Bill Text: IN SB0569 | 2011 | Regular Session | Introduced
Bill Title: Tax procedures.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-20 - First reading: referred to Committee on Tax and Fiscal Policy [SB0569 Detail]
Download: Indiana-2011-SB0569-Introduced.html
Citations Affected: IC 6-1.1; IC 6-1.5-4-1; IC 6-3-4-6; IC 6-8.1;
IC 33-26-3-7; IC 33-26-6-2; IC 33-26-6-2.5.
Synopsis: Tax procedures. Changes the method for calculating interest
due on property tax payments and refunds. Indicates that an
explanation of appeal procedures must be included in a property tax
bill if a change in assessment was made without sending out a Form 11.
Provides that a taxpayer may appeal a dispute over interest, penalties,
collection fees, clerk's costs, sheriff's costs, and collection agency fees
imposed on delinquent property taxes by filing a Form 133 with the
county auditor. Permits an appeal to the tax court. Specifies that the tax
court has jurisdiction over: (1) a dispute related to a refund for a tax
administered by the department of state revenue after the expiration of
the date a claim for refund may be filed; (2) settlement agreements
between the taxpayer and the department of state revenue; and (3)
interest, penalties, collection fees, clerk's costs, sheriff's costs, and
collection agency fees related to the collection of a tax administered by
the department of state revenue. Indicates that a modification of federal
tax liability or a federal tax return need not be reported to the
department of state revenue until the federal modification becomes a
final, binding determination. Specifies that a taxpayer earns interest on
an overpayment of state taxes from the date the tax return was due.
Requires the department of state revenue to standardize the form used
to give notice of the denial of a refund. Provides that, unless the
jeopardy assessment provisions of law apply or the tax court authorizes
collection, the department of state revenue may not issue a demand
notice for a tax or initiate a collection action until after a taxpayer's
right of appeal expires (if the taxpayer does not appeal an assessment)
or the date a final tax court decision is issued (if a timely appeal is
filed).
Effective: Upon passage.
January 20, 2011, 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) The total property taxes that, if it were not for the classification, would have been assessed on the land during the period of classification or the ten (10) year period immediately preceding the date on which the land is withdrawn from the classification, whichever is lesser.
(2) Interest on the property taxes at the rate
(3) For land that was originally classified after June, 30, 2006, a penalty amount of one hundred dollars ($100) per withdrawal plus fifty dollars ($50) per acre, unless an amount is established by rule by the natural resources commission. However, the natural
resources commission may not increase the penalty amount more
than once every five (5) years.
(b) The liability imposed by this section is a lien upon the land
withdrawn from the classification. When the county collects the
amount, the funds shall be distributed as follows:
(1) Seventy-five percent (75%) of the penalty under subsection
(a)(3) shall be transferred by the county auditor to the treasurer of
state who shall deposit the amount in the forest restoration fund
(IC 14-12-1-11.1).
(2) Twenty-five percent (25%) of the penalty under subsection
(a)(3) plus the taxes and interest collected under subsection (a)(1)
and (a)(2) shall be deposited by the county auditor into the county
general fund.
If the amount is not paid, it shall be treated in the same manner the
delinquent taxes on real property are treated.
(c) The county auditor shall determine the tax owed under
subsection (a).
(1) the sum of:
(A) the total property taxes that, if it were not for the classification, would have been assessed on the land during the period of classification or the ten (10) year period immediately preceding the date on which the land is withdrawn from the classification, whichever is lesser; plus
(B) interest on the property taxes at the rate
(2) the remainder of:
(A) the withdrawal assessment of the land; minus
(B) the sum of the initial classification assessment of the land and any increase in the initial classification of the land resulting from the subsequent construction of a ditch or levee.
(b) The liability imposed by this section is a lien upon the land withdrawn from the classification. When the amount is collected, it shall be paid into the county general fund. If the amount is not paid, it shall be treated in the same manner that delinquent taxes on real property are treated.
(c) For purposes of this section, "initial classification assessment" means the assessment required under section 5 of this chapter, and "withdrawal assessment" means the assessment required under section
15 or 16 of this chapter.
(b) If land that is classified as a filter strip is withdrawn from the classification, the owner shall pay an amount equal to the lesser of:
(1) the sum of:
(A) the total property taxes that, if it were not for the classification, would have been assessed on the land during the lesser of the period of classification or the ten (10) year period immediately preceding the date on which the land is withdrawn from the classification; plus
(B) interest on the property taxes at the rate
(2) the remainder of:
(A) the withdrawal assessment of the land; minus
(B) the sum of the initial classification assessment of the land and any increase in the initial classification of the land resulting from the subsequent construction of a ditch or levee.
(c) The liability imposed by this section is a lien upon the land withdrawn from the classification. When the amount is collected, the amount shall be paid into the county general fund. If the amount is not paid, the lien shall be treated in the same manner that delinquent taxes on real property are treated.
the taxes are paid. However, the department of local government
finance may waive any portion of the interest due under this section at
the time the department makes its final assessment of the omitted
distributable property.
(b) A building is exempt from property taxation if it is owned, occupied, and used by a town, city, township, or county for educational, literary, scientific, fraternal, or charitable purposes.
(c) A tract of land, including the campus and athletic grounds of an educational institution, is exempt from property taxation if:
(1) a building that is exempt under subsection (a) or (b) is situated on it;
(2) a parking lot or structure that serves a building referred to in subdivision (1) is situated on it; or
(3) the tract:
(A) is owned by a nonprofit entity established for the purpose of retaining and preserving land and water for their natural characteristics;
(B) does not exceed five hundred (500) acres; and
(C) is not used by the nonprofit entity to make a profit.
(d) A tract of land is exempt from property taxation if:
(1) it is purchased for the purpose of erecting a building that is to be owned, occupied, and used in such a manner that the building will be exempt under subsection (a) or (b); and
(2) not more than four (4) years after the property is purchased, and for each year after the four (4) year period, the owner demonstrates substantial progress and active pursuit towards the erection of the intended building and use of the tract for the exempt purpose. To establish substantial progress and active pursuit under this subdivision, the owner must prove the existence of factors such as the following:
(A) Organization of and activity by a building committee or other oversight group.
