Bill Text: IN SB0398 | 2013 | Regular Session | Introduced
Bill Title: Delinquent property tax sales.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-10 - First reading: referred to Committee on Tax and Fiscal Policy [SB0398 Detail]
Download: Indiana-2013-SB0398-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Delinquent property tax sales. Requires, for tax deeds
executed for real property sold at a tax sale, that the county auditor
submit the tax deed directly to the county recorder for recording and
charge the tax sale purchaser the appropriate recording fee. Requires
that the certificate of sale that is issued to a tax sale purchaser must
include a statement that taxes, special assessments, interest, penalties,
and fees accruing on the property after the date of the tax sale are liens
against the property. Adds notice requirements concerning the accruing
of these liens on tax sale property after the date of the tax sale.
Specifies that to obtain a tax deed, the petitioner must pay the taxes,
special assessments, interest, penalties, and fees that accrue after the
date of the tax sale. Requires, instead of permits, a person buying
property at a tax sale to petition for a tax deed within six months after
the redemption period ends. Specifies that a person who fails to timely
file the petition for a tax deed is not entitled to the return of the
purchase price or any part of the purchase price. (Current law specifies
that the purchaser's lien terminates.)
Effective: July 1, 2013.
January 10, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
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
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) A list of tracts or real property eligible for sale under this chapter.
(2) A statement that the tracts or real property included in the list will be sold at public auction to the highest bidder, subject to the right of redemption.
(3) A statement that the tracts or real property will not be sold for an amount which is less than the sum of:
(A) the delinquent taxes and special assessments on each tract or item of real property;
(B) the taxes and special assessments on each tract or item of real property that are due and payable in the year of the sale, whether or not they are delinquent;
(C) all penalties due on the delinquencies;
(D) an amount prescribed by the county auditor that equals the sum of:
(i) the greater of twenty-five dollars ($25) or postage and publication costs; and
(ii) any other actual costs incurred by the county that are directly attributable to the tax sale; and
(E) any unpaid costs due under subsection (b) from a prior tax sale.
(4) A statement that a person redeeming each tract or item of real property after the sale must pay:
(A) one hundred ten percent (110%) of the amount of the minimum bid for which the tract or item of real property was offered at the time of sale if the tract or item of real property is redeemed not more than six (6) months after the date of sale;
(B) one hundred fifteen percent (115%) of the amount of the minimum bid for which the tract or item of real property was offered at the time of sale if the tract or item of real property is redeemed more than six (6) months after the date of sale;
(C) the amount by which the purchase price exceeds the minimum bid on the tract or item of real property plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid; and
(D) all taxes and special assessments on the tract or item of real property
(5) A statement for informational purposes only, of the location of each tract or item of real property by key number, if any, and street address, if any, or a common description of the property other than a legal description. The township assessor, or the county assessor if there is no township assessor for the township, upon written request from the county auditor, shall provide the information to be in the notice required by this subsection. A misstatement in the key number or street address does not invalidate an otherwise valid sale.
(6) A statement that the county does not warrant the accuracy of the street address or common description of the property.
(7) A statement indicating:
(A) the name of the owner of each tract or item of real property with a single owner; or
(B) the name of at least one (1) of the owners of each tract or item of real property with multiple owners.
(8) A statement of the procedure to be followed for obtaining or objecting to a judgment and order of sale, that must include the following:
(A) A statement:
(i) that the county auditor and county treasurer will apply on or after a date designated in the notice for a court judgment against the tracts or real property for an amount that is not less than the amount set under subdivision (3), and for an order to sell the tracts or real property at public auction to the highest bidder, subject to the right of redemption; and
(ii) indicating the date when the period of redemption specified in IC 6-1.1-25-4 will expire.
(B) A statement that any defense to the application for judgment must be:
(i) filed with the court; and
(ii) served on the county auditor and the county treasurer;
before the date designated as the earliest date on which the application for judgment may be filed.
(C) A statement that the county auditor and the county treasurer are entitled to receive all pleadings, motions, petitions, and other filings related to the defense to the application for judgment.
(D) A statement that the court will set a date for a hearing at least seven (7) days before the advertised date and that the court will determine any defenses to the application for judgment at the hearing.
(9) A statement that the sale will be conducted at a place designated in the notice and that the sale will continue until all tracts and real property have been offered for sale.
(10) A statement that the sale will take place at the times and dates designated in the notice. Whenever the public auction is to be conducted as an electronic sale, the notice must include a statement indicating that the public auction will be conducted as an electronic sale and a description of the procedures that must be followed to participate in the electronic sale.
(11) A statement that a person redeeming each tract or item after the sale must pay the costs described in IC 6-1.1-25-2(e).
