Indiana Code
Chapter 4. Procedures for Real Property Assessment
6-1.1-4-43.5. Assessment of Certain Commercial Property; Cost Approach; Standard Construction Cost per Square Foot; Separate Account for Purposes of a Review

Effective 1-1-2023.
Sec. 43.5. (a) This section applies to a commercial property with a structure, or a portion thereof, that:
(1) is at least one hundred thousand (100,000) square feet in area;
(2) is used for retail purposes;
(3) is occupied by a single retailer; and
(4) is assessed for the first time after December 31, 2022.
(b) This section does not apply to a property described in subsection (a) that:
(1) was vacated by the original occupant for which the property was constructed;
(2) was constructed more than five (5) years prior to the assessment date; or
(3) was substantially and adversely impacted by a change in a roadway or traffic pattern.
(c) If a single retailer leases or subleases small undivided portions of a structure, the structure shall still be considered occupied by a single retailer.
(d) For assessment dates beginning after December 31, 2022, the true tax value of a commercial property subject to this section shall be determined by application of the cost approach. In applying the cost approach, estimates of depreciation and obsolescence shall not be based on data derived from the sales comparison or income capitalization approaches. The department of local government finance shall establish a standard construction cost per square foot for the purpose of applying the cost approach to commercial property subject to this section. The department shall update the standard construction cost per square foot annually. When requesting a review of an assessment under this section, a taxpayer may present an appraisal based on the cost approach as evidence that the taxpayer's actual construction cost was lower than the department's determined standard construction cost per square foot that was used to assess the property. Notwithstanding this section, the value of the land component may be determined based on the sales comparison approach.
(e) If the entire commercial property is occupied by a single retailer as a single economic unit, the entire commercial property shall be valued under this section. If only a portion of the commercial property forms a single economic unit occupied by a single retailer, then only that portion of the commercial property shall be valued under this section.
(f) Notwithstanding subsections (c), (d), and (e), the parties to any appeal filed under IC 6-1.1-15 may enter into a written agreement to stipulate to the true tax value of the property under appeal.
(g) If a taxpayer files a notice under IC 6-1.1-15 requesting a review of the assessment of the taxpayer's commercial property that is subject to this section, the fiscal officer of the county may establish a separate account for purposes of the review. The fiscal officer shall deposit in the account the greater of the tax receipts that are attributable to:
(1) the property tax assessment that is the subject of the review minus the tax receipts attributable to the property tax assessment in the immediately prior year; or
(2) twenty-five percent (25%) of the tax receipts attributable to the property tax assessment that is the subject of the review.
Money transferred to an account is not considered miscellaneous revenue. Both the taxing units and the department of local government finance shall disregard any balance in the account in the determination of the taxing units' property tax levy, property tax rate, and budget until the calendar year in which the money is released from the account. The fiscal officer of the county, following a final determination of the review, or final judgment on an appeal if the review is appealed, shall disburse the money deposited in the account in accordance with the final determination or final judgment.
As added by P.L.54-2022, SEC.1.

Structure Indiana Code

Indiana Code

Title 6. Taxation

Article 1.1. Property Taxes

Chapter 4. Procedures for Real Property Assessment

6-1.1-4-1. Place of Assessment; Person Liable

6-1.1-4-2. Assessment of Property Held by Fiduciary

6-1.1-4-3. Heirs or Devisees; Assessment

6-1.1-4-4.2. County Reassessment Plan; Approval by Department of Local Government Finance

6-1.1-4-4.3. Repealed

6-1.1-4-4.4. Repealed

6-1.1-4-4.5. Annual Adjustment of Assessed Value of Real Property; State Review and Certification; Base Rate Methodology; Adjustment in Assessed Value Based on Estimated True Tax Value

6-1.1-4-4.6. Department of Local Government Finance Setting of Annual Adjustment Factors if County Assessor Fails to Set; Equalization of Factors; Notice and Hearing; Applicability

6-1.1-4-4.7. Training of Assessors and County Auditors in Sales Disclosure Form Verification

6-1.1-4-4.8. Reassessment of Covered Projects

6-1.1-4-5. Repealed

6-1.1-4-5.5. Petition for Reassessment Under County Reassessment Plan

6-1.1-4-6. Reassessment Order

6-1.1-4-7. Repealed

6-1.1-4-8. Repealed

6-1.1-4-9. Reassessment Resolution of Department of Local Government Finance; Hearing; Reassessment Order

6-1.1-4-10. Notice of Reassessments; Publication

6-1.1-4-11. Destroyed Property; Order of Reassessment by County Assessor

6-1.1-4-11.5. Reassessment of Parcels Affected by Flooding; Petition; Applicable Dates; Refund; Publication of Notice

