in the application
of either method. Information provided to the assessor under this
section is confidential as provided in IC 6-1.1-35-9.
(e) The true tax value of low income rental property (as defined in
section 41 of this chapter) is not determined under subsection (a). The
assessment method prescribed in section 41 of this chapter is the
exclusive method for assessment of that property. This subsection does
not impede any rights to appeal an assessment.
SOURCE: IC 6-1.1-15-1; (12)IN0142.1.2. -->
SECTION 2. IC 6-1.1-15-1, AS AMENDED BY P.L.172-2011,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) A taxpayer may obtain a review by the
county board of a county or township official's action with respect to
either or both of the following:
(1) The assessment of the taxpayer's tangible property.
(2) A deduction for which a review under this section is
authorized by any of the following:
(A) IC 6-1.1-12-25.5.
(B) IC 6-1.1-12-28.5.
(C) IC 6-1.1-12-35.5.
(D) IC 6-1.1-12.1-5.
(E) IC 6-1.1-12.1-5.3.
(F) IC 6-1.1-12.1-5.4.
(b) At the time that notice of an action referred to in subsection (a)
is given to the taxpayer, the taxpayer shall also be informed in writing
of:
(1) the opportunity for a review under this section, including a
preliminary informal meeting under subsection (h)(2) with the
county or township official referred to in this subsection; and
(2) the procedures the taxpayer must follow in order to obtain a
review under this section.
(c) In order to obtain a review of an assessment or deduction
effective for the assessment date to which the notice referred to in
subsection (b) applies, the taxpayer must:
(1) file a notice in writing with the county or township official
referred to in subsection (a) not later than forty-five (45) days
after the date of the notice referred to in subsection (b);
and
(2) pay a filing fee, if required by subsection (p).
(d) A taxpayer may obtain a review by the county board of the
assessment of the taxpayer's tangible property effective for an
assessment date for which a notice of assessment is not given as
described in subsection (b). To obtain the review, the taxpayer must:
(1) file a notice in writing with the township assessor, or the
county assessor if the township is not served by a township
assessor;
and
(2) pay a filing fee, if required by subsection (p).
The right of a taxpayer to obtain a review under this subsection for an
assessment date for which a notice of assessment is not given does not
relieve an assessing official of the duty to provide the taxpayer with the
notice of assessment as otherwise required by this article. The notice
to obtain a review must be filed not later than the later of:
(1) May 10 of the year; or
(2) forty-five (45) days after the date of the tax statement mailed
by the county treasurer, regardless of whether the assessing
official changes the taxpayer's assessment.
(e) A change in an assessment made as a result of a notice for
review filed by a taxpayer under subsection (d) after the time
prescribed in subsection (d) becomes effective for the next assessment
date. A change in an assessment made as a result of a notice for review
filed by a taxpayer under subsection (c) or (d) remains in effect from
the assessment date for which the change is made until the next
assessment date for which the assessment is changed under this article.
(f) The written notice filed by a taxpayer under subsection (c) or (d)
must include the following information:
(1) The name of the taxpayer.
(2) The address and parcel or key number of the property.
(3) The address and telephone number of the taxpayer.
(g) The filing of a notice under subsection (c) or (d):
(1) initiates a review under this section; and
(2) constitutes a request by the taxpayer for a preliminary
informal meeting with the official referred to in subsection (a).
(h) A county or township official who receives a notice for review
filed by a taxpayer under subsection (c) or (d) shall:
(1) immediately forward the notice to the county board; and
(2) attempt to hold a preliminary informal meeting with the
taxpayer to resolve as many issues as possible by:
(A) discussing the specifics of the taxpayer's assessment or
deduction;
(B) reviewing the taxpayer's property record card;
(C) explaining to the taxpayer how the assessment or
deduction was determined;
(D) providing to the taxpayer information about the statutes,
rules, and guidelines that govern the determination of the
assessment or deduction;
(E) noting and considering objections of the taxpayer;
(F) considering all errors alleged by the taxpayer; and
(G) otherwise educating the taxpayer about:
(i) the taxpayer's assessment or deduction;
(ii) the assessment or deduction process; and
(iii) the assessment or deduction appeal process.
(i) Not later than ten (10) days after the informal preliminary
meeting, the official referred to in subsection (a) shall forward to the
county auditor and the county board the results of the conference on a
form prescribed by the department of local government finance that
must be completed and signed by the taxpayer and the official. The
form must indicate the following:
(1) If the taxpayer and the official agree on the resolution of all
assessment or deduction issues in the review, a statement of:
(A) those issues; and
(B) the assessed value of the tangible property or the amount
of the deduction that results from the resolution of those issues
in the manner agreed to by the taxpayer and the official.
(2) If the taxpayer and the official do not agree on the resolution
of all assessment or deduction issues in the review:
(A) a statement of those issues; and
(B) the identification of:
(i) the issues on which the taxpayer and the official agree;
and
(ii) the issues on which the taxpayer and the official
disagree.
(j) If the county board receives a form referred to in subsection
(i)(1) before the hearing scheduled under subsection (k):
(1) the county board shall cancel the hearing;
(2) the county official referred to in subsection (a) shall give
notice to the taxpayer, the county board, the county assessor, and
the county auditor of the assessment or deduction in the amount
referred to in subsection (i)(1)(B); and
(3) if the matter in issue is the assessment of tangible property,
the county board may reserve the right to change the assessment
under IC 6-1.1-13.
