LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7035 NOTE PREPARED: Jan 3, 2021
BILL NUMBER: HB 1386 BILL AMENDED:
SUBJECT: Assessment Matters.
FIRST AUTHOR: Rep. VanNatter BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill adds an objective factual error to the list of claims of errors that a
taxpayer may raise in an appeal of an assessment.
The bill requires a form requesting an appeal of the Indiana Board of Tax Review (IBTR) to include a line
for a petitioner to state that the action is based on a correction of objective factual error appeal. It provides
that the county assessor or township assessor making the assessment has the burden of proof in an appeal
concerning the correction of an objective factual error in an appeal before the IBTR.
Effective Date: July 1, 2021.
Explanation of State Expenditures: IBTR: The IBTR will be required to update the petition for review
form. The IBTR’s current level of funding and resources should be sufficient to update the form.
Under the bill, the IBTR could see additional appeals if taxpayers appeal a county determination based on
a factual error not already allowed under current law.
For these appeals, an IBTR final determination must be based only on the validity of correcting the factual
error, without regard to assessment outcome. This may mean that the assessment will be recalculated by the
IBTR using all of the current data and factors, except that the factual error would be corrected. Currently,
the correction of a factual error may not produce a new assessment on appeal if the current assessment is
correct in its totality.
Explanation of State Revenues:
HB 1386 1
Explanation of Local Expenditures:
Explanation of Local Revenues: The bill could result in additional appeals if a factual error is not
appealable as one of the existing appealable items allowed. The bill could also result in lower assessments
for some taxpayers who appeal a factual error to the IBTR.
Lower assessments result in higher tax rates, shifting taxes to other taxpayers and potentially increasing tax
cap losses. Any impact on assessments and local revenues is case specific.
State Agencies Affected: Indiana Board of Tax Review.
Local Agencies Affected: Local assessors.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1386 2


Statutes affected:
1. Introduced House Bill (H): 6-1.1-15-1.1, 6-1.1-15-3, 6-1.1-15-4