Bill Text: IN SB0335 | 2010 | Regular Session | Amended
Bill Title: Local government.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2010-02-18 - Committee report: amend do pass, adopted [SB0335 Detail]
Download: Indiana-2010-SB0335-Amended.html
Citations Affected: IC 6-1.1; IC 32-29; IC 32-30; IC 36-7.
Synopsis: Tax sale procedures. States the period during which the tax
sale property list may be certified. Limits the time for certification by
political subdivisions of special assessments, fees, penalties, or charges
for collection under the tax sale. Deletes an extraneous cross reference
to the tax sale redemption statute. Allows a county to recover its costs
of sale of certain certificates of sale. Requires court approval of certain
claims against the tax sale surplus fund. Places restrictions on
agreements by property owners for location, delivery, recovery, or
assistance in the recovery of money deposited in the tax sale surplus
fund. Allows the county executive to assign a certificate of sale with
respect to real property to any political subdivision, and provides that
the period of redemption of the real property is 120 days after the
assignment. Establishes procedures to account for funds if a tax sale is
declared invalid. Allows a sheriff's sale to proceed only if the tax sale
redemption amount and outstanding property taxes, special
assessments, penalties, and interest are paid. Requires notice to a tax
sale purchaser of certain actions proposed with respect to the property
under the unsafe building statute.
Effective: Upon passage; July 1, 2010.
January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
January 28, 2010, reported favorably _ 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) In the case of real property other than real property described in subdivision (2), any property taxes or special assessments certified to the county auditor for collection by the county treasurer from the prior year's spring installment or before are delinquent as determined under IC 6-1.1-37-10.
(2) In the case of real property for which a county executive has certified to the county auditor that the real property is:
(A) vacant; or
(B) abandoned;
any property taxes or special assessments from the prior year's fall installment or before that are delinquent as determined under IC 6-1.1-37-10. The county executive must make a certification under this subdivision not later than sixty-one (61) days before the earliest date on which application for judgment and order for sale may be made.
(3) Any unpaid costs are due under section 2(b) of this chapter from a prior tax sale.
(b) The county auditor shall maintain a list of all real property eligible for sale. Unless the taxpayer pays to the county treasurer the amounts in subsection (a), the taxpayer's property shall remain on the list. The list must:
(1) describe the real property by parcel number and common address, if any;
(2) for a tract or item of real property with a single owner, indicate the name of the owner; and
(3) for a tract or item with multiple owners, indicate the name of at least one (1) of the owners.
(c) Except as otherwise provided in this chapter, the real property so listed is eligible for sale in the manner prescribed in this chapter.
(d) Not later than fifteen (15) days after the date of the county treasurer's certification under subsection (a), the county auditor shall mail by certified mail a copy of the list described in subsection (b) to each mortgagee who requests from the county auditor by certified mail a copy of the list. Failure of the county auditor to mail the list under this subsection does not invalidate an otherwise valid sale.
(e) Beginning on the date the county treasurer certifies the list under subsection (a) until the date on which certificates of sale on the listed properties are offered for sale under section 6.1 of this chapter, political subdivisions in the county may not certify to the county treasurer for collection any special assessments, fees, penalties, or charges. The only charges allowable for collection during that period are charges for real property tax payments that are due during that period and any penalties on those payments.
(1) the property is on the alternate list prepared under section 1(a)(2) or 1.5(d) of this chapter;
(2) if the property is not redeemed within one hundred twenty (120) days after the date of sale, the county auditor shall execute and deliver a deed for the property to the purchaser or purchaser's assignee; and
(3) if the property is offered for sale and a bid is not received for at least the amount required under section 5 of this chapter, the county auditor may execute and deliver a deed for the property to the county executive.
(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) 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;
(B) ten percent (10%) of the amount for which the certificate
is sold;
(C) the attorney's fees and costs of giving notice under
IC 6-1.1-25-4.5;
(D) the costs of a title search or of examining and updating the
abstract of title for the tract or item of real property; and
(E) all taxes and special assessments on the tract or item of
real property paid by the purchaser after the sale of the
certificate 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; and
(F) all costs of sale, advertising costs, and other expenses of
the county directly attributable to the sale of certificates of
sale; and
(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) first, to the taxes, special assessments, penalties, and costs described in section 5(e) of this chapter;
(2) second, to other delinquent property taxes in the manner provided in IC 6-1.1-23-5(b); and
(3) third, to a separate "tax sale surplus fund".
