Bill Text: IN SB0155 | 2011 | Regular Session | Engrossed
Bill Title: Tax liens.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0155 Detail]
Download: Indiana-2011-SB0155-Engrossed.html
Citations Affected: IC 6-8.1; IC 32-28.
Synopsis: Tax liens. Requires the department to release a judgment if:
(1) it has been fully satisfied; or (2) the tax assessment or issuance of
the tax warrant was erroneous. Provides that a tax lien on real property
is void if the person owing the tax provides written notice to the
department to file an action to foreclose the lien, and the department
fails to file an action to foreclose the lien not later than 180 days after
receiving the notice. Specifies that a complaint to foreclose a
homeowners association lien may not be filed earlier than 90 days after
recording, unless a person files a notice to foreclose the lien, or another
person files an action to foreclose the property that is the subject of the
lien.
Effective: July 1, 2011.
(HOUSE SPONSORS _ FOLEY, UBELHOR)
January 5, 2011, read first time and referred to Committee on Judiciary.
January 13, 2011, amended, reported favorably _ Do Pass.
January 20, 2011, read second time, amended, ordered engrossed.
January 21, 2011, engrossed.
January 24, 2011, read third time, passed. Yeas 49, nays 1.
March 28, 2011, read first time and referred to Committee on Judiciary.
April 11, 2011, reported _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) That the person has ten (10) days from the date the department mails the notice to either pay the amount demanded or show reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of a tax warrant.
(3) The earliest date on which a tax warrant may be filed and recorded.
(4) The statutory authority for the department to levy against a
person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the amount
of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs,
and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten
percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the demand
notice was mailed to the taxpayer. The department may also send the
warrant to the sheriff of any county in which the person owns property
and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was
mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues
the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant
becomes a judgment against the person owing the tax. The judgment
creates a lien in favor of the state that attaches to all the person's
interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10) years
from the date the judgment is filed. The department may renew the
judgment for additional ten (10) year periods by filing an alias tax
warrant with the circuit court clerk of the county in which the judgment
previously existed.
(g) A judgment arising from a tax warrant in a county may shall be
released by the department:
(1) after the judgment, including all accrued interest to the date of
payment, has been fully satisfied; or
(2) if the department determines that the tax assessment or the
issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant was
in error, the department shall mail a release of the judgment to the
taxpayer and the circuit court clerk of each county where the warrant
was filed. The department shall mail the release as soon as possible but
no later than seven (7) days after:
(1) the determination by the department that the filing of the
warrant was in error; and
(2) the receipt of information by the department that the judgment
has been recorded under subsection (d).
(i) If the department determines that a judgment described in
subsection (h) is obstructing a lawful transaction, the department shall
mail a release of the judgment to the taxpayer and the circuit court
clerk of each county where the judgment was filed immediately upon
making the determination.
(j) A release issued under subsection (h) or (i) must state that the
filing of the tax warrant was in error. Upon the request of the taxpayer,
the department shall mail a copy of a release issued under subsection
(h) or (i) to each major credit reporting company located in each county
where the judgment was filed.
(k) The commissioner shall notify each state agency or officer
supplied with a tax warrant list of the issuance of a release under
subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the sheriff
shall disburse the money collected in the manner provided in section
3(c) of this chapter. If a judgment has been partially or fully satisfied
by a person's surety, the surety becomes subrogated to the department's
rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected;
or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for
the part of the judgment not remitted to the department.
(m) A lien on real property described in subsection (e)(2) is void
if both of the following occur:
(1) The person owing the tax provides written notice to the
department to file an action to foreclose the lien.
(2) The department fails to file an action to foreclose the lien
not later than one hundred eighty (180) days after receiving
the notice.
(n) A person who gives notice under subsection (m) by
registered or certified mail to the department may file an affidavit
of service of the notice to file an action to foreclose the lien with the
circuit court clerk in the county in which the property is located.
The affidavit must state the following:
(1) The facts of the notice.
(2) That more than one hundred eighty (180) days have passed
since the notice was received by the department.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the
lien.
(o) Upon receipt of the affidavit described in subsection (n), the
circuit court clerk shall make an entry showing the release of the
judgment lien in the judgment records for tax warrants.
(1) may not be filed earlier than
(A) another person files a foreclosure action on the property that is the subject of the lien; or
(B) a person files written notice to file an action to foreclose the lien under section 9(a)(1) of this chapter; and
(2) must be filed not later than five (5) years;
after the date the statement and notice of intention to hold a lien was recorded under section 6 of this chapter.
(b) If a lien is not enforced within the time set forth in subsection (a), the lien is void.
