Bill Text: IN SB0275 | 2013 | Regular Session | Introduced
Bill Title: Property tax payments.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 48 [SB0275 Detail]
Download: Indiana-2013-SB0275-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Property tax installment payments. Allows any person who
does not pay property taxes through an escrow account maintained by
the person's mortgagee to pay the person's property taxes on a monthly
payment plan. Provides that the county option monthly payment plan
provisions in current law for payment of property tax expire February
1, 2014. Provides that the county option monthly payment provisions
in current law for payment of property tax owed in connection with
provisional property tax statements expire January 1, 2014.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Appropriations.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) except as provided in subsection (h), mail to the last known address of each person liable for any property taxes or special assessment, as shown on the tax duplicate or special assessment records, or to the last known address of the most recent owner shown in the transfer book; and
(2) transmit by written, electronic, or other means to a mortgagee maintaining an escrow account for a person who is liable for any 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,
in any manner permitted by subsection (n), 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 (before its expiration), or 9.8 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 (before its expiration).
(C) Section 9.8 of this chapter.
(C) (D) 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
(before its expiration).
(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 county treasurer received a notice that the
person's electronic mail was undeliverable.
(n) A person may direct the county treasurer and county auditor to
transmit information by electronic mail under subsection (h) on a form
prescribed by the department submitted:
(1) in person;
(2) by mail; or
(3) in an online format developed by the county and approved by
the department.
(b) Subsection (a) does not apply if any of the following apply to the property taxes assessed for the year under this article:
(1) Subsection (c).
(2) Subsection (d).
(3) IC 6-1.1-7-7.
(4) Section 9.5 of this chapter.
(5) Section 9.7 of this chapter (before its expiration).
(6) Section 9.8 of this chapter.
(c) A county council may adopt an ordinance to require a person to pay the person's property tax liability in one (1) installment, if the tax liability for a particular year is less than twenty-five dollars ($25). If the county council has adopted such an ordinance, then whenever a tax statement mailed under section 8.1 of this chapter shows that the person's property tax liability for a year is less than twenty-five dollars ($25) for the property covered by that statement, the tax liability for that year is due in one (1) installment on May 10 of that year.
(d) If the county treasurer receives a copy of an appeal petition under IC 6-1.1-18.5-12(d) before the county treasurer mails or transmits statements under section 8.1 of this chapter, the county treasurer may:
(1) mail or transmit the statements without regard to the pendency of the appeal and, if the resolution of the appeal by the department of local government finance results in changes in levies, mail or transmit reconciling statements under subsection (e); or
(2) delay the mailing or transmission of statements under section 8.1 of this chapter so that:
(A) the due date of the first installment that would otherwise be due under subsection (a) is delayed by not more than sixty (60) days; and
(B) all statements reflect any changes in levies that result from the resolution of the appeal by the department of local government finance.
(e) A reconciling statement under subsection (d)(1) must indicate:
(1) the total amount due for the year;
(2) the total amount of the installments paid that did not reflect the resolution of the appeal under IC 6-1.1-18.5-12(d) by the department of local government finance;
(3) if the amount under subdivision (1) exceeds the amount under subdivision (2), the adjusted amount that is payable by the taxpayer:
(A) as a final reconciliation of all amounts due for the year; and
(B) not later than:
(i) November 10; or
(ii) the date or dates established under section 9.5 of this chapter; and
(4) if the amount under subdivision (2) exceeds the amount under subdivision (1), that the taxpayer may claim a refund of the excess under IC 6-1.1-26.
(f) If property taxes are not paid on or before the due date, the penalties prescribed in IC 6-1.1-37-10 shall be added to the delinquent taxes.
(g) Notwithstanding any other law, a property tax liability of less than five dollars ($5) is increased to five dollars ($5). The difference between the actual liability and the five dollar ($5) amount that appears on the statement is a statement processing charge. The statement processing charge is considered a part of the tax liability.
(h) This subsection applies only if a statement for payment of property taxes and special assessments by electronic mail is transmitted to a person under section 8.1(h) of this chapter. If a response to the transmission of electronic mail to a person indicates that the electronic mail was not received, the county treasurer shall mail to the person a hard copy of the statement in the manner required by section 8.1(a) of this chapter for persons who do not opt to receive statements by electronic mail. The due date for the property taxes and special assessments under a statement mailed to a person under this subsection is the due date indicated in the statement transmitted to the person by electronic mail.
