IC 6-1.1-31
    Chapter 31. Department of Local Government Finance.Adoptionof Rules, Forms, and Returns

IC 6-1.1-31-1
Duties of department; rules
    Sec. 1. (a) The department of local government finance shall dothe following:
        (1) Prescribe the property tax forms and returns whichtaxpayers are to complete and on which the taxpayers'assessments will be based.
        (2) Prescribe the forms to be used to give taxpayers notice ofassessment actions.
        (3) Adopt rules concerning the assessment of tangible property.
        (4) Develop specifications that prescribe state requirements forcomputer software and hardware to be used by counties forassessment purposes. The specifications developed under thissubdivision apply only to computer software and hardwaresystems purchased for assessment purposes after July 1, 1993.The specifications, including specifications in a rule or otherstandard adopted under IC 6-1.1-31.5, must provide for:
            (A) maintenance of data in a form that formats theinformation in the file with the standard data, field, andrecord coding jointly required and approved by thedepartment of local government finance and the legislativeservices agency;
            (B) data export and transmission that is compatible with thedata export and transmission requirements in a standardformat prescribed by the office of technology established byIC 4-13.1-2-1 and jointly approved by the department oflocal government finance and legislative services agency;and
            (C) maintenance of data in a manner that ensures prompt andaccurate transfer of data to the department of localgovernment finance and the legislative services agency, asjointly approved by the department of local government andlegislative services agency.
        (5) Adopt rules establishing criteria for the revocation of acertification under IC 6-1.1-35.5-6.
    (b) The department of local government finance may adopt rulesthat are related to property taxation or the duties or the procedures ofthe department.
    (c) Rules of the state board of tax commissioners are for allpurposes rules of the department of local government finance and theIndiana board until the department and the Indiana board adopt rulesto repeal or supersede the rules of the state board of taxcommissioners.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.41-1993,SEC.23; P.L.198-2001, SEC.75; P.L.146-2008, SEC.269.
IC 6-1.1-31-2
Operating procedure
    Sec. 2. The department of local government finance maypromulgate rules, property tax forms, property tax returns, and noticeforms in the manner prescribed in IC 4-22-2. However, thedepartment of local government finance may, at any time, make anonsubstantive change in a promulgated property tax form or returnif the change is advisable because of the special nature of equipmentwhich is available in a particular county.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.41-1993,SEC.24; P.L.90-2002, SEC.218.

IC 6-1.1-31-3
Information considered in preparation of rules, regulations,property tax forms, and property tax returns
    Sec. 3. In the preparation of rules, regulations, property tax forms,and property tax returns, the department of local government financemay consider:
        (1) data compiled by the federal government;
        (2) data compiled by this state and its taxing authorities;
        (3) data compiled and studies made by a state college oruniversity;
        (4) generally accepted practices of appraisers, includinggenerally accepted property assessment valuation and massappraisal principles and practices;
        (5) generally accepted indices of construction costs;
        (6) for assessment dates after February 28, 2001, generallyaccepted indices of income accruing from real property;
        (7) sales data compiled for generally comparable properties;and
        (8) any other information which is available to the departmentof local government finance.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.102; P.L.90-2002, SEC.219; P.L.1-2004, SEC.38 andP.L.23-2004, SEC.41.

IC 6-1.1-31-4
Copies of promulgations
    Sec. 4. When the department of local government financeprescribes or promulgates a rule, regulation, property tax form,property tax return, notice form, bulletin, directive, or any otherpaper, the department shall:
        (1) send copies of it to the local taxing officials;
        (2) send a copy of it to the executive director of the legislativeservices agency in an electronic format under IC 5-14-6, if it isnot published in the Indiana Register under IC 4-22; and
        (3) maintain copies of it for general distribution.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.220; P.L.146-2008, SEC.270.
IC 6-1.1-31-5
True tax value; factors considered by assessing officials
    Sec. 5. (a) Subject to this article, the rules adopted by thedepartment of local government finance are the basis for determiningthe true tax value of tangible property.
    (b) Assessing officials shall:
        (1) comply with the rules, appraisal manuals, bulletins, anddirectives adopted by the department of local governmentfinance;
        (2) use the property tax forms, property tax returns, and noticeforms prescribed by the department; and
        (3) collect and record the data required by the department.
    (c) In assessing tangible property, the assessing officials mayconsider factors in addition to those prescribed by the department oflocal government finance if the use of the additional factors is firstapproved by the department. Each assessing official shall indicate onthe official's records for each individual assessment whether:
        (1) only the factors contained in the department's rules, forms,and returns have been considered; or
        (2) factors in addition to those contained in the department'srules, forms, and returns have been considered.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.24-1986,SEC.22; P.L.6-1997, SEC.103; P.L.90-2002, SEC.221; P.L.1-2004,SEC.39 and P.L.23-2004, SEC.42; P.L.146-2008, SEC.271.