(B) Completion and filing of building plans with the appropriate local government authority.
(C) Cash reserves dedicated to the project of a sufficient amount to lead a reasonable individual to believe the actual construction can and will begin within four (4) years.
(D) The breaking of ground and the beginning of actual construction.
(E) Any other factor that would lead a reasonable individual to believe that construction of the building is an active plan and that the building is capable of being completed within eight (8) years considering the circumstances of the owner.
If the owner of the property sells, leases, or otherwise transfers a tract of land that is exempt under this subsection, the owner is liable for the property taxes that were not imposed upon the tract of land during the period beginning January 1 of the fourth year following the purchase of the property and ending on December 31 of the year of the sale, lease, or transfer. The county auditor of the county in which the tract of land is located may establish an installment plan for the repayment of taxes due under this subsection. The plan established by the county auditor may allow the repayment of the taxes over a period of years equal to the number of years for which property taxes must be repaid under this subsection.
(e) Personal property is exempt from property taxation if it is owned and used in such a manner that it would be exempt under subsection (a) or (b) if it were a building.
(f) A hospital's property that is exempt from property taxation under subsection (a), (b), or (e) shall remain exempt from property taxation even if the property is used in part to furnish goods or services to another hospital whose property qualifies for exemption under this section.
(g) Property owned by a shared hospital services organization that is exempt from federal income taxation under Section 501(c)(3) or 501(e) of the Internal Revenue Code is exempt from property taxation if it is owned, occupied, and used exclusively to furnish goods or services to a hospital whose property is exempt from property taxation under subsection (a), (b), or (e).
(h) This section does not exempt from property tax an office or a practice of a physician or group of physicians that is owned by a hospital licensed under IC 16-21-1 or other property that is not substantially related to or supportive of the inpatient facility of the hospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (as defined in IC 16-18-2-52.5), including providing funds or other financial support for health care services for individuals who are indigent (as defined in IC 16-18-2-52.5(b) and IC 16-18-2-52.5(c)); or
(2) provides or supports the provision of community benefits (as defined in IC 16-21-9-1), including research, education, or
government sponsored indigent health care (as defined in
IC 16-21-9-2).
However, participation in the Medicaid or Medicare program alone
does not entitle an office, practice, or other property described in this
subsection to an exemption under this section.
(i) A tract of land or a tract of land plus all or part of a structure on
the land is exempt from property taxation if:
(1) the tract is acquired for the purpose of erecting, renovating, or
improving a single family residential structure that is to be given
away or sold:
(A) in a charitable manner;
(B) by a nonprofit organization; and
(C) to low income individuals who will:
(i) use the land as a family residence; and
(ii) not have an exemption for the land under this section;
(2) the tract does not exceed three (3) acres;
(3) the tract of land or the tract of land plus all or part of a
structure on the land is not used for profit while exempt under this
section; and
(4) not more than four (4) years after the property is acquired for
the purpose described in subdivision (1), and for each year after
the four (4) year period, the owner demonstrates substantial
progress and active pursuit towards the erection, renovation, or
improvement of the intended structure. To establish substantial
progress and active pursuit under this subdivision, the owner must
prove the existence of factors such as the following:
(A) Organization of and activity by a building committee or
other oversight group.
(B) Completion and filing of building plans with the
appropriate local government authority.
(C) Cash reserves dedicated to the project of a sufficient
amount to lead a reasonable individual to believe the actual
construction can and will begin within five (5) years of the
initial exemption received under this subsection.
(D) The breaking of ground and the beginning of actual
construction.
(E) Any other factor that would lead a reasonable individual to
believe that construction of the structure is an active plan and
that the structure is capable of being:
(i) completed; and
(ii) transferred to a low income individual who does not
receive an exemption under this section;
within eight (8) years considering the circumstances of the owner.
(j) An exemption under subsection (i) terminates when the property is conveyed by the nonprofit organization to another owner. When the property is conveyed to another owner, the nonprofit organization receiving the exemption must file a certified statement with the auditor of the county, notifying the auditor of the change not later than sixty (60) days after the date of the conveyance. The county auditor shall immediately forward a copy of the certified statement to the county assessor. A nonprofit organization that fails to file the statement required by this subsection is liable for the amount of property taxes due on the property conveyed if it were not for the exemption allowed under this chapter.
(k) If property is granted an exemption in any year under subsection (i) and the owner:
(1) ceases to be eligible for the exemption under subsection (i)(4);
(2) fails to transfer the tangible property within eight (8) years after the assessment date for which the exemption is initially granted; or
(3) transfers the tangible property to a person who:
(A) is not a low income individual; or
(B) does not use the transferred property as a residence for at least one (1) year after the property is transferred;
the person receiving the exemption shall notify the county recorder and the county auditor of the county in which the property is located not later than sixty (60) days after the event described in subdivision (1), (2), or (3) occurs. The county auditor shall immediately inform the county assessor of a notification received under this subsection.
(l) If subsection (k)(1), (k)(2), or (k)(3) applies, the owner shall pay, not later than the date that the next installment of property taxes is due, an amount equal to the sum of the following:
(1) The total property taxes that, if it were not for the exemption under subsection (i), would have been levied on the property in each year in which an exemption was allowed.
(2) Interest on the property taxes at the rate
(m) The liability imposed by subsection (l) is a lien upon the property receiving the exemption under subsection (i). An amount collected under subsection (l) shall be collected as an excess levy. If the amount is not paid, it shall be collected in the same manner that delinquent taxes on real property are collected.
(n) Property referred to in this section shall be assessed to the extent
required under IC 6-1.1-11-9.
(1) The description of the real property was in error.
(2) The assessment was against the wrong person.
(3) Taxes on the same property were charged more than one (1) time in the same year.
(4) There was a mathematical error in computing the taxes, interest on the taxes,
(5) There was an error in carrying delinquent taxes forward from one (1) tax duplicate to another.
(6) The taxes, as a matter of law, were illegal.
