Bill Text: IN HB1183 | 2010 | Regular Session | Enrolled
Bill Title: Tax sale surplus fund agreements.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2010-03-25 - Sections 5 through 10 effective 07/01/2010 [HB1183 Detail]
Download: Indiana-2010-HB1183-Enrolled.html
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AN ACT to amend the Indiana Code concerning taxation.
(1) In the case of real property other than real property described in subdivision (2), any property taxes or special assessments certified to the county auditor for collection by the county treasurer from the prior year's spring installment or before are delinquent as determined under IC 6-1.1-37-10.
(2) In the case of real property for which a county executive has certified to the county auditor that the real property is:
(A) vacant; or
(B) abandoned;
any property taxes or special assessments from the prior year's fall installment or before that are delinquent as determined under IC 6-1.1-37-10. The county executive must make a certification under this subdivision not later than sixty-one (61) days before
the earliest date on which application for judgment and order for
sale may be made.
(3) Any unpaid costs are due under section 2(b) of this chapter
from a prior tax sale.
(b) The county auditor shall maintain a list of all real property
eligible for sale. Unless the taxpayer pays to the county treasurer the
amounts in subsection (a), the taxpayer's property shall remain on the
list. The list must:
(1) describe the real property by parcel number and common
address, if any;
(2) for a tract or item of real property with a single owner,
indicate the name of the owner; and
(3) for a tract or item with multiple owners, indicate the name of
at least one (1) of the owners.
(c) Except as otherwise provided in this chapter, the real property
so listed is eligible for sale in the manner prescribed in this chapter.
(d) Not later than fifteen (15) days after the date of the county
treasurer's certification under subsection (a), the county auditor shall
mail by certified mail a copy of the list described in subsection (b) to
each mortgagee who requests from the county auditor by certified mail
a copy of the list. Failure of the county auditor to mail the list under
this subsection does not invalidate an otherwise valid sale.
(1) By resolution, identify properties:
(A) that are described in section 6.7(a) of this chapter; and
(B) concerning which the county executive desires to offer to the public the certificates of sale acquired by the county executive under section 6 of this chapter.
(2) In conformity with IC 5-3-1-4, publish:
(A) notice of the date, time, and place for a public sale; and
(B) a listing of parcels on which certificates will be offered by parcel number and minimum bid amount;
once each week for three (3) consecutive weeks, with the final advertisement being not less than thirty (30) days before the sale date. The expenses of the publication shall be paid out of the county general fund.
(3) Sell each certificate of sale covered by the resolution for a price that:
(A) is less than the minimum sale price prescribed by section
5(e) of this chapter; and
(B) includes any costs to the county executive directly
attributable to the sale of the certificate of sale.
(b) Notice of the list of properties prepared under subsection (a) and
the date, time, and place for the public sale of the certificates of sale
shall be published in accordance with IC 5-3-1. The notice must:
(1) include a description of the property by parcel number and
common address;
(2) specify that the county executive will accept bids for the
certificates of sale for the price referred to in subsection (a)(3);
(3) specify the minimum bid for each parcel;
(4) include a statement that a person redeeming each tract or item
of real property after the sale of the certificate must pay:
(A) the amount of the minimum bid under section 5(e) of this
chapter for which the tract or item of real property was last
offered for sale;
(B) ten percent (10%) of the amount for which the certificate
is sold;
(C) the attorney's fees and costs of giving notice under
IC 6-1.1-25-4.5;
(D) the costs of a title search or of examining and updating the
abstract of title for the tract or item of real property; and
(E) all taxes and special assessments on the tract or item of
real property paid by the purchaser after the sale of the
certificate plus interest at the rate of ten percent (10%) per
annum on the amount of taxes and special assessments paid by
the purchaser on the redeemed property; and
(F) all costs of sale, advertising costs, and other expenses of
the county directly attributable to the sale of certificates of
sale; and
(5) include a statement that, if the certificate is sold for an amount
more than the minimum bid under section 5(e) of this chapter for
which the tract or item of real property was last offered for sale
and the property is not redeemed, the owner of record of the tract
or item of real property who is divested of ownership at the time
the tax deed is issued may have a right to the tax sale surplus.
(1) first, to the taxes, special assessments, penalties, and costs
described in section 5(e) of this chapter;
(2) second, to other delinquent property taxes in the manner
provided in IC 6-1.1-23-5(b); and
(3) third, to a separate "tax sale surplus fund".
