Ind. Code § 6-1.1-31-6 – Real property assessment; classification of land and improvements; valuation of improved property; determination of true tax value

(a) With respect to the assessment of real property, the rules of the department of local government finance shall provide for:
1. (1) the classification of land on the basis of:
  1. (A) acreage;
  2. (B) lots;
  3. (C) size;
  4. (D) location;
  5. (E) use;
  6. (F) productivity or earning capacity;
  7. (G) applicable zoning provisions;
  8. (H) accessibility to highways, sewers, and other public services or facilities; and
  9. (I) any other factor that the department determines by rule is just and proper; and
2. (2) the classification of improvements on the basis of:
  1. (A) size;
  2. (B) location;
  3. (C) use;
  4. (D) type and character of construction;
  5. (E) age;
  6. (F) condition;
  7. (G) cost of reproduction;
  8. (H) market segmentation; and
  9. (I) any other factor that the department determines by rule is just and proper.
(b) With respect to the assessment of real property, the rules of the department of local government finance shall include instructions for determining:
1. (1) the proper classification of real property;
2. (2) the size of real property;
3. (3) the effects that location and use have on the value of real property;
4. (4) the productivity or earning capacity of:
  1. (A) agricultural land; and
  2. (B) real property regularly used to rent or otherwise furnish residential accommodations for periods of thirty (30) days or more;
5. (5) sales data for generally comparable properties; and
6. (6) the true tax value of real property based on the factors listed in this subsection and any other factor that the department determines by rule is just and proper.
(c) With respect to the assessment of real property, true tax value does not mean fair market value.
(d) With respect to the assessment of an improved property, a valuation does not reflect the true tax value of the improved property if the purportedly comparable sale properties supporting the valuation have a different market or submarket than the current use of the improved property, based on a market segmentation analysis. Any market segmentation analysis must be conducted in conformity with generally accepted appraisal principles and is not limited to the categories of markets and submarkets enumerated in the rules or guidance materials adopted by the department of local government finance.
(e) True tax value does not mean the value of the property to the user.
(f) Subject to this article, true tax value shall be determined under the rules of the department of local government finance. The department's rules may include examples to illustrate true tax value.
[Pre-1975 Property Tax Recodification Citation: 6-1-33-3.]
Formerly: Acts 1975, P.L.47, SEC.1. As amended by Acts 1977, P.L.2, SEC.27; P.L.42-1984, SEC.2; P.L.24-1986, SEC.23; P.L.90-2002, SEC.222; P.L.1-2004, SEC.40 and P.L.23-2004, SEC.43; P.L.154-2006, SEC.52; P.L.204-2016, SEC.13.