Bill Text: IN SB0142 | 2012 | Regular Session | Engrossed
Bill Title: Property tax issues.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2012-03-01 - House advisors appointed: Turner, M. Smith, Pryor and Kersey [SB0142 Detail]
Download: Indiana-2012-SB0142-Engrossed.html
Citations Affected: IC 3-8; IC 6-1.1; IC 6-1.5.
Effective: July 1, 2012.
(HOUSE SPONSORS _ ESPICH, CRAWFORD)
January 4, 2012, read first time and referred to Committee on Appropriations.
January 19, 2012, amended, reported favorably _ Do Pass.
January 24, 2012, read second time, amended, ordered engrossed.
January 25, 2012, engrossed.
January 30, 2012, read third time, passed. Yeas 43, nays 7.
February 9, 2012, read first time and referred to Committee on Ways and Means.
February 23, 2012, amended, reported _ Do Pass.
Digest Continued
by the taxpayer concerns the assessment of or a deduction from the assessed value of the taxpayer's homestead and the taxpayer is representing himself or herself before the county board. (2) The taxpayer withdraws the request for a review at least five days before the hearing. (3) The taxpayer submitted a written request to reschedule the hearing and has not failed to appear at any previous hearing before the board concerning the taxpayer's request for a review. (4) The county board waives the penalty at its own discretion. Requires a power of attorney filed by a tax representative to specify each property subject to the power of attorney and that the power of attorney the expires not more than three years after it is executed. Provides that the department of local government finance shall specify educational criteria for acceptable tested courses offered by nationally recognized assessing organizations, post-secondary educational institutions, and other education delivery organizations in each subject matter area of the curriculum designed for certification of a level three assessor-appraiser. (Current law provides that the only acceptable courses are those offered by nationally recognized assessing organizations.) Appropriates an additional $250,000 to the Indiana board of tax review to reduce the number of appeals pending before the board. Requires the budget agency to allot the money and any other amounts appropriated to the board. Provides that amounts appropriated for state fiscal years beginning after June 30, 2012, may not be reverted unless the number of pending appeals is reduced to less than 1,000. Requires the board to report to the budget committee in 2013 whether the additional resources have enabled the board to significantly reduce the number of pending appeals and whether additional resources are necessary to manage the board's caseload.
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
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
(1) have resided in the county for at least one (1) year before the election, as provided in Article 6, Section 4 of the Constitution of the State of Indiana;
(2) own real property located in the county upon taking office; and
(3) fulfill the requirements of subsections (b) through (d), as applicable.
(b) A candidate for the office of county assessor who runs in an election after June 30, 2008, must have attained the certification of a level two assessor-appraiser under IC 6-1.1-35.5.
(c) A candidate for the office of county assessor who:
(1) did not hold the office of county assessor on January 1, 2012; and
(2) runs in an election after January 1, 2012;
must have attained the certification of a level three assessor-appraiser under IC 6-1.1-35.5.
(d) A candidate for the office of county assessor who:
(1) held the office of county assessor on January 1, 2012; and
(2) runs in an election after January 1, 2016;
must have attained the certification of a level three assessor-appraiser under IC 6-1.1-35.5.
(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 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. If a taxpayer wishes to
have the income capitalization method or the gross rent multiplier
method used in the initial formulation of the assessment of the
taxpayer's property, the taxpayer must submit the necessary
information to the assessor not later than the March 1 assessment
date. However, the taxpayer shall not be prejudiced in any way, or
restricted in pursuing an appeal, if the data is not submitted by
March 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.
(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 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).
(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 file
a notice in writing with the township assessor, or the county assessor
if the township is not served by a township assessor. 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 hearing held under subsection
(k) with respect to a notice filed after June 30, 2012, under
subsection (d) requesting the review of an assessment or deduction.
Except as provided in subsection (q), a taxpayer who fails to
appear at a hearing held under subsection (k) concerning the
review of an assessment or deduction is subject to a penalty of fifty
dollars ($50) for the taxpayer's failure to appear. A penalty
imposed under this subsection must be added to the taxpayer's
property tax statement of current and delinquent taxes and special
assessments under IC 6-1.1-22-8.1.
(q) A taxpayer is not required to pay a penalty for a failure to
appear as described in subsection (p) under the following
circumstances:
(1) 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 is
representing himself or herself before the county board.
(2) The taxpayer withdraws the request for a review at least
five (5) days before the hearing.
(3) The taxpayer submitted a written request to reschedule
the hearing and has not failed to appear at any previous
hearing held under subsection (k) concerning the taxpayer's
request for a review.
(4) The county board waives the penalty at its own discretion.
(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 specifies each property subject to the power of attorney and that it expires not more than three (3) years after the power of attorney is executed.
(1) administer a program for level three assessor-appraiser
certifications; and
(2) design a curriculum for level three assessor-appraiser
certification candidates that:
(A) consists of specifies educational criteria for acceptable
tested courses offered by:
(i) nationally recognized assessing organizations; and
(ii) postsecondary educational institutions; or
(iii) other education delivery organizations;
in each subject matter area of the curriculum; and
(B) requires superior knowledge of assessment administration
and property valuation concepts.
(b) The department shall:
(1) maintain a representative list of acceptable courses that
meet the criteria for the level three assessor-appraiser
certification curriculum designed under subsection (a)(2); and
(2) furnish a procedure by which a candidate may seek the
department's approval for a course that is not on the
representative list of acceptable courses described in
subdivision (1).
(b) (c) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
(b) Money appropriated by subsection (a) must be used for the following purposes:
(1) To hire additional personnel to reduce the number of appeals pending before the Indiana board.
(2) To pay the expenses incurred in conducting the additional appeals.
(c) Before July 15, 2012, the budget agency shall allot to the Indiana board the amount appropriated by subsection (a) and any other amounts appropriated to the Indiana board but not yet allotted.
1, 2012]: Sec. 6. (a) This section applies to money appropriated to
the Indiana board for state fiscal years beginning after June 30,
2012.
(b) Notwithstanding any other law, money appropriated to the
Indiana board may not be reverted to the state general fund until
the number of appeals pending before the Indiana board is reduced
to less than one thousand (1,000).
(1) whether the additional resources made available under sections 5 and 6 of this chapter have enabled the Indiana board to significantly reduce the number of appeals pending before the Indiana board; and
(2) whether additional resources are needed to manage the Indiana board's caseload.