(b) The:
(1) owner of record of the real property at the time the tax deed is
issued who is divested of ownership by the issuance of a tax deed;
or
(2) tax sale purchaser or purchaser's assignee, upon redemption
of the tract or item of real property;
may file a verified claim for money which is deposited in the tax sale
surplus fund. If the claim is approved by the county auditor and the
county treasurer, the county auditor shall issue a warrant to the
claimant for the amount due.
(c) If the person who claims money deposited in the tax sale
surplus fund under subsection (b) is:
(1) a person described in subsection (b)(1) who acquired the
property from a delinquent taxpayer after the property was sold at
a tax sale under this chapter; or
(2) a person not described in subsection (b)(1), including a
person who acts under a power of attorney executed by the
person described in subsection (b)(1);
the county auditor may not issue a warrant to the person unless the
person is named on a tax sale surplus fund disclosure form filed with
the county auditor under IC 32-21-8. only as directed by the court
having jurisdiction over the tax sale of the parcel for which the
surplus claim is made.
(d) A court may direct the issuance of a warrant only:
(1) on petition by the claimant; and
(2) within three (3) years after the date of sale of the parcel in
the tax sale.
(d) (e) An amount deposited in the tax sale surplus fund shall be
transferred by the county auditor to the county general fund and may
not be disbursed under subsection (b) if it is not claimed within the
three (3) year period after the date of its receipt.
(e) (f) If an amount applied to taxes under this section is later paid
out of the county general fund to the purchaser or the purchaser's
successor due to the invalidity of the sale, all the taxes shall be
reinstated and recharged to the tax duplicate and collected in the same
manner as if the property had not been offered for sale.
(f) (g) When a refund is made to any purchaser or purchaser's
successor by reason of the invalidity of a sale, the county auditor shall,
at the December settlement immediately following the refund, deduct
the amount of the refund from the gross collections in the taxing
district in which the land lies and shall pay that amount into the county
general fund.
(b) If a property owner enters into an agreement on or after May 1, 2010, that has the primary purpose of paying compensation to locate, deliver, recover, or assist in the recovery of money deposited in the tax sale surplus fund under section 7(a)(3) of this chapter with respect to real property as a result of a tax sale, the agreement is valid only if the agreement:
(1) requires payment of compensation of not more than ten percent (10%) of the amount collected from the tax sale surplus fund with respect to the real property, unless the amount collected is fifty dollars ($50) or less;
(2) is in writing;
(3) is signed by the property owner; and
(4) clearly sets forth:
(A) the amount deposited in the tax sale surplus fund under section 7(a)(3) of this chapter with respect to the real property; and
(B) the value of the property owner's share of the amount collected from the tax sale surplus fund with respect to the real property after the compensation is deducted.
(1) a description of real property that corresponds to the description used on the notice of sale;
(2) the name of:
(A) the owner of record at the time of the sale of real property with a single owner; or
(B) at least one (1) of the owners of real property with multiple owners;
(3) the mailing address of the owner of the real property sold as indicated in the records of the county auditor;
(4) the name of the purchaser;
(5) the date of sale;
(6) the amount for which the real property was sold;
(7) the amount of the minimum bid for which the tract or real property was offered at the time of sale as required by section 5 of this chapter;
(8) the date when the period of redemption specified in IC 6-1.1-25-4 will expire;
(9) the court cause number under which judgment was obtained; and
(10) the street address, if any, or common description of the real property.
(b) When a certificate of sale is issued under this section, the purchaser acquires a lien against the real property for the entire amount paid. The lien of the purchaser is superior to all liens against the real property which exist at the time the certificate is issued.
(c) A certificate of sale is assignable. However, an assignment is not valid unless it is endorsed on the certificate of sale, acknowledged before an officer authorized to take acknowledgments of deeds, and registered in the office of the county auditor. When a certificate of sale is assigned, the assignee acquires the same rights and obligations that the original purchaser acquired.
(d) Subject to IC 36-1-11-8, the county executive may assign a certificate of sale held in the name of the county executive to any political subdivision during the life of the certificate. If an assignment is made under this subsection, the period of redemption of the real property under IC 6-1.1-25 is one hundred twenty (120) days after the date of the assignment.