(i) In a county in which an authorizing ordinance is adopted under section 8.1(h) of this chapter, a person may direct the county treasurer to transmit a reconciling statement under subsection (d)(1) by electronic mail under section 8.1(h) of this chapter.
(b) As used in this section, "monthly payment plan" means a plan that:
(1) is adopted under this section; and
(2) provides for the monthly payment of tax liability either by:
(A) an automatic monthly deduction during the payment period from an account of the taxpayer that is held by a financial institution; or
(B) the taxpayer making payments on a monthly basis during the payment period either by written instrument or electronically;
or both.
(c) As used in this section, "payment period" means the months designated under this section during which monthly payments may be made. The period may not exceed twelve (12) months and may not begin before December 1 of the preceding year or end after November 30 of the current year.
(d) As used in this section, "preceding year" refers to the calendar year that immediately precedes the current year.
(e) As used in this section, "tax liability" includes liability for special assessments and refers to liability for property taxes after the application of all allowed deductions and credits.
(f) The county fiscal body (as defined in IC 36-1-2-6) may
(g) An ordinance adopted under subsection (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 under a monthly payment plan is
authorized.
(B) Provisions for notice to county taxpayers of the option to
pay one (1) or more property tax installments under a monthly
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 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 on a monthly basis
during the designated payment period either by written
instrument or electronically.
An ordinance adopted under subsection (f) may include a provision
authorizing taxpayers to make monthly payments in an amount
determined by the taxpayer that is different from the amount otherwise
determined by the county treasurer under subsection (i), (j), (k), or (l).
(h) If an ordinance is adopted under subsection (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 (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 (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.
(i) This subsection applies only if the county treasurer determines
that at the time the calculation under subsection (h)(3) is made the
amount of tax liability for the current year has not been determined.
Subject to subsections (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 payment due under a
monthly payment plan 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 (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 months in the designated payment period.
(j) The county treasurer may determine the monthly payment due under a monthly payment plan in an amount different from the amount determined under subsection (i) if the county treasurer determines that changes in circumstances have caused the amount determined under subsection (i) to differ substantially from the tax liability likely to be determined for the current year.
(k) This subsection applies only if before an ordinance is adopted under subsection (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 taxpayer's monthly payment under a monthly payment plan, the county treasurer shall substitute for the tax liability that applied to the parcel for the preceding year under subsection (i) the tax liability to be indicated on the provisional statement.
(l) This subsection applies only if the county treasurer determines that at the time the calculation under subsection (h)(3) is made the amount of tax liability for the current year has been determined. The amount of the taxpayer's monthly payment under a monthly 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 (g)(2)(A) divided by the number of months in the designated payment period.
(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.
(n) Penalties apply under IC 6-1.1-37-10 as specified in this section to taxes payable under a monthly payment plan under this section.
(o) After the last monthly payment under a monthly 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 under a monthly payment plan, and by means other than under a monthly 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
(B) not later than thirty (30) days after the date of the reconciling statement.
(4) If the amount under subdivision (2) exceeds the amount under subdivision (1), that the county treasurer will apply the excess as a credit against the taxpayer's tax liability for the immediately succeeding calendar year unless the taxpayer makes a claim for refund of the excess under IC 6-1.1-26.
(p) The county treasurer shall deposit the tax collections under this section under IC 5-13-6-3(a). The collections must remain in the funds in which they are deposited until the county auditor makes the distributions to the appropriate taxing units at the semiannual settlements under IC 6-1.1-27. However, this subsection does not prohibit a county treasurer from making an advance to a political subdivision under IC 5-13-6-3 of a portion of the taxes collected.
(q) IC 6-1.1-15:
(1) does not apply to a statement provided under subsection (h); and
(2) applies to a reconciling statement issued under subsection (o).
