IC 6-1.1-31
Chapter 31. Department of Local Government Finance.Adoption
of Rules, Forms, and Returns
IC 6-1.1-31-1 Duties of department; rules
Sec. 1. (a) The department of local government finance shall do
the following:
(1) Prescribe the property tax forms and returns which
taxpayers are to complete and on which the taxpayers'
assessments will be based.
(2) Prescribe the forms to be used to give taxpayers notice of
assessment actions.
(3) Adopt rules concerning the assessment of tangible property.
(4) Develop specifications that prescribe state requirements for
computer software and hardware to be used by counties for
assessment purposes. The specifications developed under this
subdivision apply only to computer software and hardware
systems purchased for assessment purposes after July 1, 1993.
The specifications, including specifications in a rule or other
standard adopted under IC 6-1.1-31.5, must provide for:
(A) maintenance of data in a form that formats the
information in the file with the standard data, field, and
record coding jointly required and approved by the
department of local government finance and the legislative
services agency;
(B) data export and transmission that is compatible with the
data export and transmission requirements in a standard
format prescribed by the office of technology established by
IC 4-13.1-2-1 and jointly approved by the department of
local government finance and legislative services agency;
and
(C) maintenance of data in a manner that ensures prompt and
accurate transfer of data to the department of local
government finance and the legislative services agency, as
jointly approved by the department of local government and
legislative services agency.
(5) Adopt rules establishing criteria for the revocation of a
certification under IC 6-1.1-35.5-6.
(b) The department of local government finance may adopt rules
that are related to property taxation or the duties or the procedures of
the department.
(c) Rules of the state board of tax commissioners are for all
purposes rules of the department of local government finance and the
Indiana board until the department and the Indiana board adopt rules
to repeal or supersede the rules of the state board of tax
commissioners. (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 may
promulgate rules, property tax forms, property tax returns, and notice
forms in the manner prescribed in IC 4-22-2. However, the
department of local government finance may, at any time, make a
nonsubstantive change in a promulgated property tax form or return
if the change is advisable because of the special nature of equipment
which 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 finance
may 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 or
university;
(4) generally accepted practices of appraisers, including
generally accepted property assessment valuation and mass
appraisal principles and practices;
(5) generally accepted indices of construction costs;
(6) for assessment dates after February 28, 2001, generally
accepted 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 department
of 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 and
P.L.23-2004, SEC.41.
IC 6-1.1-31-4 Copies of promulgations
Sec. 4. When the department of local government finance
prescribes or promulgates a rule, regulation, property tax form,
property tax return, notice form, bulletin, directive, or any other
paper, 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 legislative
services agency in an electronic format under IC 5-14-6, if it is
not 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 the
department of local government finance are the basis for determining
the true tax value of tangible property.
(b) Assessing officials shall:
(1) comply with the rules, appraisal manuals, bulletins, and
directives adopted by the department of local government
finance;
(2) use the property tax forms, property tax returns, and notice
forms prescribed by the department; and
(3) collect and record the data required by the department.
(c) In assessing tangible property, the assessing officials may
consider factors in addition to those prescribed by the department of
local government finance if the use of the additional factors is first
approved by the department. Each assessing official shall indicate on
the 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's
rules, 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, the
rules of the department of local government finance shall provide
for:
(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 public
services or facilities; and
(ix) any other factor that the department determines by rule
is 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 rule
is just and proper.
(b) With respect to the assessment of real property, the rules of
the department of local government finance shall include instructions
for 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 real
property;
(4) the productivity or earning capacity of:
(A) agricultural land; and
(B) real property regularly used to rent or otherwise furnish
residential accommodations for periods of thirty (30) days or
more;
(5) sales data for generally comparable properties; and
(6) the true tax value of real property based on the factors listed
in this subsection and any other factor that the department
determines by rule is just and proper.
(c) With respect to the assessment of real property, true tax value
does not mean fair market value. Subject to this article, true tax value
is the value determined under the rules of the department of local
government 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 provide
for 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 is
just and proper.
