Information Maintained by the Office of Code Revision Indiana Legislative Services Agency

IC 6-1.1-4
     Chapter 4.
Procedures for Real Property Assessment

IC 6-1.1-4-1
Place of assessment; person liable
    
Sec. 1.
Real property shall be assessed at the place where it is situated, and it shall be assessed to the person liable for the taxes under IC 1971, 6-1.1-2-4.
(Formerly: Acts 1975, P.L.47, SEC.1.)

IC 6-1.1-4-2
Assessment of property held by fiduciary
    
Sec. 2. Real property which is controlled by an executor, administrator, guardian, trustee, or receiver shall be assessed to the executor, administrator, guardian, trustee, or receiver.
(Formerly: Acts 1975, P.L.47, SEC.1.)

IC 6-1.1-4-3
Heirs or devisees; assessment
    
Sec. 3.
(a) The undivided real property of a deceased person which is not under the control of an executor or administrator may be assessed to the decedent's heirs or devisees without designating the heirs or devisees by name. The real property may be assessed in this manner until notice of:
        (1) the division of the property;
        (2) the names of the heirs or devisees; and
        (3) the portion of the property belonging to each heir or devisee;
is given to the auditor of the county or counties in which the real property is situated.
    (b) Each heir or devisee is liable for the total taxes imposed on the undivided real property of a decedent. If an heir or devisee pays the total taxes, he may recover from each other heir or devisee:
        (1) the other heir's or devisee's share of the total taxes; and
        (2) interest on the amount referred to in clause (1) of this subsection.
    In addition, the heir or devisee who pays the taxes acquires the lien for the taxes paid on the property interest of the other heirs or devisees.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977, P.L.2, SEC.5.

IC 6-1.1-4-4
Schedule of general reassessment of real property; notice to assessing officials; assessed value based on estimated true tax value
    
Sec. 4. (a) A general reassessment, involving a physical inspection of all real property in
Indiana, shall begin July 1, 2010, and each fifth year thereafter. Each reassessment under this subsection:
        (1) shall be completed on or before March 1 of the year that succeeds by two (2) years the year in which the general reassessment begins; and


        (2) shall be the basis for taxes payable in the year following the year in which the general assessment is to be completed.
    (b) In order to ensure that assessing officials are prepared for a general reassessment of real property, the department of local government finance shall give adequate advance notice of the general reassessment to the assessing officials of each county.
    (c) For a general reassessment that begins on or after
July 1, 2010, the assessed value of real property shall be based on the estimated true tax value of the property on the assessment date that is the basis for taxes payable in the year following the year in which the general reassessment is to be completed.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1978, P.L.32, SEC.4; Acts 1980, P.L.36, SEC.1; P.L.62-1983, SEC.1; P.L.332-1989(ss), SEC.3; P.L.6-1997, SEC.13; P.L.198-2001, SEC.7; P.L.90-2002, SEC.30; P.L.245-2003, SEC.3; P.L.228-2005, SEC.3; P.L.146-2008, SEC.64; P.L.136-2009, SEC.1; P.L.182-2009(ss), SEC.85.

IC 6-1.1-4-4.5
Annual adjustment of assessed value of real property; state review and certification; base rate methodology; adjustment in assessed value based on estimated true tax value
    
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.
    (f) For assessment dates after
December 31, 2009, an adjustment in the assessed value of real property under this section shall be based on the estimated true tax value of the property on the assessment date that is the basis for taxes payable on that real property.
As added by P.L.198-2001, SEC.8. Amended by P.L.245-2003, SEC.4; P.L.228-2005, SEC.4; P.L.136-2009, SEC.2.

IC 6-1.1-4-4.6
Department of local government finance setting of annual adjustment factors if county assessor fails to set; equalization of factors; notice and hearing; applicability
    
Sec. 4.6. (a) If a county assessor fails before July 2 of a particular year to prepare and deliver to the county auditor a complete detailed list of all of the real property listed for taxation in the county as required by IC 6-1.1-5-14 and at least one hundred eighty (180) days have elapsed after the July 1 deadline specified in IC 6-1.1-5-14 for delivering the list, the department of local government finance may develop annual adjustment factors under this section for that year. In developing annual adjustment factors under this section, the department of local government finance shall use data in its possession that is obtained from:
        (1) the county assessor; or
        (2) any of the sources listed in the rule, including county or state sales data, government studies, ratio studies, cost and depreciation tables, and other market analyses.
    (b) Using the data described in subsection (a), the department of local government finance shall propose to establish annual adjustment factors for the affected tax districts for one (1) or more of the classes of real property. The proposal may provide for the equalization of annual adjustment factors in the affected township or county and in adjacent areas. The department of local government finance shall issue notice and provide opportunity for hearing in accordance with IC 6-1.1-14-4 and IC 6-1.1-14-9, as applicable, before issuing final annual adjustment factors.
    (c) The annual adjustment factors finally determined by the department of local government finance after the hearing required under subsection (b) apply to the annual adjustment of real property under section 4.5 of this chapter for:
        (1) the assessment date; and
        (2) the real property;
specified in the final determination of the department of local government finance.
As added by P.L.182-2009(
ss), SEC.86.

