Bill Text: IN HB1300 | 2010 | Regular Session | Introduced
Bill Title: Waiver of property tax penalties.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-13 - First reading: referred to Committee on Ways and Means [HB1300 Detail]
Download: Indiana-2010-HB1300-Introduced.html
Citations Affected: IC 6-1.1-24; IC 6-1.1-37.
Synopsis: Waiver of property tax penalties. Provides that if all
delinquent taxes and special assessments on real property (other than
industrial property) are paid before a tax sale after June 30, 2010, and
before July 1, 2011, the real property may not be sold at the tax sale,
and penalties and costs relating to the tax sale are not due on the real
property. Waives penalties incurred on delinquent property taxes first
due and payable in 2010 on real property (other than industrial
property) if all delinquent taxes and special assessments on the real
property are paid before July 1, 2011.
Effective: Upon passage.
January 13, 2010, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(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 (other
than real property classified as industrial property under the
rules of the department of local government finance) subject
to sale under this chapter after June 30, 2010, and before July
1, 2011, an explanation of the option for removal of the tract
or item of real property from the tax sale under section 5(j) of
this chapter.
(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.
auditor shall send a notice of the sale by certified mail, return receipt
requested, to:
(1) the owner of record of real property with a single owner; or
(2) at least one (1) of the owners, as of the date of certification, of
real property with multiple owners;
at the last address of the owner for the property as indicated in the
records of the county auditor on the date that the tax sale list is
certified. In addition, the county auditor shall mail a duplicate notice
to the owner of record, as described in subdivisions (1) and (2), by first
class mail to the owners from whom the certified mail return receipt
was not signed and returned. Additionally, the county auditor may
determine that mailing a first class notice to or serving a notice on the
property is a reasonable step to notify the owner, if the address of the
owner is not the same address as the physical location of the property.
If both notices are returned due to incorrect or insufficient addresses,
the county auditor shall research the county auditor records to
determine a more complete or accurate address. If a more complete or
accurate address is found, the county auditor shall resend the notices
to the address that is found in accordance with this section. Failure to
obtain a more complete or accurate address does not invalidate an
otherwise valid sale. The county auditor shall prepare the notice in the
form prescribed by the state board of accounts. The notice must set
forth the key number, if any, of the real property and a street address,
if any, or other common description of the property other than a legal
description. The notice must include the statement set forth in section
2(a)(4) of this chapter. With respect to a tract or an item of real
property (other than real property classified as industrial property
under the rules of the department of local government finance)
subject to sale under this chapter after June 30, 2010, and before
July 1, 2011, the notice must include an explanation of the option
for removal of the tract or item of real property from the tax sale
under section 5(j) of this chapter. 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.
(b) The sale must:
(1) be held at the times and place stated in the notice of sale; and
(2) not extend beyond one hundred seventy-one (171) days after the list containing the tract or item of real property is certified to the county auditor.
(c) A tract or an item of real property may not be sold under this chapter to collect:
(1) delinquent personal property taxes; or
(2) taxes or special assessments which are chargeable to other real property.
(d) Subject to subsection (j), a tract or an item of real property may not be sold under this chapter if all the delinquent taxes, penalties, and special assessments on the tract or an item of real property and the amount prescribed by section 2(a)(3)(D) of this chapter, reflecting the costs incurred by the county due to the sale, are paid before the time of sale.
(e) The county treasurer shall sell the tract or real property, subject to the right of redemption, to the highest bidder at public auction. However, 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.
(f) 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) The county auditor shall serve as the clerk of the sale.
(h) 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) 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.
(j) With respect to a tract or an item of real property (other than real property classified as industrial property under the rules of the department of local government finance) subject to sale under this chapter after June 30, 2010, and before July 1, 2011, if all the delinquent taxes and special assessments on the tract or item of real property are paid before the time of sale:
(1) the tract or item of real property may not be sold in the sale under this chapter; and
(2) the obligation under subsection (d) for payment of the following that would otherwise apply is canceled:
(A) Penalties that accrued as the result of the delinquency in the payment of taxes or special assessments.
(B) The amounts described in section 2(a)(3)(D) and 2(a)(3)(E) of this chapter.
