Citations Affected: IC 5-13; IC 6-1.1; IC 36-2.
Effective: July 1, 2012.
January 4, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
January 19, 2012, amended, reported favorably _ Do Pass.
January 24, 2012, read second time, amended, ordered engrossed.
to be listed on a tax sale notice if the delinquent property taxes or special assessments are $25 or less. Provides that the interest rate owed on property tax refunds or when a taxpayer owes more property taxes because of an assessment increase after the tax due date, an appeal, or when collection has been enjoined by court order is equal to the rate established by the commissioner of the department of state revenue for refunds on excess state tax payments. Requires county treasurers and county auditors to attend training sessions approved by the state board of accounts. Provides that money in the county elected officials training fund may be used to provide this training. (Under current law, the fund is used to provide training to county recorders and surveyors.)
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
property taxes or special assessments, as shown on the tax
duplicate or special assessment records;
a statement in the form required under subsection (b). However, for
property taxes first due and payable in 2008, the county treasurer may
choose to use a tax statement that is different from the tax statement
prescribed by the department under subsection (b). If a county chooses
to use a different tax statement, the county must still transmit (with the
tax bill) the statement in either color type or black-and-white type.
(b) The department of local government finance shall prescribe a
form, subject to the approval of the state board of accounts, for the
statement under subsection (a) that includes at least the following:
(1) A statement of the taxpayer's current and delinquent taxes and
special assessments.
(2) A breakdown showing the total property tax and special
assessment liability and the amount of the taxpayer's liability that
will be distributed to each taxing unit in the county.
(3) An itemized listing for each property tax levy, including:
(A) the amount of the tax rate;
(B) the entity levying the tax owed; and
(C) the dollar amount of the tax owed.
(4) Information designed to show the manner in which the taxes
and special assessments billed in the tax statement are to be used.
(5) A comparison showing any change in the assessed valuation
for the property as compared to the previous year.
(6) A comparison showing any change in the property tax and
special assessment liability for the property as compared to the
previous year. The information required under this subdivision
must identify:
(A) the amount of the taxpayer's liability distributable to each
taxing unit in which the property is located in the current year
and in the previous year; and
(B) the percentage change, if any, in the amount of the
taxpayer's liability distributable to each taxing unit in which
the property is located from the previous year to the current
year.
(7) An explanation of the following:
(A) Homestead credits under IC 6-1.1-20.4, IC 6-3.5-6-13, or
another law that are available in the taxing district where the
property is located.
(B) All property tax deductions that are available in the taxing
district where the property is located.
(C) The procedure and deadline for filing for any available
homestead credits under IC 6-1.1-20.4, IC 6-3.5-6-13, or
another law and each deduction.
(D) The procedure that a taxpayer must follow to:
(i) appeal a current assessment; or
(ii) petition for the correction of an error related to the
taxpayer's property tax and special assessment liability.
(E) The forms that must be filed for an appeal or a petition
described in clause (D).
(F) 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.
(G) Notice that an appeal described in clause (D) requires
evidence relevant to the true tax value of the taxpayer's
property as of the assessment date that is the basis for the taxes
payable on that property.
The department of local government finance shall provide the
explanation required by this subdivision to each county treasurer.
(8) A checklist that shows:
(A) homestead credits under IC 6-1.1-20.4, IC 6-3.5-6-13, or
another law and all property tax deductions; and
(B) whether each homestead credit and property tax deduction
applies in the current statement for the property transmitted
under subsection (a).
(9) This subdivision applies to any property for which a deduction
or credit is listed under subdivision (8) if the notice required
under this subdivision was not provided to a taxpayer on a
reconciling statement under IC 6-1.1-22.5-12. The statement must
include in 2010, 2011, and 2012 a notice that must be returned by
the taxpayer to the county auditor with the taxpayer's verification
of the items required by this subdivision. The notice must explain
the tax consequences and applicable penalties if a taxpayer
unlawfully claims a standard deduction under IC 6-1.1-12-37 on:
(A) more than one (1) parcel of property; or
(B) property that is not the taxpayer's principal place of
residence or is otherwise not eligible for the standard
deduction.