(r) The following apply to a taxpayer that makes monthly payments under this section:
(1) If a taxpayer has approval to use a monthly payment plan and makes timely monthly payments of property taxes in the amount determined by the county treasurer under subsection (i), (j), (k), or (l), the taxpayer's property tax payments shall not be considered delinquent for purposes of IC 6-1.1-37-10 and the taxpayer is not subject to penalties under that section.
(2) If:
(A) a taxpayer makes monthly payments of property taxes in an amount that is less than the amount determined by the county treasurer under subsection (i), (j), (k), or (l); and
(B) the total amount of property taxes paid by the taxpayer under the monthly payment plan or any other method by the November approved monthly due date is less than the amount determined by the county treasurer under subsection (i), (j), (k), or (l) that should have been paid by the taxpayer by the November approved monthly due date;
the penalty provisions of IC 6-1.1-37-10 apply to the delinquent property taxes.
(s) IC 6-1.1-37-10 applies to any amounts due under a reconciling
statement issued under subsection (o) that are not paid within thirty
(30) days after the date of the reconciling statement, as required under
subsection (o)(3).
(t) For purposes of IC 6-1.1-24-1(a)(1):
(1) property taxes to be paid under a monthly payment plan under
this section before June of the current year are considered to be
the taxpayer's spring installment of property taxes; and
(2) payment on a reconciling statement issued under subsection
(o) is considered to be due before the due date of the first
installment of property taxes payable in the year immediately
following the current year.
(u) This subsection applies to a county in which an ordinance
adopted under subsection (f) is in effect on November 30, 2013. The
county treasurer of a county to which this subsection applies shall
issue a final reconciling statement under this section before
December 15, 2013, to all county taxpayers who have a monthly
payment plan in effect on November 30, 2013, in accordance with
subsection (o).
(v) If an ordinance adopted under this section is in effect in a
county on January 31, 2014, the ordinance expires January 31,
2014.
(w) This section expires February 1, 2014.
(1) "Current year" refers to the calendar year in which some date or event occurs that is specified by the context.
(2) "Monthly payment plan" means a plan that provides for the monthly payment of tax liability by:
(A) an automatic monthly deduction from an account of the taxpayer that is held by a financial institution;
(B) the taxpayer making payments on a monthly basis either by written instrument or electronically; or
(C) both methods described in clauses (A) and (B).
(3) "Preceding year" refers to the calendar year that immediately precedes the current year.
(4) "Reconciling statement period" means, for a specific taxpayer and a specific reconciling statement, the period:
(A) beginning on the later of:
(i) the date the taxpayer elects to pay the taxpayer's tax liability on a monthly payment plan; or
(ii) the day following the closing date of the immediately preceding reconciling statement issued to the taxpayer, including a final reconciling statement issued under section 9.7(u) of this chapter (before its expiration); and
(B) ending on the reconciling statement closing date.
(5) "Tax liability" includes liability for special assessments and refers to liability for property taxes after the application of all allowed deductions and credits.
(b) After November 30, 2013, if a person liable for any property taxes or special assessment, as shown on the tax duplicate or special assessment records, does not have an arrangement with a mortgagee under which the mortgagee pays the person's property taxes and special assessments from an escrow account maintained by the mortgagee, the person may elect to pay the property taxes and special assessments for which the person is liable under a monthly payment plan, as provided in this section.
(c) After November 30, 2013, a taxpayer who is eligible to pay the taxpayer's tax liability on a monthly payment plan may make the election to do so by submitting, in the manner prescribed by the department, the information described in subsection (f)(1) to the county treasurer of the county where the property that gave rise to the tax liability is assessed. However, the authorization of an eligible taxpayer who had a monthly payment plan under section 9.7 of this chapter (before its expiration) in effect on November 30, 2012, is deemed to be an election to participate in a monthly payment plan under this section on the same terms as the authorization furnished under section 9.7 of this chapter (before its expiration).
(d) A taxpayer who has a monthly payment plan in effect may terminate the taxpayer's monthly payment plan at any time by notifying the county treasurer of the county where the property that gave rise to the tax liability is assessed in the manner prescribed by the department that the taxpayer desires to terminate the taxpayer's monthly payment plan. If the taxpayer does not specify the date on which to terminate the taxpayer's monthly payment plan in the taxpayer's notification, the taxpayer's monthly payment plan is terminated immediately upon receipt of the notification by the county treasurer.
