Version a
Assessment of rental property and mobile homes
Note: This version of section effective until 1-1-2006. See also
following version of this section, effective 1-1-2006.
Sec. 39. (a) For assessment dates after February 28, 2005, except
as provided in subsection (c), the true tax value of real property
regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more and that has
more than four (4) rental units is the lowest valuation determined by
applying each of the following appraisal approaches:
(1) Cost approach that includes an estimated reproduction or
replacement cost of buildings and land improvements as of the
date of valuation together with estimates of the losses in value
that have taken place due to wear and tear, design and plan, or
neighborhood influences.
(2) Sales comparison approach, using data for generally
comparable property.
(3) Income capitalization approach, using an applicable
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.
(b) The gross rent multiplier method is the preferred method of
valuing:
(1) real property that has at least one (1) and not more than four
(4) rental units; and
(2) mobile homes assessed under IC 6-1.1-7.
(c) A township assessor is not required to appraise real property
referred to in subsection (a) using the three (3) appraisal approaches
listed in subsection (a) if the township assessor and the taxpayer
agree before notice of the assessment is given to the taxpayer under
section 22 of this chapter to the determination of the true tax value
of the property by the assessor using one (1) of those appraisal
approaches.
(d) To carry out this section, the department of local government
finance may adopt rules for assessors to use in gathering and
processing information for the application of the income
capitalization method and the gross rent multiplier method. A
taxpayer must verify under penalties for perjury any information
provided to the assessor for use in the application of either method.
As added by P.L.1-2004, SEC.8 and P.L.23-2004, SEC.9.
Last modified: May 28, 2006