(7) The interest on taxes, penalties on taxes, or collection fees, clerk's costs, sheriff's costs, or collection agency costs related to the taxes, were erroneously imposed on a person.
(b) The county auditor shall correct an error described under subsection (a)(1), (a)(2), (a)(3), (a)(4), or (a)(5) when the county auditor finds that the error exists. A taxpayer may appeal a determination under subsection (a)(1), (a)(2), (a)(3), (a)(4), or (a)(5) to the county board for a final determination.
(c) If the tax is based on an assessment made or determined by the department of local government finance, the county auditor shall not correct an error described under subsection (a)(6), (a)(7),
(d) If the tax is not based on an assessment made or determined by the department of local government finance, the county auditor shall correct an error described under subsection (a)(6),
following officials:
(1) The township assessor (if any).
(2) The county auditor.
(3) The county assessor.
If two (2) of these officials do not approve such a correction, the county
auditor shall refer the matter to the county board for determination. The
county board shall provide a copy of the determination to the taxpayer
and to the county auditor.
(e) If the tax is not based on an assessment made or determined
by the department of local government finance, the county auditor
shall correct an error described under subsection (a)(7), only if the
correction is first approved by the following officials:
(1) The county treasurer.
(2) The county auditor.
If two (2) of these officials do not approve such a correction, the
county auditor shall refer the matter to the county board for
determination. The county board shall provide a copy of the
determination to the taxpayer and to the county auditor.
(e) (f) A taxpayer may appeal a determination of the county board
to the Indiana board for a final administrative determination. An appeal
under this section shall be conducted in the same manner as appeals
under sections 4 through 8 of this chapter. The Indiana board shall send
the final administrative determination to the taxpayer, the county
auditor, the county assessor, and the township assessor (if any).
(f) (g) If a correction or change is made in the tax duplicate after it
is delivered to the county treasurer, the county auditor shall transmit a
certificate of correction to the county treasurer. The county treasurer
shall keep the certificate as the voucher for settlement with the county
auditor.
(g) (h) A taxpayer that files a personal property tax return under
IC 6-1.1-3 may not petition under this section for the correction of an
error made by the taxpayer on the taxpayer's personal property tax
return. If the taxpayer wishes to correct an error made by the taxpayer
on the taxpayer's personal property tax return, the taxpayer must
instead file an amended personal property tax return under
IC 6-1.1-3-7.5.
(h) (i) A taxpayer that files a statement under IC 6-1.1-8-19 may not
petition under this section for the correction of an error made by the
taxpayer on the taxpayer's statement. If the taxpayer wishes to correct
an error made by the taxpayer on the taxpayer's statement, the taxpayer
must instead initiate an objection under IC 6-1.1-8-28 or an appeal
under IC 6-1.1-8-30.
(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).
(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.
(10) This subdivision applies if any assessing official assesses,
reassesses, or otherwise changes the assessed value of real
property for an assessment date after January 15, 2011, but
fails to give written notice of the amount of the assessment,
reassessment, or other change in conformity with
IC 6-1.1-4-22. Notice to the person of the opportunity to
appeal the assessed valuation under IC 6-1.1-15-1, including
the following:
(A) The procedure for obtaining a preliminary informal
meeting under IC 6-1.1-15-1(h)(2).
(B) The procedure that a taxpayer must follow to appeal
the assessment, reassessment, or other change in assessed
value.
(C) The forms that must be filed for an appeal of the
assessment, reassessment, or other change in assessed
value.
(D) Notice that an appeal of the assessment, reassessment,
or other change in assessed value requires evidence
relevant to the true tax value of the taxpayer's property as
of the assessment date.
(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
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 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.
(C) 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.
(4) A statement that would otherwise be sent by the county
auditor to the person by regular mail under IC 6-1.1-17-3(b).
(5) 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.
(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. 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 person received the statement.
the time of payment, in the same manner as the original lien.
(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; 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 the following:
(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.
(5) This subdivision applies if any assessing official assesses,
reassesses, or otherwise changes the assessed value of real
property for an assessment date after January 15, 2011, but
fails to give written notice of the amount of the assessment,
reassessment, or other change in conformity with
IC 6-1.1-4-22. Notice to the person of the opportunity to
appeal the assessed valuation under IC 6-1.1-15-1, including
the following:
(A) The procedure for obtaining a preliminary informal
meeting under IC 6-1.1-15-1(h)(2).
(B) The procedure that a taxpayer must follow to appeal
the assessment, reassessment, or other change in assessed
value.
(C) The forms that must be filed for an appeal of the
assessment, reassessment, or other change in assessed
value.
(D) Notice that an appeal of the assessment, reassessment,
or other change in assessed value requires evidence
relevant to the true tax value of the taxpayer's property as
of the assessment date.
(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) 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).
(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 paid by the purchaser after the tax sale plus
interest at the rate of ten percent (10%) per annum specified
in IC 6-1.1-37-14 on the amount of taxes and special
assessments paid by the purchaser on the redeemed 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.
(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.
(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;
(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
(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) the sum of the amounts prescribed in subsections (b) through (e); or
(2) the amount prescribed in subsection (f);
reduced by any amounts held in the name of the taxpayer or the purchaser in the tax sale surplus fund.
(b) Except as provided in subsection (f), the total amount required for redemption includes:
(1) one hundred ten percent (110%) of the minimum bid for which the tract or real property was offered at the time of sale, as required by IC 6-1.1-24-5, if the tract or item of real property is redeemed not more than six (6) months after the date of sale; or
(2) one hundred fifteen percent (115%) of the minimum bid for which the tract or real property was offered at the time of sale, as required by IC 6-1.1-24-5, if the tract or item of real property is
redeemed more than six (6) months but not more than one (1)
year after the date of sale.
(c) Except as provided in subsection (f), in addition to the amount
required under subsection (b), the total amount required for redemption
includes the amount by which the purchase price exceeds the minimum
bid on the real property plus ten percent (10%) per annum interest at
the rate specified in IC 6-1.1-37-14 on the amount by which the
purchase price exceeds the minimum bid on the property.