(e) The department shall prescribe a form with at least the following elements that a county treasurer may furnish to taxpayers:
(1) An explanation of a taxpayer's option under this section to
pay the taxpayer's tax liability on a monthly payment plan,
including the condition of eligibility.
(2) Fields to display:
(A) the recommended amount to be deducted monthly
from the taxpayer's account; and
(B) a calculation of the recommended amount to be
deducted.
(3) An explanation of the manner in which the taxpayer's tax
liability and payments will be reconciled if the taxpayer elects
to pay the taxpayer's tax liability on a monthly payment plan
and notice that any property tax payments made by the
taxpayer by means other than automatic deduction from the
taxpayer's account will be taken into account in the
reconciliation.
(4) 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.
(5) An explanation of the manner in which the taxpayer may
terminate the taxpayer's monthly payment plan, if the
taxpayer has a monthly payment plan in effect.
(f) The department shall prescribe a form by means of which a
taxpayer may:
(1) elect to pay the taxpayer's tax liability on a monthly
payment plan under this section by:
(A) affirming that the taxpayer is eligible to pay the
taxpayer's tax liability on a monthly payment plan;
(B) specifying the payment amount to be deducted monthly
from the taxpayer's account held by a financial institution,
which may be:
(i) the amount calculated in accordance with subsection
(j); or
(ii) some other amount of the taxpayer's choosing;
(C) directing the appropriate county treasurer to accept
payment of the taxpayer's tax liability by automatic
monthly deduction from an account of the taxpayer that is
held by a financial institution;
(D) authorizing the financial institution that holds the
taxpayer's account to deduct the amount specified by the
taxpayer from the account monthly and to pay that
amount to the county treasurer; and
(E) specifying the day each month when the deduction will
be made, subject to the restriction that the taxpayer may
not specify the 29th, 30th, or 31st day; or
(2) if the taxpayer has a monthly payment plan in effect,
terminate the taxpayer's monthly payment plan.
(g) The department may combine the forms described in
subsections (e) and (f) into a single form if the department
determines that a combined form is expedient. If the department
does prescribe a combined form under this subsection, an
occurrence of the phrase "the forms described in subsections (e)
and (f)" in this section refers to the combined form prescribed
under this subsection.
(h) This subsection applies after December 31, 2013. Each year
before August 1, a county treasurer shall prepare and mail the
forms described in subsections (e) and (f) to each county taxpayer
who, at the time the forms are prepared for mailing:
(1) has a monthly payment plan in effect; or
(2) does not have a monthly payment plan in effect but,
according to information available to the county treasurer
and the county auditor, is eligible to pay the taxpayer's tax
liability on a monthly payment plan.
(i) After September 30, 2013, in addition to the preparation and
the mailing or transmitting of the forms described in subsections
(e) and (f) as directed in subsection (h), a county treasurer shall
prepare and make the forms described in subsections (e) and (f)
available to a county taxpayer upon the taxpayer's request.
(j) When a county treasurer prepares the forms described in
subsections (e) and (f) under subsections (h) or (i), the
recommended amount of a taxpayer's monthly payment of
property taxes for a monthly payment plan on the date the forms
are prepared is the amount determined in STEP FIVE of the
following STEPS:
STEP ONE: Subject to subsection (k), determine the
following:
(A) For a parcel of real property:
(i) the amount of tax liability, if known, that applies to
the parcel for the current year; or
(ii) the most recently determined amount of tax liability
that applied to the parcel for the preceding year, if item
(i) does not apply.
(B) For a personal property return:
(i) the amount of tax liability that applies for the
personal property return for the same location for the
current year, if known; or
(ii) the most recently determined amount of tax liability
that applied for the personal property return for the
same location for the preceding year, if item (i) does not
apply.
(C) For distributable property:
(i) the amount of tax liability that applies with respect to
the statement filed by the taxpayer under IC 6-1.1-8-19
for the current year, if known; or
(ii) 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, if
item (i) does not apply.
(D) For a mobile home subject to IC 6-1.1-7:
(i) the amount of tax liability that applies to the mobile
home for the current year, if known; or
(ii) the most recently determined amount of tax liability
that applied to the mobile home for the preceding year,
if item (i) does not apply.