IC 6-1.1-31-6
Real property assessment; classification of land and improvements
    Sec. 6. (a) With respect to the assessment of real property, therules of the department of local government finance shall providefor:
        (1) the classification of land on the basis of:
            (i) acreage;
            (ii) lots;
            (iii) size;
            (iv) location;
            (v) use;
            (vi) productivity or earning capacity;
            (vii) applicable zoning provisions;
            (viii) accessibility to highways, sewers, and other publicservices or facilities; and
            (ix) any other factor that the department determines by ruleis just and proper; and
        (2) the classification of improvements on the basis of:
            (i) size;
            (ii) location;
            (iii) use;
            (iv) type and character of construction;
            (v) age;
            (vi) condition;
            (vii) cost of reproduction; and            (viii) any other factor that the department determines by ruleis just and proper.
    (b) With respect to the assessment of real property, the rules ofthe department of local government finance shall include instructionsfor determining:
        (1) the proper classification of real property;
        (2) the size of real property;
        (3) the effects that location and use have on the value of realproperty;
        (4) the productivity or earning capacity of:
            (A) agricultural land; and
            (B) real property regularly used to rent or otherwise furnishresidential accommodations for periods of thirty (30) days ormore;
        (5) sales data for generally comparable properties; and
        (6) the true tax value of real property based on the factors listedin this subsection and any other factor that the departmentdetermines by rule is just and proper.
    (c) With respect to the assessment of real property, true tax valuedoes not mean fair market value. Subject to this article, true tax valueis the value determined under the rules of the department of localgovernment finance.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.27; P.L.42-1984, SEC.2; P.L.24-1986, SEC.23;P.L.90-2002, SEC.222; P.L.1-2004, SEC.40 and P.L.23-2004,SEC.43; P.L.154-2006, SEC.52.

IC 6-1.1-31-7
Assessment of personal property; classification
    Sec. 7. (a) With respect to the assessment of personal property,the rules of the department of local government finance shall providefor the classification of personal property on the basis of:
        (1) date of purchase;
        (2) location;
        (3) use;
        (4) depreciation, obsolescence, and condition; and
        (5) any other factor that the department determines by rule isjust and proper.
    (b) With respect to the assessment of personal property, the rulesof the department of local government finance shall includeinstructions for determining:
        (1) the proper classification of personal property;
        (2) the effect that location has on the value of personalproperty;
        (3) the cost of reproducing personal property;
        (4) the depreciation, including physical deterioration andobsolescence, of personal property;
        (5) the productivity or earning capacity of mobile homesregularly used to rent or otherwise furnish residentialaccommodations for periods of thirty (30) days or more;        (6) the true tax value of mobile homes assessed underIC 6-1.1-7 (other than mobile homes subject to the preferredvaluation method under IC 6-1.1-4-39(b)) as the least of thevalues determined using the following:
            (A) The National Automobile Dealers Association Guide.
            (B) The purchase price of a mobile home if:
                (i) the sale is of a commercial enterprise nature; and
                (ii) the buyer and seller are not related by blood ormarriage.
            (C) Sales data for generally comparable mobile homes;
        (7) the true tax value at the time of acquisition of computerapplication software, for the purpose of deducting the value ofcomputer application software from the acquisition cost oftangible personal property whenever the value of the tangiblepersonal property that is recorded on the taxpayer's books andrecords reflects the value of the computer application software;and
        (8) the true tax value of personal property based on the factorslisted in this subsection and any other factor that the departmentdetermines by rule is just and proper.
    (c) In providing for the classification of personal property and theinstructions for determining the items listed in subsection (b), thedepartment of local government finance shall not include the valueof land as a cost of producing tangible personal property subject toassessment.
    (d) With respect to the assessment of personal property, true taxvalue does not mean fair market value. Subject to this article, true taxvalue is the value determined under rules of the department of localgovernment finance.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.63, SEC.5; P.L.42-1984, SEC.3; P.L.24-1986, SEC.24;P.L.90-2002, SEC.223; P.L.1-2004, SEC.41 and P.L.23-2004,SEC.44; P.L.214-2005, SEC.15.

IC 6-1.1-31-8
Exchange of information with other states or United States
    Sec. 8. The department of local government finance may adoptrules and regulations to govern the interchange of information withan officer or agency of another state or the United States. Thedepartment of local government finance may, pursuant to those rulesand regulations, furnish any information in its possession to such anofficer or agency if the information is furnished under a reciprocalarrangement which provides that the department shall receive likeinformation from the officer or agency.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.224.

IC 6-1.1-31-9
General reassessment; adoption of rules; time limit; readoptionand approval of rules    Sec. 9. (a) Except as provided in subsection (b), the department oflocal government finance may not adopt rules for the appraisal ofreal property in a general reassessment after July 1 of the year beforethe year in which the general reassessment is scheduled to begin.
    (b) If rules for the appraisal of real property in a generalreassessment are timely adopted under subsection (a) and are thendisapproved by the attorney general for any reason underIC 4-22-2-32, the department of local government finance maymodify the rules to cure the defect that resulted in disapproval by theattorney general, and may then take all actions necessary underIC 4-22-2 to readopt and to obtain approval of the rules. This processmay be repeated as necessary until the rules are approved.
As added by P.L.14-1983, SEC.3. Amended by P.L.55-1986, SEC.3;P.L.90-2002, SEC.225.