(12) If a county auditor and county treasurer have entered into an
agreement under IC 6-1.1-25-4.7, a statement that the county
auditor will perform the duties of the notification and title search
under IC 6-1.1-25-4.5 and the notification and petition to the
court for the tax deed under IC 6-1.1-25-4.6.
(13) A statement that, if the tract or item of real property is sold
for an amount more than the minimum bid and the property is not
redeemed, the owner of record of the tract or item of real property
who is divested of ownership at the time the tax deed is issued
may have a right to the tax sale surplus.
(14) If a determination has been made under subsection (d), a
statement that tracts or items will be sold together.
(15) With respect to a tract or an item of real property that is
subject to sale under this chapter after June 30, 2012, and before
July 1, 2013, a statement declaring whether an ordinance adopted
under IC 6-1.1-37-10.1 is in effect in the county and, if
applicable, an explanation of the circumstances in which penalties
on the delinquent taxes and special assessments will be waived.
(b) If within sixty (60) days before the date of the tax sale the county
incurs costs set under subsection (a)(3)(D) and those costs are not paid,
the county auditor shall enter the amount of costs that remain unpaid
upon the tax duplicate of the property for which the costs were set. The
county treasurer shall mail notice of unpaid costs entered upon a tax
duplicate under this subsection to the owner of the property identified
in the tax duplicate.
(c) The amount of unpaid costs entered upon a tax duplicate under
subsection (b) must be paid no later than the date upon which the next
installment of real estate taxes for the property is due. Unpaid costs
entered upon a tax duplicate under subsection (b) are a lien against the
property described in the tax duplicate, and amounts remaining unpaid
on the date the next installment of real estate taxes is due may be
collected in the same manner that delinquent property taxes are
collected.
(d) The county auditor and county treasurer may establish the
condition that a tract or item will be sold and may be redeemed under
this chapter only if the tract or item is sold or redeemed together with
one (1) or more other tracts or items. Property may be sold together
only if the tract or item is owned by the same person.
chapter, the county auditor shall deliver a certificate of sale to the
purchaser or to the county or to the city. The certificate shall be signed
by the auditor and registered in the auditor's office. The certificate shall
contain:
(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; and
(11) a statement that all taxes, special assessments, interest,
penalties, and fees will accrue on the property after the date
of the tax sale.
(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 subsection (l) and 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 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, interest,
penalties, and fees on the property which accrue subsequent to the
date of the tax sale and which are not removed under subsection (e).
However, subject to subsection (g), 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,
including all taxes, special assessments, interest, penalties, and
fees on the property that accrued after the date of the tax sale.
(g) A tax deed executed under this chapter for real property sold in
a tax sale:
(1) does not operate to extinguish an easement recorded before
the date of the tax sale in the office of the recorder of the county
in which the real property is located, regardless of whether the
easement was taxed under this article separately from the real
property; and
(2) conveys title subject to all easements recorded before the date
of the tax sale in the office of the recorder of the county in which
the real property is located.
(h) 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.
(i) 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.
(j) If the county executive makes the determination under subsection
(i) 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.
(k) 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 and the amount paid for the certificate of sale.
(l) If a tract or item of real property did not sell at a tax sale and the
county treasurer and the owner of real property agree before the
expiration of the period for redemption under subsection (b) to a
mutually satisfactory arrangement for the payment of the entire amount
required for redemption under section 2 of this chapter before the
expiration of a period for redemption extended under this subsection:
(1) the county treasurer may extend the period for redemption;
and
(2) except as provided in subsection (m), the extended period for
redemption expires one (1) year after the date of the agreement.
(m) If the owner of real property fails to meet the terms of an
agreement entered into with the county treasurer under subsection (l),
the county treasurer may terminate the agreement after providing thirty
(30) days written notice to the owner. If the county treasurer gives
notice under this subsection, the extended period for redemption
established under subsection (l) expires thirty (30) days after the date
of the notice.
(1) the redemption period specified in section 4(a)(1) of this chapter has expired;
(2) the property has not been redeemed within the period of redemption specified in section 4(a) of this chapter; and
(3) not later than nine (9) months after the date of the sale:
(A) the purchaser or the purchaser's assignee; or
(B) in a county where the county auditor and county treasurer have an agreement under section 4.7 of this chapter, the county auditor;
gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.
(b) A county executive is entitled to a tax deed to property on which the county executive acquires a lien under IC 6-1.1-24-6 and for which the certificate of sale is not sold under IC 6-1.1-24-6.1 only if:
(1) the redemption period specified in section 4(b) of this chapter has expired;
(2) the property has not been redeemed within the period of redemption specified in section 4(b) of this chapter; and
(3) not later than ninety (90) days after the date the county executive acquires the lien under IC 6-1.1-24-6, the county auditor gives notice of the sale to:
(A) the owner of record at the time the lien was acquired; and
(B) any person with a substantial property interest of public record in the tract or real property.
