Bill Text: IN HB1405 | 2013 | Regular Session | Introduced
Bill Title: Redemption of real property sold in a tax sale.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Local Government [HB1405 Detail]
Download: Indiana-2013-HB1405-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Redemption of real property sold in a tax sale. Reduces the
percentage of the minimum bid that a person redeeming real property
sold at a tax sale must pay: (1) from 110% to 105% of the minimum bid
for which the real property was offered for sale, if the real property is
redeemed within six months after the date of sale; or (2) from 115% to
110% of the minimum bid for which the real property was offered for
sale, if the real property is redeemed more than six months after the
date of sale.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Local Government.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) A list of tracts or real property eligible for sale under this chapter.
(2) A statement that the tracts or real property included in the list will be sold at public auction to the highest bidder, subject to the right of redemption.
(3) A statement that the tracts or real property will not be sold for an amount which is less than the sum of:
(A) the delinquent taxes and special assessments on each tract or item of real property;
(B) the taxes and special assessments on each tract or item of real property that are due and payable in the year of the sale, whether or not they are delinquent;
(C) all penalties due on the delinquencies;
(D) an amount prescribed by the county auditor that equals the sum of:
(i) the greater of twenty-five dollars ($25) or postage and publication costs; and
(ii) any other actual costs incurred by the county that are directly attributable to the tax sale; and
(E) any unpaid costs due under subsection (b) from a prior tax sale.
(4) A statement that a person redeeming each tract or item of real property after the sale must pay:
(A)
(i) 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 date of sale occurred before July 1, 2013; or
(ii) one hundred five percent (105%) 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 date of sale occurred after June 30, 2013;
(B)
(i) 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 date of sale occurred before July 1, 2013; or
(ii) 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 date of sale occurred after June 30, 2013;
(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 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.
(15) With respect to a tract or an item of real property that is subject to sale under this chapter after June 30, 2012, and before July 1, 2013, a statement declaring whether an ordinance adopted under IC 6-1.1-37-10.1 is in effect in the county and, if applicable, an explanation of the circumstances in which penalties on the delinquent taxes and special assessments will be waived.
(b) If within sixty (60) days before the date of the tax sale the county incurs costs set under subsection (a)(3)(D) and those costs are not paid, the county auditor shall enter the amount of costs that remain unpaid upon the tax duplicate of the property for which the costs were set. The county treasurer shall mail notice of unpaid costs entered upon a tax duplicate under this subsection to the owner of the property identified in the tax duplicate.
(c) The amount of unpaid costs entered upon a tax duplicate under subsection (b) must be paid no later than the date upon which the next
installment of real estate taxes for the property is due. Unpaid costs
entered upon a tax duplicate under subsection (b) are a lien against the
property described in the tax duplicate, and amounts remaining unpaid
on the date the next installment of real estate taxes is due may be
collected in the same manner that delinquent property taxes are
collected.
(d) The county auditor and county treasurer may establish the
condition that a tract or item will be sold and may be redeemed under
this chapter only if the tract or item is sold or redeemed together with
one (1) or more other tracts or items. Property may be sold together
only if the tract or item is owned by the same person.
(1) the sum of the amounts prescribed in subsections (b) through (f); or
(2) the amount prescribed in subsection (g);
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 (g), the total amount required for redemption includes:
(1)
(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 date of sale occurred before July 1, 2013; or
(B) one hundred five percent (105%) 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 date of sale occurred after June 30, 2013; or
(2)
(A) 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 date of sale
occurred before July 1, 2013; or
(B) 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 date of sale occurred
after June 30, 2013.
(c) Except as provided in subsection (g), 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 on the
amount by which the purchase price exceeds the minimum bid on the
property.
(d) Except as provided in subsection (g), 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 on those taxes and special assessments.
(e) Except as provided in subsection (g), 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) The total amount required for redemption includes, in addition
to the amounts required under subsections (b) and (e), all taxes, special
assessments, interest, penalties, and fees on the property that accrued
after the sale.
(g) 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 (f), the total amount required for redemption is the amount
determined under IC 6-1.1-24-6.1(b)(4).