(1) one (1) year after the date of sale;
(2) one hundred twenty (120) days after the date of sale to a purchasing agency qualified under IC 36-7-17; or
(3) one hundred twenty (120) days after the date of sale of real property on the list prepared under IC 6-1.1-24-1(a)(2) or IC 6-1.1-24-1.5.
(b) Subject to IC 6-1.1-24-9(d), the period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is not sold under IC 6-1.1-24-6.1;
is one hundred twenty (120) days after the date the county executive acquires the lien under IC 6-1.1-24-6.
(c) The period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is sold under IC 6-1.1-24;
is one hundred twenty (120) days after the date of sale of the certificate of sale under IC 6-1.1-24.
(d) When a deed for real property is executed under this chapter, the county auditor shall cancel the certificate of sale and file the canceled certificate in the office of the county auditor. If real property that appears on the list prepared under IC 6-1.1-24-1.5 is offered for sale and an amount that is at least equal to the minimum sale price required under IC 6-1.1-24-5(e) is not received, the county auditor shall issue a deed to the real property, subject to this chapter.
(e) When a deed is issued to a county executive under this chapter, the taxes and special assessments for which the real property was offered for sale, and all subsequent taxes, special assessments, interest, penalties, and cost of sale shall be removed from the tax duplicate in the same manner that taxes are removed by certificate of error.
(f) A tax deed executed under this chapter vests in the grantee an estate in fee simple absolute, free and clear of all liens and encumbrances created or suffered before or after the tax sale except those liens granted priority under federal law and the lien of the state or a political subdivision for taxes and special assessments which accrue subsequent to the sale and which are not removed under subsection (e). However, the estate is subject to:
(1) all easements, covenants, declarations, and other deed restrictions shown by public records;
(2) laws, ordinances, and regulations concerning governmental police powers, including zoning, building, land use, improvements on the land, land division, and environmental protection; and
(3) liens and encumbrances created or suffered by the grantee.
(g) A tax deed executed under this chapter is prima facie evidence of:
(1) the regularity of the sale of the real property described in the deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) A county auditor is not required to execute a deed to the county executive under this chapter if the county executive determines that the property involved contains hazardous waste or another environmental hazard for which the cost of abatement or alleviation will exceed the fair market value of the property. The county executive may enter the property to conduct environmental investigations.
(i) If the county executive makes the determination under subsection (h) as to any interest in an oil or gas lease or separate mineral rights, the county treasurer shall certify all delinquent taxes, interest, penalties, and costs assessed under IC 6-1.1-24 to the clerk, following the procedures in IC 6-1.1-23-9. After the date of the county treasurer's certification, the certified amount is subject to collection as delinquent personal property taxes under IC 6-1.1-23. Notwithstanding IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6, the assessed value of such an interest shall be zero (0) until production commences.
(j) When a deed is issued to a purchaser of a certificate of sale sold under IC 6-1.1-24-6.1, the county auditor shall, in the same manner that taxes are removed by certificate of error, remove from the tax duplicate the taxes, special assessments, interest, penalties, and costs remaining due as the difference between the amount of the last minimum bid under IC 6-1.1-24-5(e) and the amount paid for the certificate of sale.
(1) the real property described in the deed was not subject to the taxes for which it was sold;
(2) the delinquent taxes or special assessments for which the real property was sold were properly paid before the sale; or
(3) the legal description of the real property in the tax deed is void for uncertainty.
(b) The grantee of an invalid tax deed, including the county, to whom a refund is made under this section shall execute, acknowledge, and deliver to the owner a deed conveying whatever interest the
purchaser may have acquired by the tax sale deed. If a county is
required to execute a deed under this section, the deed shall be signed
by the county board of commissioners and acknowledged by the clerk
of the circuit court.
(c) A refund may not be made under this section while an action
initiated under either section 14 or 16 of this chapter is pending.
(d) If a sale is declared invalid after a claim is submitted under
IC 6-1.1-24-7 for money deposited in the tax sale surplus fund and
the claim is paid, the county auditor shall:
(1) refund the purchase money plus six percent (6%) interest
per annum from the county treasury to the purchaser, the
purchaser's successors or assigns, or the purchaser of the
certificate of sale under IC 6-1.1-24; and
(2) certify the amount paid to the property owner from the tax
sale surplus fund as a lien against the property and as a civil
judgment against the property owner.