(c) A purchaser of a certificate of sale under IC 6-1.1-24-6.1 is entitled to a tax deed to the property for which the certificate was sold only if:
(1) the redemption period specified in section 4(c) of this chapter has expired;
(2) the property has not been redeemed within the period of redemption specified in section 4(c) of this chapter; and
(3) not later than ninety (90) days after the date of sale of the certificate of sale under IC 6-1.1-24, the purchaser gives notice of the sale to:
(A) the owner of record at the time of the sale; and
(B) any person with a substantial property interest of public record in the tract or real property.
(d) The person required to give the notice under subsection (a), (b), or (c) shall give the notice by sending a copy of the notice by certified mail to:
(1) the owner of record at the time of the:
(A) sale of the property;
(B) acquisition of the lien on the property under IC 6-1.1-24-6; or
(C) sale of the certificate of sale on the property under IC 6-1.1-24;
at the last address of the owner for the property, as indicated in the records of the county auditor; and
(2) any person with a substantial property interest of public record at the address for the person included in the public record that indicates the interest.
However, if the address of the person with a substantial property interest of public record is not indicated in the public record that
created the interest and cannot be located by ordinary means by the
person required to give the notice under subsection (a), (b), or (c), the
person may give notice by publication in accordance with IC 5-3-1-4
once each week for three (3) consecutive weeks.
(e) The notice that this section requires shall contain at least the
following:
(1) A statement that a petition for a tax deed will be filed on or
after a specified date.
(2) The date on or after which the petitioner intends to petition for
a tax deed to be issued.
(3) A description of the tract or real property shown on the
certificate of sale.
(4) The date the tract or real property was sold at a tax sale.
(5) The name of the:
(A) purchaser or purchaser's assignee;
(B) county executive that acquired the lien on the property
under IC 6-1.1-24-6; or
(C) person that purchased the certificate of sale on the
property under IC 6-1.1-24.
(6) A statement that any person may redeem the tract or real
property.
(7) The components of the amount required to redeem the tract or
real property.
(8) A statement that all taxes, special assessments, interest,
penalties, and fees on the property that accrued after the date
of the tax sale are liens against the property and that an entity
identified in subdivision (5) is entitled to reimbursement for
additional taxes, or special assessments, interest, penalties, and
fees on the tract or real property that were paid by the entity
subsequent to the tax sale, lien acquisition, or purchase of the
certificate of sale, and before redemption, plus interest.
(9) A statement that the tract or real property has not been
redeemed.
(10) A statement that an entity identified in subdivision (5) is
entitled to receive a deed for the tract or real property if it is not
redeemed before the expiration of the period of redemption
specified in section 4 of this chapter.
(11) A statement that an entity identified in subdivision (5) is
entitled to reimbursement for costs described in section 2(e) of
this chapter.
(12) The date of expiration of the period of redemption specified
in section 4 of this chapter.
(13) A statement that if the property is not redeemed, the owner of record at the time the tax deed is issued may have a right to the tax sale surplus, if any.
(14) The street address, if any, or a common description of the tract or real property.
(15) The key number or parcel number of the tract or real property.
(f) The notice under this section must include not more than one (1) tract or item of real property listed and sold in one (1) description. However, when more than one (1) tract or item of real property is owned by one (1) person, all of the tracts or real property that are owned by that person may be included in one (1) notice.
(g) A single notice under this section may be used to notify joint owners of record at the last address of the joint owners for the property sold, as indicated in the records of the county auditor.
(h) The notice required by this section is considered sufficient if the notice is mailed to the address required under subsection (d).
(i) The notice under this section and the notice under section 4.6 of this chapter are not required for persons in possession not shown in the public records.
(j) If the purchaser fails to:
(1) comply with subsection (c)(3); or
(2) petition for the issuance of a tax deed within the time permitted under section 4.6(a) of this chapter;
the certificate of sale reverts to the county executive and may be retained by the county executive or sold under IC 6-1.1-24-6.1.
(1) the purchaser, the purchaser's assignee, the county executive, or the purchaser of the certificate of sale under IC 6-1.1-24
(2) in a county where the county auditor and county treasurer have an agreement under section 4.7 of this chapter, the county auditor shall;
file a verified petition in the same court and under the same cause number in which the judgment of sale was entered asking the court to direct the county auditor to issue a tax deed if the real property is not redeemed from the sale. Notice of the filing of this petition shall be
given to the same parties and in the same manner as provided in section
4.5 of this chapter, except that, if notice is given by publication, only
one (1) publication is required. The notice required by this section is
considered sufficient if the notice is sent to the address required by
section 4.5(d) of this chapter. Any person owning or having an interest
in the tract or real property may file a written objection to the petition
with the court not later than thirty (30) days after the date the petition
was filed. If a written objection is timely filed, the court shall conduct
a hearing on the objection.