(b) With respect to the assessment of personal property, the rules
of the department of local government finance shall include
instructions for determining:
(1) the proper classification of personal property;
(2) the effect that location has on the value of personal
property;
(3) the cost of reproducing personal property;
(4) the depreciation, including physical deterioration and
obsolescence, of personal property;
(5) the productivity or earning capacity of mobile homes
regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more;
(6) the true tax value of mobile homes assessed under
IC 6-1.1-7 (other than mobile homes subject to the preferred
valuation method under IC 6-1.1-4-39(b)) as the least of the
values 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 or
marriage.
(C) Sales data for generally comparable mobile homes;
(7) the true tax value at the time of acquisition of computer
application software, for the purpose of deducting the value of
computer application software from the acquisition cost of
tangible personal property whenever the value of the tangible
personal property that is recorded on the taxpayer's books and
records reflects the value of the computer application software;
and
(8) the true tax value of personal property based on the factors
listed in this subsection and any other factor that the department
determines by rule is just and proper.
(c) In providing for the classification of personal property and the
instructions for determining the items listed in subsection (b), the
department of local government finance shall not include the value
of land as a cost of producing tangible personal property subject to
assessment.
(d) With respect to the assessment of personal property, true tax
value does not mean fair market value. Subject to this article, true tax
value is the value determined under rules of the department of local
government 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 adopt
rules and regulations to govern the interchange of information with
an officer or agency of another state or the United States. The
department of local government finance may, pursuant to those rules
and regulations, furnish any information in its possession to such an
officer or agency if the information is furnished under a reciprocal
arrangement which provides that the department shall receive like
information 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; readoption
and approval of rules
Sec. 9. (a) Except as provided in subsection (b), the department of
local government finance may not adopt rules for the appraisal of
real property in a general reassessment after July 1 of the year before
the year in which the general reassessment is scheduled to begin.
(b) If rules for the appraisal of real property in a general
reassessment are timely adopted under subsection (a) and are then
disapproved by the attorney general for any reason under
IC 4-22-2-32, the department of local government finance may
modify the rules to cure the defect that resulted in disapproval by the
attorney general, and may then take all actions necessary under
IC 4-22-2 to readopt and to obtain approval of the rules. This process
may 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 to
amended personal property returns
Sec. 10. (a) The department of local government finance shall
adopt rules under IC 4-22-2 to govern the:
(1) filing of amended personal property tax returns under
IC 6-1.1-3-7.5; and
(2) refunds, additional assessments, and tax payments related to
an amended personal property tax return.
(b) The rules adopted under subsection (a) may provide that the
tax adjustments related to an amended return shall be delayed to a
year after the year in which personal property taxes related to the
original 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 local
government finance shall adopt rules under IC 4-22-2 to govern the
practice of representatives in proceedings before the property tax
assessment board of appeals and the department of local government
finance.
(b) Except as provided in subsection (c), a rule adopted under
subsection (a) may not:
(1) restrict the ability of a representative to practice before the
property tax assessment board of appeals or the department of
local government finance based on the fact that the
representative is not an attorney admitted to the Indiana bar; or
(2) restrict the admissibility of written or oral testimony of a
representative 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 a
representative in a proceeding before the property tax assessment
board of appeals or the department of local government finance to be
an attorney admitted to the Indiana bar if the matter under
consideration in the proceeding is:
(1) an exemption for which an application is required under
IC 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 involves
the practice of law.
(d) This subsection applies to a petition that is filed with the
property tax assessment board of appeals or a matter under
consideration by the department of local government finance before
the adoption of a rule under subsection (a) that establishes new
standards for:
(1) the presentation of evidence or testimony; or
(2) the practice of representatives.
The property tax assessment board of appeals or the department of
local government finance may not dismiss a petition or reject
consideration of a matter solely for failure to comply with the rule
adopted under subsection (a) without providing the petitioner with
an opportunity to present evidence, testimony, or representation in
compliance 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 rules
under IC 4-22-2 to govern the reduction and increase of assessed
valuations by the county assessor under IC 6-1.1-13 to attain a just
and equal basis of assessment among the taxpayers in the county.
