MEMORANDUM
TO: All Political Subdivisions
FROM: Micah G. Vincent,
Commissioner
RE: Base Assessed Value
Adjustment for Purposes of Tax Increment Financing
DATE: June 18, 2013
On May 9, 2013, Governor Mike Pence signed into
law House Enrolled Act 1116 (“HEA 1116”). Section 16, effective July 1, 2013,
amends IC 36-7-14-39 regarding the manner in which base assessed value is
adjusted following annual trending or reassessment. Please note that this
memorandum is intended to be an informative bulletin; it is not a substitute for
reading the law.
Specifically, after each annual trending or
reassessment, the Department of Local Government Finance must adjust the base
assessed value one time to neutralize any effect of the trending or reassessment
on the property tax proceeds allocated to a redevelopment district. However, the
adjustments:
(1) may not include the effect of
phasing in assessed value due to property tax abatements under IC
6-1.1-12.1;
(2) may not produce less property tax
proceeds allocable to a redevelopment district than would otherwise have been
received if the reassessment or the annual trending had not occurred; and
(3) may decrease base assessed value
only to the extent that assessed values in the allocation area have been
decreased due to annual trending or reassessment.
Assessed value increases attributable to the
application of an abatement schedule under IC 6-1.1-12.1 may not be included in
the base assessed value of an allocation area.
Questions may be directed to Assistant Budget
Division Director Dan Jones at 317-232-0651 or djones@dlgf.in.gov.
