Bill Text: IN HB1059 | 2010 | Regular Session | Enrolled

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Bill Title: Property tax collections.

Spectrum: Bipartisan Bill

Status: (Passed) 2010-03-25 - Effective 07/01/2010 [HB1059 Detail]

Download: Indiana-2010-HB1059-Enrolled.html

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Second Regular Session 116th General Assembly (2010)

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 this style type.
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    HOUSE ENROLLED ACT No. 1059

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     AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-13-6-3; (10)HE1059.1.1. -->

    SECTION 1. IC 5-13-6-3, AS AMENDED BY P.L.146-2008, SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 3. (a) All taxes collected by the county treasurer shall be deposited as one (1) fund in the several depositories selected for the deposit of county funds and, except as provided in subsection (b), remain in the depositories until distributed at the following semiannual distribution made by the county auditor.
    (b) Every county treasurer who, by virtue of the treasurer's office, is the collector of any taxes for any political subdivision wholly or partly within the county shall, not later than thirty (30) days after receipt of a written request for funds filed with the treasurer by a proper officer of any political subdivision within the county, advance to that political subdivision a portion of the taxes collected before the semiannual distribution. The amount advanced may not exceed the lesser of:
        (1) ninety-five percent (95%) of the total amount collected at the time of the advance; or
        (2) ninety-five percent (95%) of the amount to be distributed at the semiannual distribution.
    (c) Upon notice from the county treasurer of the amount to be advanced, the county auditor shall draw a warrant upon the county treasurer for the amount. The amount of the advance must be available immediately for the use of the political subdivision.

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    (d) At the semiannual distribution all the advances made to any political subdivision under subsection (b) shall be deducted from the total amount due any political subdivision as shown by the distribution.
     (e) If a county auditor fails to make a distribution of tax collections by the deadline for distribution under subsection (b), a political subdivision that was to receive a distribution may recover interest on the undistributed tax collections under IC 6-1.1-27-1.

SOURCE: IC 6-1.1-22.5-6; (10)HE1059.1.2. -->     SECTION 2. IC 6-1.1-22.5-6, AS AMENDED BY P.L.87-2009, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 6. (a) Except as provided in subsection (c), with respect to This section applies to property taxes payable under this article on assessments determined for the 2003 assessment date or the assessment date in any later year. The county treasurer may, except as provided by section 7 of this chapter, shall use a provisional statement under this chapter if the county auditor fails to deliver the abstract for that assessment date to the county treasurer under IC 6-1.1-22-5 before March 16 of the year following the assessment date (for property taxes first due and payable before 2011) or April 1 of the year following the assessment date (for property taxes first due and payable after 2010). The amount to be billed for each installment of the provisional statement is the amount determined under section 9 of this chapter.
    (b) The county treasurer shall give notice of the provisional statement, including disclosure of the method that is to be used in determining the tax liability to be indicated on the provisional statement, by publication one (1) time:
        (1) in the form prescribed by the department of local government finance; and
        (2) in the manner described in IC 6-1.1-22-4(b).
The notice may be combined with the notice required under section 10 of this chapter.
    (c) Subsection (a) does not apply if applies regardless of whether the county auditor fails to deliver the abstract as provided in IC 6-1.1-22-5(b). Section 7 of this chapter does not apply to this section.
    (d) This subsection applies after June 30, 2009. Immediately upon determining to use provisional statements under subsection (a), the county treasurer shall give notice of the determination to the county fiscal body (as defined in IC 36-1-2-6).
    (e) In a county in which an authorizing ordinance is adopted under IC 6-1.1-22-8.1(h), a person may direct the county treasurer to transmit a provisional statement by electronic mail under IC 6-1.1-22-8.1(h).

