A bill authored by State Sen. Brian Buchanan (R-Lebanon) that would give local municipalities an additional resource to assess large commercial properties recently passed the Senate by a vote of 42 to 7.
Senate Bill 623 would give county assessors or townships the ability to request assistance from the Department of Local Government Finance in assessing large commercial properties. These properties can be difficult to assess because they often have expensive improvements that are only valuable to the property owner. Because property tax assessments are made based on market value, these improvements are often not adequately included in the assessed value.
“This legislation would greatly benefit Hoosier communities when there is a disagreement over the assessment of a commercial property,” Buchanan said. “Senate Bill 623 brings some classification as to how commercial property should be assessed.”
This bill would also aid local governments by helping them potentially save on tax revenue and avoid lengthy lawsuits.
SB 623 will now move to the House of Representatives for further consideration.