Citations Affected: IC 6-1.1.
Effective: Upon passage; January 1, 2012 (retroactive).
January 9, 2012, read first time and referred to Committee on Ways and Means.
January 23, 2012, amended, reported _ Do Pass.
January 26, 2012, read second time, ordered engrossed. Engrossed.
January 27, 2012, read third time, passed. Yeas 92, nays 0.
ordinance authorizing the county treasurer to accept a minimum bid on real property subject to sale for delinquent taxes equal to the lesser of: (1) the delinquent taxes, penalties, and other related costs; or (2) 75% of the gross assessed value of the real property. Provides that the fiscal body of a county may adopt an ordinance to establish an property tax amnesty program and require waiver of interest and penalties added before January 1, 2012, on delinquent taxes and special assessments on real property in the county if: (1) all of the delinquent taxes and special assessments on the real property were first due and payable before January 1, 2012; and (2) before July 1, 2013, the taxpayer has paid all of these delinquent taxes and special assessments and has also paid all of the taxes and special assessments that are first due and payable after December 31, 2011. Requires the waiver of interest and penalties in these circumstances, notwithstanding any payment arrangement entered into by the county treasurer and the taxpayer.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
sale.
(c) The A 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 auditor 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).
delinquency list required under section 1 of this chapter, each county
auditor shall prepare a notice. The notice shall contain the following:
(1) A list of tracts or real property eligible for sale under this
chapter.
(2) A statement that the tracts or real property included in the list
will be sold at public auction to the highest bidder, subject to the
right of redemption.
(3) A statement that the tracts or real property will not be sold for
an amount which is less than the sum of:
(A) the delinquent taxes and special assessments on each tract
or item of real property;
(B) the taxes and special assessments on each tract or item of
real property that are due and payable in the year of the sale,
whether or not they are delinquent;
(C) all penalties due on the delinquencies;
(D) an amount prescribed by the county auditor that equals the
sum of:
(i) the greater of twenty-five dollars ($25) or postage and
publication costs; and
(ii) any other actual costs incurred by the county that are
directly attributable to the tax sale; and
(E) any unpaid costs due under subsection (b) from a prior tax
sale.
(4) A statement that a person redeeming each tract or item of real
property after the sale must pay:
(A) one hundred ten percent (110%) of the amount of the
minimum bid for which the tract or item of real property was
offered at the time of sale if the tract or item of real property
is redeemed not more than six (6) months after the date of
sale;
(B) one hundred fifteen percent (115%) of the amount of the
minimum bid for which the tract or item of real property was
offered at the time of sale if the tract or item of real property
is redeemed more than six (6) months after the date of sale;
(C) the amount by which the purchase price exceeds the
minimum bid on the tract or item of real property plus ten
percent (10%) per annum on the amount by which the
purchase price exceeds the minimum bid; and
(D) all taxes and special assessments on the tract or item of
real property paid by the purchaser after the tax sale plus
interest at the rate of ten percent (10%) per annum on the
amount of taxes and special assessments paid by the purchaser
on the redeemed property.
(5) A statement for informational purposes only, of the location
of each tract or item of real property by key number, if any, and
street address, if any, or a common description of the property
other than a legal description. The township assessor, or the
county assessor if there is no township assessor for the township,
upon written request from the county auditor, shall provide the
information to be in the notice required by this subsection. A
misstatement in the key number or street address does not
invalidate an otherwise valid sale.
(6) A statement that the county does not warrant the accuracy of
the street address or common description of the property.
(7) A statement indicating:
(A) the name of the owner of each tract or item of real
property with a single owner; or
(B) the name of at least one (1) of the owners of each tract or
item of real property with multiple owners.
(8) A statement of the procedure to be followed for obtaining or
objecting to a judgment and order of sale, that must include the
following:
(A) A statement:
(i) that the county auditor and county treasurer will apply on
or after a date designated in the notice for a court judgment
against the tracts or real property for an amount that is not
less than the amount set under subdivision (3), and for an
order to sell the tracts or real property at public auction to
the highest bidder, subject to the right of redemption; and
(ii) indicating the date when the period of redemption
specified in IC 6-1.1-25-4 will expire.
