Bill Text: IN SB0495 | 2013 | Regular Session | Introduced
Bill Title: Property tax assessment date.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-01-29 - Senator Randolph added as coauthor [SB0495 Detail]
Download: Indiana-2013-SB0495-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Property tax assessment date. Changes the assessment date
for property to January 1 of the year in which the taxes are due,
beginning with property taxes payable in 2016. Adjusts filing dates for
personal property returns and deduction applications. Requires
assessors to provide access to personal property tax returns and
schedules on the Internet beginning in 2016. Allows the department of
local government finance (DLGF) to require electronic data submission
for personal property taxes beginning in 2016. Permits the DLGF to
prescribe the assessed value reduction for a taxing unit to absorb the
effects of estimated reduced property tax collections beginning in 2016.
(Until 2016 the reduction may not exceed 2%.) Permits the DLGF to
adopt emergency rules to implement the date change.
Effective: July 1, 2013.
January 14, 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) For property taxes first due and payable after December 31, 2015, January 1.
(2) For property taxes first due and payable before January 1, 2016, the following:
The term does not include March 1, 2015, or January 15, 2016.
2015.
(1) The filing date for the original personal property tax return, if the taxpayer is not granted an extension in which to file under section 7 of this chapter.
(2) The extension date for the original personal property tax return, if the taxpayer is granted an extension under section 7 of this chapter.
(b) A tax adjustment related to an amended personal property tax return shall be made in conformity with rules adopted under IC 4-22-2 by the department of local government finance.
(c) If a taxpayer wishes to correct an error made by the taxpayer on the taxpayer's original personal property tax return, the taxpayer must file an amended personal property tax return under this section within the time required by subsection (a). A taxpayer may claim on an amended personal property tax return any adjustment or exemption that would have been allowable under any statute or rule adopted by the department of local government finance if the adjustment or exemption had been claimed on the original personal property tax return.
(d) Notwithstanding any other provision, if:
(1) a taxpayer files an amended personal property tax return under this section in order to correct an error made by the taxpayer on the taxpayer's original personal property tax return; and
(2) the taxpayer is entitled to a refund of personal property taxes paid by the taxpayer under the original personal property tax return;
the taxpayer is not entitled to interest on the refund.
(e) If a taxpayer files an amended personal property tax return for a year before July 16 of that year, the taxpayer shall pay taxes payable in the immediately succeeding year based on the assessed value reported on the amended return.
(f) If a taxpayer files an amended personal property tax return for a year after
(1) the assessed value reported on the taxpayer's original personal property tax return; minus
(2) the finally determined assessed value that results from the filing of the taxpayer's amended personal property tax return.
Except as provided in subsection (k), the county auditor may apply the credit against the taxpayer's property taxes on personal property payable in the year or years that immediately succeed the year in which the taxes were paid, as applicable. The county is not required to pay interest on any amounts that a taxpayer is entitled to receive as a credit under this section.
(g) A county auditor may carry a credit to which the taxpayer is entitled under subsection (f) forward to the immediately succeeding year or years, as applicable, and use the credit against the taxpayer's property taxes on personal property as follows:
(1) If the amount of the credit to which the taxpayer is initially entitled under subsection (f) does not exceed twenty-five thousand dollars ($25,000), the county auditor may carry the credit forward to the year immediately succeeding the year in which the taxes were paid.
(2) If the amount of the credit to which the taxpayer is initially entitled under subsection (f) exceeds twenty-five thousand dollars ($25,000), the county auditor may carry the credit forward for not more than three (3) consecutive years immediately succeeding the year in which the taxes were paid.
The credit is reduced each time the credit is applied to the taxpayer's
property taxes on personal property in succeeding years by the amount
applied.
(h) If an excess credit remains after the credit is applied in the final
year to which the credit may be carried forward under subsection (g),
the county auditor shall refund to the taxpayer the amount of any
excess credit that remains after application of the credit under
subsection (g) not later than December 31 of the final year to which the
excess credit may be carried.
(i) The taxpayer is not required to file an application for:
(1) a credit under subsection (f) or (g); or
(2) a refund under subsection (h).
