Annual adjustment of assessed value of real property; state review
and certification; base rate methodology
Sec. 4.5. (a) The department of local government finance shall
adopt rules establishing a system for annually adjusting the assessed
value of real property to account for changes in value in those years
since a general reassessment of property last took effect.
(b) Subject to subsection (e), the system must be applied to adjust
assessed values beginning with the 2006 assessment date and each
year thereafter that is not a year in which a reassessment becomes
effective.
(c) The rules adopted under subsection (a) must include the
following characteristics in the system:
(1) Promote uniform and equal assessment of real property
within and across classifications.
(2) Require that assessing officials:
(A) reevaluate the factors that affect value;
(B) express the interactions of those factors mathematically;
(C) use mass appraisal techniques to estimate updated
property values within statistical measures of accuracy; and
(D) provide notice to taxpayers of an assessment increase
that results from the application of annual adjustments.
(3) Prescribe procedures that permit the application of the
adjustment percentages in an efficient manner by assessing
officials.
(d) The department of local government finance must review and
certify each annual adjustment determined under this section.
(e) In making the annual determination of the base rate to satisfy
the requirement for an annual adjustment under subsection (a), the
department of local government finance shall determine the base rate
using the methodology reflected in Table 2-18 of Book 1, Chapter 2
of the department of local government finance's Real Property
Assessment Guidelines (as in effect on January 1, 2005), except that
the department shall adjust the methodology to use a six (6) year
rolling average instead of a four (4) year rolling average.
As added by P.L.198-2001, SEC.8. Amended by P.L.245-2003,
SEC.4; P.L.228-2005, SEC.4.
Last modified: May 28, 2006