The rules must specify the procedures and standards to be used by
the 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 appoint
two (2) individuals to participate in the adoption of rules by the
department of local government finance as described in subsection
(c). The term of each individual is one (1) year. The individuals serve
at the pleasure of the governor. The expenses of the individuals shall
be paid from the budget of the Indiana department of administration.
(b) The individuals:
(1) must be familiar with the duties and operations of the
department 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 as
provided under IC 4-13-1-4 and other expenses actually
incurred in connection with the individuals' duties as provided
in the state policies and procedures established by the Indiana
department of administration and approved by the budget
agency; and
(5) may not be affiliated with the same political party.
(c) The individuals appointed under this section shall consider all
rules proposed by the department of local government finance for
adoption. During the period when the department is formulating a
rule for adoption, the department shall provide the proposed rule to
each individual appointed under this section. Each individual shall
review the proposed rule. Before the department of local government
finance takes final action to adopt a rule, the commissioner of the
department and the individuals appointed under this section shall
vote on the adoption. The department may take final action to adopt
a rule only if there are at least two (2) affirmative votes for adoption.
If the vote results in disapproval of the adoption, the department may
not propose for adoption the same rule, or substantially the same
rule, until at least one (1) year after the date of the vote. The
department must make a written record of the vote under this
subsection. 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 appointed
under this section for the performance of their duties under this
section; and
(2) allow each individual appointed under this section at least
two (2) weeks to review a proposed rule before a vote is taken
on the proposed rule under subsection (c). As added by P.L.198-2001, SEC.78.
IC 6-1.1-31
Chapter 31. Department of Local Government Finance.Adoption
of Rules, Forms, and Returns
IC 6-1.1-31-1 Duties of department; rules
Sec. 1. (a) The department of local government finance shall do
the following:
(1) Prescribe the property tax forms and returns which
taxpayers are to complete and on which the taxpayers'
assessments will be based.
(2) Prescribe the forms to be used to give taxpayers notice of
assessment actions.
(3) Adopt rules concerning the assessment of tangible property.
(4) Develop specifications that prescribe state requirements for
computer software and hardware to be used by counties for
assessment purposes. The specifications developed under this
subdivision apply only to computer software and hardware
systems purchased for assessment purposes after July 1, 1993.
The specifications, including specifications in a rule or other
standard adopted under IC 6-1.1-31.5, must provide for:
(A) maintenance of data in a form that formats the
information in the file with the standard data, field, and
record coding jointly required and approved by the
department of local government finance and the legislative
services agency;
(B) data export and transmission that is compatible with the
data export and transmission requirements in a standard
format prescribed by the office of technology established by
IC 4-13.1-2-1 and jointly approved by the department of
local government finance and legislative services agency;
and
(C) maintenance of data in a manner that ensures prompt and
accurate transfer of data to the department of local
government finance and the legislative services agency, as
jointly approved by the department of local government and
legislative services agency.
(5) Adopt rules establishing criteria for the revocation of a
certification under IC 6-1.1-35.5-6.
(b) The department of local government finance may adopt rules
that are related to property taxation or the duties or the procedures of
the department.
(c) Rules of the state board of tax commissioners are for all
purposes rules of the department of local government finance and the
Indiana board until the department and the Indiana board adopt rules
to repeal or supersede the rules of the state board of tax
commissioners. (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 may
promulgate rules, property tax forms, property tax returns, and notice
forms in the manner prescribed in IC 4-22-2. However, the
department of local government finance may, at any time, make a
nonsubstantive change in a promulgated property tax form or return
if the change is advisable because of the special nature of equipment
which 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 finance
may 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 or
university;
(4) generally accepted practices of appraisers, including
generally accepted property assessment valuation and mass
appraisal principles and practices;
(5) generally accepted indices of construction costs;
(6) for assessment dates after February 28, 2001, generally
accepted 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 department
of 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 and
P.L.23-2004, SEC.41.
IC 6-1.1-31-4 Copies of promulgations
Sec. 4. When the department of local government finance
prescribes or promulgates a rule, regulation, property tax form,
property tax return, notice form, bulletin, directive, or any other
paper, 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 legislative
services agency in an electronic format under IC 5-14-6, if it is
not 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 the
department of local government finance are the basis for determining
the true tax value of tangible property.
