1. (a) Time adjustments.

   1. (1) All sales used in the ratio study shall be adjusted for time as necessary to January 1 of the assessment year.
   2. (2) The Assessment Coordination Division shall conduct time analysis studies using the techniques set forth in the IAAO Standard on Ratio Studies and the IAAO textbook, Mass Appraisal of Real Property.
   3. (3) Counties may submit documented time adjustments to the division, which the division may rely on if it finds that the adjustments are based on sound methodology and adequately reflect the market.
   4. (4) The division shall have authority to determine final time adjustments used in its ratio studies.

2. (b) Time adjustment categories.

   1. (1) The division will conduct time adjustment analyses for:

      1. (A) Residential properties;
      2. (B) Vacant properties; and
      3. (C) Commercial/industrial properties.
   2. (2) For purposes of these analyses, it may combine properties of the same type in counties that are similar in terms of their economic base and geographic location.

3. (c) Personal property adjustments.

   1. (1) If a sale includes personal property of significant value and the value of the personal property can be determined with reasonable accuracy, the value of the personal property shall be subtracted from the sale price and the adjusted price used in the study.
   2. (2) If the value of the personal property appears to be five percent (5%) or more of the sale price but its value cannot be determined with reasonable accuracy, or if the value appears to exceed twenty-five percent (25%) of the price, the sale shall be excluded.

4. (d) Other adjustments.

   1. (1) Counties may also make adjustments to sales prices for:

      1. (A) Cash equivalency;
      2. (B) Assumed leases; and
      3. (C) Other non-real estate considerations that significantly affect the price paid for a property.
   2. (2) The basis for these adjustments must be documented and available for inspection by the division.
   3. (3) As a general principle, sales that require difficult or subjective adjustments should be excluded from the study (assign validation code 17 or OF).

Codification Notes: “IAAO” means International Association of Assessing Officers.