(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 originally due;
(2) the assessment upon which a taxpayer has been paying taxes
under IC 6-1.1-15-10(a)(1) or IC 6-1.1-15-10(a)(2) while a
petition for review or a judicial proceeding has been pending is
less than the assessment that results from the final determination
of the petition for review or judicial proceeding; or
(3) the collection of certain ad valorem property taxes has been
enjoined under IC 33-26-6-2, and under the final determination of
the petition for judicial review the taxpayer is liable for at least
part of those taxes.
(b) Except as provided in subsections (c) and (g), a taxpayer shall
pay interest on the taxes the taxpayer is required to pay as a result of an
action or a determination described in subsection (a) at the rate of ten
percent (10%) per year from the original due date or dates for those
taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(c) Except as provided in subsection (g), a taxpayer shall pay
interest on the taxes the taxpayer is ultimately required to pay in excess
of the amount that the taxpayer is required to pay under
IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
proceeding has been pending at the overpayment rate established under
Section 6621(c)(1) of the Internal Revenue Code in effect on the
original due date or dates for those taxes from the original due date or
dates for those taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(d) With respect to an action or determination described in
subsection (a), the taxpayer shall pay the taxes resulting from that
action or determination and the interest prescribed under subsection (b)
or (c) on or before:
(1) the next May 10; or
(2) the next November 10;
whichever occurs first.
(e) A taxpayer shall, to the extent that the penalty is not waived
under section 10.1, 10.5, or 10.7 of this chapter, begin paying the
penalty prescribed in section 10 of this chapter on the day after the date
for payment prescribed in subsection (d) if:
(1) the taxpayer has not paid the amount of taxes resulting from the action or determination; and
(2) the taxpayer either:
(A) received notice of the taxes the taxpayer is required to pay as a result of the action or determination at least thirty (30) days before the date for payment; or
(B) voluntarily signed and filed an assessment return for the taxes.
(f) If subsection (e) does not apply, a taxpayer who has not paid the amount of taxes resulting from the action or determination shall, to the extent that the penalty is not waived under section 10.1, 10.5, or 10.7 of this chapter, begin paying the penalty prescribed in section 10 of this chapter on:
(1) the next May 10 which follows the date for payment prescribed in subsection (d); or
(2) the next November 10 which follows the date for payment prescribed in subsection (d);
whichever occurs first.
(g) A taxpayer is not subject to the payment of interest on real 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.
(1) If:
(A) an installment of real property taxes is completely paid on
or before the date thirty (30) days after the due date; and
(B) the taxpayer is not liable for delinquent property taxes first
due and payable in a previous installment for the same parcel;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(2) If:
(A) an installment of personal property taxes is completely
paid on or before the date thirty (30) days after the due date;
and
(B) the taxpayer is not liable for delinquent property taxes first
due and payable in a previous installment for a personal
property tax return for property in the same taxing district;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(3) If subdivision (1) or (2) does not apply, the amount of the
penalty is equal to ten percent (10%) of the amount of delinquent
taxes.
(b) With respect to property taxes due in two (2) equal installments
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;
(4) deposited to be mailed through United States registered mail,
United States certified mail, or United States certificate of
mailing:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) with a date of registration, certification, or certificate, as
evidenced by any record authenticated by the United States
Postal Service, on or before the due date; or
(5) made by an electronic funds transfer and the taxpayer's bank
account is charged on or before the due date.
For purposes of this subsection, "postmarked" does not mean the date
printed by a postage meter that affixes postage to the envelope or
package containing a payment.
(g) If a payment is mailed through the United States mail and is
physically received after the due date without a legible correct
postmark, the person who mailed the payment is considered to have
made the payment on or before the due date if the person can show by
reasonable evidence that the payment was deposited in the United
States mail on or before the due date.
(h) If a payment is sent via the United States mail or a nationally
recognized express parcel carrier but is not received by the designated
recipient, the person who sent the payment is considered to have made
the payment on or before the due date if the person:
(1) can show by reasonable evidence that the payment was deposited in the United States mail, or with the express parcel carrier, on or before the due date; and
(2) makes a duplicate payment within thirty (30) days after the date the person is notified that the payment was not received.
(1) property taxes first due and payable in 2010 with respect to a tract or an item of real property (other than real property classified as industrial property under the rules of the department of local government finance); and
(2) penalties added under section 10 of this chapter to a delinquent installment of property taxes described in subdivision (1).
(b) The county treasurer shall waive all penalties added to a delinquent property tax installment if all the delinquent taxes and special assessments on the tract or item of real property are paid before July 1, 2011.
