Bill Text: IN HB1059 | 2010 | Regular Session | Engrossed
Bill Title: Property tax collections.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-03-25 - Effective 07/01/2010 [HB1059 Detail]
Download: Indiana-2010-HB1059-Engrossed.html
Citations Affected: IC 5-13; IC 6-1.1.
(SENATE SPONSORS _ KENLEY, CHARBONNEAU, TALLIAN, RANDOLPH, MRVAN, LANDSKE)
January 5, 2010, read first time and referred to Committee on Ways and Means.
January 21, 2010, amended, reported _ Do Pass.
January 25, 2010, read second time, amended, ordered engrossed.
January 26, 2010, engrossed. Read third time, passed. Yeas 97, nays 0.
February 1, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
February 18, 2010, amended, reported favorably _ Do Pass.
February 23, 2010, read second time, amended, ordered engrossed.
Digest Continued
voluntary or mandatory provisional bill is due and payable not later than May 25. Provides that either the county council or county treasurer may determine that a voluntary provisional bill shall be used. Provides that certain information is not required to be included on a provisional bill, but must be included on the reconciling statement. Provides that the first installment of the taxpayer's tax liability is equal to 50% of the tax liability that was payable in the same year as the assessment date for the property for which the provisional statement is issued, subject to any adjustments to the tax liability as prescribed by the department of local government finance, including any necessary adjustments for credits, deductions, or local option income taxes. Provides that the second installment will either be an amount specified in a reconciling statement or, if a reconciling statement is not sent until after the second installment is due, an amount equal to 50% of the tax liability that was payable in the same year as the assessment date for the property for which the provisional statement is issued, subject to any adjustments by the department of local government finance. Entitles a taxing unit to interest generated by the county on property tax collections if the county treasurer fails to meet the deadline for compliance with a request for advance distribution of the collections. If real property tax assessment annual adjustments for the assessment date in a year in a county have not been applied before December 1 of that year, requires the county auditor to determine assessed values based on the assessed values for the immediately preceding year.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) Every county treasurer who, by virtue of the treasurer's office, is the collector of any taxes for any political subdivision wholly or partly within the county shall, not later than thirty (30) days after receipt of a written request for funds filed with the treasurer by a proper officer of any political subdivision within the county, advance to that political subdivision a portion of the taxes collected before the semiannual distribution. The amount advanced may not exceed the lesser of:
(1) ninety-five percent (95%) of the total amount collected at the time of the advance; or
(2) ninety-five percent (95%) of the amount to be distributed at
the semiannual distribution.
(c) Upon notice from the county treasurer of the amount to be
advanced, the county auditor shall draw a warrant upon the county
treasurer for the amount. The amount of the advance must be available
immediately for the use of the political subdivision.
(d) At the semiannual distribution all the advances made to any
political subdivision under subsection (b) shall be deducted from the
total amount due any political subdivision as shown by the distribution.
(e) If a county auditor fails to make a distribution of tax
collections by the deadline for distribution under subsection (b), a
political subdivision that was to receive a distribution may recover
interest on the undistributed tax collections under IC 6-1.1-27-1.
(b) This subsection applies to property taxes first due and payable after 2010. Except as provided in subsection (i), the county treasurer shall, if property tax bills were delayed in the immediately preceding year (unless a provisional statement was used in that immediately preceding year), use a provisional statement under this chapter if the county council or county treasurer determines that the county auditor has failed or will fail to deliver the abstract for that assessment date to the county treasurer under IC 6-1.1-22-5 before April 1 of the year following the assessment date. The first installment under a provisional statement under this subsection is due and payable not later than May 25.
(c) The amount to be billed for each installment of the provisional statement is the amount determined under section 9 of this chapter.
statement, including disclosure of the method that is to be used in
determining the tax liability to be indicated on the provisional
statement, by publication one (1) time:
(1) in the form prescribed by the department of local government
finance; and
(2) in the manner described in IC 6-1.1-22-4(b).
The notice may be combined with the notice required under section 10
of this chapter.
(c) (e) Subsection (a) does not apply if the county auditor fails to
deliver the abstract as provided in IC 6-1.1-22-5(b).
(f) Section 7 of this chapter does not apply to a provisional bill
required by subsection (b).
(d) (g) This subsection applies after June 30, 2009. Immediately
upon determining to use provisional statements under subsection (a) or
determining that provisional statements are required by subsection
(b), the county treasurer shall give notice of the determination to the
county fiscal body (as defined in IC 36-1-2-6).
(e) (h) 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 provisional statement by electronic mail under
IC 6-1.1-22-8.1(h).
(i) The department of local government finance may waive the
requirement under subsection (b) that a provisional statement
must be used, if:
(1) the county fiscal body or the county treasurer requests the
waiver; and
(2) the department of local government finance determines
that:
(A) the county will be able to send a property tax statement
under IC 6-1.1-22 with a due date that is not later than
May 25;
(B) the failure to send a property tax statement under
IC 6-1.1-22 in a timely manner is due to a change by the
county in computer software, and the county will be able
to send a property tax statement under IC 6-1.1-22 with a
due date that is not later than May 25; or
(C) the length of the delay in property tax billing in the
previous year was not a significant period of time, and the
county will be able to send a property tax statement under
IC 6-1.1-22 with a due date that is not later than May 25.