(b) Assessing officials shall:
(1) comply with the rules, appraisal manuals, bulletins, and
directives adopted by the department of local government
finance;
(2) use the property tax forms, property tax returns, and notice
forms prescribed by the department; and
(3) collect and record the data required by the department.
(c) In assessing tangible property, the assessing officials may
consider factors in addition to those prescribed by the department of
local government finance if the use of the additional factors is first
approved by the department. Each assessing official shall indicate on
the 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's
rules, 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, the
rules of the department of local government finance shall provide
for:
(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 public
services or facilities; and
(ix) any other factor that the department determines by rule
is 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 rule
is just and proper.
(b) With respect to the assessment of real property, the rules of
the department of local government finance shall include instructions
for 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 real
property;
(4) the productivity or earning capacity of:
(A) agricultural land; and
(B) real property regularly used to rent or otherwise furnish
residential accommodations for periods of thirty (30) days or
more;
(5) sales data for generally comparable properties; and
(6) the true tax value of real property based on the factors listed
in this subsection and any other factor that the department
determines by rule is just and proper.
(c) With respect to the assessment of real property, true tax value
does not mean fair market value. Subject to this article, true tax value
is the value determined under the rules of the department of local
government 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 provide
for 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 is
just and proper.
(b) With respect to the assessment of personal property, the rules
of the department of local government finance shall include
instructions for determining:
(1) the proper classification of personal property;
(2) the effect that location has on the value of personal
property;
(3) the cost of reproducing personal property;
(4) the depreciation, including physical deterioration and
obsolescence, of personal property;
(5) the productivity or earning capacity of mobile homes
regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more;
(6) the true tax value of mobile homes assessed under
IC 6-1.1-7 (other than mobile homes subject to the preferred
valuation method under IC 6-1.1-4-39(b)) as the least of the
values 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 or
marriage.
(C) Sales data for generally comparable mobile homes;
(7) the true tax value at the time of acquisition of computer
application software, for the purpose of deducting the value of
computer application software from the acquisition cost of
tangible personal property whenever the value of the tangible
personal property that is recorded on the taxpayer's books and
records reflects the value of the computer application software;
and
(8) the true tax value of personal property based on the factors
listed in this subsection and any other factor that the department
determines by rule is just and proper.
(c) In providing for the classification of personal property and the
instructions for determining the items listed in subsection (b), the
department of local government finance shall not include the value
of land as a cost of producing tangible personal property subject to
assessment.
(d) With respect to the assessment of personal property, true tax
value does not mean fair market value. Subject to this article, true tax
value is the value determined under rules of the department of local
government 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 adopt
rules and regulations to govern the interchange of information with
an officer or agency of another state or the United States. The
department of local government finance may, pursuant to those rules
and regulations, furnish any information in its possession to such an
officer or agency if the information is furnished under a reciprocal
arrangement which provides that the department shall receive like
information 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; readoption
and approval of rules
Sec. 9. (a) Except as provided in subsection (b), the department of
local government finance may not adopt rules for the appraisal of
real property in a general reassessment after July 1 of the year before
the year in which the general reassessment is scheduled to begin.
(b) If rules for the appraisal of real property in a general
reassessment are timely adopted under subsection (a) and are then
disapproved by the attorney general for any reason under
IC 4-22-2-32, the department of local government finance may
modify the rules to cure the defect that resulted in disapproval by the
attorney general, and may then take all actions necessary under
IC 4-22-2 to readopt and to obtain approval of the rules. This process
may 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 to
amended personal property returns
Sec. 10. (a) The department of local government finance shall
adopt rules under IC 4-22-2 to govern the:
(1) filing of amended personal property tax returns under
IC 6-1.1-3-7.5; and
(2) refunds, additional assessments, and tax payments related to
an amended personal property tax return.
(b) The rules adopted under subsection (a) may provide that the
tax adjustments related to an amended return shall be delayed to a
year after the year in which personal property taxes related to the
original 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 local
government finance shall adopt rules under IC 4-22-2 to govern the
practice of representatives in proceedings before the property tax
assessment board of appeals and the department of local government
finance.