(j) Before August 1 of each year, the county auditor shall provide to
each taxing unit in the county an estimate of the total amount of the
credits under subsection (f) or (g) that will be applied against taxes
imposed by the taxing unit that are payable in the immediately
succeeding year.
(k) A county auditor may refund a credit amount to a taxpayer
before the time the credit would otherwise be applied against property
tax payments under this section.
(l) If a person:
(1) files an amended personal property tax return more than six
(6) months, but less than twelve (12) months, after the filing date
or (if the taxpayer is granted an extension under section 7 of this
chapter) the extension date for the original personal property tax
return being amended; and
(2) is entitled to a credit or refund as a result of the amended
return;
the county auditor shall reduce the credit or refund payable to the
person. The amount of the reduction is ten percent (10%) of the credit
or refund amount.
(1) that is submitted:
(A) as a paper form; or
(B) electronically;
on or before December 31 of a calendar year, to the county assessor by or on behalf of the purchaser of a homestead (as defined in section 37 of this chapter) assessed as real property;
(2) that is accurate and complete;
(3) that is approved by the county assessor as eligible for filing with the county auditor; and
(4) that is filed:
(A) as a paper form; or
(B) electronically;
with the county auditor by or on behalf of the purchaser;
constitutes an application for the deductions provided by sections 1, 26, 29, 33, 34, and 37 of this chapter, with respect to property taxes first due and payable in the calendar year referred to in subdivision (1) for property taxes first due and payable after December 31, 2015, and in the calendar year that immediately succeeds the calendar year referred to in subdivision (1) for property taxes that are first due and payable before January 1, 2016.
(b) Except as provided in subsection (c), if:
(1) the county auditor receives in a calendar year a sales disclosure form that meets the requirements of subsection (a); and
(2) the homestead for which the sales disclosure form is submitted is otherwise eligible for a deduction referred to in subsection (a);
the county auditor shall apply the deduction to the homestead for property taxes first due and payable in the calendar year for which the homestead qualifies under subsection (a) and in any later year in which the homestead remains eligible for the deduction.
(c) Subsection (b) does not apply if the county auditor, after receiving a sales disclosure form from or on behalf of a purchaser under subsection (a)(4), determines that the homestead is ineligible for the deduction.
(b) The county auditor may exclude and keep separate on the tax duplicate for taxes payable in a calendar year the net assessed value of tangible property that meets the following conditions:
(1) The net assessed value of the property is at least nine percent (9%) of the net assessed value of all tangible property subject to taxation by a taxing district.
(2) The property is or has been part of a bankruptcy estate that is subject to protection under the federal bankruptcy code.
(3) The owner of the property has discontinued all business operations on the property.
(4) There is a high probability that the taxpayer will not pay property taxes due on the property in the following year.
(c) This section does not limit, restrict, or reduce in any way the
property tax liability on the property.
(d) For each taxing district located in the county, the county auditor
may reduce for a calendar year the taxing district's net assessed value
that is certified to the department of local government finance under
section 1 of this chapter and used to set tax rates for the taxing district
for taxes first due and payable in the immediately succeeding calendar
year. The county auditor may reduce a taxing district's net assessed
value under this subsection only to enable the taxing district to absorb
the effects of reduced property tax collections in the immediately
succeeding calendar year that are expected to result from any or a
combination of the following:
(1) Successful appeals of the assessed value of property located
in the taxing district.
(2) Deductions under IC 6-1.1-12-37 and IC 6-1.1-12-37.5 that
result from the granting of applications for the standard deduction
for the calendar year under IC 6-1.1-12-37 or IC 6-1.1-12-44 after
the county auditor certifies net assessed value as described in this
section.
(3) Deductions that result from the granting of applications for
deductions for the calendar year under IC 6-1.1-12-44 after the
county auditor certifies net assessed value as described in this
section.
(4) For an assessment date after December 31, 2015,
deductions or exemptions granted under any other law after
the county auditor certifies the assessed value as described in
this section.
(4) (5) Reassessments of real property under IC 6-1.1-4-11.5.
(6) For an assessment date after December 31, 2015,
forecasting errors in the estimation of the assessed value of
property located in the taxing unit that is certified as
described in this section.