IC 6-1.1-4-4.7


Training of assessors and county auditors in sales disclosure form verification
    
Sec. 4.7.
The department of local government finance shall provide training to township assessors, county assessors, and county auditors with respect to the verification of sales disclosure forms under 50 IAC
21-3-2.
As added by P.L.228-2005, SEC.5. Amended by P.L.146-2008, SEC.65.

IC 6-1.1-4-5
Petition for reassessment
    
Sec. 5.
(a) A petition for the reassessment of real property situated within a township may be filed with the department of local government finance on or before March 31st of any year which is not a general election year and in which no general reassessment of real property is made.
    (b) The petition for reassessment must be signed by not less than the following percentage of all the owners of taxable real property who reside in the township:
        (1) fifteen percent (15%) for a township which does not contain an incorporated city or town;
        (2) five percent (5%) for a township containing all or part of an incorporated city or town which has a population of five thousand (5,000) or less;
        (3) four percent (4%) for a township containing all or part of an incorporated city which has a population of more than five thousand (5,000) but not exceeding ten thousand (10,000);
        (4) three percent (3%) for a township containing all or part of an incorporated city which has a population of more than ten thousand (10,000) but not exceeding fifty thousand (50,000);
        (5) two percent (2%) for a township containing all or part of an incorporated city which has a population of more than fifty thousand (50,000) but not exceeding one hundred fifty thousand (150,000); or
        (6) one percent (1%) for a township containing all or part of an incorporated city which has a population of more than one hundred fifty thousand (150,000).
The signatures on the petition must be verified by the oath of one (1) or more of the signers. And, a certificate of the county auditor stating that the signers constitute the required number of resident owners of taxable real property of the township must accompany the petition.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1995, SEC.20; P.L.90-2002, SEC.31.

IC 6-1.1-4-6
Reassessment order
    
Sec. 6.
If the department of local government finance determines that a petition filed under section 5 of this chapter has been signed by the required number of petitioners and that the present assessed value of any real property is inequitable, the department of local

government finance shall order a reassessment of the real property which has been inequitably assessed. The order shall specify the time within which the reassessment shall be completed and the date on which the reassessment shall become effective.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002, SEC.32.

IC 6-1.1-4-7
Repealed
    
(Repealed by P.L.41-1993, SEC.54.)

IC 6-1.1-4-8
Repealed
    
(Repealed by P.L.41-1993, SEC.54.)
    
Revisor's Note: The repeal of IC 6-1.1-4-8 appearing in the 1993 Edition of the Indiana Code was printed incorrectly. Use this version of repeal of IC 6-1.1-4-8, effective 1-1-94.

IC 6-1.1-4-9
Reassessment resolution of department of local government finance; hearing; reassessment order
    
Sec. 9.
In order to maintain a just and equitable valuation of real property, the department of local government finance may adopt a resolution declaring its belief that it is necessary to reassess all or a portion of the real property located within this state. If the department of local government finance adopts a reassessment resolution and if either a township or a larger area is involved, the department shall hold a hearing concerning the necessity for the reassessment at the courthouse of the county in which the property is located. The department of local government finance shall give notice of the time and place of the hearing in the manner provided in section 10 of this chapter. After the hearing, or if the area involved is less than a township, after the adoption of the resolution of the department of local government finance, the department may order any reassessment it deems necessary. The order shall specify the time within which the reassessment must be completed and the date the reassessment will become effective.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002, SEC.33.

IC 6-1.1-4-10
Notice of reassessments; publication
    
Sec. 10.
A notice required by section 9 of this chapter shall be given at least ten (10) days before the hearing by publication one (1) time in each of two (2) newspapers of general circulation which:
        (1) represent different political parties; and
        (2) are published in the county in which the property that may be reassessed is located.
However, if two (2) such newspapers are not published in the county, publication of the notice in one (1) newspaper of general circulation

published in the county is sufficient.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1995, SEC.21.

