(a) Examination of records.

1. (1) This component of the ratio study shall be based on a physical examination of the current year’s records of each assessor's office to determine the degree of compliance with the criteria established in the Standard on Valuation of Personal Property published by the International Association of Assessing Officers (IAA).
2. (2) When the fieldwork commences for the current year, instructions as to the number of business personal commercial samples shall be provided.

(b) Method of determining number and location of samples.

1. (1) The minimum sample size for each county shall be determined by the population of the county as reflected in the latest final census figures and the number of businesses therein.

2. (2) Those counties with populations of:

   1. (A) Twenty-nine thousand nine hundred ninety-nine (29,999) and below shall have twenty (20) samples;
   2. (B) Thirty thousand (30,000) through sixty-nine thousand nine hundred ninety-nine (69,999) shall have forty (40) samples;
   3. (C) Seventy thousand (70,000) through one hundred ninety-nine thousand nine hundred ninety-nine (199,999) shall have fifty (50) samples; and
   4. (D) Two hundred thousand (200,000) and above shall have ninety (90) samples.

(c) Selection of samples.

1. (1) After determining the total business personal parcels in the county, the number of samples needed shall be divided into that figure to set the selection interval.
2. (2) However, if a business tentatively selected by this method results in a sample that does not fit into a category recognized in the square-foot section of the Commercial Personal Property Appraisal Manual, then the next business shall be selected.

(d) Procedure.

1. (1) When the Commercial Personal Property Sample Form has been completed on all of the businesses selected for use in the study, the Field Auditor shall:

   1. (A) Go to the business site;
   2. (B) Compute the square footage; and
   3. (C) Grade the inventory and the furniture and fixtures as to density and quality.

2. (2) In August, the Field Auditor shall:

   1. (A) Return to each county after the county has completed its personal property assessments for the current year; and
   2. (B) Complete the Commercial Personal Property Takeoff Form.

(e) Ratio computation.

1. (1)

   1. (A) If the county has been provided a good rendition by the business which included a fixed assets listing and applied the Assessment Coordination Division’s suggested depreciation schedule to those assets, the county shall automatically receive a twenty percent (20%) on those fixed assets and the inventory.
   2. (B) If not, the proper assessment shall be computed by the square foot method described in the manual.
2. (2) A comparison of the actual assessed value and the value computed by the Field Auditor produces the ratio.

3. (3)

   1. (A) The ratios for all of the businesses are then ranked and the median ratio is determined by county, by school district, and by cities in that county.
   2. (B) This results in the Current Year Commercial Personal Property Median Ratio.