Not later than December 31 of each year, the county auditor shall send
a certified statement, under the seal of the board of county
commissioners, to the fiscal officer of each political subdivision of the
county and to the department of local government finance. The
certified statement must list any adjustments to the amount of the
reduction under this subsection and the information submitted under
section 1 of this chapter that are necessary. The county auditor shall
keep separately on the tax duplicate the amount of any reductions made
under this subsection. The maximum amount of the reduction
authorized under this subsection is determined under subsection (e).
(e) For assessment dates after December 31, 2015, the amount
of the reduction in a taxing unit's assessed value for a calendar
year under subsection (d) may not exceed the percentage limit
prescribed by the department of local government finance for the
taxing unit for that calendar year. For assessment dates before
January 1, 2016, the amount of the reduction in a taxing district's net
assessed value for a calendar year under subsection (d) may not exceed
two percent (2%) of the net assessed value of tangible property subject
to assessment in the taxing district in that calendar year.
(f) The amount of a reduction under subsection (d) may not be
offered in a proceeding before the:
(1) county property tax assessment board of appeals;
(2) Indiana board; or
(3) Indiana tax court;
as evidence that a particular parcel has been improperly assessed.
(b) Subject to the limitations and requirements prescribed in this section, the department of local government finance may review, revise, reduce, or increase the budget by fund, tax rate, or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision whose budget, tax rate, or tax levy is the subject of an appeal initiated under this chapter.
(c) Except as provided in subsections (j) and (k), before the department of local government finance reviews, revises, reduces, or increases a political subdivision's budget by fund, tax rate, or tax levy under this section, the department must hold a public hearing on the budget, tax rate, and tax levy. The department of local government finance shall hold the hearing in the county in which the political subdivision is located. The department of local government finance may consider the budgets by fund, tax rates, and tax levies of several political subdivisions at the same public hearing. At least five (5) days before the date fixed for a public hearing, the department of local government finance shall give notice of the time and place of the hearing and of the budgets by fund, levies, and tax rates to be considered at the hearing. The department of local government finance shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general
circulation is published in the county, the department of local
government finance shall publish the notice in that newspaper.
(d) Except as provided in subsection (i), IC 20-46, or IC 6-1.1-18.5,
the department of local government finance may not increase a political
subdivision's budget by fund, tax rate (for budgets before January 1,
2016), or tax levy to an amount which exceeds the amount originally
fixed by the political subdivision. For budgets after December 31,
2015, the department of local government finance may increase or
decrease a tax rate as necessary to raise the related tax levy
certified by the department of local government finance. However,
the tax rate may not be increased above any tax rate limitation
imposed for a fund under any law. However, if the department of
local government finance determines that IC 5-3-1-2.3(b) applies to the
tax rate, tax levy, or budget of the political subdivision, the maximum
amount by which the department may increase the tax rate, tax levy, or
budget is the amount originally fixed by the political subdivision, and
not the amount that was incorrectly published or omitted in the notice
described in IC 5-3-1-2.3(b). The department of local government
finance shall give the political subdivision notification electronically
in the manner prescribed by the department of local government
finance specifying any revision, reduction, or increase the department
proposes in a political subdivision's tax levy or tax rate. The political
subdivision has ten (10) calendar days from the date the political
subdivision receives the notice to provide a response electronically in
the manner prescribed by the department of local government finance.
The response may include budget reductions, reallocation of levies, a
revision in the amount of miscellaneous revenues, and further review
of any other item about which, in the view of the political subdivision,
the department is in error. The department of local government finance
shall consider the adjustments as specified in the political subdivision's
response if the response is provided as required by this subsection and
shall deliver a final decision to the political subdivision.
(e) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an appeal initiated by the political subdivision;
(3) the taxpayer that initiated an appeal under section 13 of this chapter, or, if the appeal was initiated by multiple taxpayers, the first ten (10) taxpayers whose names appear on the statement filed to initiate the appeal; and
(4) a taxpayer that owns property that represents at least ten percent (10%) of the taxable assessed valuation in the political subdivision.
(g) The following may petition for judicial review of the final determination of the department of local government finance under subsection (f):
(1) If the department acts under an appeal initiated by a political subdivision, the political subdivision.