IC 6-1.1-4-11
Destroyed property; order of reassessment by county assessor
    
Sec. 11. (a) If a substantial amount of real and personal property in a township has been partially or totally destroyed as a result of a disaster, the county assessor shall:
        (1) cause a survey to be made of the area or areas in which the property has been destroyed; and
        (2) order a reassessment of the destroyed property
;
if a person petitions the county assessor to take that action. The county assessor shall specify in the assessor's order the time within which the reassessment must be completed and the date on which the reassessment will become effective. However, the reassessed value and the corresponding adjustment of tax due, past due, or already paid is effective as of the date the disaster occurred, without penalty.
    (b) The petition for reassessment of destroyed property, the reassessment order, and the tax adjustment order may not be made after December 31st of the year in which the taxes which would first be affected by the reassessment are payable.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1995, SEC.22; P.L.90-2002, SEC.34; P.L.219-2007, SEC.12.

IC 6-1.1-4-11.5
Reassessment of parcels affected by flooding; petition; applicable dates; refund; publication of notice
    
Sec. 11.5.
(a) This section applies to one (1) or more parcels of real property in a county that:
        (1) are permanently flooded or to which access over land is permanently prevented by flooding; and
        (2) are not being used for agricultural purposes.
    (b) The owner of one (1) or more parcels referred to in subsection (a) may petition the county assessor for a reassessment of the parcel or parcels. Upon receipt of the petition, the county assessor shall:
        (1) cause a survey to be made of the parcel or parcels; and
        (2) if the parcel or parcels meet the description of subsection (a), order a reassessment of the parcel or parcels.
    (c) If the flooding referred to in subsection (a) occurs before May 11 of a calendar year (the "current year") and after the immediately preceding November 10 and a petition under subsection (b) is filed not later than December 31 of the current year:
        (1) the reassessment ordered under subsection (b):
            (A) takes effect for:
                (i) the assessment date in the current year; and
                (ii) the assessment date in the calendar year that immediately precedes the current year; and
            (B) treats the parcel or parcels for those assessment dates as:
                (i) being permanently flooded; or


                (ii) having overland access permanently prevented by flooding;
        (2) the property taxes first due and payable in the current year with respect to the parcel or parcels are determined based on the reassessment; and
        (3) the property taxes first due and payable in the calendar year that immediately succeeds the current year with respect to the parcel or parcels are determined based on the reassessment.
    (d) If the flooding referred to in subsection (a) occurs after May 10 of the current year and before November 11 of the current year and the petition under subsection (b) is filed not later than December 31 of the current year:
        (1) subsection (c)(1) and (c)(3) apply; and
        (2) only:
            (A) the second installment of property taxes under IC 6-1.1-22-9(a) first due and payable in the current year with respect to the parcel or parcels; or
            (B) if property taxes are payable by a method other than two (2) annual installments, one-half (1/2) of the property tax liability for property taxes first due and payable in the current year with respect to the parcel or parcels;
        is determined based on the reassessment.
    (e) This subsection applies only if:
        (1) the county assessor orders a reassessment under subsection (b); and
        (2) the property owner pays property taxes in the current year with respect to the parcel or parcels based on the assessment that applied before the ordered reassessment.
The property owner is entitled to a refund of property taxes based on the difference in the amount of property taxes paid and the amount of property taxes determined based on the ordered reassessment. A property owner is not required to apply for a refund due under this section. The county auditor shall, without an appropriation being required, issue a warrant to the property owner payable from the county general fund for the amount of the refund, if any, due the property owner.
    (f) If:
        (1) the county assessor orders a reassessment under subsection (b); and
        (2) when the reassessment is completed the property owner has not paid property taxes in the current year with respect to the parcel or parcels based on the assessment that applied before the ordered reassessment;
the county treasurer shall issue to the property owner tax statements that reflect property taxes determined based on the reassessment.
    (g) The county assessor shall specify in an order under subsection (b) the time within which the reassessment must be completed and the date on which the reassessment takes effect.
    (h) A reassessment under this section for an assessment date continues to apply for subsequent assessment dates until the assessor:


        (1) determines that circumstances have changed sufficiently to warrant another reassessment of the property; and
        (2) reassesses the property based on the determination under subdivision (1).
    (i) The county auditor and county treasurer shall publish notice of the availability of a reassessment under this section in accordance with IC 
5-3-1.
As added by P.L.90-2009, SEC.1.