(b) The:
(1) owner of record of the real property at the time the tax deed is issued who is divested of ownership by the issuance of a tax deed; or
(2) tax sale purchaser or purchaser's assignee, upon redemption of the tract or item of real property;
may file a verified claim for money which is deposited in the tax sale surplus fund. If the claim is approved by the county auditor and the county treasurer, the county auditor shall issue a warrant to the claimant for the amount due.
(c) If the person who claims money deposited in the tax sale surplus fund under subsection (b) is:
(1) a person described in subsection (b)(1) who acquired the property from a delinquent taxpayer after the property was sold at a tax sale under this chapter; or
(2) a person not described in subsection (b)(1), including a person who acts under a power of attorney executed by the person described in subsection (b)(1);
the county auditor may
(d) A court may direct the issuance of a warrant only:
(1) on petition by the claimant; and
(2) within three (3) years after the date of sale of the parcel in the tax sale.
(b) An agreement entered into after April 30, 2010, by a property owner that has the primary purpose of paying compensation to locate, deliver, recover, or assist in the recovery of money deposited in the tax sale surplus fund under section
7(a)(3) of this chapter with respect to real property as a result of
a tax sale:
(1) is void and unenforceable if the agreement is entered into
before the date the tax sale of the real property is held; and
(2) is valid only if the agreement:
(A) requires payment of compensation of not more than
ten percent (10%) of the amount collected from the tax
sale surplus fund with respect to the real property, unless
the amount collected is fifty dollars ($50) or less;
(B) is in writing;
(C) is signed by the property owner; and
(D) clearly sets forth:
(i) the amount deposited in the tax sale surplus fund
under section 7(a)(3) of this chapter with respect to the
real property; and
(ii) the value of the property owner's share of the amount
collected from the tax sale surplus fund with respect to
the real property after the compensation is deducted.
(c) This section does not prevent an owner from asserting at any
time that an agreement described in subsection (b) is otherwise
invalid.
(d) A person who engages in services under an agreement
described in subsection (a) must include in an advertisement or a
written communication offering those services a statement that, by
law, fees for those services are limited to not more than ten percent
(10%) of the amount collected, unless the amount collected is fifty
dollars ($50) or less.
(e) Subsections (b)(2)(D) and (d) do not apply to attorney's fees.
(1) a description of real property that corresponds to the description used on the notice of sale;
(2) the name of:
(A) the owner of record at the time of the sale of real property with a single owner; or
(B) at least one (1) of the owners of real property with multiple
owners;
(3) the mailing address of the owner of the real property sold as
indicated in the records of the county auditor;
(4) the name of the purchaser;
(5) the date of sale;
(6) the amount for which the real property was sold;
(7) the amount of the minimum bid for which the tract or real
property was offered at the time of sale as required by section 5
of this chapter;
(8) the date when the period of redemption specified in
IC 6-1.1-25-4 will expire;
(9) the court cause number under which judgment was obtained;
and
(10) the street address, if any, or common description of the real
property.
(b) When a certificate of sale is issued under this section, the
purchaser acquires a lien against the real property for the entire amount
paid. The lien of the purchaser is superior to all liens against the real
property which exist at the time the certificate is issued.
(c) A certificate of sale is assignable. However, an assignment is not
valid unless it is endorsed on the certificate of sale, acknowledged
before an officer authorized to take acknowledgments of deeds, and
registered in the office of the county auditor. When a certificate of sale
is assigned, the assignee acquires the same rights and obligations that
the original purchaser acquired.
(d) Subject to IC 36-1-11-8, the county executive may assign a
certificate of sale held in the name of the county executive to any
political subdivision during the life of the certificate. If an
assignment is made under this subsection, the period of redemption
of the real property under IC 6-1.1-25 is one hundred twenty (120)
days after the date of the assignment.
(1) one (1) year after the date of sale;
(2) one hundred twenty (120) days after the date of sale to a purchasing agency qualified under IC 36-7-17; or
(3) one hundred twenty (120) days after the date of sale of real property on the list prepared under IC 6-1.1-24-1(a)(2) or IC 6-1.1-24-1.5.
(b) Subject to IC 6-1.1-24-9(d), the period for redemption of real
property:
(1) on which the county executive acquires a lien under
IC 6-1.1-24-6; and
(2) for which the certificate of sale is not sold under
IC 6-1.1-24-6.1;
is one hundred twenty (120) days after the date the county executive
acquires the lien under IC 6-1.1-24-6.
(c) The period for redemption of real property:
(1) on which the county executive acquires a lien under
IC 6-1.1-24-6; and
(2) for which the certificate of sale is sold under IC 6-1.1-24;
is one hundred twenty (120) days after the date of sale of the certificate
of sale under IC 6-1.1-24.