(d) Except as provided in subsection (f), in addition to the amount
required under subsections (b) and (c), the total amount required for
redemption includes all taxes and special assessments upon the
property paid by the purchaser after the sale plus ten percent (10%)
interest per annum at the rate specified in IC 6-1.1-37-14 on those
taxes and special assessments.
(e) Except as provided in subsection (f), in addition to the amounts
required under subsections (b), (c), and (d), the total amount required
for redemption includes the following costs, if certified before
redemption and not earlier than thirty (30) days after the date of sale of
the property being redeemed by the payor to the county auditor on a
form prescribed by the state board of accounts, that were incurred and
paid by the purchaser, the purchaser's assignee, or the county, before
redemption:
(1) The attorney's fees and costs of giving notice under section 4.5
of this chapter.
(2) The costs of a title search or of examining and updating the
abstract of title for the tract or item of real property.
(f) With respect to a tract or item of real property redeemed under
section 4(c) of this chapter, instead of the amounts stated in subsections
(b) through (e), the total amount required for redemption is the amount
determined under IC 6-1.1-24-6.1(b)(4).
(1) the purchase money and all taxes and special assessments on the property paid by the purchaser, the purchaser's assigns, or the purchaser of the certificate of sale under IC 6-1.1-24 after the tax sale plus
(2) subject to any limitation under section 2.5 of this chapter, any
costs paid by the purchaser, the purchaser's assigns, or the
purchaser of the certificate of sale under IC 6-1.1-24 under
section 2 of this chapter;
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.
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 6-1.1-24-6.
(b) A political subdivision shall reimburse the county for interest
paid by the county under subsection (a) if:
(1) the invalidity of the sale under IC 6-1.1-24 resulted from the
failure of the political subdivision to give adequate notice of a lien
to property owners; and
(2) the existence of the lien resulted in the sale of the property
under IC 6-1.1-24.
(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 at the rate specified in IC 6-1.1-37-14 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) the price paid at the tax sale for the real property;
(2) the taxes and special assessments paid by the grantee, or the grantee's successors or assigns, subsequent to the sale; and
(3) any amount due the grantee, or the grantee's successors or assigns, as an occupying claimant.
(b) The grantee, or the grantee's successors or assigns, shall acquire a lien under this section only if:
(1) the tax deed is ineffectual to convey title;
(2) the taxes or special assessments for which the real property was sold were properly charged to that property and were unpaid at the time of sale; and
(3) the real property has not been redeemed.
(c) The grantee, or the grantee's successors or assigns, may recover from the owner of the real property, the owner of a life estate in the real property, or any other person primarily liable for the payment of the taxes and special assessments upon the real property an amount equal to the sum of:
(1) the amount of the lien prescribed in this section;
(2) interest at the rate
(3) all other lawful charges.
refund filed after December 31, 2001, interest at four percent (4%) the
rate specified in IC 6-1.1-37-14 from the date on which the taxes were
paid or payable, whichever is later, to the date of the refund. The
county auditor shall, without an appropriation being required, issue a
warrant to the claimant payable from the county general fund for the
amount due the claimant under this section.
(b) In the June or December settlement and apportionment of taxes,
or both the June and December settlement and apportionment of taxes,
immediately following a refund made under this section the county
auditor shall deduct the amount refunded from the gross tax collections
of the taxing units for which the refunded taxes were originally paid
and shall pay the amount so deducted into the general fund of the
county. However, the county auditor shall make the deductions and
payments required by this subsection not later than the December
settlement and apportionment.
(1) an assessment is made or increased after the date or dates on which the taxes for the year for which the assessment is made were originally due;
(2) the assessment upon which a taxpayer has been paying taxes under IC 6-1.1-15-10(a)(1) or IC 6-1.1-15-10(a)(2) while a petition for review or a judicial proceeding has been pending is less than the assessment that results from the final determination of the petition for review or judicial proceeding; or
(3) the collection of certain ad valorem property taxes has been enjoined under IC 33-26-6-2, and under the final determination of the petition for judicial review the taxpayer is liable for at least part of those taxes.
(b) Except as provided in subsections (c) and (g), a taxpayer shall pay interest on the taxes the taxpayer is required to pay as a result of an action or a determination described in subsection (a) at the rate
(c) Except as provided in subsection (g), a taxpayer shall pay interest on the taxes the taxpayer is ultimately required to pay in excess of the amount that the taxpayer is required to pay under IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
proceeding has been pending at the overpayment rate established under
Section 6621(c)(1) of the Internal Revenue Code in effect on the
original due date or dates for those taxes specified in IC 6-1.1-37-14
from the original due date or dates for those taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(d) With respect to an action or determination described in
subsection (a), the taxpayer shall pay the taxes resulting from that
action or determination and the interest prescribed under subsection (b)
or (c) on or before:
(1) the next May 10; or
(2) the next November 10;
whichever occurs first.
(e) A taxpayer shall, to the extent that the penalty is not waived
under section 10.7 of this chapter, begin paying the penalty prescribed
in section 10 of this chapter on the day after the date for payment
prescribed in subsection (d) if:
(1) the taxpayer has not paid the amount of taxes resulting from
the action or determination; and
(2) the taxpayer either:
(A) received notice of the taxes the taxpayer is required to pay
as a result of the action or determination at least thirty (30)
days before the date for payment; or
(B) voluntarily signed and filed an assessment return for the
taxes.
(f) If subsection (e) does not apply, a taxpayer who has not paid the
amount of taxes resulting from the action or determination shall, to the
extent that the penalty is not waived under section 10.7 of this chapter,
begin paying the penalty prescribed in section 10 of this chapter on:
(1) the next May 10 which follows the date for payment
prescribed in subsection (d); or
(2) the next November 10 which follows the date for payment
prescribed in subsection (d);
whichever occurs first.
(g) A taxpayer is not subject to the payment of interest on real
property assessments under subsection (b) or (c) if:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were due;
(2) the assessment or the assessment increase is made as the result
of error or neglect by the assessor or by any other official
involved with the assessment of property or the collection of
property taxes; and
(3) the assessment:
(A) would have been made on the normal assessment date if
the error or neglect had not occurred; or
(B) increase would have been included in the assessment on
the normal annual assessment date if the error or neglect had
not occurred.
