50 Ind. Admin. Code 29-3-6

Current through October 31, 2024

Section 50 IAC 29-3-6 - Capitalization rate

Authority: IC 6-1.1-4-42

Affected: IC 6-1.1-4-42

Sec. 6.

(a) The overall capitalization rate expresses the relationship between net operating income and the market value of the property and shall be developed using the following:

(1) Market extraction.

(2) Effective tax rate.

(3) Mortgage and equity.

(4) Discounted cash flow.

(b) The department may disseminate the overall capitalization rate, based on market verifiable information, for each county annually.

50 IAC 29-3-6

Department of Local Government Finance; 50 IAC 29-3-6; filed Aug 30, 2012, 2:00 p.m.: 20120926-IR-050120274FRA