Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 8 - TAX INCREMENT FINANCE › Rule 2 - Determination and Use of Tax Increment › Section 2-12 - Reassessment adjustments

Current through July 10, 2024
Authority: IC 6-1.1-39; IC 36-7-14; IC 36-7-15.1
Affected: IC 6-1.1; IC 8-22-3.5; IC 36-7-14; IC
				  36-7-15.1
Sec. 12.
(a) For
				purposes of this section, "adequate potential captured assessment" means an
				amount of potential captured assessment that is sufficient to produce tax
				increment that equals or exceeds the amount that would have been produced if
				the general reassessment had not occurred.
(b) The state board of tax commissioners is
				required to adjust the base assessment one (1) time to neutralize any effect of
				a general reassessment on the tax increment. The adjustment does not include
				the effect of property tax abatements under IC 6-1.1-12.1. This section
				establishes the guidelines for the adjustment.
(c) The state board of tax commissioners will
				determine a tentative new base assessment under this subsection only if it
				receives before August 1 of a year in which a general reassessment of real
				property first becomes effective, an estimate under IC 6-1.1-17-1 of the amount
				of assessed valuation in the political subdivisions of a county in which an
				allocation area is located. For that year, the board will determine two (2)
				quotients with respect to each allocation area. The first is the quotient of
				the gross assessed valuation of all real property in the allocation area as of
				March 1 of the current year divided by the gross assessed valuation of all real
				property in the allocation area as of March 1 of the immediately preceding
				year. The second quotient results from the same calculation using the gross
				assessed valuation of real property in the county. The lesser of the two (2)
				quotients obtained with respect to each allocation area will be multiplied by
				the base assessment for the allocation area. That product will be the tentative
				new base assessment if the board determines that there is adequate potential
				captured assessment. If there is not adequate potential captured assessment,
				the board will adjust the base assessment to arrive at a tentative new base
				assessment that will result in an adequate potential captured assessment. The
				board will notify the county auditor, who shall notify the fiscal body of each
				affected taxing unit of the tentative new base assessment, which can be used to
				project property tax rates for the following year.
(d) The board will determine the new base
				assessment for each taxing unit by January 15 of the year following the year in
				which a general reassessment of real property first becomes effective. The
				board will use the same procedure for this adjustment that is used to determine
				the tentative new base assessment under subsection (c). The board will use the
				new base assessment in certifying the tax rates of the taxing units under IC
				6-1.1-17-16.
(e) The board will use
				the best assessed valuation information available at the time it makes an
				adjustment to the base assessment under subsection (c) or (d). In making the
				adjustments, the board will exclude from consideration any assessed valuation
				of allocation area real property that is subject to appeal under IC 6-1.1-15.
				After the final resolution of such an appeal, the board will adjust the new
				base assessment considering any assessed valuation that had previously been
				excluded under this subsection.