This text of Indiana § 6-1.1-4-39 (Assessment of rental property and mobile homes; low income rental
housing exclusion; appraisal approach; burden of proof) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(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
capitaliza
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(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 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 assessment date. However, the
taxpayer is not prejudiced in any way and is not restricted in pursuing
an appeal, if the data is not submitted by the assessment date. 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. All information related to earnings, income, profits,
losses, or expenditures that is provided to the assessor under this
section is confidential under IC 6-1.1-35-9 to the same extent as
information related to earnings, income, profits, losses, or expenditures
of personal property is confidential under 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.
(f) Notwithstanding IC 6-1.1-4-4.5, for assessment dates beginning
after December 31, 2023, the county assessor or township assessor
making the assessment shall perform an assessment of property
qualifying under subsection (a) annually, and for each assessment year,
perform a valuation of the property qualifying under subsection (a)
using each of the appraisal approaches in subsection (a)(1) through
(a)(3) and annually report to the taxpayer each of the values under
those approaches as determined by the assessor on a form as prescribed
under subsection (i). The assessor shall use the department cost
schedules without additional modifiers, adjustments, or other trending
factors beyond the location cost multiplier adjustments developed by
the department for the cost schedules used under this section. The use
of locally developed cost schedules, location cost multipliers, and
market or trending adjustments is prohibited.
(g) The county assessor or township assessor making the assessment
of property qualifying under subsection (a) has the burden of proof to
establish that the assessed value is the lowest value of those determined
using the three (3) appraisal approaches performed by the county
assessor or township assessor regardless of the percentage change in
the assessed value.
(h) Upon request of the taxpayer, the county assessor or township
assessor making the assessment shall provide an explanation to the
taxpayer concerning how the assessed value of the property was
calculated.
(i) The department shall prescribe a specific form for property
qualifying under subsection (a).