(b) Not later than sixty-one (61) days after the petition is filed under
subsection (a), the court shall enter an order directing the county
auditor (on the production of the certificate of sale and a copy of the
order) to issue to the petitioner a tax deed if the court finds that the
following conditions exist:
(1) The time of redemption has expired.
(2) The tract or real property has not been redeemed from the sale
before the expiration of the period of redemption specified in
section 4 of this chapter.
(3) Except with respect to a petition for the issuance of a tax deed
under a sale of the certificate of sale on the property under
IC 6-1.1-24-6.1, all taxes and special assessments, penalties, and
costs have been paid, including all taxes, special assessments,
interest, penalties, and fees on the property that accrued after
the date of the tax sale.
(4) The notices required by this section and section 4.5 of this
chapter have been given.
(5) The petitioner has complied with all the provisions of law
entitling the petitioner to a deed.
The county auditor shall execute deeds issued under this subsection in
the name of the state under the county auditor's name. If a certificate of
sale is lost before the execution of a deed, the county auditor shall issue
a replacement certificate if the county auditor is satisfied that the
original certificate existed.
(c) Upon application by the grantee of a valid tax deed in the same
court and under the same cause number in which the judgment of sale
was entered, the court shall enter an order to place the grantee of a
valid tax deed in possession of the real estate. The court may enter any
orders and grant any relief that is necessary or desirable to place or
maintain the grantee of a valid tax deed in possession of the real estate.
(d) Except as provided in subsections (e) and (f), if:
(1) the verified petition referred to in subsection (a) is timely
filed; and
(2) the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure of the petitioner under subsection (a) to fulfill the notice requirement of subsection (a);
the court shall order the return of the amount, if any, by which the purchase price exceeds the minimum bid on the property under IC 6-1.1-24-5 minus a penalty of twenty-five percent (25%) of that excess. The petitioner is prohibited from participating in any manner in the next succeeding tax sale in the county under IC 6-1.1-24. The county auditor shall deposit penalties paid under this subsection in the county general fund.
(e) Notwithstanding subsection (d), in all cases in which:
(1) the verified petition referred to in subsection (a) is timely filed;
(2) the petitioner under subsection (a) has made a bona fide attempt to comply with the statutory requirements under subsection (b) for the issuance of the tax deed but has failed to comply with these requirements;
(3) the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure to comply with these requirements; and
(4) the purchaser, the purchaser's successors or assignees, or the purchaser of the certificate of sale under IC 6-1.1-24 files a claim with the county auditor for refund not later than thirty (30) days after the entry of the order of the court refusing to direct the county auditor to execute and deliver the tax deed;
the county auditor shall not execute the deed but shall refund the purchase money minus a penalty of twenty-five percent (25%) of the purchase money from the county treasury to the purchaser, the purchaser's successors or assignees, or the purchaser of the certificate of sale under IC 6-1.1-24. The county auditor shall deposit penalties paid under this subsection in the county general fund. All the delinquent taxes and special assessments shall then be reinstated and recharged to the tax duplicate and collected in the same manner as if the property had not been offered for sale. The tract or item of real property, if it is then eligible for sale under IC 6-1.1-24, shall be placed on the delinquent list as an initial offering under IC 6-1.1-24.
(f) Notwithstanding subsections (d) and (e), the court shall not order the return of the purchase price or any part of the purchase price if:
(1) the purchaser or the purchaser of the certificate of sale under IC 6-1.1-24 has failed to provide notice or has provided insufficient notice as required by section 4.5 of this chapter; and
(2) the sale is otherwise valid.
(g) A tax deed executed under this section 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,
(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 tax deed issued under this section is incontestable except by appeal from the order of the court directing the county auditor to issue the tax deed filed not later than sixty (60) days after the date of the court's order.
(1) purchaser;
(2) purchaser's successors or assigns; or
(3) purchaser of the certificate of sale under IC 6-1.1-24;
fails to file the petition within the period provided in section 4.6 of this chapter, that person's lien against the real property terminates at the end of that period and the court shall not order the return of the purchase price or any part of the purchase price to the person. However, this section does not apply if the county or city is the holder of the certificate of sale.
(b) If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the:
(1) purchaser of the property; or
(2) purchaser of the certificate of sale under IC 6-1.1-24;
against the real property terminates at the end of that period and the court shall not order the return of the purchase price or any part of the purchase price to the person.
(c) The termination of the person's lien under this section does not affect the lien against the property for taxes, special assessments, interest, penalties, or fees on the property that
accrued after the date of the tax sale.
