1. (a) This section applies to both residential real property and commercial property, with an assessed value of three million dollars ($3,000,000) or less, for which the assessed value was increased for a tax year by an assessing official for any reason other than by the application of the annual adjustment factor used by the assessing official to adjust property values for that year. However, this section does not apply to an assessment if the assessment is based on:

   1. (1) structural improvements;
   2. (2) zoning; or

   3. (3) uses;

      that were not considered in the assessment for the prior tax year.

2. (b) If the taxpayer:

   1. (1) appeals an increased assessment as described in subsection (a) to the county property tax assessment board of appeals or the Indiana board; and

   2. (2) prevails in an appeal described in subdivision (1) or any resulting subsequent appeal of the increased assessment described in subsection (a);

      the assessing official shall not increase the assessed value of the property until the first year of the next four (4) year cyclical assessment cycle for any reason other than by application of the annual adjustment factor used by the assessing official to adjust property values for a tax year. During this period, the taxpayer may not appeal an increased assessment made by the assessor unless the taxpayer believes that the increased assessment is arbitrary and capricious and not made consistent with the annual adjustment factor used by the assessing official to adjust property values for a tax year. If the taxpayer does appeal during this period on the grounds that the increased assessment is arbitrary and capricious and not made consistent with the annual adjustment factor used by the assessing official to adjust property values for a tax year, the provision shifting the burden to the assessing official to prove that the assessment is correct under IC 6-1.1-15-17.2 (d) (before its repeal) or IC 6-1.1-15-20 does not apply.

3. (c) This section does not apply if:

   1. (1) the reduction in assessed value is the result of a settlement agreement between the taxpayer and the assessing official; or
   2. (2) the appeal is based on a correction of error under IC 6-1.1-15-1.1 (a) and IC 6-1.1-15-1.1 (b).
4. (d) If the taxpayer who appealed an increased assessment under this section sells the property, whose assessment was appealed, for fair market value, notwithstanding subsection (b), the assessor may reassess the property that was sold.

As added by P.L.178-2021, SEC.2. Amended by P.L.174-2022, SEC.29.