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     (f) The department of local government finance may waive the requirement under subsection (a) that a provisional statement must be used for property taxes first due and payable in a calendar year, if:
        (1) the county fiscal body or the county treasurer requests the waiver; and
        (2) the department of local government finance determines that:
            (A) the county will be able to send a property tax statement under IC 6-1.1-22 with a due date that is not later than June 10 of that calendar year; or
            (B) the failure to send a property tax statement under IC 6-1.1-22 in a timely manner is due to a change by the county in computer software, and the county will be able to send a property tax statement under IC 6-1.1-22 with a due date that is not later than June 10 of that calendar year.

SOURCE: IC 6-1.1-22.5-7; (10)HE1059.1.3. -->     SECTION 3. IC 6-1.1-22.5-7, AS AMENDED BY P.L.182-2009(ss), SECTION 160, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 7. (a) The county auditor of a county or fifty (50) property owners in the county may, not more than five (5) days after the publication of the notice required under section 6(b) or 6.5(f) of this chapter, request in writing that the department of local government finance waive the use of a provisional statement under this chapter as to that county for a particular year.
    (b) With respect to the use of a provisional statement required under section 6 of this chapter, upon receipt of a request under subsection (a), the department of local government finance shall give notice of a hearing concerning the request in the manner provided by IC 5-3-1. The notice must state:
        (1) the date and time of the hearing;
        (2) the location of the hearing, which must be in the county; and
        (3) that the purpose of the hearing is to hear:
            (A) the request of the county treasurer and county auditor to waive the requirements of section 6 of this chapter; and
            (B) taxpayers' comments regarding that request.
    (c) After the hearing referred to in subsection (b), the department of local government finance may waive the use of a provisional statement under section 6 of this chapter for a particular year as to the county making the request if the department finds that the petitioners have presented sufficient evidence to establish that although the abstract required by IC 6-1.1-22-5 was not delivered in a timely manner:

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        (1) the abstract;
            (A) was delivered as of the date of the hearing; or
            (B) will be delivered not later than a date specified by the county auditor and county treasurer; and
        (2) sufficient time remains or will remain after the date or anticipated date of delivery of the abstract to:
            (A) permit the timely preparation and delivery of property tax statements in the manner provided by IC 6-1.1-22; and
            (B) render the use of a provisional statement under section 6 of this chapter unnecessary.
    (d) With respect to a determination to use a provisional statement under section 6.5 of this chapter, upon receipt of a request under subsection (a), the department of local government finance shall give notice of a hearing concerning the request in the manner provided by IC 5-3-1. The notice must state:
        (1) the date and time of the hearing;
        (2) the location of the hearing, which must be in the county; and
        (3) that the purpose of the hearing is to hear:
            (A) the request of the county treasurer and county auditor to waive the requirements of section 6.5 of this chapter; and
            (B) taxpayers' comments regarding that request.
    (e) After the hearing referred to in subsection (d), the department of local government finance may waive the use of a provisional statement under section 6.5 of this chapter for a particular year as to the county making the request if the department finds that the petitioners have presented sufficient evidence to establish that although the property tax rate of one (1) or more cross-county entities with cross-county area in the county was not finally determined before the statement preparation date:
        (1) that property tax rate:
            (A) was determined as of the date of the hearing; or
            (B) will be determined not later than a date specified by the county auditor and county treasurer; and
        (2) sufficient time remains or will remain after the date or anticipated date of determination of the rate to:
            (A) permit the timely preparation and delivery of property tax statements in the manner provided by IC 6-1.1-22; and
            (B) render the use of a provisional statement under section 6.5 of this chapter unnecessary.