(k) If:
(1) subsection (i)(2) applies; or
(2) the county board does not receive a form referred to in
subsection (i) not later than one hundred twenty (120) days after
the date of the notice for review filed by the taxpayer under
subsection (c) or (d);
the county board shall hold a hearing on a review under this subsection
not later than one hundred eighty (180) days after the date of that
notice. The county board shall, by mail, give notice of the date, time,
and place fixed for the hearing to the taxpayer and the county or
township official with whom the taxpayer filed the notice for review.
The taxpayer and the county or township official with whom the
taxpayer filed the notice for review are parties to the proceeding before
the county board.
(l) At the hearing required under subsection (k):
(1) the taxpayer may present the taxpayer's reasons for
disagreement with the assessment or deduction; and
(2) the county or township official with whom the taxpayer filed
the notice for review must present:
(A) the basis for the assessment or deduction decision; and
(B) the reasons the taxpayer's contentions should be denied.
(m) The official referred to in subsection (a) may not require the
taxpayer to provide documentary evidence at the preliminary informal
meeting under subsection (h). The county board may not require a
taxpayer to file documentary evidence or summaries of statements of
testimonial evidence before the hearing required under subsection (k).
If the action for which a taxpayer seeks review under this section is the
assessment of tangible property, the taxpayer is not required to have an
appraisal of the property in order to do the following:
(1) Initiate the review.
(2) Prosecute the review.
(n) The county board shall prepare a written decision resolving all
of the issues under review. The county board shall, by mail, give notice
of its determination not later than one hundred twenty (120) days after
the hearing under subsection (k) to the taxpayer, the official referred to
in subsection (a), the county assessor, and the county auditor.
(o) If the maximum time elapses:
(1) under subsection (k) for the county board to hold a hearing; or
(2) under subsection (n) for the county board to give notice of its
determination;
the taxpayer may initiate a proceeding for review before the Indiana
board by taking the action required by section 3 of this chapter at any
time after the maximum time elapses.
(p) This subsection applies to a notice filed after June 30, 2012,
under subsection (c) or (d) requesting the review of an assessment
or deduction. At the time a taxpayer files the notice under
subsection (c) or (d), the taxpayer shall pay to the county or
township official with whom the notice is filed a filing fee of fifty
dollars ($50). However, a taxpayer is not required to pay the filing
fee if the notice filed by the taxpayer concerns the assessment of or
a deduction from the assessed value of the taxpayer's homestead
(as defined in IC 6-1.1-12-37) and the taxpayer will represent
himself or herself before the county board. The assessor to whom
the taxpayer paid the filing fee shall refund the filing fee to the
taxpayer upon the occurrence of any of the following:
(1) The taxpayer and the assessing official agree on the
resolution of all assessment or deduction issues in the review.
(2) The county board gives notice of its determination.
(3) The maximum time elapses:
(A) under subsection (k) for the county board to hold a
hearing; or
(B) under subsection (n) for the county board to give notice
of its determination;
and the taxpayer initiates a proceeding for review before the
Indiana board.
SOURCE: IC 6-1.1-15-3.5; (12)IN0142.1.3. -->
SECTION 3. IC 6-1.1-15-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 3.5. A power of attorney that is
executed by a taxpayer and after June 30, 2012, is filed by a tax
representative (as defined in 50 IAC 15-5-1, as effective July 1,
2012) with the county board or the Indiana board:
(1) in a proceeding under this chapter; or
(2) as part of a notice or petition requesting a review under
this chapter;
is not valid unless the power of attorney has a duration of not more
than two (2) years.
SOURCE: IC 6-1.1-37-11; (12)IN0142.1.4. -->
SECTION 4. IC 6-1.1-37-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 11. (a)
Except as
provided in subsection (d), if a taxpayer is entitled to a property tax
refund or credit because an assessment is decreased, the taxpayer shall
also be paid, or credited with, interest on the excess taxes that
he the
taxpayer paid at the rate of four percent (4%) per annum.
(b) For purposes of this section and except as provided in subsection
(c), the interest shall be computed from the date on which the taxes
were paid or due, whichever is later, to the date of the refund or credit.
(c) This subsection applies if a taxpayer who is entitled to a refund
or credit does not make a written request for the refund or credit to the
county auditor within forty-five (45) days after the final determination
of the county property tax assessment board of appeals, the state board
of tax commissioners, the department of local government finance, the
Indiana board, or the tax court that entitles the taxpayer to the refund
or credit. In the case of a taxpayer described in this subsection, the
interest shall be computed from the date on which the taxes were paid
or due to the date that is forty-five (45) days after the final
determination of the county property tax assessment board of appeals,
the state board of tax commissioners, the department of local
government finance, the Indiana board of tax review, or the Indiana tax
court. In any event, a property tax refund or credit must be issued not
later than ninety (90) days after the request is received.
(d) If a taxpayer is entitled to a property tax refund or credit
because an assessment is decreased after a determination of the
Indiana board or the Indiana tax court, the Indiana board or the
Indiana tax court may waive any interest that the taxpayer would
otherwise be entitled to receive under this section or any other law
on the excess taxes paid by the taxpayer, if:
(1) during the proceedings of the Indiana board or the
Indiana tax court, the taxpayer introduced evidence that was
not introduced at a hearing before the county property tax
assessment board of appeals; and
(2) the determination of the Indiana board or the Indiana tax
court is based in whole or in part on the evidence described in
subdivision (1).