Authority: IC 6-1.1-4-42

Affected: IC 6-1.1-4-42

Sec. 7. Where there is a negative net operating income, therefore, producing an assessed value of zero (0), the assessing official shall first ensure that all income and expense information is accurate. Where, despite a review of the information, the assessed value is still negative or zero (0), the assessing official shall determine the market value-in-use that results in a liability of five percent (5%) of the adjusted gross income, as illustrated by the following example:

1. Assuming a 12% Overall Capitalization Rate
2. Assuming $300,000 in Expenses
3. Gross Income = $500,000
4. Less Golf Cart Income = >$150,000
5. Less Pro Shop Income = >$50,000
6. Adjusted Gross Income = $300,000
7. Less Expenses = >$300,000
8. Net Operating Income = $0
9. Multiply Adjusted Gross Income by 5% = $300,000 × 5% = $15,000
10. Divide above result by 12% Overall Capitalization Rate = $15,000/12% = $125,000 Assessed Value

(Department of Local Government Finance; 50 IAC 29-3-7; filed Aug 30, 2012, 2:00 p.m.: 20120926-IR-050120274FRA; readopted filed Oct 21, 2025, 9:19 a.m.: 20251112-IR-050240632RFA)