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 7. (a) This section does
not apply to a provisional statement issued under section 6(b) of
this chapter. The county auditor of a county or fifty (50) property
owners in the county may, not more than five (5) days after the
publication of the notice required under section 6(b) 6(d) or 6.5(f) of
this chapter, request in writing that the department of local government
finance waive the use of a provisional statement under this chapter as
to that county for a particular year.
(b) With respect to the use of a provisional statement required under
section 6 of this chapter, upon receipt of a request under subsection (a),
the department of local government finance shall give notice of a
hearing concerning the request in the manner provided by IC 5-3-1.
The notice must state:
(1) the date and time of the hearing;
(2) the location of the hearing, which must be in the county; and
(3) that the purpose of the hearing is to hear:
(A) the request of the county treasurer and county auditor to
waive the requirements of section 6 of this chapter; and
(B) taxpayers' comments regarding that request.
(c) After the hearing referred to in subsection (b), the department of
local government finance may waive the use of a provisional statement
under section 6 of this chapter for a particular year as to the county
making the request if the department finds that the petitioners have
presented sufficient evidence to establish that although the abstract
required by IC 6-1.1-22-5 was not delivered in a timely manner:
(1) the abstract;
(A) was delivered as of the date of the hearing; or
(B) will be delivered not later than a date specified by the
county auditor and county treasurer; and
(2) sufficient time remains or will remain after the date or
anticipated date of delivery of the abstract to:
(A) permit the timely preparation and delivery of property tax
statements in the manner provided by IC 6-1.1-22; and
(B) render the use of a provisional statement under section 6
of this chapter unnecessary.
(d) With respect to a determination to use a provisional statement
under section 6.5 of this chapter, upon receipt of a request under
subsection (a), the department of local government finance shall give
notice of a hearing concerning the request in the manner provided by
IC 5-3-1. The notice must state:
(1) the date and time of the hearing;
(2) the location of the hearing, which must be in the county; and
(3) that the purpose of the hearing is to hear:
(A) the request of the county treasurer and county auditor to waive the requirements of section 6.5 of this chapter; and
(B) taxpayers' comments regarding that request.
(e) After the hearing referred to in subsection (d), the department of local government finance may waive the use of a provisional statement under section 6.5 of this chapter for a particular year as to the county making the request if the department finds that the petitioners have presented sufficient evidence to establish that although the property tax rate of one (1) or more cross-county entities with cross-county area in the county was not finally determined before the statement preparation date:
(1) that property tax rate:
(A) was determined as of the date of the hearing; or
(B) will be determined not later than a date specified by the county auditor and county treasurer; and
(2) sufficient time remains or will remain after the date or anticipated date of determination of the rate to:
(A) permit the timely preparation and delivery of property tax statements in the manner provided by IC 6-1.1-22; and
(B) render the use of a provisional statement under section 6.5 of this chapter unnecessary.
(1) be on a form prescribed by the department of local government finance;
(2) except as provided in emergency rules adopted under section 20 of this chapter and subsection (b):
(A) for property taxes first due and payable after 2010 and billed using a provisional statement under section 6 of this chapter, indicate:
(i) that the first installment of the taxpayer's tax liability
adjustments for credits, deductions, or local option
income taxes; and
(ii) that the second installment will either be an amount
specified in a reconciling statement or, if a reconciling
statement is not sent until after the second installment is
due, an amount equal to fifty percent (50%) of the tax
liability that was payable in the same year as the
assessment date for the property for which the
provisional statement is issued, subject to any
adjustments to the tax liability as prescribed by the
department of local government finance, including
adjustments for any new construction on the property,
any damage to the property, and any necessary
adjustments for credits, deductions, or local option
income taxes; and
(B) for property taxes billed using a provisional statement
under section 6.5 of this chapter, except as provided in
subsection (d), indicate tax liability in an amount determined
by the department of local government finance based on:
(i) subject to subsection (c), for the cross-county entity, the
property tax rate of the cross-county entity for taxes first due
and payable in the immediately preceding calendar year; and
(ii) for all other taxing units that make up the taxing district
or taxing districts that comprise the cross-county area, the
property tax rates of the taxing units for taxes first due and
payable in the current calendar year;
(3) indicate:
(A) that the tax liability under the provisional statement is
determined as described in subdivision (2); and
(B) that property taxes billed on the provisional statement:
(i) are due and payable in the same manner as property taxes
billed on a tax statement under IC 6-1.1-22-8.1; and
(ii) will be credited against a reconciling statement;
(4) for property taxes billed using a provisional statement under
section 6 of this chapter, include a statement in the following or
a substantially similar form, as determined by the department of
local government finance:
"Under Indiana law, ________ County (insert county) has sent
provisional statements because the county did not complete the
abstract of the property, assessments, taxes, deductions, and
exemptions for taxes payable in (insert year) in each taxing
district before:
(A) March 16, (insert year), in the case of property taxes first due and payable before 2011; or
(B) April 1, (insert year), in the case of property taxes first due and payable after 2010.