(d) When a deed for real property is executed under this chapter, the
county auditor shall cancel the certificate of sale and file the canceled
certificate in the office of the county auditor. If real property that
appears on the list prepared under IC 6-1.1-24-1.5 is offered for sale
and an amount that is at least equal to the minimum sale price required
under IC 6-1.1-24-5(e) is not received, the county auditor shall issue a
deed to the real property, subject to this chapter.
(e) When a deed is issued to a county executive under this chapter,
the taxes and special assessments for which the real property was
offered for sale, and all subsequent taxes, special assessments, interest,
penalties, and cost of sale shall be removed from the tax duplicate in
the same manner that taxes are removed by certificate of error.
(f) A tax deed executed under this chapter vests in the grantee an
estate in fee simple absolute, free and clear of all liens and
encumbrances created or suffered before or after the tax sale except
those liens granted priority under federal law and the lien of the state
or a political subdivision for taxes and special assessments which
accrue subsequent to the sale and which are not removed under
subsection (e). However, the estate is subject to:
(1) all easements, covenants, declarations, and other deed
restrictions shown by public records;
(2) laws, ordinances, and regulations concerning governmental
police powers, including zoning, building, land use,
improvements on the land, land division, and environmental
protection; and
(3) liens and encumbrances created or suffered by the grantee.
(g) A tax deed executed under this chapter is prima facie evidence
of:
(1) the regularity of the sale of the real property described in the
deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) A county auditor is not required to execute a deed to the county
executive under this chapter if the county executive determines that the
property involved contains hazardous waste or another environmental
hazard for which the cost of abatement or alleviation will exceed the
fair market value of the property. The county executive may enter the
property to conduct environmental investigations.
(i) If the county executive makes the determination under subsection
(h) as to any interest in an oil or gas lease or separate mineral rights,
the county treasurer shall certify all delinquent taxes, interest,
penalties, and costs assessed under IC 6-1.1-24 to the clerk, following
the procedures in IC 6-1.1-23-9. After the date of the county treasurer's
certification, the certified amount is subject to collection as delinquent
personal property taxes under IC 6-1.1-23. Notwithstanding
IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6, the assessed value of such an
interest shall be zero (0) until production commences.
(j) When a deed is issued to a purchaser of a certificate of sale sold
under IC 6-1.1-24-6.1, the county auditor shall, in the same manner that
taxes are removed by certificate of error, remove from the tax duplicate
the taxes, special assessments, interest, penalties, and costs remaining
due as the difference between the amount of the last minimum bid
under IC 6-1.1-24-5(e) and the amount paid for the certificate of sale.
(1) the real property described in the deed was not subject to the taxes for which it was sold;
(2) the delinquent taxes or special assessments for which the real property was sold were properly paid before the sale; or
(3) the legal description of the real property in the tax deed is void for uncertainty.
(b) The grantee of an invalid tax deed, including the county, to whom a refund is made under this section shall execute, acknowledge, and deliver to the owner a deed conveying whatever interest the purchaser may have acquired by the tax sale deed. If a county is
required to execute a deed under this section, the deed shall be signed
by the county board of commissioners and acknowledged by the clerk
of the circuit court.
(c) A refund may not be made under this section while an action
initiated under either section 14 or 16 of this chapter is pending.
(d) If a sale is declared invalid after a claim is submitted under
IC 6-1.1-24-7 for money deposited in the tax sale surplus fund and
the claim is paid, the county auditor shall:
(1) refund the purchase money plus six percent (6%) interest
per annum from the county treasury to the purchaser, the
purchaser's successors or assigns, or the purchaser of the
certificate of sale under IC 6-1.1-24; and
(2) certify the amount paid to the property owner from the tax
sale surplus fund as a lien against the property and as a civil
judgment against the property owner.
(1) If a certificate of sale issued under IC 6-1.1-24 is outstanding:
(A) the amount necessary for redemption of the property under IC 6-1.1-25; and
(B) all delinquent property taxes, special assessments, penalties, and interest that:
(i) are not covered by the redemption referred to in clause (A); and
(ii) are due and owing on the property on the date of the sheriff's sale.
(2) If subdivision (1) does not apply, all delinquent property taxes, special assessments, penalties, and interest that are due and owing on the property on the date of the sheriff's sale.
(b) If the payments required under subsection (a) are not made in full by the date of the sale, the sheriff:
(1) shall cancel the sheriff's sale; and
(2) may conduct the sheriff's sale only:
(A) upon evidence that the payments required under subsection (a) have been made in full; and
(B) after a subsequent praecipe is filed, costs are paid, and the sheriff's sale is advertised under this chapter.
