§ 6-1.1-4-42 — True tax value of golf course real property determined using income capitalization; information provided by golf course owners; uniform income capitalization tables; department of local government finance administration

Indiana § 6-1.1-4-42

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 4: Procedures for Real Property Assessment

Text

(a) This section applies to assessment dates
after January 15, 2010.
(b) The following definitions apply throughout this section:
(1) "Golf course" means an area of land predominately used to
play the game of golf and associated yard improvements. A golf
course consists of a series of holes, each consisting of a teeing
area, fairway, rough and other hazards, and the green with the pin
and cup.
(2) "Yard improvements" include a clubhouse, irrigation systems,
a pro shop, a maintenance building, a driving range, a structure
for food and beverage services, or other buildings associated with
the operation of and included in the net operating income of a golf
course.
(c) The true tax value of real property regularly used as a golf course
is the valuation determined by applying the income capitalization
appraisal approach. The income capitalization approach used to
determine the true tax value of a golf course must:
(1) incorporate an applicable income 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;
(2) provide for the uniform and equal assessment of golf courses;
and
(3) exclude the value of personal property, intangible property,
and income derived from personal or intangible property.
(d) For assessment dates after January 15, 2010, and before March
1, 2012, a township assessor (if any) or the county assessor shall gather
and process information from the owner of a golf course to carry out
this section in accordance with the rules adopted by the department of
local government finance under IC 4-22-2.
(e) For assessment dates after February 28, 2012, the department of
local government finance shall, by rules adopted under IC 4-22-2,
establish uniform income capitalization rates annually and procedures
to be used for the assessment of golf courses. The department of local
government finance may rely on recognized sources of industry
capitalization rates. Assessing officials shall use the procedures
adopted by the department of local government finance to assess,
reassess, and annually adjust the assessed value of golf courses.
(f) The department of local government finance may prescribe
procedures, forms, and due dates for the collection from the owners or
operators of golf courses of the necessary earnings, income, profits,
losses, and expenditures data necessary to carry out this section. An
owner or operator of a golf course shall comply with the procedures
and reporting schedules prescribed by the department of local
government finance.
(g) On or before December 31 of each year, assessing officials shall
solicit, and the owners or operators of a golf course shall provide to the
assessing officials, data for the gross income and allowable operating
expenses for the three (3) years immediately preceding the year in
which the solicitation and submission of data is being made. Assessing
officials may use federal tax returns or other similar evidence as
verification that the submissions are correct.
(h) For each assessment date, assessing officials shall examine and
evaluate the three (3) consecutive years of financial records and federal
tax returns that are submitted under subsection (g) in the year
immediately preceding the year of the assessment date to obtain the
average net operating income. The three (3) year average should
include the most current completed financial records and filed federal
tax returns of the golf course as of the assessment date to ensure that
the appropriate income and expense information for the subject
property is used.
(i) All income and expense information provided to the assessing
official under this section is confidential under IC 6-1.1-35-9.

Legislative History

As added by P.L.182-2009(ss), SEC.89. Amended by P.L.159-2020, SEC.7.