Indiana Administrative Code
Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE
Article 29 - PROCEDURES FOR THE ASSESSMENT OF GOLF COURSES
Rule 3 - Procedures for the Assessment of Golf Courses
Section 3-3 - Income capitalization
Current through March 20, 2024
Authority: IC 6-1.1-4-42
Affected: IC 6-1.1-35-9
Sec. 1.
(a) In assessing golf courses by means of the income capitalization method, an assessing official shall derive a value indication for income-producing property by dividing the three (3) year average net operating income by the cap rate as determined annually by the department.
(b) Through use of income capitalization, an assessing official shall rely on the economic principles of the following:
(c) Because a golf course may generate multiple sources of income, including greens fees, membership dues, and concessions, assessing officials shall solicit data for gross income and allowable operating expenses from the golf course operators and use federal tax returns or similar evidence as verification that the submissions are correct.
(d) The date of assessment is January 1. An assessing official shall examine the financial records and federal tax returns for the three (3) immediately preceding years to obtain the average net operating income. The three-year average should include the most current completed financial records and filed federal tax returns for the golf course as of January 1 to ensure that the appropriate income and expense information for the subject property is utilized. Under IC 6-1.1-35-9, all income and expense information provided to the assessing official is confidential.