(b) For purposes of this section and except as provided in subsection (c), the interest shall be computed from the date on which the taxes were paid or due, whichever is later, to the date of the refund or credit.
(c) This subsection applies if a taxpayer who is entitled to a refund or credit does not make a written request for the refund or credit to the county auditor within forty-five (45) days after the final determination of the county property tax assessment board of appeals, the state board of tax commissioners, the department of local government finance, the Indiana board, or the tax court that entitles the taxpayer to the refund or credit. In the case of a taxpayer described in this subsection, the interest shall be computed from the date on which the taxes were paid or due to the date that is forty-five (45) days after the final determination of the county property tax assessment board of appeals, the state board of tax commissioners, the department of local government finance, the Indiana board of tax review, or the Indiana tax court. In any event, a property tax refund or credit must be issued not later than ninety (90) days after the request is received.
(b) Before July 1, 2011, the applicable interest rate under:
(1) IC 6-1.1-6-24 is ten percent (10%) per annum.
(2) IC 6-1.1-6.2-19 is ten percent (10%) per annum.
(3) IC 6-1.1-6.7-18 is ten percent (10%) per annum.
(4) IC 6-1.1-8-40 is two percent (2%) per month, or fraction
of a month.
(5) IC 6-1.1-10-16 is ten percent (10%) per annum.
(6) IC 6-1.1-22-11 is ten percent (10%) per annum.
(7) IC 6-1.1-24-2 is ten percent (10%) per annum.
(8) IC 6-1.1-24-6.1 is ten percent (10%) per annum.
(9) IC 6-1.1-25-2 is ten percent (10%) per annum.
(10) IC 6-1.1-25-10 is six percent (6%) per annum.
(11) IC 6-1.1-25-11 is six percent (6%) per annum.
(12) IC 6-1.1-25-12 is ten percent (10%) per annum.
(13) IC 6-1.1-26-5 is four percent (4%) per annum.
(14) IC 6-1.1-37-9(b) is ten percent (10%) per annum.
(15) IC 6-1.1-37-9(c) is the overpayment rate established
under Section 6621(c)(1) of the Internal Revenue Code in
effect on the original due date or dates for those taxes from
the original due date or dates.
(16) IC 6-1.1-37-11 is four percent (4%) per annum.
(c) After June 30, 2011, the interest rate that applies under this
article is the rate determined by the department of state revenue
under IC 6-8.1-10-1.
(1) the assessed valuation of tangible property;
(2) property tax deductions;
(3) property tax exemptions; or
(4) interest, penalties, or collection fees, clerk's costs, sheriff's costs, or collection agency costs related to property taxes;
that are made from a determination by an assessing official, a county auditor, a county treasurer, or a county property tax assessment board of appeals to the Indiana board under any law.
(b) Appeals described in this section shall be conducted under IC 6-1.1-15.
(b) Each taxpayer shall notify the department of any modification of:
(1) a federal income tax return filed by the taxpayer after January 1, 1978; or
(2) the taxpayer's federal income tax liability for a taxable year which begins after December 31, 1977.
The taxpayer shall file the notice, on the form prescribed by the department, within one hundred twenty (120) days after the modification is made.
(c) If the federal modification results in a change in the taxpayer's federal or Indiana adjusted gross income, the taxpayer shall file an Indiana amended return within one hundred twenty (120) days after the modification is made.
(d) In the case of a change that increases the adjusted gross income or taxable income in a taxpayer's federal income tax return or increases a taxpayer's federal income tax liability, the modification shall not be treated as occurring until the earliest of the following:
(1) The date on which the taxpayer makes the modification in an amended return or pays any federal income tax liability due, regardless of whether the taxpayer files a claim for a refund.
(2) The date on which the taxpayer and the Internal Revenue Service both formally agree to the change.
(3) The last date that a taxpayer may file an appeal for a modification to the United States Tax Court, if the taxpayer does not file a timely appeal.
(4) The date that a decision of the United States Tax Court related to the modification becomes final, if the taxpayer does not file a timely appeal.
(5) The date the modification becomes final and conclusive under Section 7121 of the Internal Revenue Code or another law.
(e) In the case of a change that decreases the adjusted gross income or taxable income in a taxpayer's federal income tax return or decreases a taxpayer's federal income tax liability, the modification shall not be treated as occurring until the earliest of the following:
(1) The date on which the taxpayer receives a refund or credit of the federal income taxes associated with the change.
(2) The date on which the taxpayer and the Internal Revenue Service both formally agree to the change.
(3) The date on which a judicial decision reviewing the modification becomes final if no appeal is taken with respect to the decision.
(f) If a change in a taxpayer's federal income tax liability is
subject to Section 6405 of the Internal Revenue Code, the
modification shall not be treated as occurring before the date on
which a refund or credit may be made under Section 6405(a) of the
Internal Revenue Code.
(1) any unresolved issue arising under the terms of an agreement settling the taxpayer's tax liability; or
(2) any matter that would be the basis for canceling the agreement.
(b) A request under this section must:
(1) be made in writing;
(2) identify with reasonable certainty the taxpayer, the terms of the settlement, and the issues in dispute;
(3) specify the taxpayer's proposed resolution of the issues raised in the request; and
(4) be filed with the department as prescribed by the department.
(c) The department may not deny a request for a hearing that is not in the form or filed as required by subsection (b), if the request for hearing substantially complies with subsection (b). The department shall notify a taxpayer of the denial of a hearing by United States mail.
(d) Subject to subsection (c), if the person files a written request with the department for a hearing under this section, the department shall:
(1) set the hearing at the department's earliest convenient time; and
(2) notify the person by United States mail of the time, date, and location of the hearing.
The department may hold the hearing at the location of its choice within Indiana if that location complies with IC 6-8.1-3-8.5.
(e) Not later than sixty (60) days after hearing the evidence presented by the taxpayer, the department shall issue a written letter of findings and shall send a copy of the letter through the United States mail to the person who filed the request for a hearing and to the person's surety, if there is a surety for the settlement agreement. The department may continue the hearing until a later date if the taxpayer presents additional information at the hearing or the taxpayer requests an opportunity to present additional
information after the hearing.