The notice must include a place for the taxpayer to indicate, under
penalties of perjury, for each deduction and credit listed under
subdivision (8), whether the property is eligible for the deduction
or credit listed under subdivision (8). The notice must also
include a place for each individual who qualifies the property for
a deduction or credit listed in subdivision (8) to indicate the name
of the individual and the name of the individual's spouse (if any),
as the names appear in the records of the United States Social
Security Administration for the purposes of the issuance of a
Social Security card and Social Security number (or that they use
as their legal names when they sign their names on legal
documents), and either the last five (5) digits of each individual's
Social Security number or, if an individual does not have a Social
Security number, the numbers required from the individual under
IC 6-1.1-12-37(e)(4)(B). The notice must explain that the
taxpayer must complete and return the notice with the required
information and that failure to complete and return the notice may
result in disqualification of property for deductions and credits
listed in subdivision (8), must explain how to return the notice,
and must be on a separate form printed on paper that is a different
color than the tax statement. The notice must be prepared in the
form prescribed by the department of local government finance
and include any additional information required by the
department of local government finance. This subdivision expires
January 1, 2015.
(c) The county treasurer may mail or transmit the statement one (1)
time each year at least fifteen (15) days before the date on which the
first or only installment is due. Whenever a person's tax liability for a
year is due in one (1) installment under IC 6-1.1-7-7 or section 9 of this
chapter, a statement that is mailed must include the date on which the
installment is due and denote the amount of money to be paid for the
installment. Whenever a person's tax liability is due in two (2)
installments, a statement that is mailed must contain the dates on which
the first and second installments are due and denote the amount of
money to be paid for each installment. If a statement is returned to the
county treasurer as undeliverable and the forwarding order is expired,
the county treasurer shall notify the county auditor of this fact. Upon
receipt of the county treasurer's notice, the county auditor may, at the
county auditor's discretion, treat the property as not being eligible for
any deductions under IC 6-1.1-12 or any homestead credits under
IC 6-1.1-20.4 and IC 6-3.5-6-13.
(d) All payments of property taxes and special assessments shall be
made to the county treasurer. The county treasurer, when authorized by
the board of county commissioners, may open temporary offices for the
collection of taxes in cities and towns in the county other than the
county seat.
(e) The county treasurer, county auditor, and county assessor shall
cooperate to generate the information to be included in the statement
under subsection (b).
(f) The information to be included in the statement under subsection
(b) must be simply and clearly presented and understandable to the
average individual.
(g) After December 31, 2007, a reference in a law or rule to
IC 6-1.1-22-8 (expired January 1, 2008, and repealed) shall be treated
as a reference to this section.
(h) Transmission of statements and other information under this
subsection applies in a county only if the county legislative body adopts
an authorizing ordinance. Subject to subsection (i), in a county in
which an ordinance is adopted under this subsection for property taxes
and special assessments first due and payable after 2009, a person may
direct the county treasurer and county auditor to transmit the following
to the person by electronic mail:
(1) A statement that would otherwise be sent by the county
treasurer to the person by regular mail under subsection (a)(1),
including a statement that reflects installment payment due dates
under section 9.5 or 9.7 of this chapter.
(2) A provisional tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under
IC 6-1.1-22.5-6.
(3) A reconciling tax statement that would otherwise be sent by
the county treasurer to the person by regular mail under any of the
following:
(A) Section 9 of this chapter.
(B) Section 9.7 of this chapter.
(C) IC 6-1.1-22.5-12, including a statement that reflects
installment payment due dates under IC 6-1.1-22.5-18.5.
(4) A statement that would otherwise be sent by the county
auditor to the person by regular mail under IC 6-1.1-17-3(b).
(5) (4) Any other information that:
(A) concerns the property taxes or special assessments; and
(B) would otherwise be sent:
(i) by the county treasurer or the county auditor to the person
by regular mail; and
(ii) before the last date the property taxes or special
assessments may be paid without becoming delinquent.
The information listed in this subsection may be transmitted to a
person by using electronic mail that provides a secure Internet link
to the information.
(i) For property with respect to which more than one (1) person is
liable for property taxes and special assessments, subsection (h) applies
only if all the persons liable for property taxes and special assessments
designate the electronic mail address for only one (1) individual
authorized to receive the statements and other information referred to
in subsection (h).
(j) Before 2010, the department of local government finance shall
create a form to be used to implement subsection (h). The county
treasurer and county auditor shall:
(1) make the form created under this subsection available to the
public;
(2) transmit a statement or other information by electronic mail
under subsection (h) to a person who, at least thirty (30) days
before the anticipated general mailing date of the statement or
other information, files the form created under this subsection:
(A) with the county treasurer; or
(B) with the county auditor; and
(3) publicize the availability of the electronic mail option under
this subsection through appropriate media in a manner reasonably
designed to reach members of the public.
(k) The form referred to in subsection (j) must:
(1) explain that a form filed as described in subsection (j)(2)
remains in effect until the person files a replacement form to:
(A) change the person's electronic mail address; or
(B) terminate the electronic mail option under subsection (h);
and
(2) allow a person to do at least the following with respect to the
electronic mail option under subsection (h):
(A) Exercise the option.