SOURCE: IC 6-1.1-22.5-8; (10)HE1059.1.4. -->     SECTION 4. IC 6-1.1-22.5-8, AS AMENDED BY P.L.182-2009(ss), SECTION 161, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 8. (a) Subject to

subsection (c), a provisional statement must:
        (1) be on a form prescribed by the department of local government finance;
        (2) except as provided in emergency rules adopted under section 20 of this chapter and subsection (b):
            (A) for property taxes first due and payable after 2010 and billed using a provisional statement under section 6 of this chapter, indicate:
                (i) that the first installment of the taxpayer's tax liability in the is an amount of not more than one hundred percent (100%) equal to fifty percent (50%) of the tax liability that was payable in the same year as the assessment date for the property for which the provisional statement is issued, subject to any adjustments to the tax liability as prescribed authorized by the department of local government finance under subsection (e) and approved by the county treasurer; and
                 (ii) that the second installment is either the amount specified in a reconciling statement or, if a reconciling statement is not sent until after the second installment is due, an amount equal to fifty percent (50%) of the tax liability that was payable in the same year as the assessment date for the property for which the provisional statement is issued, subject to any adjustments to the tax liability authorized by the department of local government finance under subsection (e) and approved by the county treasurer; and
            (B) for property taxes billed using a provisional statement under section 6.5 of this chapter, except as provided in subsection (d), indicate tax liability in an amount determined by the department of local government finance based on:
                (i) subject to subsection (c), for the cross-county entity, the property tax rate of the cross-county entity for taxes first due and payable in the immediately preceding calendar year; and
                (ii) for all other taxing units that make up the taxing district or taxing districts that comprise the cross-county area, the property tax rates of the taxing units for taxes first due and payable in the current calendar year;
        (3) indicate:
            (A) that the tax liability under the provisional statement is determined as described in subdivision (2); and
            (B) that property taxes billed on the provisional statement:

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                (i) are due and payable in the same manner as property taxes billed on a tax statement under IC 6-1.1-22-8.1; and
                (ii) will be credited against a reconciling statement;
        (4) for property taxes billed using a provisional statement under section 6 of this chapter, include a statement in the following or a substantially similar form, as determined by the department of local government finance:
        "Under Indiana law, ________ County (insert county) has sent provisional statements. because the county did not complete the abstract of the property, assessments, taxes, deductions, and exemptions for taxes payable in (insert year) in each taxing district before March 16, (insert year).The statement is due to be paid in installments on __________ (insert date) and ________ (insert date). The statement is based on ______ percent (___%) (insert percentage) first installment is equal to fifty percent (50%) of your tax liability for taxes payable in ______ (insert year), subject to adjustment to the tax liability as prescribed authorized by the department of local government finance and adjustment for any new construction on your property, or any damage to your property, approved by the county treasurer. The second installment is either the amount specified in a reconciling statement that will be sent to you, or (if a reconciling statement is not sent until after the second installment is due) an amount equal to fifty percent (50%) of your tax liability for taxes payable in ______ (insert year), subject to adjustment to the tax liability authorized by the department of local government finance and approved by the county treasurer. After the abstract of property is complete, you will receive a reconciling statement in the amount of your actual tax liability for taxes payable in (insert year), minus the amount you pay under this provisional statement.";
        (5) for property taxes billed using a provisional statement under section 6.5 of this chapter, include a statement in the following or a substantially similar form, as determined by the department of local government finance:
        "Under Indiana law, ________ County (insert county) has elected to send provisional statements for the territory of __________________ (insert cross-county entity) located in ________ County (insert county) because the property tax rate for ________________ (insert cross-county entity) was not available in time to prepare final tax statements. The statement is due to be paid in installments on __________ (insert date) and _________