(B) A statement that any defense to the application for
judgment must be:
(i) filed with the court; and
(ii) served on the county auditor and the county treasurer;
before the date designated as the earliest date on which the
application for judgment may be filed.
(C) A statement that the county auditor and the county
treasurer are entitled to receive all pleadings, motions,
petitions, and other filings related to the defense to the
application for judgment.
(D) A statement that the court will set a date for a hearing at
least seven (7) days before the advertised date and that the
court will determine any defenses to the application for
judgment at the hearing.
(9) A statement that the sale will be conducted at a place
designated in the notice and that the sale will continue until all
tracts and real property have been offered for sale.
(10) A statement that the sale will take place at the times and
dates designated in the notice. Whenever the public auction is to
be conducted as an electronic sale, the notice must include a
statement indicating that the public auction will be conducted as
an electronic sale and a description of the procedures that must be
followed to participate in the electronic sale.
(11) A statement that a person redeeming each tract or item after
the sale must pay the costs described in IC 6-1.1-25-2(e).
(12) If a county auditor and county treasurer have entered into an
agreement under IC 6-1.1-25-4.7, a statement that the county
auditor will perform the duties of the notification and title search
under IC 6-1.1-25-4.5 and the notification and petition to the
court for the tax deed under IC 6-1.1-25-4.6.
(13) A statement that, if the tract or item of real property is sold
for an amount more than the minimum bid and the property is not
redeemed, the owner of record of the tract or item of real property
who is divested of ownership at the time the tax deed is issued
may have a right to the tax sale surplus.
(14) If a determination has been made under subsection (d), a
statement that tracts or items will be sold together.
(15) With respect to a tract or an item of real property that is
subject to sale under this chapter after June 30, 2012, and
before July 1, 2013, a statement declaring whether an
ordinance adopted under IC 6-1.1-37-10.1 is in effect in the
county and, if applicable, an explanation of the circumstances
in which penalties on the delinquent taxes and special
assessments will be waived.
(b) If within sixty (60) days before the date of the tax sale the county
incurs costs set under subsection (a)(3)(D) and those costs are not paid,
the county auditor shall enter the amount of costs that remain unpaid
upon the tax duplicate of the property for which the costs were set. The
county treasurer shall mail notice of unpaid costs entered upon a tax
duplicate under this subsection to the owner of the property identified
in the tax duplicate.
(c) The amount of unpaid costs entered upon a tax duplicate under
subsection (b) must be paid no later than the date upon which the next
installment of real estate taxes for the property is due. Unpaid costs
entered upon a tax duplicate under subsection (b) are a lien against the
property described in the tax duplicate, and amounts remaining unpaid
on the date the next installment of real estate taxes is due may be
collected in the same manner that delinquent property taxes are
collected.
(d) The county auditor and county treasurer may establish the
condition that a tract or item will be sold and may be redeemed under
this chapter only if the tract or item is sold or redeemed together with
one (1) or more other tracts or items. Property may be sold together
only if the tract or item is owned by the same person.
declaring whether an ordinance adopted under IC 6-1.1-37-10.1 is
in effect in the county and, if applicable, an explanation of the
circumstances in which penalties on the delinquent taxes and
special assessments will be waived. The county auditor must present
proof of this mailing to the court along with the application for
judgment and order for sale. Failure by an owner to receive or accept
the notice required by this section does not affect the validity of the
judgment and order. The owner of real property shall notify the county
auditor of the owner's correct address. The notice required under this
section is considered sufficient if the notice is mailed to the address or
addresses required by this section.
(b) In addition to the notice required under subsection (a) for real
property on the list prepared under section 1(a)(2) or 1.5(d) of this
chapter, the county auditor shall prepare and mail the notice required
under section 2.2 of this chapter no later than forty-five (45) days after
the county auditor receives the certified list from the county treasurer
under section 1(a) of this chapter.