(2) If the department:
(A) acts under an appeal initiated by one (1) or more taxpayers under section 13 of this chapter; or
(B) fails to act on the appeal before the department certifies its action under subsection (f);
a taxpayer who signed the statement filed to initiate the appeal.
(3) If the department acts under an appeal initiated by the county auditor under section 14 of this chapter, the county auditor.
(4) A taxpayer that owns property that represents at least ten percent (10%) of the taxable assessed valuation in the political subdivision.
The petition must be filed in the tax court not more than forty-five (45) days after the department certifies its action under subsection (f).
(h) The department of local government finance is expressly directed to complete the duties assigned to it under this section not later than February 15th of each year for taxes to be collected during that year.
(i) Subject to the provisions of all applicable statutes, the department of local government finance may increase a political subdivision's tax levy to an amount that exceeds the amount originally fixed by the political subdivision if the increase is:
(1) requested in writing by the officers of the political subdivision;
(2) either:
(A) based on information first obtained by the political subdivision after the public hearing under section 3 of this chapter; or
(B) results from an inadvertent mathematical error made in determining the levy; and
(3) published by the political subdivision according to a notice provided by the department.
(j) The department of local government finance shall annually review the budget by fund of each school corporation not later than April 1. The department of local government finance shall give the school corporation written notification specifying any revision, reduction, or increase the department proposes in the school corporation's budget by fund. A public hearing is not required in connection with this review of the budget.
(k) The department of local government finance may hold a hearing under subsection (c) only if the notice required in section 12 of this chapter is published at least ten (10) days before the date of the hearing.
(1) for property taxes first due and payable after December 31, 2015, May 10 and November 10 of the year of the assessment; and
(2) for property taxes first due and payable before January 1, 2016, May 10 and November 10 of the following year.
(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.
(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.
(1) for property taxes first due and payable after December 31, 2015, May 10 and November 10 of the year of the assessment date covered by the provisional statement; and
(2) for property taxes first due and payable before January 1, 2016, May 10 and November 10 of the year following the assessment date covered by the provisional statement.
(b) The county treasurer may mail or transmit the provisional statement one (1) time each year at least fifteen (15) days before the date on which the first installment is due under subsection (a) in the manner provided in IC 6-1.1-22-8.1, regardless of whether the notice required under section 6(b) of this chapter has been published.
(c) This subsection applies to a provisional statement issued under section 6 of this chapter. Except when the second installment of a provisional statement is replaced by a final reconciling statement providing for taxes to be due on November 10, the amount of tax liability due for each installment of a provisional statement issued for a year after 2010 is fifty percent (50%) of the tax that was due for the immediately preceding year under IC 6-1.1-22 subject to any adjustments to the tax liability as prescribed by the department of local government finance. If no bill was issued in the prior year, the provisional bill shall be based on the amount that would have been due if a provisional tax statement had been issued for the immediately preceding year. The department of local government finance may prescribe standards to implement this subsection, including a method of calculating the taxes due when an abstract or other information is not
complete.
(d) This subsection applies only if a provisional statement for
payment of property taxes, special assessments, and any adjustment
included in the provisional statement under section 8(e) of this chapter
by electronic mail is transmitted to a person under IC 6-1.1-22-8.1(h).
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 provisional statement in the
manner required by this chapter for persons who do not opt to receive
statements by electronic mail. The due date for the property taxes,
special assessments, and any adjustment included in the provisional
statement under section 8(e) of this chapter under a provisional
statement mailed to a person under this subsection is the due date
indicated in the statement transmitted to the person by electronic mail.
(e) This subsection applies only to property taxes first due and
payable in 2011. If a county is more than two (2) years behind in
issuing property tax bills, the county treasurer of the county may
petition the department in writing to extend the deadline for making the
first installment payment on a provisional statement issued under this
chapter. Upon receiving a petition under this subsection, the
department may extend the payment deadline to a date that is not later
than July 1, 2011.
(b) An emergency rule adopted under this section expires on the earliest of the following:
(1) The date specified in the emergency rule.
(2) The date the emergency rule is amended or repealed by a later rule adopted under IC 4-22-2-22.5 through IC 4-22-2-36, or under IC 4-22-2-37.1.
(3) January 1, 2016.
(c) This section expires July 1, 2016.