STEP TWO: Determine a reasonable adjustment to the result
of STEP ONE, if any, positive or negative, that in the
discretion of the county treasurer would be advisable to
reduce the absolute value of the amount of the taxpayer's
accrued but unpaid tax liability on the property at the time
the next reconciling statement is expected to be prepared
under subsection (n).
STEP THREE: Add:
(A) the STEP ONE result; and
(B) the STEP TWO result.
STEP FOUR: Determine the greater of:
(A) the STEP THREE result; or
(B) zero (0).
STEP FIVE: Divide:
(A) the STEP FOUR result; by
(B) twelve (12).
(k) This subsection applies only if 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 taxpayer's recommended monthly payment under
a monthly payment plan, the county treasurer shall substitute the
tax liability to be indicated on the provisional statement for the tax
liability that applied to the parcel for the preceding year under
subsection (j).
(l) 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 taxpayer has not paid
the tax until the taxpayer's account is charged for the payment.
(m) Penalties under IC 6-1.1-37-10 apply as specified in this
section to taxes payable under a monthly payment plan under this
section.
(n) This subsection applies after December 31, 2013. At the
times a county treasurer issues statements under section 8.1 of this
chapter, the county treasurer shall also issue a reconciling
statement described in subsection (o) to those county taxpayers
who:
(1) have a monthly payment plan in effect in the county on the
closing date of the reconciling statement period; or
(2) had a monthly payment plan in effect in the county at
some time during the reconciling statement period but
terminated the monthly payment plan before the closing date
of the reconciling statement period.
(o) Each reconciling statement must indicate at least the
following:
(1) The amount of:
(A) the taxpayer's accrued but unpaid tax liability; or
(B) the amount of any credit owed to the taxpayer;
at the beginning of the reconciling statement period.
(2) The amount of any accrued but unpaid penalties owed by
the taxpayer at the beginning of the reconciling statement
period.
(3) The taxpayer's tax liability that became first due and
payable during the reconciling statement period.
(4) Any penalty assessed against the taxpayer during the
reconciling statement period.
(5) The total amount paid during the reconciling statement
period under a monthly payment plan and by means other
than under a monthly payment plan.
(6) The total amount refunded to the taxpayer during the
reconciling statement period.
(p) If the sum of the amounts described under subsection (o)(1)
through (o)(6), construing the amounts described in subsection
(o)(1)(B) and (o)(5) as negative, is greater than zero (0), the
deficiency is payable by the taxpayer:
(1) as a final reconciliation of the tax liability and penalties
owed on the closing date of the reconciling statement period;
and
(2) not later than thirty (30) days after the date of the
reconciling statement.
If the sum of the amounts described under subsection (o)(1)
through (o)(6), construing the amounts described in subsection
(o)(1)(B) and (o)(5) as negative, is less than zero (0), the county
treasurer shall apply the excess as a credit against the taxpayer's
tax liability for the immediately following reconciling statement
period unless the taxpayer makes a claim for refund of the excess
under IC 6-1.1-26.
(q) The county treasurer shall deposit the tax collections under
this section under IC 5-13-6-3(a). The collections must remain in
the funds in which they are deposited until the county auditor
makes the distributions to the appropriate taxing units at the
semiannual settlements under IC 6-1.1-27. However, this
subsection does not prohibit a county treasurer from making an
advance to a political subdivision under IC 5-13-6-3 of a portion of
the taxes collected.
(r) IC 6-1.1-15:
(1) does not apply to the forms described under subsections (e)
and (f); and
(2) applies to a reconciling statement issued under subsection
(n).
(s) IC 6-1.1-37-10 applies to any amount due that is shown on a
reconciling statement issued under subsection (n) and remains
unpaid at the end of the due date specified in subsection (p)(2) for
the reconciling statement.
(t) For purposes of IC 6-1.1-24-1(a)(1), if a taxpayer has a
monthly payment plan under this section in effect on May 10 of a
year, the delinquent amount of a taxpayer's spring installment of
property taxes and special assessments and any previous
installments is the taxpayer's tax liability that remains unpaid on
the day immediately following the due date specified under
subsection (p)(2) for the first reconciling statement of the year
issued under subsection (n).