(c) On or before the day of sale, the county auditor shall list, on the
tax sale record required by IC 6-1.1-25-8, all properties that will be
offered for sale.
auction whose bid is at least the minimum bid specified in
subsection (f) or (g), as applicable.
(f) However, Except as provided in subsection (g), a tract or an
item of real property may not be sold for an amount which is less than
the sum of:
(1) the delinquent taxes and special assessments on each tract or
item of real property;
(2) the taxes and special assessments on each tract or item of real
property that are due and payable in the year of the sale,
regardless of whether the taxes and special assessments are
delinquent;
(3) all penalties which are due on the delinquencies;
(4) the amount prescribed by section 2(a)(3)(D) of this chapter
reflecting the costs incurred by the county due to the sale;
(5) any unpaid costs which are due under section 2(b) of this
chapter from a prior tax sale; and
(6) other reasonable expenses of collection, including title search
expenses, uniform commercial code expenses, and reasonable
attorney's fees incurred by the date of the sale.
The amount of penalties due on the delinquencies under
subdivision (3) must be adjusted in accordance with
IC 6-1.1-37-10.1, if applicable.
(g) If an ordinance adopted under section 15(a) of this chapter
is in effect in the county in which a tract or an item of real property
is located, the tract or item of real property may not be sold for an
amount that is less than the lesser of:
(1) the amount determined under subsection (f); or
(2) seventy-five percent (75%) of the gross assessed value of
the tract or item of real property, as determined on the most
recent assessment date.
(f) (h) For purposes of the sale, it is not necessary for the county
treasurer to first attempt to collect the real property taxes or special
assessments out of the personal property of the owner of the tract or
real property.
(g) (i) The county auditor shall serve as the clerk of the sale.
(h) (j) Real property certified to the county auditor under section
1(a)(2) of this chapter must be offered for sale in a different phase of
the tax sale or on a different day of the tax sale than the phase or day
during which other real property is offered for sale.
(i) (k) The public auction required under subsection (e) may be
conducted by electronic means, at the option of the county treasurer.
The electronic sale must comply with the other statutory requirements
of this section. If an electronic sale is conducted under this subsection,
the county treasurer shall provide access to the electronic sale by
providing computer terminals open to the public at a designated
location. A county treasurer who elects to conduct an electronic sale
may receive electronic payments and establish rules necessary to
secure the payments in a timely fashion. The county treasurer may not
add an additional cost of sale charge to a parcel for the purpose of
conducting the electronic sale.
for which the tract or item of real property was last offered for
sale and the property is not redeemed, the owner of record of the
tract or item of real property who is divested of ownership at the
time the tax deed is issued may have a right to the tax sale
surplus.
transferred by the county auditor to the county general fund and may
not be disbursed under subsection (b) if it is claimed more than three
(3) years after the date of its receipt.
(d) Upon the assignment of the certificate of sale to the purchaser,
the county auditor shall indicate on the certificate the amount for which
the certificate of sale was sold.
surplus fund under subsection (b) (c) is:
(1) a person described in subsection (b)(1) (c)(1) who acquired
the property from a delinquent taxpayer after the property was
sold at a tax sale under this chapter; or
(2) a person not described in subsection (b)(1), (c)(1), including
a person who acts under a power of attorney executed by the
person described in subsection (b)(1); (c)(1);
the county auditor may issue a warrant to the person only as directed
by the court having jurisdiction over the tax sale of the parcel for which
the surplus claim is made.
(d) (e) A court may direct the issuance of a warrant only:
(1) on petition by the claimant; and
(2) within three (3) years after the date of sale of the parcel in the
tax sale.
(e) (f) An amount deposited in the tax sale surplus fund shall be
transferred by the county auditor to the county general fund and may
not be disbursed under subsection (b) (c) if it is not claimed within the
three (3) year period after the date of its receipt.