(1) If a certificate of sale issued under IC 6-1.1-24 is outstanding:
(A) the amount necessary for redemption of the property under IC 6-1.1-25; and
(B) all delinquent property taxes, special assessments, penalties, and interest that:
(i) are not covered by the redemption referred to in clause (A); and
(ii) are due and owing on the property on the date of the sheriff's sale.
(2) If subdivision (1) does not apply, all delinquent property taxes, special assessments, penalties, and interest that are due and owing on the property on the date of the sheriff's sale.
(b) If the payments required under subsection (a) are not made in full by the date of the sale, the sheriff:
(1) shall cancel the sheriff's sale; and
(2) may conduct the sheriff's sale only:
(A) upon evidence that the payments required under subsection (a) have been made in full; and
(B) after a subsequent praecipe is filed, costs are paid, and the sheriff's sale is advertised under this chapter.
(1) Expenses of the offer and sale, including expenses incurred under IC 32-29-7-4 or section 9 of this chapter (or IC 34-1-53-6.5 or IC 32-15-6-6.5 before their repeal).
In all cases in which the proceeds of sale exceed the amounts described in subdivisions (1) through
"Community organization" means a citizen's group, neighborhood association, neighborhood development corporation, or similar organization that:
(1) has specific geographic boundaries defined in its bylaws or articles of incorporation and contains at least forty (40) households within those boundaries;
(2) is a nonprofit corporation that is representative of at least twenty-five (25) households or twenty percent (20%) of the households in the community, whichever is less;
(3) is operated primarily for the promotion of social welfare and general neighborhood improvement and enhancement;
(4) has been incorporated for at least two (2) years; and
(5) is exempt from taxation under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code.
"Continuous enforcement order" means an order that:
(1) is issued for compliance or abatement and that remains in full force and effect on a property without further requirements to seek additional:
(2) authorizes specific ongoing compliance and enforcement activities if a property requires reinspection or additional periodic abatement;
(3) can be enforced, including assessment of fees and costs, without the need for additional notice or hearing; and
(4) authorizes the enforcement authority to assess and collect ongoing costs for continuous enforcement order activities from any party that is subject to the enforcement authority's order.
"Department" refers to the executive department authorized by ordinance to administer this chapter. In a consolidated city, this department is the department of metropolitan development, subject to IC 36-3-4-23.
"Enforcement authority" refers to the chief administrative officer of the department, except in a consolidated city. In a consolidated city, the division of development services is the enforcement authority, subject to IC 36-3-4-23.
"Hearing authority" refers to a person or persons designated as such by the executive of a city or county, or by the legislative body of a town. However, in a consolidated city, the director of the department or a person designated by the director is the hearing authority. An employee of the enforcement authority may not be designated as the hearing authority.
"Known or recorded fee interest, life estate interest, or equitable interest of a contract purchaser" means any fee interest, life estate interest, or equitable interest of a contract purchaser held by a person whose identity and address may be determined from:
(1) an instrument recorded in the recorder's office of the county where the unsafe premises is located;
(2) written information or actual knowledge received by the department (or, in the case of a consolidated city, the enforcement authority); or
(3) a review of department (or, in the case of a consolidated city, the enforcement authority) records that is sufficient to identify
information that is reasonably ascertainable.
"Known or recorded substantial property interest" means any right
in real property, including a fee interest, a life estate interest, a future
interest, a mortgage interest, a lien as evidenced by a certificate of
sale issued under IC 6-1.1-24, or an equitable interest of a contract
purchaser, that:
(1) may be affected in a substantial way by actions authorized by
this chapter; and
(2) is held by a person whose identity and address may be
determined from:
(A) an instrument recorded in:
(i) the recorder's office of the county where the unsafe
premises is located; or
(ii) the office of the county auditor of the county where
the unsafe premises are located in the case of a lien
evidenced by a certificate of sale issued under
IC 6-1.1-24;
(B) written information or actual knowledge received by the
department (or, in the case of a consolidated city, the
enforcement authority); or
(C) a review of department (or, in the case of a consolidated
city, the enforcement authority) records that is sufficient to
identify information that is reasonably ascertainable.
"Substantial property interest" means any right in real property that
may be affected in a substantial way by actions authorized by this
chapter, including a fee interest, a life estate interest, a future interest,
a mortgage interest, or an equitable interest of a contract purchaser.
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