Bill Text: IN HB1244 | 2011 | Regular Session | Amended
Bill Title: Local government.
Spectrum: Bipartisan Bill
Status: (Enrolled - Dead) 2011-04-26 - Senate advisors appointed: Charbonneau and Hume [HB1244 Detail]
Download: Indiana-2011-HB1244-Amended.html
Citations Affected: IC 6-1.1.
Synopsis: Payment plan to remove property from tax sale. Applies
statewide the authority that currently applies only in Lake County
allowing the county auditor to remove real property from a tax sale if
the county treasurer and the taxpayer agree to a mutually satisfactory
arrangement for the payment of the delinquent taxes. Establishes a
period during which a taxpayer who fails to make a payment under the
delinquent property tax payment arrangement may not enter into
another arrangement. Allows the county treasurer to extend the tax sale
redemption period applicable to a homestead if the county treasurer
and the taxpayer agree to an arrangement for payment of the amount
required for redemption before the expiration of the extended
redemption period. Provides for cancellation of the agreement and the
extension if the taxpayer fails to meet the terms of the agreement.
Provides that the total amount required for redemption includes all
taxes, special assessments, penalties, and fees on property that accrued
after the tax sale.
Effective: Upon passage.
January 12, 2011, read first time and referred to Committee on Local Government.
January 31, 2011, amended, reported _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) delinquent taxes and special assessments due before the date the list on which the property appears was certified under section 1 of this chapter; and
(2) penalties due on the delinquency, interest, and costs directly attributable to the tax sale;
have been paid in full.
(b) A county treasurer may accept partial payments of delinquent property taxes, assessments, penalties, interest, or costs under subsection (a) after the list of real property is certified under section 1 of this chapter. However a partial payment does not remove a tract or an item from the list certified under section 1 of this chapter unless the taxpayer complies with subsection (a) or (c) before the date of the tax
sale.
(c) The county auditor in a county having a population of more than
four hundred thousand (400,000) but less than seven hundred thousand
(700,000) may remove a tract or an item of real property from the list
certified under section 1 of this chapter before the tax sale if the county
treasurer and the taxpayer agree to a mutually satisfactory arrangement
for the payment of the delinquent taxes.
(d) The county treasurer may remove the tract or item from the list
certified under section 1 of this chapter if the arrangement described in
subsection (c):
(1) is in writing;
(2) is signed by the taxpayer; and
(3) requires the taxpayer to pay the delinquent taxes in full within
one (1) not later than the last business day before July 1 of the
year of after the date the agreement is signed.
(e) If the taxpayer fails to make a payment under the arrangement
described in subsection (c):
(1) the arrangement is void; and
(2) the county auditor shall immediately place the tract or item of
real property on the list of real property eligible for sale at a tax
sale.
(f) If the tract or item of real property subject to a payment
arrangement is within the jurisdiction of a:
(1) city having a population of more than ninety thousand
(90,000) but less than one hundred five thousand (105,000);
(2) city having a population of more than thirty-two thousand
(32,000) but less than thirty-two thousand eight hundred (32,800);
or
(3) city having a population of more than seventy-five thousand
(75,000) but less than ninety thousand (90,000);
the county auditor shall notify the mayor of the city of the arrangement.
(f) If the county auditor acts under subsection (e) with respect
to a tract or item subject to an arrangement described in
subsection (c), the taxpayer may not enter into another
arrangement under subsection (c) with respect to that tract or item
after the due date of the payment referred to in subsection (d) and
before the date that succeeds by five (5) years the date on which the
original arrangement would have expired if the arrangement had
not become void under subsection (e).
the redemption of real property equals:
(1) the sum of the amounts prescribed in subsections (b) through
(e); (f); or
(2) the amount prescribed in subsection (f); (g);
reduced by any amounts held in the name of the taxpayer or the
purchaser in the tax sale surplus fund.
(b) Except as provided in subsection (f), (g), the total amount
required for redemption includes:
(1) one hundred ten percent (110%) of the minimum bid for
which the tract or real property was offered at the time of sale, as
required by IC 6-1.1-24-5, if the tract or item of real property is
redeemed not more than six (6) months after the date of sale; or
(2) one hundred fifteen percent (115%) of the minimum bid for
which the tract or real property was offered at the time of sale, as
required by IC 6-1.1-24-5, if the tract or item of real property is
redeemed more than six (6) months but not more than one (1)
year after the date of sale.
(c) Except as provided in subsection (f), (g), in addition to the
amount required under subsection (b), the total amount required for
redemption includes the amount by which the purchase price exceeds
the minimum bid on the real property plus ten percent (10%) per
annum on the amount by which the purchase price exceeds the
minimum bid on the property.
(d) Except as provided in subsection (f), (g), in addition to the
amount required under subsections (b) and (c), the total amount
required for redemption includes all taxes and special assessments
upon the property paid by the purchaser after the sale plus ten percent
(10%) interest per annum on those taxes and special assessments.
(e) Except as provided in subsection (f), (g), in addition to the
amounts required under subsections (b), (c), and (d), the total amount
required for redemption includes the following costs, if certified before
redemption and not earlier than thirty (30) days after the date of sale of
the property being redeemed by the payor to the county auditor on a
form prescribed by the state board of accounts, that were incurred and
paid by the purchaser, the purchaser's assignee, or the county, before
redemption:
(1) The attorney's fees and costs of giving notice under section 4.5
of this chapter.
