Bill Text: IN HB1535 | 2011 | Regular Session | Introduced
Bill Title: Delinquent property tax sales.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-01-20 - First reading: referred to Committee on Ways and Means [HB1535 Detail]
Download: Indiana-2011-HB1535-Introduced.html
Citations Affected: IC 6-1.1; IC 36-1-11.
Synopsis: Delinquent property tax sales. Provides that a county
auditor's notice of a tax sale is not to state that the person redeeming
real property after the sale is required to pay the amount by which the
sales price exceeded the minimum bid. Revises the language of the
written statement that a bidder on property at a tax sale must sign
(which concerns the bidder's bid being applied to delinquent taxes
owed by the bidder) so as to make that statement consistent with the
redemption requirements of the law. Eliminates a provision that applied
only to tax sale property that was offered in 2006 and found to be
brownfield property. Provides that a person redeeming tax sale property
where a certificate of sale has been sold must pay the same amount as
a person redeeming property where no certificate of sale is involved.
Provides that a person redeeming tax sale property where a certificate
of sale has been sold must pay the same amount as a person redeeming
property when no certificate of sale is involved. Provides that when a
person who purchases real property at a tax sale fails to pay the bid: (1)
the county treasurer, instead of the county prosecuting attorney, must
initiate an action to recover the civil penalty; (2) the suit must be
initiated in the name of the county and not the treasurer of state; and (3)
the person may be found liable for treble damages, costs, and
reasonable attorney's fees. Provides that an owner, to redeem tax sale
property, must pay 10% per annum on the amount by which the
purchase price of the property exceeded the minimum bid but is not
required to pay the amount by which the purchase price of the property
exceeded the minimum bid. Provides that in the case of a property
owned by the county after a tax sale, the disposing agent may
determine a minimum bid based on two appraisals and the disposing
agent's knowledge of the property.
Effective: July 1, 2011.
January 20, 2011, 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)
(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.
(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.
(1) A person who:
(A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe premises in the county in which a sale is held under this chapter; and
(B) is subject to an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5) regarding which the conditions set forth in IC 36-7-9-10(a)(1) through IC 36-7-9-10(a)(4) exist.
(2) A person who:
(A) owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in an unsafe building or unsafe premises in the county in which a sale is held under this chapter; and
(B) is subject to an order issued under IC 36-7-9-5(a), other than an order issued under IC 36-7-9-5(a)(2), IC 36-7-9-5(a)(3), IC 36-7-9-5(a)(4), or IC 36-7-9-5(a)(5), regarding which the conditions set forth in IC 36-7-9-10(b)(1) through IC 36-7-9-10(b)(4) exist.
(3) A person who is the defendant in a court action brought under IC 36-7-9-18, IC 36-7-9-19, IC 36-7-9-20, IC 36-7-9-21, or IC 36-7-9-22 in the county in which a sale is held under this chapter that has resulted in a judgment in favor of the plaintiff and the unsafe condition that caused the action to be brought has not been corrected.
(4) A person who has any of the following relationships to a person, partnership, corporation, or legal entity described in
(A) A partner of a partnership.
(B) An officer or majority stockholder of a corporation.
(C) The person who directs the activities or has a majority ownership in a legal entity other than a partnership or corporation.
(5) A person who, in the county in which a sale is held under this chapter, owes:
(A) delinquent taxes;
(B) special assessments;
(C) penalties;
(D) interest; or
(E) costs directly attributable to a prior tax sale;
on a tract or an item of real property listed under section 1 of this chapter.
(6) A person who owns a fee interest, a life estate interest, or the equitable interest of a contract purchaser in a vacant or abandoned structure subject to an enforcement order under IC 32-30-6, IC 32-30-7, IC 32-30-8, or IC 36-7-9.
(7) A person who is an agent of the person described in this subsection.
(b) A person subject to this section may not purchase a tract offered for sale under section 5 or 6.1 of this chapter. However, this section does not prohibit a person from bidding on a tract that is owned by the
person and offered for sale under section 5 of this chapter.