(insert date). The statement is based on the property tax rate of _________________ (insert cross-county entity) for taxes first due and payable in _____ (insert immediately preceding calendar year). After the property tax rate of ________________ (insert cross-county entity) is determined, you will receive a reconciling statement in the amount of your actual tax liability for taxes payable in _____ (insert year), minus the amount you pay under this provisional statement.";
        (6) in the case of a reconciling statement only, indicate liability for:
            (A) delinquent:
                (i) taxes; and
                (ii) special assessments;
            (B) penalties; and
            (C) interest;
        is allowed to appear on the tax statement under IC 6-1.1-22-8.1 for the first installment of property taxes in the year in which the provisional tax statement is issued;
        (7) in the case of a reconciling statement only, include:
            (A) a checklist that shows:
                (i) homestead credits under IC 6-1.1-20.4, IC 6-3.5-6-13, or another law and all property tax deductions; and
                (ii) whether each homestead credit and property tax deduction was applied in the current provisional statement;
            (B) an explanation of the procedure and deadline that a taxpayer must follow and the forms that must be used if a credit or deduction has been granted for the property and the taxpayer is no longer eligible for the credit or deduction; and
            (C) an explanation of the tax consequences and applicable penalties if a taxpayer unlawfully claims a standard deduction under IC 6-1.1-12-37 on:
                (i) more than one (1) parcel of property; or
                (ii) property that is not the taxpayer's principal place of residence or is otherwise not eligible for a standard deduction; and
        (8) include any other information the county treasurer requires.
    (b) This subsection applies to property taxes first due and payable for assessment dates after January 15, 2009. The county may apply a standard deduction, supplemental standard deduction, or homestead credit calculated by the county's property system on a provisional bill for a qualified property. If a provisional bill has been used for property tax billings for two (2) consecutive years and a property qualifies for

a standard deduction, supplemental standard deduction, or homestead credit for the second year a provisional bill is used, the county shall apply the standard deduction, supplemental standard deduction, or homestead credit calculated by the county's property system on the provisional bill.
    (c) For purposes of this section, property taxes that are:
        (1) first due and payable in the current calendar year on a provisional statement under section 6 or 6.5 of this chapter; and
        (2) based on property taxes first due and payable in the immediately preceding calendar year or on a percentage of those property taxes;
are determined after excluding from the property taxes first due and payable in the immediately preceding calendar year property taxes imposed by one (1) or more taxing units in which the tangible property is located that are attributable to a levy that no longer applies for property taxes first due and payable in the current calendar year.
    (d) If there was no property tax rate of the cross-county entity for taxes first due and payable in the immediately preceding calendar year for use under subsection (a)(2)(B), the department of local government finance shall provide an estimated tax rate calculated to approximate the actual tax rate that will apply when the tax rate is finally determined.
     (e) The department of local government finance shall:
        (1) authorize the types of adjustments to tax liability that a county treasurer may approve under subsection (a)(2)(A) including:
            (A) adjustments for any new construction on the property or any damage to the property; and
            (B) any necessary adjustments for credits, deductions, or local option income taxes; and
        (2) notify county treasurers in writing of the types of adjustments authorized under subdivision (1).

SOURCE: IC 6-1.1-22.5-9; (10)HE1059.1.5. -->     SECTION 5. IC 6-1.1-22.5-9, AS AMENDED BY P.L.87-2009, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 9. (a) Except as provided in subsections (b) and (c) and section 12 12(b) of this chapter, property taxes billed on a provisional statement are due in two (2) equal installments on May 10 and November 10 of the year following the assessment date covered by the provisional statement.
    (b) If in a county the notices of general reassessment under IC 6-1.1-4-4 or notices of assessment under IC 6-1.1-4-4.5 for an assessment date in a calendar year are given to the taxpayers in the