IC 6-1.1-4-12
Circumstances under which undeveloped land may be reassessed
    
Sec. 12. (a) As used in this section, "land developer" means a person that holds land for sale in the ordinary course of the person's trade or business.
    (b) As used in this section, "land in inventory" means:
        (1) a lot; or
        (2) a tract that has not been subdivided into lots
;
to which a land developer holds title in the ordinary course of the land developer's trade or business.
    (c) As used in this section, "title" refers to legal or equitable title, including the interest of a contract purchaser.
    (d) Except as provided in subsections (h) and (i), if:
        (1) land assessed on an acreage basis is subdivided into lots; or
        (2) land is rezoned for, or put to, a different use;
the land shall be reassessed on the basis of its new classification.
    (e) If improvements are added to real property, the improvements shall be assessed.
    (f) An assessment or reassessment made under this section is effective on the next assessment date.
    (g) No petition to the department of local government finance is necessary with respect to an assessment or reassessment made under this section.
    (h) Subject to subsection (i), land in inventory may not be reassessed until the next assessment date following the earliest of:
        (1) the date on which title to the land is transferred by:
            (A) the land developer; or
            (B) a successor land developer that acquires title to the land;
        to a person that is not a land developer;
        (2) the date on which construction of a structure begins on the land; or
        (3) the date on which a building permit is issued for construction of a building or structure on the land.
    (i) Subsection (h) applies regardless of whether the land in inventory is rezoned while a land developer holds title to the land.
(Formerly: Acts 1975, P.L.47, SEC.1; Acts 1975, P.L.49, SEC.1.) As amended by P.L.90-2002, SEC.35; P.L.154-2006, SEC.1.

IC 6-1.1-4-12.4
"Oil or gas interest" defined; assessment
    
Sec. 12.4. (a) For purposes of this section, the term "oil or gas

interest" includes but is not limited to:
        (1) royalties;
        (2) overriding royalties;
        (3) mineral rights; or
        (4) working interest;
in any oil or gas located on or beneath the surface of land which lies within this state.
    (b) Oil or gas interest is subject to assessment and taxation as real property. Notwithstanding section 4 of this chapter, each oil or gas interest shall be assessed annually by the assessor of the township in which the oil or gas is located, or the county assessor if there is no township assessor for the township. The township or county assessor shall assess the oil or gas interest to the person who owns or operates the interest.
    (c) A piece of equipment is an appurtenance to land if it is incident to and necessary for the production of oil and gas from the land covered by the oil or gas interest. This equipment includes but is not limited to wells, pumping units, lines, treaters, separators, tanks, and secondary recovery facilities. These appurtenances are subject to assessment as real property. Notwithstanding section 4 of this chapter, each of these appurtenances shall be assessed annually by the assessor of the township in which the appurtenance is located, or the county assessor if there is no township assessor for the township. The township or county assessor shall assess the appurtenance to the person who owns or operates the working interest in the oil or gas interest.
(Formerly: Acts 1975, P.L.48, SEC.2.) As amended by P.L.146-2008, SEC.66.

IC 6-1.1-4-12.5
Repealed
    
(Repealed by P.L.198-2001, SEC.122.)

IC 6-1.1-4-12.6
Assessed value of oil or gas interests
    
Sec. 12.6. (a) For purposes of this section, the term "secondary recovery method" includes but is not limited to the stimulation of oil production by means of the injection of water, steam, hydrocarbons, or chemicals, or by means of in situ combustion.
    (b) The total assessed value of all interests in the oil located on or beneath the surface of a particular tract of land equals the product of:
        (1) the average daily production of the oil; multiplied by
        (2) three hundred sixty-five (365); and multiplied by
        (3) the posted price of oil on the assessment date.
However, if the oil is being extracted by use of a secondary recovery method, the total assessed value of all interests in the oil equals one-half (1/2) the assessed value computed under the formula prescribed in this subsection. The appropriate township assessor (if any), or the county assessor if there is no township assessor for the township, shall, in the manner prescribed by the department of local

government finance, apportion the total assessed value of all interests in the oil among the owners of those interests.
    (c) The appropriate township assessor, or the county assessor if there is no township assessor for the township, shall, in the manner prescribed by the department of local government finance, determine and apportion the total assessed value of all interests in the gas located beneath the surface of a particular tract of land.
    (d) The department of local government finance shall prescribe a schedule for township and county assessors to use in assessing the appurtenances described in section 12.4(c) of this chapter.
As added by P.L.198-2001, SEC.10. Amended by P.L.146-2008, SEC.67.

IC 6-1.1-4-13
Agricultural land; assessment
    
Sec. 13.
(a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
    (b) The department of local government finance shall give written notice to each county assessor of:
        (1) the availability of the United States Department of Agriculture's soil survey data; and
        (2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land.
    (c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
    (d) This section does not apply to land purchased for industrial, commercial, or residential uses.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.63-1983, SEC.1; P.L.24-1986, SEC.6; P.L.75-1987, SEC.1; P.L.6-1997, SEC.14; P.L.90-2002, SEC.36; P.L.178-2002, SEC.5.