(f) (g) If an amount applied to taxes under this section is later paid
out of the county general fund to the purchaser or the purchaser's
successor due to the invalidity of the sale, all the taxes shall be
reinstated and recharged to the tax duplicate and collected in the same
manner as if the property had not been offered for sale.
(g) (h) When a refund is made to any purchaser or purchaser's
successor by reason of the invalidity of a sale, the county auditor shall,
at the December settlement immediately following the refund, deduct
the amount of the refund from the gross collections in the taxing
district in which the land lies and shall pay that amount into the county
general fund.
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15. (a) The fiscal body of a
county may adopt an ordinance authorizing the county treasurer
to accept a bid on a tract or an item of real property offered for
sale under this chapter that is greater than or equal to the lesser of:
(1) the amount determined under section 5(f) of this chapter
for the tract or item of real property; or
(2) seventy-five percent (75%) of the gross assessed value of
the tract or item of real property, as determined on the most
recent assessment date.
(b) If the fiscal body of a county adopts an ordinance under
subsection (a) or repeals an ordinance adopted under subsection
(a), the fiscal body shall promptly deliver a copy of the ordinance
to the county treasurer and the county auditor.
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, interest, 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).
satisfied that the certificate did exist, the county auditor may make
payment in the manner provided in this section.
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.
(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.
(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.
(j) If the county executive makes the determination under subsection
(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.
given to the same parties and in the same manner as provided in section
4.5 of this chapter, except that, if notice is given by publication, only
one (1) publication is required. The notice required by this section is
considered sufficient if the notice is sent to the address required by
section 4.5(d) of this chapter. Any person owning or having an interest
in the tract or real property may file a written objection to the petition
with the court not later than thirty (30) days after the date the petition
was filed. If a written objection is timely filed, the court shall conduct
a hearing on the objection.
(b) Not later than sixty-one (61) days after the petition is filed under
subsection (a), the court shall enter an order directing the county
auditor (on the production of the certificate of sale and a copy of the
order) to issue to the petitioner a tax deed if the court finds that the
following conditions exist:
(1) The time of redemption has expired.
(2) The tract or real property has not been redeemed from the sale
before the expiration of the period of redemption specified in
section 4 of this chapter.
(3) Except with respect to a petition for the issuance of a tax deed
under a sale of the certificate of sale on the property under
IC 6-1.1-24-6.1, all taxes and special assessments, penalties, and
costs have been paid.
(4) The notices required by this section and section 4.5 of this
chapter have been given.
(5) The petitioner has complied with all the provisions of law
entitling the petitioner to a deed.
The county auditor shall execute deeds issued under this subsection in
the name of the state under the county auditor's name. If a certificate of
sale is lost before the execution of a deed, the county auditor shall issue
a replacement certificate if the county auditor is satisfied that the
original certificate existed.
(c) Upon application by the grantee of a valid tax deed in the same
court and under the same cause number in which the judgment of sale
was entered, the court shall enter an order to place the grantee of a
valid tax deed in possession of the real estate. The court may enter any
orders and grant any relief that is necessary or desirable to place or
maintain the grantee of a valid tax deed in possession of the real estate.
(d) Except as provided in subsections (e) and (f), if:
(1) the verified petition referred to in subsection (a) is timely
filed; and
(2) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure of the
petitioner under subsection (a) to fulfill the notice requirement of
subsection (a);
the court shall order the return of the amount, if any, by which the
purchase price exceeds the minimum bid on the property under
IC 6-1.1-24-5(e) IC 6-1.1-24-5 minus a penalty of twenty-five percent
(25%) of that excess. The petitioner is prohibited from participating in
any manner in the next succeeding tax sale in the county under
IC 6-1.1-24. The county auditor shall deposit penalties paid under this
subsection in the county general fund.