(1) the actual property tax liability under this article for the calendar year for which the reconciling statement is issued;
(2) the total amount paid under the provisional statement for the property for which the reconciling statement is issued;
(3) if the amount under subdivision (1) exceeds the amount under subdivision (2), that the excess is payable by the taxpayer:
(A) as a final reconciliation of the tax liability; and
(B) not later than:
(i) thirty (30) days after the date of the reconciling statement;
(ii) if the county treasurer requests in writing that the commissioner designate a later date, the date designated by the commissioner; or
(iii) the date specified in an ordinance adopted under section 18.5 of this chapter (before its expiration); and
(4) if the amount under subdivision (2) exceeds the amount under subdivision (1), that the taxpayer may claim a refund of the excess under IC 6-1.1-26.
(b) If, upon receipt of the abstract required by IC 6-1.1-22-5 or upon determination of the tax rate of the cross-county entity referred to in section 6.5 of this chapter, the county treasurer determines that it is possible to complete the:
(1) preparation; and
(2) mailing or transmittal;
of the reconciling statement at least thirty (30) days before the due date of the second installment specified in the provisional statement, the county treasurer may request in writing that the department of local government finance permit the county treasurer to issue a reconciling statement that adjusts the amount of the second installment that was specified in the provisional statement. If the department approves the county treasurer's request, the county treasurer shall prepare and mail or transmit the reconciling statement at least thirty (30) days before the due date of the second installment specified in the provisional statement.
(c) A reconciling statement prepared under subsection (b) must indicate:
(1) the actual property tax liability under this article for the calendar year for the property for which the reconciling statement is issued;
(2) the total amount of the first installment paid under the provisional statement for the property for which the reconciling statement is issued;
(3) if the amount under subdivision (1) exceeds the amount under subdivision (2), the adjusted amount of the second installment
that is payable by the taxpayer:
(A) as a final reconciliation of the tax liability; and
(B) not later than:
(i) November 10; or
(ii) if the county treasurer requests in writing that the
commissioner designate a later date, the date designated by
the commissioner; and
(4) if the amount under subdivision (2) exceeds the amount under
subdivision (1), that the taxpayer may claim a refund of the excess
under IC 6-1.1-26.
(d) At the election of a county auditor, a checklist required by
IC 6-1.1-22-8.1(b)(8) and a notice required by IC 6-1.1-22-8.1(b)(9)
may be sent to a taxpayer with a reconciling statement under this
section. This subsection expires January 1, 2013.
(e) (d) In a county in which an authorizing ordinance is adopted
under IC 6-1.1-22-8.1(h), a person may direct the county treasurer to
transmit a reconciling statement by electronic mail under
IC 6-1.1-22-8.1(h).
(f) (e) A reconciling statement may include any adjustment
authorized by the department of local government finance under
section 8(e) of this chapter and approved by the county treasurer.
(1) the first installment on a provisional statement is considered to be the taxpayer's spring installment of property taxes;
(2) except as provided in subdivision (3) or section 18.5 of this chapter (before its expiration), payment on a reconciling statement is considered to be due before the due date of the first installment of property taxes payable in the following year; and
(3) payment on a reconciling statement described in section 12(b) of this chapter is considered to be the taxpayer's fall installment of property taxes.
(b) An ordinance adopted under this section must specify:
(1) the reconciling statement to which the ordinance applies; and
(2) the installment due dates for taxpayers that choose to make installment payments.
(c) An ordinance adopted under this section must give taxpayers in the county the option of:
(1) making a single payment of the tax payment due under the reconciling statement on the date specified in the reconciling statement; or
(2) paying installments of the tax payment due under the reconciling statement over the installment period specified in the ordinance.
(d) If the total amount due on an installment date under this section is not completely paid on or before that installment date, the amount unpaid is considered delinquent and a penalty is added to the unpaid amount. The penalty is equal to an amount determined as follows:
(1) If:
(A) the delinquent amount of real property taxes is completely paid on or before the date thirty (30) days after the installment date; and
(B) the taxpayer is not liable for delinquent property taxes first due and payable in a previous year for the same parcel;
the amount of the penalty is equal to five percent (5%) of the delinquent amount.
