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 3-8 - Assessed value from base capitalization rate and net operating income
Universal Citation: 50 IN Admin Code 3-8
Current through March 20, 2024
Authority: IC 6-1.1-4-42
Affected: IC 6-1.1-4-42
Sec. 8.
When using the income capitalization approach, the assessed value of real property is found by dividing the net operating income by the overall capitalization rate. The following table, which is for illustrative purposes only and does not reflect all possible scenarios, shows assessed values rounded to the nearest one hundred dollars ($100), where an assessed value (AV) is given where the column for a net operating income (NOI) amount intersects with the row for an overall capitalization rate:
| Overall Capitalization Rate | NOI $20,000 | NOI $40,000 | NOI $60,000 | NOI $80,000 | NOI $100,000 |
| 8% | AV $250,000 | AV $500,000 | AV $750,000 | AV $1,000,000 | AV $1,250,000 |
| 9% | AV $222,200 | AV $444,400 | AV $666,700 | AV $888,900 | AV $1,111,100 |
| 10% | AV $200,000 | AV $400,000 | AV $600,000 | AV $800,000 | AV $1,000,000 |
| 11% | AV $181,800 | AV $363,600 | AV $545,500 | AV $727,300 | AV $909,000 |
| 12% | AV $166,700 | AV $333,300 | AV $500,000 | AV $666,700 | AV $833,300 |
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