(f) A taxpayer that disagrees with a decision in a letter of
findings may request a rehearing not more than thirty (30) days
after the date on which the letter of findings is issued by the
department. The department shall consider the request and may
grant the rehearing if the department reasonably believes that a
rehearing would be in the best interests of the taxpayer and the
state.
(g) If a person disagrees with a decision in a letter of findings,
the person may appeal the decision to the tax court. However, the
tax court does not have jurisdiction to hear an appeal that is filed
more than sixty (60) days after the date on which:
(1) the letter of findings is issued by the department, if the
person does not make a timely request for a rehearing under
subsection (f) on the letter of findings; or
(2) the later of the following, if the person makes a timely
request for a rehearing under subsection (f) on the letter of
findings department:
(A) The department issues a denial of the person's timely
request for a rehearing under subsection (f).
(B) The department issues a final determination after the
rehearing.
(h) The tax court shall hear an appeal under subsection (g) de
novo and without a jury. The tax court may do the following:
(1) Uphold or deny any part of a determination that is
appealed.
(2) Assess the court costs in a manner that the court believes
to be equitable.
(3) Enjoin the collection of a taxpayer's obligations under a
settlement agreement under IC 33-26-6-2, pending the
issuance of a final determination on the appeal.
(b) If the department reasonably believes that a person has not reported the proper amount of tax due, the department shall make a proposed assessment of the amount of the unpaid tax on the basis of the best information available to the department. The amount of the assessment is considered a tax payment not made by the due date and is subject to IC 6-8.1-10 concerning the imposition of penalties and interest. The department shall send the person a notice of the proposed
assessment through the United States mail. The notice must state that
the person has forty-five (45) days after the date the notice is
mailed to pay the assessment or to file a written protest.
(c) If the person has a surety bond guaranteeing payment of the tax
for which the proposed assessment is made, the department shall
furnish a copy of the proposed assessment to the surety. The notice of
proposed assessment is prima facie evidence that the department's
claim for the unpaid tax is valid. The burden of proving that the
proposed assessment is wrong rests with the person against whom the
proposed assessment is made.
(d) A person may file a protest under this section to contest the
department's:
(1) proposed assessment of a listed tax; or
(2) imposition or proposed imposition of:
(A) interest;
(B) penalties;
(C) sheriff's costs;
(D) clerk's fees; or
(E) collection agency fees.
(d) The notice shall state that the person has (e) A protest must be
filed not later than forty-five (45) days from after the date of mailing
of the notice of:
(1) the notice is mailed to pay the proposed assessment of a
listed tax; or to file a written protest.
(2) the imposition or proposed imposition of:
(A) interest;
(B) penalties;
(C) sheriff's costs;
(D) clerk's fees; or
(E) collection agency fees.
(f) If the person files a protest and requires a hearing on the protest,
the department shall:
(1) set the hearing at the department's earliest convenient time;
and
(2) notify the person by United States mail of the time, date, and
location of the hearing.
(e) (g) The department may hold the hearing at the location of its
choice within Indiana if that location complies with IC 6-8.1-3-8.5.
(f) (h) No later than sixty (60) days after conducting a hearing on a
protest, or after making a decision on a protest when no hearing is
requested, the department shall issue a letter of findings and shall send
a copy of the letter through the United States mail to the person who
filed the protest and to the person's surety, if the surety was notified of
the proposed assessment under subsection (b). The department may
continue the hearing until a later date if the taxpayer presents
additional information at the hearing or the taxpayer requests an
opportunity to present additional information after the hearing.
(g) (i) A person that disagrees with a decision in a letter of findings
may request a rehearing not more than thirty (30) days after the date on
which the letter of findings is issued by the department. The
department shall consider the request and may grant the rehearing if the
department reasonably believes that a rehearing would be in the best
interests of the taxpayer and the state.
(h) (j) If a person disagrees with a decision in a letter of findings,
the person may appeal the decision to the tax court. However, the tax
court does not have jurisdiction to hear an appeal that is filed more than
sixty (60) days after the date on which:
(1) the letter of findings is issued by the department, if the person
does not make a timely request for a rehearing under subsection
(g) (i) on the letter of findings; or
(2) the department issues a denial of the person's timely request
for a rehearing under subsection (g) (i) on the letter of findings.
(i) (k) The tax court shall hear an appeal under subsection (h) (j) de
novo and without a jury. The tax court may do the following:
(1) Uphold or deny any part of the assessment that is appealed.
(2) Assess the court costs in a manner that the court believes to be
equitable.
(3) Enjoin the collection of a listed tax under IC 33-26-6-2.
(j) (l) Subject to IC 6-8.1-8-16, the department shall demand
payment, as provided in IC 6-8.1-8-2(a), of any part of the proposed tax
assessment, interest, and penalties, sheriff's costs, clerk's fees, or
collection agency fees that it finds owing because:
(1) the person failed to properly respond within the forty-five (45)
day period;
(2) the person requested a hearing but failed to appear at that
hearing; or
(3) after consideration of the evidence presented in the protest or
hearing, the department finds that the person still owes tax,
interest, sheriff's costs, clerk's fees, or collection agency fees.
(k) (m) The department shall make the demand for payment in the
manner provided in IC 6-8.1-8-2.
(l) (n) Subsection (b) does not apply to a motor carrier fuel tax
return.
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) Except as provided in IC 6-8.1-5-3 and
section 16 of this chapter, the department must issue a demand notice
for the payment of a tax and any interest or penalties accrued on the
tax, if a person files a tax return without including full payment of the
tax or if the department, after ruling on a protest, finds that a person
owes the tax before the department issues a tax warrant. The demand
notice must state the following:
(1) That the person has ten (10) days from the date the department
mails the notice to either pay the amount demanded or show
reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of
a tax warrant.
(3) The earliest date on which a tax warrant may be filed and
recorded.