(2) If:
(A) the delinquent amount of personal property taxes is completely paid on or before the date thirty (30) days after the installment date; and
(B) the taxpayer is not liable for delinquent property taxes first due and payable in a previous year 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 delinquent amount.
(3) If neither subdivision (1) nor (2) applies, the amount of the penalty is equal to ten percent (10%) of the delinquent amount.
(e) An additional penalty equal to ten percent (10%) of any taxes due on an installment date that remain unpaid shall be added on the day immediately following the date of the final installment payment.
(f) The penalties under this section are imposed on only the principal amount of the delinquent taxes.
(g) Notwithstanding any other provision, an ordinance adopted under this section may apply to the payment of amounts due under any reconciling statements issued by a county.
(h) Approval by the department of local government finance is not
required for the adoption of an ordinance under this section.
(i) If an ordinance adopted under this section is in effect in a
county on December 31, 2013, the ordinance expires December 31,
2013.
(j) This section expires January 1, 2014.
(b) Notwithstanding any other law, the department shall require that:
(1) trending and other adjustments to the assessed value of real property under IC 6-1.1-4-4.5 be applied separately to each assessment date subject to this chapter with the resulting assessments rolled over to be used as the valuation that is adjusted for the following assessment date;
(2) the information required to be submitted to the department or the legislative services agency, or both, under IC 6-1.1-4-18.5, IC 6-1.1-4-19.5, IC 6-1.1-4-25, IC 6-1.1-5.5-3, IC 6-1.1-11-8, IC 6-1.1-31.5-3.5, IC 6-1.1-33.5-3, or IC 36-2-9-20 be submitted separately for each assessment date subject to this chapter not later than sixty (60) days after the information becomes available to the local official possessing the information;
(3) a homestead eligible for a standard deduction under IC 6-1.1-12-37 on which payments on a reconciliation statement subject to this section are delinquent, including an installment payment under IC 6-1.1-22.5-18.5 (before its expiration), may not be placed on a list for tax sale for at least twelve (12) months after the payment, including an installment payment under IC 6-1.1-22.5-18.5 (before its expiration) is otherwise due;
(4) the period in which property eligible for a deduction or credit provided by law for an assessment date for which delayed property taxes are imposed is extended to the later of July 1 in the year in which the county becomes a covered county or a date that is forty-five (45) days after the reconciliation statement for those taxes is mailed or otherwise transmitted under IC 6-1.1-22.5-12, and that the current owner of the property may file the application for the deduction or credit;
(5) the current owner of property may file a petition under IC 6-1.1-15 for an assessment date for which delayed property taxes are due and payable under a reconciliation statement issued by a covered county as provided in this chapter; and
(6) before July 1, 2013, the fiscal body of a covered county shall establish an installment payment plan in accordance with IC 6-1.1-22.5-18.5 (before its expiration) under which taxpayers are required to pay delayed property taxes either:
(A) by paying the delayed property taxes over an installment period (of at least six (6) months) determined by the county fiscal body; or
(B) by making a single payment of the delayed property taxes after the end of a period (of at least six (6) months) determined by the county fiscal body;
as specified by ordinance of the county fiscal body. Before July 1, 2013, the fiscal body of a covered county may adopt an ordinance under IC 6-1.1-22.5-18.5 (before its expiration) extending the installment period or the due date of the single payment.
Reconciliation statements issued by a covered county after March 15, 2012, must include a statement in at least 10-point bold type that explains a taxpayer's rights under subdivision (4) to file a deduction or credit application. Any overpayment of delayed property taxes that result after the application of a deduction or credit granted after the payment of the delayed property taxes shall be first applied without the filing of a claim under IC 6-1.1-26. The county treasurer shall apply the excess payment first to any delinquent property taxes owed by the taxpayer who owned the property in the year to which the credit or deduction applies, and, second, as a credit against property taxes for the affected property that become first due and payable after the excess payment is determined.
(c) Subject to the requirements of this chapter, the department may set schedules and take other actions necessary or appropriate to provide for the earliest possible issuance of property tax bills for the collection of delayed property taxes and a return to a normal collection cycle for property taxes in covered counties.