(b) Except as provided in subsection (c), a rule adopted under
subsection (a) may not:
(1) restrict the ability of a representative to practice before the
property tax assessment board of appeals or the department of
local government finance based on the fact that the
representative is not an attorney admitted to the Indiana bar; or
(2) restrict the admissibility of written or oral testimony of a
representative 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 a
representative in a proceeding before the property tax assessment
board of appeals or the department of local government finance to be
an attorney admitted to the Indiana bar if the matter under
consideration in the proceeding is:
(1) an exemption for which an application is required under
IC 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 involves
the practice of law.
(d) This subsection applies to a petition that is filed with the
property tax assessment board of appeals or a matter under
consideration by the department of local government finance before
the adoption of a rule under subsection (a) that establishes new
standards for:
(1) the presentation of evidence or testimony; or
(2) the practice of representatives.
The property tax assessment board of appeals or the department of
local government finance may not dismiss a petition or reject
consideration of a matter solely for failure to comply with the rule
adopted under subsection (a) without providing the petitioner with
an opportunity to present evidence, testimony, or representation in
compliance 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 rules
under IC 4-22-2 to govern the reduction and increase of assessed
valuations by the county assessor under IC 6-1.1-13 to attain a just
and equal basis of assessment among the taxpayers in the county.
The rules must specify the procedures and standards to be used by
the 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 appoint
two (2) individuals to participate in the adoption of rules by the
department of local government finance as described in subsection
(c). The term of each individual is one (1) year. The individuals serve
at the pleasure of the governor. The expenses of the individuals shall
be paid from the budget of the Indiana department of administration.
(b) The individuals:
(1) must be familiar with the duties and operations of the
department 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 as
provided under IC 4-13-1-4 and other expenses actually
incurred in connection with the individuals' duties as provided
in the state policies and procedures established by the Indiana
department of administration and approved by the budget
agency; and
(5) may not be affiliated with the same political party.
(c) The individuals appointed under this section shall consider all
rules proposed by the department of local government finance for
adoption. During the period when the department is formulating a
rule for adoption, the department shall provide the proposed rule to
each individual appointed under this section. Each individual shall
review the proposed rule. Before the department of local government
finance takes final action to adopt a rule, the commissioner of the
department and the individuals appointed under this section shall
vote on the adoption. The department may take final action to adopt
a rule only if there are at least two (2) affirmative votes for adoption.
If the vote results in disapproval of the adoption, the department may
not propose for adoption the same rule, or substantially the same
rule, until at least one (1) year after the date of the vote. The
department must make a written record of the vote under this
subsection. 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 appointed
under this section for the performance of their duties under this
section; and
(2) allow each individual appointed under this section at least
two (2) weeks to review a proposed rule before a vote is taken
on the proposed rule under subsection (c). As added by P.L.198-2001, SEC.78.
IC 6-1.1-31
Chapter 31. Department of Local Government Finance.Adoption
of Rules, Forms, and Returns
IC 6-1.1-31-1 Duties of department; rules
Sec. 1. (a) The department of local government finance shall do
the following:
(1) Prescribe the property tax forms and returns which
taxpayers are to complete and on which the taxpayers'
assessments will be based.
(2) Prescribe the forms to be used to give taxpayers notice of
assessment actions.
(3) Adopt rules concerning the assessment of tangible property.
(4) Develop specifications that prescribe state requirements for
computer software and hardware to be used by counties for
assessment purposes. The specifications developed under this
subdivision apply only to computer software and hardware
systems purchased for assessment purposes after July 1, 1993.
The specifications, including specifications in a rule or other
standard adopted under IC 6-1.1-31.5, must provide for:
(A) maintenance of data in a form that formats the
information in the file with the standard data, field, and
record coding jointly required and approved by the
department of local government finance and the legislative
services agency;
(B) data export and transmission that is compatible with the
data export and transmission requirements in a standard
format prescribed by the office of technology established by
IC 4-13.1-2-1 and jointly approved by the department of
local government finance and legislative services agency;
and
(C) maintenance of data in a manner that ensures prompt and
accurate transfer of data to the department of local
government finance and the legislative services agency, as
jointly approved by the department of local government and
legislative services agency.