(4) The statutory authority for the department to levy against a
person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the amount
of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs,
and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten
percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the demand
notice was mailed to the taxpayer. The department may also send the
warrant to the sheriff of any county in which the person owns property
and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was
mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues
the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs, and fees established under section 4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant becomes a judgment against the person owing the tax. The judgment creates a lien in favor of the state that attaches to all the person's interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10) years from the date the judgment is filed. The department may renew the judgment for additional ten (10) year periods by filing an alias tax warrant with the circuit court clerk of the county in which the judgment previously existed.
(g) A judgment arising from a tax warrant in a county may be released by the department:
(1) after the judgment, including all accrued interest to the date of payment, has been fully satisfied; or
(2) if the department determines that the tax assessment or the issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant was in error, the department shall mail a release of the judgment to the taxpayer and the circuit court clerk of each county where the warrant was filed. The department shall mail the release as soon as possible but no later than seven (7) days after:
(1) the determination by the department that the filing of the warrant was in error; and
(2) the receipt of information by the department that the judgment has been recorded under subsection (d).
(i) If the department determines that a judgment described in subsection (h) is obstructing a lawful transaction, the department shall mail a release of the judgment to the taxpayer and the circuit court clerk of each county where the judgment was filed immediately upon making the determination.
(j) A release issued under subsection (h) or (i) must state that the filing of the tax warrant was in error. Upon the request of the taxpayer, the department shall mail a copy of a release issued under subsection (h) or (i) to each major credit reporting company located in each county where the judgment was filed.
(k) The commissioner shall notify each state agency or officer supplied with a tax warrant list of the issuance of a release under subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the sheriff shall disburse the money collected in the manner provided in section 3(c) of this chapter. If a judgment has been partially or fully satisfied by a person's surety, the surety becomes subrogated to the department's rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected; or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for the part of the judgment not remitted to the department.
(b) Except as provided in IC 6-8.1-5-3, no demand notice, warrant, levy, or proceeding in court for the collection of a listed tax or any penalties and interest on a listed tax shall be issued, commenced, or conducted against a taxpayer and no lien on the taxpayer's property may be imposed until after the later of the following:
(1) The expiration of the period in which the taxpayer may appeal the listed tax to the tax court.
(2) A decision of the tax court concerning the listed tax becomes final, if the taxpayer filed a timely appeal.
(1) The due date of the return.
(2) The date of payment.
For purposes of this section, the due date for a return filed for the state gross retail or use tax, the gasoline tax, the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum severance tax
is the end of the calendar year which contains the taxable period for
which the return is filed. The claim must set forth the amount of the
refund to which the person is entitled and the reasons that the person
is entitled to the refund.
(b) When the department receives a claim for refund, the
department shall consider the claim for refund and shall, if the taxpayer
requests, hold a hearing on the claim for refund to obtain and consider
additional evidence. After considering the claim and all evidence
relevant to the claim, the department shall issue a decision on the
claim:
(1) stating the part, if any, of the refund allowed; and
(2) containing a statement of the reasons for any part of the refund
that is denied; and
(3) describing the procedure that a taxpayer must follow to
appeal any part of the refund that was denied.
The department shall use a standard uniform form in all offices
and divisions of the department to notify a taxpayer of the denial
of any part of a claim for a refund. The department shall mail a copy
of the decision to the person who filed the claim. If the department
allows the full amount of the refund claim, a warrant for the payment
of the claim is sufficient notice of the decision.
(c) If the person disagrees with any part of the department's
decision, the person may appeal the decision, regardless of whether or
not the person protested the tax payment or whether or not the person
has accepted a refund. The person must file the appeal with the tax
court. The tax court does not have jurisdiction to hear a refund appeal
suit, if:
(1) the appeal is filed more than three (3) years after the date the
claim for refund was filed with the department;
(2) (1) the appeal is filed more than ninety (90) days after the date
the department mails the decision of denial to the person; or
(3) (2) the appeal is filed both before the decision is issued and
before the one hundred eighty-first day after the date the person
files the claim for refund with the department.
If the department does not issue a decision on the claim for refund
within one hundred eighty-one (181) days after the date the person
filed the claim for refund with the department, the person who
filed the claim may appeal the department's failure to act on the
claim to the tax court. The appeal may be filed at any time after the
one hundred eighty-first day after the date the person filed the
claim for refund with the department.
(d) The tax court shall hear the appeal de novo and without a jury,
and after the hearing may order or deny any part of the appealed
refund. The court may assess the court costs in any manner that it feels
is equitable. The court may enjoin the collection of any of the listed
taxes under IC 33-26-6-2. The court may also allow a refund of taxes,
interest, and penalties, and collection costs that have been paid to and
collected by the department.
(e) With respect to the motor vehicle excise tax, this section applies
only to penalties and interest paid on assessments of the motor vehicle
excise tax. Any other overpayment of the motor vehicle excise tax is
subject to IC 6-6-5.
(f) If a taxpayer's federal income tax liability for a taxable year is
modified by the Internal Revenue Service, and the modification would
result in a reduction of the tax legally due, the due date by which the
taxpayer must file a claim for refund with the department is the later of:
(1) the date determined under subsection (a); or
(2) the date that is six (6) months after the date on which the
taxpayer is notified of the modification by the Internal Revenue
Service.
(g) A modification under subsection (f) may not be treated as
occurring until the earliest of the following:
(1) The date on which the taxpayer receives a refund or credit
of the federal income taxes associated with the change.
(2) The date on which the taxpayer and the Internal Revenue
Service both formally agree to the change.
(3) The date on which a judicial decision reviewing the
modification becomes final if no appeal is taken with respect
to the decision.
(h) If a reduction in a taxpayer's federal income tax liability is
subject to Section 6405 of the Internal Revenue Code, the
modification shall not be treated as occurring before the date on
which a refund or credit may be made under Section 6405(a) of the
Internal Revenue Code.
(g) (i) If an agreement to extend the assessment time period is
entered into under IC 6-8.1-5-2(h), the period during which a person
may file a claim for a refund under subsection (a) is extended to the
same date to which the assessment time period is extended.
may then apply any remaining excess against any of the listed taxes
that have been assessed against the person and that are currently due.
