50 IAC 8-2-12 Reassessment adjustments

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.