(5) Adopt rules establishing criteria for the revocation of a
certification under IC 6-1.1-35.5-6.
(b) The department of local government finance may adopt rules
that are related to property taxation or the duties or the procedures of
the department.
(c) Rules of the state board of tax commissioners are for all
purposes rules of the department of local government finance and the
Indiana board until the department and the Indiana board adopt rules
to repeal or supersede the rules of the state board of tax
commissioners. (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 may
promulgate rules, property tax forms, property tax returns, and notice
forms in the manner prescribed in IC 4-22-2. However, the
department of local government finance may, at any time, make a
nonsubstantive change in a promulgated property tax form or return
if the change is advisable because of the special nature of equipment
which 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 finance
may 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 or
university;
(4) generally accepted practices of appraisers, including
generally accepted property assessment valuation and mass
appraisal principles and practices;
(5) generally accepted indices of construction costs;
(6) for assessment dates after February 28, 2001, generally
accepted 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 department
of 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 and
P.L.23-2004, SEC.41.
IC 6-1.1-31-4 Copies of promulgations
Sec. 4. When the department of local government finance
prescribes or promulgates a rule, regulation, property tax form,
property tax return, notice form, bulletin, directive, or any other
paper, 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 legislative
services agency in an electronic format under IC 5-14-6, if it is
not 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 the
department of local government finance are the basis for determining
the true tax value of tangible property.
(b) Assessing officials shall:
(1) comply with the rules, appraisal manuals, bulletins, and
directives adopted by the department of local government
finance;
(2) use the property tax forms, property tax returns, and notice
forms prescribed by the department; and
(3) collect and record the data required by the department.
(c) In assessing tangible property, the assessing officials may
consider factors in addition to those prescribed by the department of
local government finance if the use of the additional factors is first
approved by the department. Each assessing official shall indicate on
the 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's
rules, 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, the
rules of the department of local government finance shall provide
for:
(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 public
services or facilities; and
(ix) any other factor that the department determines by rule
is 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 rule
is just and proper.
(b) With respect to the assessment of real property, the rules of
the department of local government finance shall include instructions
for 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 real
property;
(4) the productivity or earning capacity of:
(A) agricultural land; and
(B) real property regularly used to rent or otherwise furnish
residential accommodations for periods of thirty (30) days or
more;
(5) sales data for generally comparable properties; and
(6) the true tax value of real property based on the factors listed
in this subsection and any other factor that the department
determines by rule is just and proper.
(c) With respect to the assessment of real property, true tax value
does not mean fair market value. Subject to this article, true tax value
is the value determined under the rules of the department of local
government 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 provide
for 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 is
just and proper.
(b) With respect to the assessment of personal property, the rules
of the department of local government finance shall include
instructions for determining:
(1) the proper classification of personal property;
(2) the effect that location has on the value of personal
property;
(3) the cost of reproducing personal property;
(4) the depreciation, including physical deterioration and
obsolescence, of personal property;
(5) the productivity or earning capacity of mobile homes
regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more;
(6) the true tax value of mobile homes assessed under
IC 6-1.1-7 (other than mobile homes subject to the preferred
valuation method under IC 6-1.1-4-39(b)) as the least of the
values 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 or
marriage.
(C) Sales data for generally comparable mobile homes;
(7) the true tax value at the time of acquisition of computer
application software, for the purpose of deducting the value of
computer application software from the acquisition cost of
tangible personal property whenever the value of the tangible
personal property that is recorded on the taxpayer's books and
records reflects the value of the computer application software;
and
(8) the true tax value of personal property based on the factors
listed in this subsection and any other factor that the department
determines by rule is just and proper.
(c) In providing for the classification of personal property and the
instructions for determining the items listed in subsection (b), the
department of local government finance shall not include the value
of land as a cost of producing tangible personal property subject to
assessment.