Subject to subsection (c), if any excess remains after the department
has applied the overpayment against the person's tax liabilities, the
department shall either refund the amount to the person or, at the
person's request, credit the amount to the person's future tax liabilities.
(b) Subject to subsection (c), if a court determines that a person has
paid more tax for a taxable year than is legally due, the department
shall refund the excess amount to the person.
(c) As used in this subsection, "pass through entity"means a
corporation that is exempt from the adjusted gross income tax under
IC 6-3-2-2.8(2), a partnership, a limited liability company, or a limited
liability partnership and "pass through income" means a person's
distributive share of adjusted gross income for a taxable year
attributable to the person's interest in a pass through entity. This
subsection applies to a person's overpayment of adjusted gross income
tax for a taxable year if:
(1) the person has filed a timely claim for refund with respect to
the overpayment under IC 6-8.1-9-1;
(2) the overpayment:
(A) is with respect to a taxable year beginning before January
1, 2009;
(B) is attributable to amounts paid to the department by:
(i) a nonresident shareholder, partner, or member of a pass
through entity;
(ii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of the pass through entity; or
(iii) a pass through entity under IC 6-3-4-12 or IC 6-3-4-13
on behalf of a nonresident shareholder, partner, or member
of another pass through entity; and
(3) the overpayment arises from a determination by the
department or a court that the person's pass through income is not
includible in the person's adjusted gross income derived from
sources within Indiana as a result of the application of
IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g).
The department shall apply the overpayment to the person's liability for
taxes that have been assessed and are currently due as provided in
subsection (a) and apply any remaining overpayment as a credit or
credits in satisfaction of the person's liability for listed taxes in taxable
years beginning after December 31, 2008. If the person, including any
successor to the person's interest in the overpayment, does not have
sufficient liability for listed taxes against which to credit all the
remaining overpayment in a taxable year beginning after December 31,
2008, and ending before January 1, 2019, the taxpayer is not entitled
for any taxable year ending after December 31, 2018, to have any part
of the remaining overpayment applied, refunded, or credited to the
person's liability for listed taxes. If an overpayment or part of an
overpayment is required to be applied as a credit under this subsection
to the person's liability for listed taxes for a taxable year beginning after
December 31, 2008, and has not been determined by the department or
a court to meet the conditions of subdivision (3) by the due date of the
person's return for a listed tax for a taxable year beginning after
December 31, 2008, the department shall refund to the person that part
of the overpayment that should have been applied as a credit for such
taxable year within ninety (90) days of the date that the department or
a court makes the determination that the overpayment meets the
conditions of subdivision (3). However, the department may establish
a program to refund small overpayment amounts that do not exceed the
threshold dollar value established by the department rather than
crediting the amounts against tax liability accruing for a taxable year
after December 31, 2008. A person that receives a refund or credit
under this subsection shall file a report with the department in the form
and in the schedule specified by the department that identifies under
penalties of perjury the home state or other jurisdiction where the
income subject to the refund or credit was reported as income
attributable to that state or jurisdiction.
(d) This subsection applies to interest on an excessive tax
payment if the later of the date the tax was due or the date the tax
was paid occurred before July 1, 2011. An excess tax payment that
is not refunded or credited against a current or future tax liability
within ninety (90) days after the date the refund claim is filed, the date
the tax payment was due, or the date the tax was paid, whichever is
latest, accrues interest from the date the refund claim is filed at the rate
established under IC 6-8.1-10-1 until a date, determined by the
department, that does not precede by more than thirty (30) days, the
date on which the refund or credit is made. As used in this subsection,
"refund claim" includes an amended return that indicates an
overpayment of tax.
(e) This subsection applies to interest on an excessive tax
payment if the later of the date the tax was due or the date the tax
was paid occurs after June 30, 2011. An excessive tax payment that
is not refunded or credited against a current or future tax liability
within ninety (90) days after:
(1) the date the refund claim is filed;
(2) the date the tax payment was due; or
(3) the date the tax was paid;
whichever is latest, accrues interest from the later of the date the
tax payment was due or the date the tax was paid at the rate
established under IC 6-8.1-10-1 until a date, determined by the
department, that does not precede by more than thirty (30) days,
the date on which the refund or credit is made. As used in this
subsection, "refund claim" includes an amended return that
indicates an overpayment of tax.
IC 6-8.1-5-1 (Interest, penalties, and collection expenses).
IC 6-8.1-3-17.5 (settlement agreements).
IC 6-8.1-9-1 (refunds).
(b) If a taxpayer
(1) the issues that the petitioner will raise in the original tax appeal; and
(2) the equitable considerations for which the tax court should order the collection of the tax to be enjoined.
(c) After a hearing on the petition filed under subsection (b), the tax court may enjoin the collection of the tax pending the original tax appeal, if the tax court finds that:
(1) the issues raised by the original tax appeal are substantial;
(2) the petitioner has a reasonable opportunity to prevail in the original tax appeal; and
(3) the equitable considerations favoring the enjoining of the collection of the tax outweigh the state's interests in collecting the
tax pending the original tax appeal.
(d) This section does not apply to a final determination of the
Indiana gaming commission under IC 4-32.2.
(e) This section applies to a final determination made by the
department of state revenue concerning the gaming card excise tax
established under IC 4-32.2-10.
(1) enjoin a collection action that violates IC 6-8.1.8-16;
(2) order the release of any lien imposed in violation of IC 6-8.1-8-16; and
(3) order a refund of any amount that was collected in violation of IC 6-8.1-8-16.
(b) The department of state revenue may petition the tax court to permit the issuance of a demand notice and the collection of a listed tax that would otherwise be subject to IC 6-8.1-8-16 before the date that a decision of the tax court on the appeal of the listed tax becomes final. The petition must set forth the considerations that indicate that the ability of the department of state revenue to collect the taxes, interest, and penalties due from the taxpayer will be substantially jeopardized if collection activities are stayed. After a hearing on the petition, the tax court may issue an order authorizing the issuance of a demand notice and the collection of a listed tax before the date a decision of the tax court on the appeal of the listed tax becomes final.