(e) Notwithstanding subsection (d), in all cases in which:
(1) the verified petition referred to in subsection (a) is timely
filed;
(2) the petitioner under subsection (a) has made a bona fide
attempt to comply with the statutory requirements under
subsection (b) for the issuance of the tax deed but has failed to
comply with these requirements;
(3) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure to
comply with these requirements; and
(4) the purchaser, the purchaser's successors or assignees, or the
purchaser of the certificate of sale under IC 6-1.1-24 files a claim
with the county auditor for refund not later than thirty (30) days
after the entry of the order of the court refusing to direct the
county auditor to execute and deliver the tax deed;
the county auditor shall not execute the deed but shall refund the
purchase money minus a penalty of twenty-five percent (25%) of the
purchase money from the county treasury to the purchaser, the
purchaser's successors or assignees, or the purchaser of the certificate
of sale under IC 6-1.1-24. The county auditor shall deposit penalties
paid under this subsection in the county general fund. All the
delinquent taxes and special assessments shall then be reinstated and
recharged to the tax duplicate and collected in the same manner as if
the property had not been offered for sale. The tract or item of real
property, if it is then eligible for sale under IC 6-1.1-24, shall be placed
on the delinquent list as an initial offering under IC 6-1.1-24.
(f) Notwithstanding subsections (d) and (e), the court shall not order
the return of the purchase price or any part of the purchase price if:
(1) the purchaser or the purchaser of the certificate of sale under
IC 6-1.1-24 has failed to provide notice or has provided
insufficient notice as required by section 4.5 of this chapter; and
(2) the sale is otherwise valid.
(g) A tax deed executed under this section 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 that accrue
subsequent to the sale. However, the estate is subject to all easements,
covenants, declarations, and other deed restrictions and laws governing
land use, including all zoning restrictions and liens and encumbrances
created or suffered by the purchaser at the tax sale. The deed 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) A tax deed issued under this section is incontestable except by
appeal from the order of the court directing the county auditor to issue
the tax deed filed not later than sixty (60) days after the date of the
court's order.
property assessments under subsection (b) or (c) if:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were due;
(2) the assessment or the assessment increase is made as the result
of error or neglect by the assessor or by any other official
involved with the assessment of property or the collection of
property taxes; and
(3) the assessment:
(A) would have been made on the normal assessment date if
the error or neglect had not occurred; or
(B) increase would have been included in the assessment on
the normal annual assessment date if the error or neglect had
not occurred.
under IC 6-1.1-22-9(a), on the day immediately following the due dates
of the first and second installments in each year following the year of
the initial delinquency, an additional penalty equal to ten percent (10%)
of any taxes remaining unpaid shall be added. With respect to property
taxes due in installments under IC 6-1.1-22-9.5, an additional penalty
equal to ten percent (10%) of any taxes remaining unpaid shall be
added on the day immediately following each date that succeeds the
last installment due date by:
(1) six (6) months; or
(2) a multiple of six (6) months.
(c) The penalties under subsection (b) are imposed only on the
principal amount of the delinquent taxes.
(d) If the department of local government finance determines that
an emergency has occurred which precludes the mailing of the tax
statement in any county at the time set forth in IC 6-1.1-22-8.1, the
department shall establish by order a new date on which the installment
of taxes in that county is due and no installment is delinquent if paid by
the date so established.
(e) If any due date falls on a Saturday, a Sunday, a national legal
holiday recognized by the federal government, or a statewide holiday,
the act that must be performed by that date is timely if performed by
the next succeeding day that is not a Saturday, a Sunday, or one (1) of
those holidays.
(f) Subject to subsections (g) and (h), a payment to the county
treasurer is considered to have been paid by the due date if the payment
is:
(1) received on or before the due date by the county treasurer or
a collecting agent appointed by the county treasurer;
(2) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) postmarked by the United States Postal Service as mailed
on or before the due date;
(3) deposited with a nationally recognized express parcel carrier
and is:
(A) properly addressed to the principal office of the county
treasurer; and
(B) verified by the express parcel carrier as:
(i) paid in full for final delivery; and
(ii) received by the express parcel carrier on or before the
due date;