2020 Indiana Code
Title 6. Taxation
Article 1.1. Property Taxes
Chapter 4. Procedures for Real Property Assessment
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
Sec. 42. (a) This section applies to assessment dates after January 15, 2010.
(b) The following definitions apply throughout this section:
(1) "Golf course" means an area of land predominately used to play the game of golf and associated yard improvements. A golf course consists of a series of holes, each consisting of a teeing area, fairway, rough and other hazards, and the green with the pin and cup.
(2) "Yard improvements" include a clubhouse, irrigation systems, a pro shop, a maintenance building, a driving range, a structure for food and beverage services, or other buildings associated with the operation of and included in the net operating income of a golf course.
(c) The true tax value of real property regularly used as a golf course is the valuation determined by applying the income capitalization appraisal approach. The income capitalization approach used to determine the true tax value of a golf course must:
(1) incorporate an applicable income capitalization method and appropriate capitalization rates that are developed and used in computations that lead to an indication of value commensurate with the risks for the subject property use;
(2) provide for the uniform and equal assessment of golf courses; and
(3) exclude the value of personal property, intangible property, and income derived from personal or intangible property.
(d) For assessment dates after January 15, 2010, and before March 1, 2012, a township assessor (if any) or the county assessor shall gather and process information from the owner of a golf course to carry out this section in accordance with the rules adopted by the department of local government finance under IC 4-22-2.
(e) For assessment dates after February 28, 2012, the department of local government finance shall, by rules adopted under IC 4-22-2, establish uniform income capitalization rates annually and procedures to be used for the assessment of golf courses. The department of local government finance may rely on recognized sources of industry capitalization rates. Assessing officials shall use the procedures adopted by the department of local government finance to assess, reassess, and annually adjust the assessed value of golf courses.
(f) The department of local government finance may prescribe procedures, forms, and due dates for the collection from the owners or operators of golf courses of the necessary earnings, income, profits, losses, and expenditures data necessary to carry out this section. An owner or operator of a golf course shall comply with the procedures and reporting schedules prescribed by the department of local government finance.
(g) On or before December 31 of each year, assessing officials shall solicit, and the owners or operators of a golf course shall provide to the assessing officials, data for the gross income and allowable operating expenses for the three (3) years immediately preceding the year in which the solicitation and submission of data is being made. Assessing officials may use federal tax returns or other similar evidence as verification that the submissions are correct.
(h) For each assessment date, assessing officials shall examine and evaluate the three (3) consecutive years of financial records and federal tax returns that are submitted under subsection (g) in the year immediately preceding the year of the assessment date to obtain the average net operating income. The three (3) year average should include the most current completed financial records and filed federal tax returns of the golf course as of the assessment date to ensure that the appropriate income and expense information for the subject property is used.
(i) All income and expense information provided to the assessing official under this section is confidential under IC 6-1.1-35-9.
As added by P.L.182-2009(ss), SEC.89. Amended by P.L.159-2020, SEC.7.