county after March 26 of the immediately succeeding calendar year, the property taxes that would otherwise be due under subsection (a) on May 10 of the immediately succeeding calendar year are due on the later of:
        (1) May 10 of the immediately succeeding calendar year; or
        (2) forty-five (45) days after the mailing or transmittal of provisional statements.
    (c) If subsection (b) applies, the property taxes that would otherwise be due under subsection (a) on November 10 of the immediately succeeding calendar year referred to in subsection (b) are due on the later of:
        (1) November 10 of the immediately succeeding calendar year; or
        (2) a date determined by the county treasurer that is not later than December 31 of the immediately succeeding calendar year.
     (b) The county treasurer may mail or transmit the provisional statement one (1) time each year at least fifteen (15) days before the date on which the first installment is due under subsection (a) in the manner provided in IC 6-1.1-22-8.1, regardless of whether the notice required under section 6(b) of this chapter has been published.
     (c) This subsection applies to a provisional statement issued under section 6 of this chapter. Except when the second installment of a provisional statement is replaced by a final reconciling statement providing for taxes to be due on November 10, the amount of tax due for each installment of a provisional statement issued for a year after 2010 is fifty percent (50%) of the tax that was due for the immediately preceding year under IC 6-1.1-22 subject to any adjustments to the tax liability as prescribed by the department of local government finance. If no bill was issued in the prior year, the provisional bill shall be based on the amount that would have been due if a provisional tax statement had been issued for the immediately preceding year. The department of local government finance may prescribe standards to implement this subsection, including a method of calculating the taxes due when an abstract or other information is not complete.
    (d) This subsection applies only if a provisional statement for payment of property taxes and special assessments by electronic mail is transmitted to a person under IC 6-1.1-22-8.1(h). If a response to the transmission of electronic mail to a person indicates that the electronic mail was not received, the county treasurer shall mail to the person a hard copy of the provisional statement in the manner required by this chapter for persons who do not opt to receive statements by electronic

mail. The due date for the property taxes and special assessments under a provisional statement mailed to a person under this subsection is the due date indicated in the statement transmitted to the person by electronic mail.

SOURCE: IC 6-1.1-22.5-14; (10)HE1059.1.6. -->     SECTION 6. IC 6-1.1-22.5-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 14. (a) Subject to subsection (b), not later than fifty-one (51) days after the due date of a provisional or reconciling statement under this chapter, the county auditor shall:
        (1) file with the auditor of state a report of settlement; and
        (2) distribute tax collections to the appropriate taxing units.
     (b) The county treasurer shall:
        (1) place in a separate account in the county general fund penalties collected as a result of late payments on statements issued under this chapter for the payment of property taxes;
        (2) use the account only to defray the costs of mailing or transmission of statements under this chapter; and
        (3) deposit additional funds, if any, remaining in the account after the payment of costs of mailing or transmission of statements under this chapter in the county's property reassessment fund established under IC 6-1.1-4-27.5.

SOURCE: IC 6-1.1-27-1; (10)HE1059.1.7. -->     SECTION 7. IC 6-1.1-27-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) On or before June 20th and December 20th of each year, the county auditor and the county treasurer shall meet in the office of the county auditor. Before each semi-annual meeting, the county auditor shall complete an audit of the county treasurer's monthly reports required under IC 36-2-10-16. In addition, the county auditor shall:
        (1) prepare a certificate of settlement on the form prescribed by the state board of accounts; and
        (2) deliver the certificate of settlement to the county treasurer at least two (2) days before each semi-annual meeting.
    (b) If any county treasurer or auditor refuses, neglects, or fails to distribute tax money due to a tax taxing unit on or before:
         (1) the fifty-first day immediately following each property tax due date under IC 6-1.1-22-9 or IC 6-1.1-37-10, whichever applies; or
        (2) the deadline for a distribution requested under IC 5-13-6-3;
the county treasurer and auditor shall pay to the taxing unit from the county general fund interest on the taxing unit's undistributed tax money if the county treasurer and auditor invest undistributed tax money in an interest bearing investment.

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     (c) The amount of interest to be paid if subsection (b)(1) applies equals the taxing unit's proportionate share of the actual amount of interest which is received from investments of the undistributed tax money from the fifty-second day immediately following the property tax due date under IC 6-1.1-22-9 or IC 6-1.1-37-10, whichever applies, to the date that the tax money is distributed.
     (d) The amount of interest to be paid if subsection (b)(2) applies equals the taxing unit's proportionate share of the actual amount of interest that is received from investments of the undistributed tax money from the date the county treasurer receives the taxing unit's request for funds under IC 5-13-6-3(b) to the date the tax money is distributed.

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HEA 1059 _ CC 1

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