6-1.1-4-12. Circumstances Under Which Undeveloped Land May Be Reassessed

6-1.1-4-12.4. "Oil or Gas Interest"; Assessment

6-1.1-4-12.5. Repealed

6-1.1-4-12.6. Assessed Value of Oil or Gas Interests; Schedule; Penalty

6-1.1-4-13. Agricultural Land; Assessment; Soil Productivity Factors

6-1.1-4-13.2. Calculation of Statewide Agricultural Land Base Rate Value per Acre for the 2015 Assessment Date

6-1.1-4-13.5. Repealed

6-1.1-4-13.6. Determination and Review of Land Values

6-1.1-4-13.8. Repealed

6-1.1-4-14. Adjacent Property Holders; Assessment or Exemption of Various Rights-of-Way

6-1.1-4-14.1. Division and Transfer of Small Parcels Owned by County or Municipality to Adjacent Property Owners; Assessment

6-1.1-4-15. Appraisal; Examination of Buildings

6-1.1-4-16. Assessors' Assistants; Appropriation

6-1.1-4-17. Employment of Professional Appraisers as Technical Advisors

6-1.1-4-18. Repealed

6-1.1-4-18.5. Professional Appraisal; Contract for Services; Bids Required

6-1.1-4-19. Repealed

6-1.1-4-19.5. Professional Appraising Services; Standard Contract or Contract Provisions

6-1.1-4-20. Professional Appraisal; Contract Deadline

6-1.1-4-21. Repealed

6-1.1-4-21.4. Appraisal Completion Date and Reporting Requirements Under County Reassessment Plan

6-1.1-4-21.5. Repealed

6-1.1-4-22. Amounts of Assessment or Reassessment; Notice

6-1.1-4-23. Repealed

6-1.1-4-24. Notice to County Auditor of Assessed Value

6-1.1-4-25. Record Keeping; Electronic Data Files

6-1.1-4-26. Adoption or Promulgation of Documents by the Department of Local Government Finance

6-1.1-4-27. Repealed

6-1.1-4-27.5. Property Reassessment Fund; Tax Levies; Petition to Increase Levy; Appeal

6-1.1-4-28. Repealed

6-1.1-4-28.5. Property Reassessment Funds; Use of Money; Soil Maps

6-1.1-4-29. Expenses of Reassessment

6-1.1-4-30. Interim Assessments or Reassessments; Rules and Regulations

6-1.1-4-31. Department of Local Government Finance Check of Local Assessment Activities; State Conducted Activities; Payment of Bills for Services; Determinations by County Commissioners or City-County Council

6-1.1-4-31.5. State Conducted Assessment or Reassessment; Notice; State Contract With Appraising Firm; State Review of Contract; Land Values; Contract Payment; Severability

6-1.1-4-31.6. Informal Hearings by Professional Appraiser Contractor; Informal Hearing Required to Preserve Right to Appeal Assessment; Notice; Rules; Contract Payment

6-1.1-4-31.7. Appeal of Assessment or Reassessment to Indiana Board; Indiana Board Contract With Special Master; Hearings; Rules; Appeal to Tax Court

6-1.1-4-32. Repealed

6-1.1-4-33. Repealed

6-1.1-4-34. Repealed

6-1.1-4-35. Repealed

6-1.1-4-36. Repealed

6-1.1-4-37. Repealed

6-1.1-4-38. Repealed

6-1.1-4-39. Assessment of Rental Property and Mobile Homes; Low Income Rental Housing Exclusion

6-1.1-4-39.5. Assessment of Qualified Real Property

6-1.1-4-40. Exclusion of Federal Income Tax Credits in the Determination of the Assessed Value of Low Income Housing Tax Credit Property

6-1.1-4-41. Assessment of Low Income Rental Housing

6-1.1-4-42. True Tax Value of Golf Course Real Property Determined Using Income Capitalization; Information Provided by Golf Course Owners; Uniform Income Capitalization Tables; Department of Local Government Finance Administration

6-1.1-4-43. Repealed

6-1.1-4-43.5. Assessment of Certain Commercial Property; Cost Approach; Standard Construction Cost per Square Foot; Separate Account for Purposes of a Review

6-1.1-4-44. Repealed

6-1.1-4-44.5. Land Classified as Residential Excess Land; Application of an Influence Factor to Recognize Reduced Acreage Value

6-1.1-4-45. Assessment of Land on Which an Outdoor Sign Is Located

6-1.1-4-46. Assessment of Self-Service Storage Facility