(c) The county treasurer shall require each person who will be
bidding at the tax sale to sign a statement in a form substantially
similar to the following:
"Indiana law prohibits a person who owes delinquent taxes,
special assessments, penalties, interest, or costs directly
attributable to a prior tax sale, from purchasing tracts or items of
real property at a tax sale. I hereby affirm under the penalties for
perjury that I do not owe delinquent taxes, special assessments,
penalties, interest, costs directly attributable to a prior tax sale,
amounts from a final adjudication in favor of a political
subdivision in this county, any civil penalties imposed for the
violation of a building code or ordinance of this county, or any
civil penalties imposed by a health department in this county.
Further, I hereby acknowledge that any successful bid I make in
violation of this statement is subject to forfeiture. In the event of
forfeiture, the amount of by which my bid exceeds the minimum
bid, if any, shall be applied to the delinquent taxes, special
assessments, penalties, interest, costs, judgments, or civil
penalties I owe, and a certificate will be issued to the county
executive.".
(d) If a person purchases a tract that the person was not eligible to
purchase under this section, the sale of the property is subject to
forfeiture. If the county treasurer determines or is notified not more
than six (6) months after the date of the sale that the sale of the
property should be forfeited, the county treasurer shall:
(1) notify the person in writing that the sale is subject to forfeiture
if the person does not pay the amounts that the person owes
within thirty (30) days of the notice;
(2) if the person does not pay the amounts that the person owes
within thirty (30) days after the notice, apply the surplus amount
of the person's bid that exceeds the minimum bid to the person's
delinquent taxes, special assessments, penalties, and interest;
(3) remit the amounts owed from a final adjudication or civil
penalties in favor of a political subdivision to the appropriate
political subdivision; and
(4) notify the county auditor that the sale has been forfeited.
Upon being notified that a sale has been forfeited, the county auditor
shall issue a certificate to the county executive under section 6 of this
chapter.
(e) A county treasurer may decline to forfeit a sale under this section
because of inadvertence or mistake, lack of actual knowledge by the
bidder, substantial harm to other parties with interests in the tract or
item of real property, or other substantial reasons. If the treasurer
declines to forfeit a sale, the treasurer shall:
(1) prepare a written statement explaining the reasons for
declining to forfeit the sale; and
(2) retain the written statement as an official record.
(f) If a sale is forfeited under this section and the tract or item of real
property is redeemed from the sale, the county auditor shall deposit the
amount of the redemption into the county general fund and notify the
county executive of the redemption. Upon being notified of the
redemption, the county executive shall surrender the certificate to the
county auditor.
(b) When a county executive acquires a lien under this section, the county auditor shall issue a tax sale certificate to the county executive in the manner provided in section 9 of this chapter. The county auditor shall date the certificate the day that the county executive acquires the lien. When a county executive acquires a certificate under this section, the county executive has the same rights as a purchaser.
(c) When a lien is acquired by a county executive under this section, no money shall be paid by the county executive. However, each of the taxing units having an interest in the taxes on the tract shall be charged with the full amount of all delinquent taxes due them.
(1) By resolution, identify properties:
(A) that are described in section 6.7(a) of this chapter; and
(B) concerning which the county executive desires to offer to the public the certificates of sale acquired by the county executive under section 6 of this chapter.
(2) In conformity with IC 5-3-1-4, publish:
(A) notice of the date, time, and place for a public sale; and
(B) a listing of parcels on which certificates will be offered by parcel number and minimum bid amount;
once each week for three (3) consecutive weeks, with the final advertisement being not less than thirty (30) days before the sale date. The expenses of the publication shall be paid out of the county general fund.
(3) Sell each certificate of sale covered by the resolution for a price that:
(A) is less than the minimum sale price prescribed by section 5(e) of this chapter; and
(B) includes any costs to the county executive directly attributable to the sale of the certificate of sale.