The statement is due to be paid in installments on __________ (insert date) and ________ (insert date).
(5) for property taxes billed using a provisional statement under section 6.5 of this chapter, include a statement in the following or a substantially similar form, as determined by the department of local government finance:
"Under Indiana law, ________ County (insert county) has elected to send provisional statements for the territory of __________________ (insert cross-county entity) located in ________ County (insert county) because the property tax rate for ________________ (insert cross-county entity) was not available in time to prepare final tax statements. The statement is due to be paid in installments on __________ (insert date) and _________ (insert date). The statement is based on the property tax rate of _________________ (insert cross-county entity) for taxes first due and payable in _____ (insert immediately preceding calendar year). After the property tax rate of ________________ (insert
cross-county entity) is determined, you will receive a reconciling
statement in the amount of your actual tax liability for taxes
payable in _____ (insert year), minus the amount you pay under
this provisional statement.";
(6) in the case of a reconciling statement only, indicate liability
for:
(A) delinquent:
(i) taxes; and
(ii) special assessments;
(B) penalties; and
(C) interest;
is allowed to appear on the tax statement under IC 6-1.1-22-8.1
for the first installment of property taxes in the year in which the
provisional tax statement is issued;
(7) in the case of a reconciling statement only, include:
(A) a checklist that shows:
(i) homestead credits under IC 6-1.1-20.4, IC 6-3.5-6-13, or
another law and all property tax deductions; and
(ii) whether each homestead credit and property tax
deduction was applied in the current provisional statement;
(B) an explanation of 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; and
(C) an explanation of the tax consequences and applicable
penalties if a taxpayer unlawfully claims a standard deduction
under IC 6-1.1-12-37 on:
(i) more than one (1) parcel of property; or
(ii) property that is not the taxpayer's principal place of
residence or is otherwise not eligible for a standard
deduction; and
(8) include any other information the county treasurer requires.
(b) This subsection applies to property taxes first due and payable
for assessment dates after January 15, 2009. The county may apply a
standard deduction, supplemental standard deduction, or homestead
credit calculated by the county's property system on a provisional bill
for a qualified property. If a provisional bill has been used for property
tax billings for two (2) consecutive years and a property qualifies for
a standard deduction, supplemental standard deduction, or homestead
credit for the second year a provisional bill is used, the county shall
apply the standard deduction, supplemental standard deduction, or
homestead credit calculated by the county's property system on the
provisional bill.
(c) For purposes of this section, property taxes that are:
(1) first due and payable in the current calendar year on a
provisional statement under section 6 or 6.5 of this chapter; and
(2) based on property taxes first due and payable in the
immediately preceding calendar year or on a percentage of those
property taxes;
are determined after excluding from the property taxes first due and
payable in the immediately preceding calendar year property taxes
imposed by one (1) or more taxing units in which the tangible property
is located that are attributable to a levy that no longer applies for
property taxes first due and payable in the current calendar year.
(d) If there was no property tax rate of the cross-county entity for
taxes first due and payable in the immediately preceding calendar year
for use under subsection (a)(2)(B), the department of local government
finance shall provide an estimated tax rate calculated to approximate
the actual tax rate that will apply when the tax rate is finally
determined.
(1) May 10 and November 10 of the year following the assessment date covered by the provisional statement, for property taxes first due and payable before 2011; and
(2) May 25 and November 10 of the year following the assessment date covered by the provisional statement, for property taxes first due and payable after 2010.
later of:
(1) November 10 of the immediately succeeding calendar year; or
(2) a date determined by the county treasurer that is not later than
December 31 of the immediately succeeding calendar year.
(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 due for each installment of a provisional statement
issued for a year after 2009 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 and special assessments 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 and special assessments 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.
In addition, the county auditor shall:
(1) prepare a certificate of settlement on the form prescribed by
the state board of accounts; and
(2) deliver the certificate of settlement to the county treasurer at
least two (2) days before each semi-annual meeting.
(b) If any county treasurer or auditor refuses, neglects, or fails to
distribute tax money due to a tax taxing unit on or before:
(1) the fifty-first day immediately following each property tax due
date under IC 6-1.1-22-9 or IC 6-1.1-37-10, whichever applies; or
(2) the deadline for a distribution requested under
IC 5-13-6-3;
the county treasurer and auditor shall pay to the taxing unit from the
county general fund interest on the taxing unit's undistributed tax
money if the county treasurer and auditor invest undistributed tax
money in an interest bearing investment.
(c) The amount of interest to be paid if subsection (b)(1) applies
equals the taxing unit's proportionate share of the actual amount of
interest which is received from investments of the undistributed tax
money from the fifty-second day immediately following the property
tax due date under IC 6-1.1-22-9 or IC 6-1.1-37-10, whichever applies,
to the date that the tax money is distributed.
(d) The amount of interest to be paid if subsection (b)(2) applies
equals the taxing unit's proportionate share of the actual amount
of interest that is received from investments of the undistributed
tax money from the date the county treasurer receives the taxing
unit's request for funds under IC 5-13-6-3(b) to the date the tax
money is distributed.
