Section 50 IAC 27-4-7 - Verification requirementsAuthority: IC 6-1.1-4-4.5; IC 6-1.1-31-1; IC 6-1.1-31-12
Affected: IC 6-1.1-4-4.7; IC 6-1.1-4-27.5; IC 6-1.1-5.5-3
Sec. 7.
(a) The county assessor shall retain and properly verify all sales disclosure forms forwarded under IC 6-1.1-5.5-3. In conjunction with IAAO standards incorporated by reference in 50 IAC 27-1-4, the county assessor shall utilize the sales verified to perform value calibration analysis to determine whether adjustment factors are required within any neighborhoods and property classes of the county for annual adjustment and equalization as required by this article.(b) Each county assessor shall complete all sales verification prior to February 1 for sales occurring before the January 1 assessment date, including inspection required under 50 IAC 27-3-1.(c) Sales data must be routinely confirmed. Receipt of properly certified sales disclosure forms required by IC 6-1.1-5.5 initiates the verification process and provides important information by which sales data are confirmed.(d) Sales used in a ratio study must be screened to ensure they reflect the market value-in-use of the real property transferred. Specific objectives of sales screening are to ensure the following: (1) Sales used in ratio studies reflect market value-in-use.(2) Sales prices reflect only the market value-in-use of the real property transferred and not the value of personal property, financing, leases, or other parcels of real property.(3) Only sales that occurred during the period of analysis are used.(4) Sales are excluded from the ratio study only with good cause, for example, when they compromise the reliability of the ratio study.(e) Every arm's length, open market sale that appears to meet the conditions of a market value-in-use transaction shall be included in the ratio study unless one (1) of the following occurs: (1) Data for the sale are incomplete, unverifiable, or suspect.(2) The sale fails to pass one (1) or more specific tests of acceptability as listed in the IAAO Standard on Ratio Studies, Appendix A (April 2013), as incorporated by reference in 50 IAC 27-1-4.(f) All sales are candidates for the ratio study unless sufficient and compelling information can be documented to show otherwise.(g) Sale prices used in the ratio study shall be adjusted for financing, assumed long-term leases, personal property, gift programs, and date of sale in accordance with the IAAO Standard on Ratio Studies, Appendix A (April 2013), as incorporated by reference in 50 IAC 27-1-4.(h) When there is more than one (1) confirmed valid sale of the same property during a ratio study period, only the final transaction shall be used in the ratio study.(i) Sales used for value calibration analysis studies must also have property characteristics at the time of the sale determined and recorded as required by 50 IAC 27-3-1.(j) Some sales may be valid for value calibration analysis and not valid for sales ratio studies, such as a home site subdivided from a larger parcel of land and sold in an arm's-length transaction. Hence, sales transactions must be coded to indicate which type of validity applies so that valuable market information is available for value calibration and annual adjustment that would not be used for ratio studies.Department of Local Government Finance; 50 IAC 27-4-7; filed Apr 8, 2010, 1:45 p.m.: 20100505-IR-050090502FRAFiled 11/2/2020, 9:34 a.m.: 20201202-IR-050190636FRA