(b) Notice of the list of properties prepared under subsection (a) and the date, time, and place for the public sale of the certificates of sale shall be published in accordance with IC 5-3-1. The notice must:
(1) include a description of the property by parcel number and common address;
(2) specify that the county executive will accept bids for the certificates of sale for the price referred to in subsection (a)(3);
(3) specify the minimum bid for each parcel;
(4) include a statement that a person redeeming each tract or item of real property after the sale of the certificate must pay:
(A) one hundred ten percent (110%) of the amount of the minimum bid under section 5(e) of this chapter for which the tract or item of real property was last offered for sale if the tract or item of real property is redeemed not more than six (6) months after the date of sale;
(B)
(C) ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid;
(5) include a statement that, if the certificate is sold for an amount more than the minimum bid under section 5(e) of this chapter 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.
(1) the sum of the amounts prescribed in subsections (b) through (e); or
(2) the amount prescribed in subsection (f);
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), 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), 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), 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), 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) 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), the total amount required for redemption is the amount
determined under IC 6-1.1-24-6.1(b)(4).
(b) The disposing agent shall first have the property appraised by two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the value
of the property.
The appraisers shall make a joint appraisal of the property.
(c) After the property is appraised, the disposing agent shall publish
a notice in accordance with IC 5-3-1 setting forth the terms and
conditions of the sale, and, when subsection (e) is employed, may
engage an auctioneer licensed under IC 25-6.1 to advertise the sale and
to conduct a public auction. The advertising conducted by the
auctioneer is in addition to any other notice required by law and shall
include a detailed description of the property to be sold stating the key
numbers, if any, of the tracts within that property. If the disposing agent
determines that the best sale of the property can be made by letting the
bidders determine certain conditions of the sale (such as required
zoning or soil or drainage conditions) as a prerequisite to purchasing
the property, the disposing agent may permit the bidders to specify
those conditions. The notice must state the following:
(1) Bids will be received beginning on a specific date.
(2) The sale will continue from day to day for a period determined
by the disposing agent of not more than sixty (60) days.
(3) The property may not be sold to a person who is ineligible
under section 16 of this chapter.
(4) A bid submitted by a trust (as defined in IC 30-4-1-1(a)) must
identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(d) A bid must be open to public inspection. A bidder may raise the
bidder's bid, and subject to subsection (e), that raise takes effect after
the board has given written notice of that raise to the other bidders.
(e) The disposing agent may also engage an auctioneer licensed
under IC 25-6.1 to conduct a sale by public auction. The auction may
be conducted either at the time for beginning the sale in accordance
with the public notice or after the beginning of the sale. The disposing
agent shall give each bidder who has submitted a bid written notice of
the time and place of the auction.
(f) The disposing agent may, before expiration of the time set out in
the notice, sell the property to the highest and best bidder. The highest
and best bidder must have complied with any requirement under
subsection (c)(4). However, the disposing agent may sell the property
for less than ninety percent (90%) of the appraised value of the tracts
only after having an additional notice of the sale published in
accordance with subsection (c). The disposing agent may reject all
bids.
(g) If the disposing agent determines that, in the exercise of good
business judgment, the disposing agent should hire a broker or
auctioneer to sell the property, the disposing agent may do so and pay
the broker or auctioneer a reasonable compensation out of the gross
proceeds of the sale. However, the disposing agent must still comply
with the procedural requirements of this section. The disposing agent
may hire one (1) of the appraisers as the broker or auctioneer.
(b) The disposing agent shall first have the property appraised by two (2) appraisers. The appraisers must be:
(1) professionally engaged in making appraisals;
(2) licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the value of the property.
The appraisers shall make a joint appraisal of the property. After the property is appraised, the disposing agent shall determine a minimum bid for the property based on the appraisals and the disposing agent's knowledge of the property.
(c) Except for determining a minimum bid under this section, the disposing agent must comply with section 4 of this chapter.