(2) The costs of a title search or of examining and updating the
abstract of title for the tract or item of real property.
(f) The total amount required for redemption includes, in
addition to the amounts required under subsections (b) and (e), all
taxes, special assessments, penalties, and fees on the property that
accrued after the sale.
(f) (g) With respect to a tract or item of real property redeemed
under section 4(c) of this chapter, instead of the amounts stated in
subsections (b) through (e), (f), the total amount required for
redemption is the amount determined under IC 6-1.1-24-6.1(b)(4).
(1) one (1) year after the date of sale;
(2) one hundred twenty (120) days after the date of sale to a purchasing agency qualified under IC 36-7-17; or
(3) one hundred twenty (120) days after the date of sale of real property on the list prepared under IC 6-1.1-24-1(a)(2) or IC 6-1.1-24-1.5.
(b) Subject to subsection (l) and IC 6-1.1-24-9(d), the period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is not sold under IC 6-1.1-24-6.1;
is one hundred twenty (120) days after the date the county executive acquires the lien under IC 6-1.1-24-6.
(c) The period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is sold under IC 6-1.1-24;
is one hundred twenty (120) days after the date of sale of the certificate of sale under IC 6-1.1-24.
(d) When a deed for real property is executed under this chapter, the county auditor shall cancel the certificate of sale and file the canceled certificate in the office of the county auditor. If real property that appears on the list prepared under IC 6-1.1-24-1.5 is offered for sale and an amount that is at least equal to the minimum sale price required under IC 6-1.1-24-5(e) is not received, the county auditor shall issue a deed to the real property, subject to this chapter.
(e) When a deed is issued to a county executive under this chapter, the taxes and special assessments for which the real property was offered for sale, and all subsequent taxes, special assessments, interest, penalties, and cost of sale shall be removed from the tax duplicate in
the same manner that taxes are removed by certificate of error.
(f) A tax deed executed under this chapter vests in the grantee an
estate in fee simple absolute, free and clear of all liens and
encumbrances created or suffered before or after the tax sale except
those liens granted priority under federal law and the lien of the state
or a political subdivision for taxes and special assessments which
accrue subsequent to the sale and which are not removed under
subsection (e). However, subject to subsection (g), the estate is subject
to:
(1) all easements, covenants, declarations, and other deed
restrictions shown by public records;
(2) laws, ordinances, and regulations concerning governmental
police powers, including zoning, building, land use,
improvements on the land, land division, and environmental
protection; and
(3) liens and encumbrances created or suffered by the grantee.
(g) A tax deed executed under this chapter for real property sold in
a tax sale:
(1) does not operate to extinguish an easement recorded before
the date of the tax sale in the office of the recorder of the county
in which the real property is located, regardless of whether the
easement was taxed under this article separately from the real
property; and
(2) conveys title subject to all easements recorded before the date
of the tax sale in the office of the recorder of the county in which
the real property is located.
(g) (h) A tax deed executed under this chapter is prima facie
evidence of:
(1) the regularity of the sale of the real property described in the
deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) (i) A county auditor is not required to execute a deed to the
county executive under this chapter if the county executive determines
that the property involved contains hazardous waste or another
environmental hazard for which the cost of abatement or alleviation
will exceed the fair market value of the property. The county executive
may enter the property to conduct environmental investigations.
(i) (j) If the county executive makes the determination under
subsection (h) (i) as to any interest in an oil or gas lease or separate
mineral rights, the county treasurer shall certify all delinquent taxes,
interest, penalties, and costs assessed under IC 6-1.1-24 to the clerk,
following the procedures in IC 6-1.1-23-9. After the date of the county
treasurer's certification, the certified amount is subject to collection as
delinquent personal property taxes under IC 6-1.1-23. Notwithstanding
IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6, the assessed value of such an
interest shall be zero (0) until production commences.
(j) (k) When a deed is issued to a purchaser of a certificate of sale
sold under IC 6-1.1-24-6.1, the county auditor shall, in the same
manner that taxes are removed by certificate of error, remove from the
tax duplicate the taxes, special assessments, interest, penalties, and
costs remaining due as the difference between the amount of the last
minimum bid under IC 6-1.1-24-5(e) and the amount paid for the
certificate of sale.
(l) If the county treasurer and the owner of a homestead (as
defined in IC 6-1.1-12-37(a)(2)) agree before the expiration of the
period for redemption under subsection (b) to a mutually
satisfactory arrangement for the payment of the amount required
for redemption under section 2 of this chapter before the
expiration of a period for redemption extended under this
subsection:
(1) the county treasurer may extend the period for
redemption; and
(2) except as provided in subsection (m), the extended period
for redemption expires one (1) year after the date of the
agreement.
(m) If the owner of a homestead fails to meet the terms of an
agreement entered into with the county treasurer under subsection
(l), the county treasurer may terminate the agreement after
providing thirty (30) days written notice to the owner. If the county
treasurer gives notice under this subsection, the extended period
for redemption established under subsection (l) expires thirty (30)
days after the date of the notice.