(B) Change the person's electronic mail address.
(C) Terminate the option.
(D) For a person other than an individual, designate the
electronic mail address for only one (1) individual authorized
to receive the statements and other information referred to in
subsection (h).
(E) For property with respect to which more than one (1)
person is liable for property taxes and special assessments,
designate the electronic mail address for only one (1)
individual authorized to receive the statements and other
information referred to in subsection (h).
(l) The form created under subsection (j) is considered filed with the
county treasurer or the county auditor on the postmark date or on the
date it is electronically submitted. If the postmark is missing or
illegible, the postmark is considered to be one (1) day before the date
of receipt of the form by the county treasurer or the county auditor.
(m) The county treasurer shall maintain a record that shows at least
the following:
(1) Each person to whom a statement or other information is
transmitted by electronic mail under this section.
(2) The information included in the statement.
(3) Whether the person received the statement. county treasurer
received a notice that the person's electronic mail was
undeliverable.
IC 36-1-2-6) may at any time adopt an ordinance to allow all county
taxpayers to pay one (1) or more installments of property taxes by any
combination of the following:
(1) Automatic monthly deductions from an account of the
taxpayer that is held by a financial institution.
(2) making payments under a monthly installment payment plan
during a designated payment period.
(f) (g) An ordinance adopted under subsection (e): (f):
(1) may apply to more than one (1) calendar year; and
(2) must include at least the following:
(A) Identification of the property tax installment or
installments and designation of the months of the payment
period for which payment
(i) by automatic deduction from an account of the taxpayer
that is held by a financial institution; or
(ii) under a monthly installment payment plan
is authorized.
(B) Provisions for notice to county taxpayers of the option to
pay one (1) or more property tax installments
(i) by automatic deduction from an account of the taxpayer
that is held by a financial institution; or
(ii) under a monthly installment payment plan.
(C) Authority for the county treasurer to make available to
county taxpayers a form to be completed by a taxpayer and
submitted to the county treasurer to:
(i) direct the county treasurer to accept payment of the
taxpayer's property taxes by automatic monthly deduction
during the payment period from an account of the taxpayer
that is held by a financial institution; and
(ii) authorize the financial institution that holds the
taxpayer's account to deduct monthly during the designated
payment period the appropriate amount from the account
and to pay that amount to the county treasurer.
However, this clause applies only if the county fiscal body has
adopted an ordinance under this section to allow taxpayers to
pay property taxes by automatic monthly deductions during
the designated payment period from an account of the
taxpayer that is held by a financial institution.
(D) Authority for the county treasurer to accept payment of the
taxpayer's property taxes under a monthly installment plan. on
a monthly basis during the designated payment period
either by written instrument or electronically. However,
this clause applies only if the county fiscal body has adopted
an ordinance under this section to allow taxpayers to pay
property taxes by monthly installment payments under a
monthly installment plan. on a monthly basis during the
designated payment period either by written instrument or
electronically.
An ordinance adopted under subsection (e) (f) may include a provision
authorizing taxpayers to make monthly deductions or monthly
installment payments in an amount determined by the taxpayer that is
different from the amount otherwise determined by the county treasurer
under subsection (h), (i), (j), or (k), or (l).
(g) (h) If an ordinance is adopted under subsection (e) (f) to allow
taxpayers to pay property taxes by automatic monthly deductions
during the designated payment period from an account of the
taxpayer that is held by a financial institution, the county treasurer shall
provide to each county taxpayer that submits to the county treasurer the
form referred to in subsection (f)(2)(C) (g)(2)(C) a statement that
includes at least the following:
(1) The amount to be deducted monthly from the taxpayer's
account.
(2) The designated payment period and identification of the day
each month, as chosen by the taxpayer, when the deduction will
be made.
(3) A calculation of the amount to be deducted.
(4) An explanation of the manner in which property taxes for the
current year will be reconciled under subsection (n) (o) and notice
that any property tax payments for the current year made by the
taxpayer by means other than automatic deduction from the
taxpayer's account will be taken into account in the reconciliation.
(5) An explanation of the penalties that apply if there are
insufficient funds in the taxpayer's account to cover one (1) or
more automatic deductions.
(h) (i) This subsection applies only if the county treasurer
determines that at the time the calculation under subsection (g)(3)
(h)(3) is made the amount of tax liability for the current year has not
been determined. Subject to subsections (i) and (j) and (k), the county
treasurer shall do the following:
(1) Determine the following:
(A) For a parcel of real property, the most recently determined
amount of tax liability that applied to the parcel for the
preceding year.