P.L.182-2009(ss), SECTION 390, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 14. The proceeds of a
sale described in IC 32-29-7 or section 8 or 12(b) of this chapter must
be applied in the following order:
(1) Expenses of the offer and sale, including expenses incurred
under IC 32-29-7-4 or section 9 of this chapter (or IC 34-1-53-6.5
or IC 32-15-6-6.5 before their repeal).
(2) The amount of any property taxes on the property sold:
(A) that are due and owing; and
(B) for which the due date has passed as of the date of the
sheriff's sale.
The sheriff shall transfer the amounts collected under this
subdivision to the county treasurer not more than ten (10) days
after the date of the sheriff's sale.
(3) Any amount of redemption where a certificate of sale is
outstanding.
(4) (2) The payment of the principal due, interest, and costs not
described in subdivision (1).
(5) (3) The residue secured by the mortgage and not due.
(6) (4) If the residue referred to in subdivision (5) (3) does not
bear interest, a deduction must be made by discounting the legal
interest.
In all cases in which the proceeds of sale exceed the amounts described
in subdivisions (1) through (6), (4), the surplus must be paid to the
clerk of the court to be transferred, as the court directs, to the mortgage
debtor, mortgage debtor's heirs, or other persons assigned by the
mortgage debtor.
"Community organization" means a citizen's group, neighborhood association, neighborhood development corporation, or similar organization that:
(1) has specific geographic boundaries defined in its bylaws or articles of incorporation and contains at least forty (40) households within those boundaries;
(2) is a nonprofit corporation that is representative of at least twenty-five (25) households or twenty percent (20%) of the households in the community, whichever is less;
(3) is operated primarily for the promotion of social welfare and general neighborhood improvement and enhancement;
(4) has been incorporated for at least two (2) years; and
(5) is exempt from taxation under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code.
"Continuous enforcement order" means an order that:
(1) is issued for compliance or abatement and that remains in full force and effect on a property without further requirements to seek additional:
(2) authorizes specific ongoing compliance and enforcement activities if a property requires reinspection or additional periodic abatement;
(3) can be enforced, including assessment of fees and costs, without the need for additional notice or hearing; and
(4) authorizes the enforcement authority to assess and collect ongoing costs for continuous enforcement order activities from any party that is subject to the enforcement authority's order.
"Department" refers to the executive department authorized by ordinance to administer this chapter. In a consolidated city, this department is the department of metropolitan development, subject to IC 36-3-4-23.
"Enforcement authority" refers to the chief administrative officer of the department, except in a consolidated city. In a consolidated city, the division of development services is the enforcement authority, subject to IC 36-3-4-23.
"Hearing authority" refers to a person or persons designated as such by the executive of a city or county, or by the legislative body of a town. However, in a consolidated city, the director of the department or a person designated by the director is the hearing authority. An employee of the enforcement authority may not be designated as the hearing authority.
"Known or recorded fee interest, life estate interest, or equitable interest of a contract purchaser" means any fee interest, life estate interest, or equitable interest of a contract purchaser held by a person whose identity and address may be determined from:
(1) an instrument recorded in the recorder's office of the county where the unsafe premises is located;
(2) written information or actual knowledge received by the department (or, in the case of a consolidated city, the enforcement authority); or
(3) a review of department (or, in the case of a consolidated city, the enforcement authority) records that is sufficient to identify information that is reasonably ascertainable.
"Known or recorded substantial property interest" means any right in real property, including a fee interest, a life estate interest, a future interest, a mortgage interest, a lien as evidenced by a certificate of sale issued under IC 6-1.1-24, or an equitable interest of a contract purchaser, that:
(1) may be affected in a substantial way by actions authorized by this chapter; and
(2) is held by a person whose identity and address may be determined from:
(A) an instrument recorded in:
(i) the recorder's office of the county where the unsafe premises is located; or
(ii) the office of the county auditor of the county where the unsafe premises are located in the case of a lien evidenced by a certificate of sale issued under IC 6-1.1-24;
(B) written information or actual knowledge received by the department (or, in the case of a consolidated city, the enforcement authority); or
(C) a review of department (or, in the case of a consolidated city, the enforcement authority) records that is sufficient to identify information that is reasonably ascertainable.
"Substantial property interest" means any right in real property that may be affected in a substantial way by actions authorized by this chapter, including a fee interest, a life estate interest, a future interest, a mortgage interest, or an equitable interest of a contract purchaser.
