Section 50IAC1-3-3. Assessment of improvements on leased land

   ASSESSMENT OF IMPROVEMENTS ON LEASED GROUND. The following is quoted from IC 6-1.1-1-15 which defines real property:

“Real property” means:

(1) land located within this state;

(2) a building or fixture situated on land located within this state;

(3) an appurtenance to land located within this state; and

(4) an estate in land located within this state, or an estate, right, or privilege in mines located on or minerals, including but not limited to oil or gas, located in the land, if the estate, right, or privilege is distinct from the ownership of the surface of the land.

  The above section has been construed to mean that all improvements on leased ground shall be assessed as real estate.

  To carry out the provisions of this section all improvements on leased ground shall be assessed in the current real estate reassessment program in the same manner as any other real estate. This will include the preparation of a permanent assessment record, the computation of the assessment using Indiana Real Estate Property Appraisal Manual, the mailing of a notice of the assessment, and all other provisions of existing laws and rules and regulations governing the assessment of real estate. The only exception will be that no land or lot values will be included and the assessments and records should clearly show that they represent “Improvements on Leased Ground.”

  The value of any such improvements should be listed with other real estate in the Assessor's Book and the Tax Duplicate prepared by the county auditor, but, as stated, should be clearly identified as “Improvements on Leased Ground” so there is no conflict with the real estate and improvements thereon assessed in the name of the owner of the fee simple title. This wording may be entered in the column provided for description of real estate. The value of such improvements shall be entered in the appropriate column provided for that purpose in such records. (Department of Local Government Finance; Real Property Directive 78-103; filed Jan 30, 1978, 4:09 pm: Rules and Regs. 1979, p. 427)