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 depreciation, including physical deterioration and
obsolescence, of real property;
(5) the cost of reproducing improvements;
(6) 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;
(7) sales data for generally comparable properties; and
(8) 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.
Last modified: May 28, 2006