(d) With respect to the assessment of personal property, true tax
value does not mean fair market value. Subject to this article, true tax
value is the value determined under rules of the department of local
government 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 adopt
rules and regulations to govern the interchange of information with
an officer or agency of another state or the United States. The
department of local government finance may, pursuant to those rules
and regulations, furnish any information in its possession to such an
officer or agency if the information is furnished under a reciprocal
arrangement which provides that the department shall receive like
information 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; readoption
and approval of rules
Sec. 9. (a) Except as provided in subsection (b), the department of
local government finance may not adopt rules for the appraisal of
real property in a general reassessment after July 1 of the year before
the year in which the general reassessment is scheduled to begin.
(b) If rules for the appraisal of real property in a general
reassessment are timely adopted under subsection (a) and are then
disapproved by the attorney general for any reason under
IC 4-22-2-32, the department of local government finance may
modify the rules to cure the defect that resulted in disapproval by the
attorney general, and may then take all actions necessary under
IC 4-22-2 to readopt and to obtain approval of the rules. This process
may 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 to
amended personal property returns
Sec. 10. (a) The department of local government finance shall
adopt rules under IC 4-22-2 to govern the:
(1) filing of amended personal property tax returns under
IC 6-1.1-3-7.5; and
(2) refunds, additional assessments, and tax payments related to
an amended personal property tax return.
(b) The rules adopted under subsection (a) may provide that the
tax adjustments related to an amended return shall be delayed to a
year after the year in which personal property taxes related to the
original 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 local
government finance shall adopt rules under IC 4-22-2 to govern the
practice of representatives in proceedings before the property tax
assessment board of appeals and the department of local government
finance.
(b) Except as provided in subsection (c), a rule adopted under
subsection (a) may not:
(1) restrict the ability of a representative to practice before the
property tax assessment board of appeals or the department of
local government finance based on the fact that the
representative is not an attorney admitted to the Indiana bar; or
(2) restrict the admissibility of written or oral testimony of a
representative 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 a
representative in a proceeding before the property tax assessment
board of appeals or the department of local government finance to be
an attorney admitted to the Indiana bar if the matter under
consideration in the proceeding is:
(1) an exemption for which an application is required under
IC 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 involves
the practice of law.
(d) This subsection applies to a petition that is filed with the
property tax assessment board of appeals or a matter under
consideration by the department of local government finance before
the adoption of a rule under subsection (a) that establishes new
standards for:
(1) the presentation of evidence or testimony; or
(2) the practice of representatives.
The property tax assessment board of appeals or the department of
local government finance may not dismiss a petition or reject
consideration of a matter solely for failure to comply with the rule
adopted under subsection (a) without providing the petitioner with
an opportunity to present evidence, testimony, or representation in
compliance 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 rules
under IC 4-22-2 to govern the reduction and increase of assessed
valuations by the county assessor under IC 6-1.1-13 to attain a just
and equal basis of assessment among the taxpayers in the county.
The rules must specify the procedures and standards to be used by
the 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 appoint
two (2) individuals to participate in the adoption of rules by the
department of local government finance as described in subsection
(c). The term of each individual is one (1) year. The individuals serve
at the pleasure of the governor. The expenses of the individuals shall
be paid from the budget of the Indiana department of administration.
(b) The individuals:
(1) must be familiar with the duties and operations of the
department 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 as
provided under IC 4-13-1-4 and other expenses actually
incurred in connection with the individuals' duties as provided
in the state policies and procedures established by the Indiana
department of administration and approved by the budget
agency; and
(5) may not be affiliated with the same political party.
(c) The individuals appointed under this section shall consider all
rules proposed by the department of local government finance for
adoption. During the period when the department is formulating a
rule for adoption, the department shall provide the proposed rule to
each individual appointed under this section. Each individual shall
review the proposed rule. Before the department of local government
finance takes final action to adopt a rule, the commissioner of the
department and the individuals appointed under this section shall
vote on the adoption. The department may take final action to adopt
a rule only if there are at least two (2) affirmative votes for adoption.
If the vote results in disapproval of the adoption, the department may
not propose for adoption the same rule, or substantially the same
rule, until at least one (1) year after the date of the vote. The
department must make a written record of the vote under this
subsection. 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 appointed
under this section for the performance of their duties under this
section; and
(2) allow each individual appointed under this section at least
two (2) weeks to review a proposed rule before a vote is taken
on the proposed rule under subsection (c). As added by P.L.198-2001, SEC.78.
