May 17, 2007

Senator R. Michael Young, Chairperson

Administrative Rules Oversight Committee

Attn: Sarah Burkman, Staff Attorney

Legislative Services Agency

200 W. Washington Street, Suite 301

Indianapolis, IN 46204

RE: Notification of noncompliance with 60-day requirement

Dear Senator Young:

Pursuant to Indiana Code § 4-22-2-19(c), please consider this letter notification of the Department of Local Government Finance's (Department) noncompliance with the 60-day provision of Indiana Code § 4-22-2-19. The Department did not begin the rulemaking process to repeal 50 IAC 3.2 and adopt 50 IAC 3.3 regarding the assessment of mobile homes within 60 days after the statutory authorization.

The Department adopted 50 IAC 3.2 to provide the method of assessment of mobile homes on September 23, 2002. When Indiana Code § 6-1.1-31-7 was amended in 2005 to change the valuation method for mobile homes, the Department was directed to amend or adopt rules to provide instructions for mobile home valuation consistent with the three new methods listed in the statute. The purpose of adopting 50 IAC 3.3 (LSA Document #06-560) is to bring the Department's administrative rules into conformance with this new statutory requirement.

The Department's delay was due to staff shortages and the dedication of staff to other Department projects, including the implementation of the first year of annual adjustments, statewide property tax management system, investment deduction, and other rulemaking.

Please contact me if you have any questions regarding this notification or if you require any additional information at 233-4361 or rlambermont@dlgf.in.gov.

Sincerely,

Renée C. Lambermont

Staff Attorney, Department of Local Government Finance