IC 6-1.1-31-10
Rules governing filing, refunds, and tax payments relating toamended personal property returns
    Sec. 10. (a) The department of local government finance shalladopt rules under IC 4-22-2 to govern the:
        (1) filing of amended personal property tax returns underIC 6-1.1-3-7.5; and
        (2) refunds, additional assessments, and tax payments related toan amended personal property tax return.
    (b) The rules adopted under subsection (a) may provide that thetax adjustments related to an amended return shall be delayed to ayear after the year in which personal property taxes related to theoriginal personal property tax return are first due and payable.
As added by P.L.6-1997, SEC.104. Amended by P.L.90-2002,SEC.226.

IC 6-1.1-31-11
Repealed
    (Repealed by P.L.198-2001, SEC.122.)

IC 6-1.1-31-11.5
Rules governing practice of representatives in proceedings
    Sec. 11.5. (a) Subject to subsection (b), the department of localgovernment finance shall adopt rules under IC 4-22-2 to govern thepractice of representatives in proceedings before the property taxassessment board of appeals and the department of local governmentfinance.
    (b) Except as provided in subsection (c), a rule adopted undersubsection (a) may not:
        (1) restrict the ability of a representative to practice before theproperty tax assessment board of appeals or the department oflocal government finance based on the fact that therepresentative is not an attorney admitted to the Indiana bar; or
        (2) restrict the admissibility of written or oral testimony of arepresentative or other witness based upon the manner in which

the representative or other witness is compensated.
    (c) A rule adopted under subsection (a) may require arepresentative in a proceeding before the property tax assessmentboard of appeals or the department of local government finance to bean attorney admitted to the Indiana bar if the matter underconsideration in the proceeding is:
        (1) an exemption for which an application is required underIC 6-1.1-11;
        (2) a claim that taxes are illegal as a matter of law;
        (3) a claim regarding the constitutionality of an assessment; or
        (4) any other matter that requires representation that involvesthe practice of law.
    (d) This subsection applies to a petition that is filed with theproperty tax assessment board of appeals or a matter underconsideration by the department of local government finance beforethe adoption of a rule under subsection (a) that establishes newstandards for:
        (1) the presentation of evidence or testimony; or
        (2) the practice of representatives.
The property tax assessment board of appeals or the department oflocal government finance may not dismiss a petition or rejectconsideration of a matter solely for failure to comply with the ruleadopted under subsection (a) without providing the petitioner withan opportunity to present evidence, testimony, or representation incompliance with the rule.
As added by P.L.198-2001, SEC.77.

IC 6-1.1-31-12
Rules governing reduction and increase of assessed valuations
    Sec. 12. The state board of tax commissioners shall adopt rulesunder IC 4-22-2 to govern the reduction and increase of assessedvaluations by the county assessor under IC 6-1.1-13 to attain a justand equal basis of assessment among the taxpayers in the county.The rules must specify the procedures and standards to be used bythe county assessor.
As added by P.L.6-1997, SEC.106.

IC 6-1.1-31-13
Appointment of individuals to participate in adoption of rules
    Sec. 13. (a) Before February 1, 2002, the governor shall appointtwo (2) individuals to participate in the adoption of rules by thedepartment of local government finance as described in subsection(c). The term of each individual is one (1) year. The individuals serveat the pleasure of the governor. The expenses of the individuals shallbe paid from the budget of the Indiana department of administration.
    (b) The individuals:
        (1) must be familiar with the duties and operations of thedepartment of local government finance;
        (2) are not employees of the department;
        (3) are entitled to the minimum salary per diem provided by

IC 4-10-11-2.1(b);
        (4) are entitled to reimbursement for traveling expenses asprovided under IC 4-13-1-4 and other expenses actuallyincurred in connection with the individuals' duties as providedin the state policies and procedures established by the Indianadepartment of administration and approved by the budgetagency; and
        (5) may not be affiliated with the same political party.
    (c) The individuals appointed under this section shall consider allrules proposed by the department of local government finance foradoption. During the period when the department is formulating arule for adoption, the department shall provide the proposed rule toeach individual appointed under this section. Each individual shallreview the proposed rule. Before the department of local governmentfinance takes final action to adopt a rule, the commissioner of thedepartment and the individuals appointed under this section shallvote on the adoption. The department may take final action to adopta rule only if there are at least two (2) affirmative votes for adoption.If the vote results in disapproval of the adoption, the department maynot propose for adoption the same rule, or substantially the samerule, until at least one (1) year after the date of the vote. Thedepartment must make a written record of the vote under thissubsection. The record of the vote is a public record.
    (d) The department of local government finance shall:
        (1) provide facilities and support to the individuals appointedunder this section for the performance of their duties under thissection; and
        (2) allow each individual appointed under this section at leasttwo (2) weeks to review a proposed rule before a vote is takenon the proposed rule under subsection (c).
As added by P.L.198-2001, SEC.78.