(B) For a personal property return, the most recently
determined amount of tax liability that applied for the personal
property return for the same location for the preceding year.
(C) For distributable property, the most recently determined
amount of tax liability that applied with respect to the
statement filed by the taxpayer under IC 6-1.1-8-19 for the
preceding year.
(D) For a mobile home subject to IC 6-1.1-7, the most recently
determined amount of tax liability that applied to the mobile
home for the preceding year.
(2) Determine the amount of the monthly deduction from the
account of the taxpayer that is held by a financial institution or the
amount payment due under a monthly installment payment plan
in the amount determined in the last STEP of by using the
following STEPS:
STEP ONE: Determine under subdivision (1) the amount of
tax liability that applied for the preceding year.
STEP TWO: Determine the quotient of:
(i) the number of property tax installments for the current
year identified in the ordinance under subsection (f)(2)(A);
(g)(2)(A); divided by
(ii) the total number of property tax installments for the
current year.
STEP THREE: Multiply the STEP ONE result by the STEP
TWO result.
STEP FOUR: Determine the quotient of:
(i) the STEP THREE result; divided by
(ii) the number of monthly deductions or, in the case of
payments under a monthly installment plan, the number of
monthly installments. months in the designated payment
period.
(i) (j) The county treasurer may determine the monthly deduction or
the amount of the monthly installment payment due under a monthly
installment payment plan in an amount different from the amount
determined under subsection (h) (i) if the county treasurer determines
that changes in circumstances have caused the amount determined
under subsection (h) (i) to differ substantially from the tax liability
likely to be determined for the current year.
(j) (k) This subsection applies only if before an ordinance is adopted
under subsection (e) (f) the county treasurer determines to use
provisional property tax statements under IC 6-1.1-22.5 for the current
year. For purposes of determining the amount of the monthly deduction
from the account of the taxpayer that is held by a financial institution
or the amount of the taxpayer's monthly installment payment under a
monthly installment payment plan, the county treasurer shall substitute
for the tax liability that applied to the parcel for the preceding year
under subsection (h) (i) the tax liability to be indicated on the
provisional statement.
(k) (l) This subsection applies only if the county treasurer
determines that at the time the calculation under subsection (g)(3)
(h)(3) is made the amount of tax liability for the current year has been
determined. The amount of the monthly deduction from the account of
the taxpayer that is held by a financial institution or the amount of the
taxpayer's monthly installment payment under a monthly installment
payment plan is the amount of the tax liability for the current year
payable in the installment or installments identified in the ordinance
under subsection (f)(2)(A) (g)(2)(A) divided by the number of monthly
deductions. months in the designated payment period.
(l) (m) Tax liability paid under this section by automatic deduction
from an account of the taxpayer that is held by a financial institution is
not finally discharged and the person has not paid the tax until the
taxpayer's account is charged for the payment.
(m) (n) Penalties apply under IC 6-1.1-37-10 as specified in this
section to taxes payable by automatic deduction from an account of the
taxpayer that is held by a financial institution or by monthly installment
payments under a monthly installment payment plan under this
section.
(n) (o) After the last monthly deduction from an account of a
taxpayer that is held by a financial institution or last monthly
installment payment under a monthly installment payment plan under
this section for the current year has been made and after the amount of
tax liability for the current year has been determined, the county
treasurer shall issue a reconciling statement to the taxpayer. Each
reconciling statement must indicate at least the following:
(1) The sum of:
(A) the taxpayer's actual tax liability for the current year; plus
(B) any penalty that applies for the current year.
(2) The total amount paid for the current year by automatic
deductions, monthly installment payments under a monthly
installment payment plan, and by means other than automatic
deductions or under a monthly installment payments. payment
plan.
(3) If the amount under subdivision (1) exceeds the amount under
subdivision (2), the deficiency is payable by the taxpayer:
(A) as a final reconciliation of the tax liability; and
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 9. (a) This section applies when:
(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 established by the commissioner of the
department of state revenue under IC 6-8.1-10-1 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;
a county elected officials training fund. The county fiscal body shall
appropriate money from the fund.
(c) The fund consists of money deposited under IC 36-2-7.5-6(c)(3)
and any other sources required or permitted by law. Money in the fund
does not revert to the county general fund.
(d) Money in the fund shall be used solely to provide training of
county elected officials required by IC 36-2-9-2.5, IC 36-2-9.5-2.5,
IC 36-2-10-2.5, IC 36-2-11-2.5, IC 36-2-12-2.5, and other similar laws.