Indiana Administrative Code
Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE
Article 27 - ANNUAL ADJUSTMENTS AND EQUALIZATION STANDARDS
Rule 5 - Annual Adjustment Process
Section 5-4 - Sample size
Current through September 18, 2024
Authority: IC 6-1.1-4-4.5; IC 6-1.1-31-1; IC 6-1.1-31-12
Affected: IC 6-1.1-4-4.5
Sec. 4.
(a) Neighborhoods and other stratified groupings such as market areas must have a sample size of five (5) or more sales if the data in the sample is used to compute an adjustment factor for the neighborhood, unless the assessing official is able to justify the use of fewer sales in the neighborhood within the ratio study narrative. To increase the sample size, an assessing official must combine sample data from neighborhoods and other groupings that have similar parcel or market characteristics. For greater assessment precision, a larger sample size is needed. Therefore, in accordance with IAAO standards incorporated by reference in 50 IAC 27-1-4, the department will require that adequate sample sizes be used.
(b) If commercial and industrial improved properties have a limited number of sales, for example, fewer than five (5) sales in the strata, the county must use the other approaches to value as outlined in section 8 of this rule, that is, cost tables, income data, MLS data, and any other relevant industry standards.
