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Indiana Administrative Code (Last Updated: December 20, 2016) |
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Title 50. DEPARTMENT OF LOCAL GOVERNMENT FINANCE |
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Article 50IAC29. PROCEDURES FOR THE ASSESSMENT OF GOLF COURSES |
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Rule 50IAC29-3. Procedures for the Assessment of Golf Courses |
Section 50IAC29-3-8. Assessed value from base capitalization rate and net operating income
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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:
Capitalization Rate Table
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
(Department of Local Government Finance; 50 IAC 29-3-8; filed Aug 30, 2012, 2:00 p.m.: 20120926-IR-050120274FRA)
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