This text of Indiana § 6-1.1-4-43.5 (Assessment of certain commercial property; cost approach; standard
construction cost per square foot; separate account for purposes of a
review) 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.
5.
(a)This section applies to a commercial
property with a structure, or a portion thereof, that:
(1)is at least one hundred thousand (100,000) square feet in area;
(2)is used for retail purposes;
(3)is occupied by a single retailer; and
(4)is assessed for the first time after December 31, 2022.
(b)This section does not apply to a property described in subsection
(a)that:
(1)was vacated by the original occupant for which the property
was constructed;
(2)was constructed more than five (5) years prior to the
assessment date; or
(3)was substantially and adversely impacted by a change in a
roadway or traffic pattern.
(c)If a single retailer leases or subleases small undivided portions
of a structure, the structure shall still be considered occupied by a
single retailer.
Free access — add to your briefcase to read the full text and ask questions with AI
5. (a) This section applies to a commercial
property with a structure, or a portion thereof, that:
(1) is at least one hundred thousand (100,000) square feet in area;
(2) is used for retail purposes;
(3) is occupied by a single retailer; and
(4) is assessed for the first time after December 31, 2022.
(b) This section does not apply to a property described in subsection
(a) that:
(1) was vacated by the original occupant for which the property
was constructed;
(2) was constructed more than five (5) years prior to the
assessment date; or
(3) was substantially and adversely impacted by a change in a
roadway or traffic pattern.
(c) If a single retailer leases or subleases small undivided portions
of a structure, the structure shall still be considered occupied by a
single retailer.
(d) For assessment dates beginning after December 31, 2022, the
true tax value of a commercial property subject to this section shall be
determined by application of the cost approach. In applying the cost
approach, estimates of depreciation and obsolescence shall not be
based on data derived from the sales comparison or income
capitalization approaches. The department of local government finance
shall establish a standard construction cost per square foot for the
purpose of applying the cost approach to commercial property subject
to this section. The department shall update the standard construction
cost per square foot annually. When requesting a review of an
assessment under this section, a taxpayer may present an appraisal
based on the cost approach as evidence that the taxpayer's actual
construction cost was lower than the department's determined standard
construction cost per square foot that was used to assess the property.
Notwithstanding this section, the value of the land component may be
determined based on the sales comparison approach.
(e) If the entire commercial property is occupied by a single retailer
as a single economic unit, the entire commercial property shall be
valued under this section. If only a portion of the commercial property
forms a single economic unit occupied by a single retailer, then only
that portion of the commercial property shall be valued under this
section.
(f) Notwithstanding subsections (c), (d), and (e), the parties to any
appeal filed under IC 6-1.1-15 may enter into a written agreement to
stipulate to the true tax value of the property under appeal.
(g) If a taxpayer files a notice under IC 6-1.1-15 requesting a review
of the assessment of the taxpayer's commercial property that is subject
to this section, the fiscal officer of the county may establish a separate
account for purposes of the review. The fiscal officer shall deposit in
the account the greater of the tax receipts that are attributable to:
(1) the property tax assessment that is the subject of the review
minus the tax receipts attributable to the property tax assessment
in the immediately prior year; or
(2) twenty-five percent (25%) of the tax receipts attributable to
the property tax assessment that is the subject of the review.
Money transferred to an account is not considered miscellaneous
revenue. Both the taxing units and the department of local government
finance shall disregard any balance in the account in the determination
of the taxing units' property tax levy, property tax rate, and budget until
the calendar year in which the money is released from the account. The
fiscal officer of the county, following a final determination of the
review, or final judgment on an appeal if the review is appealed, shall
disburse the money deposited in the account in accordance with the
final determination or final judgment.