Bill Text: IN SB0147 | 2012 | Regular Session | Enrolled
Bill Title: Local government financial matters.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [SB0147 Detail]
Download: Indiana-2012-SB0147-Enrolled.html
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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AN ACT to amend the Indiana Code concerning taxation.
(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). However, for property taxes first due and payable in 2008, the county treasurer may choose to use a tax statement that is different from the tax statement prescribed by the department under subsection (b). If a county chooses to use a different tax statement, the county must still transmit (with the tax bill) the statement in either color type or black-and-white type.
(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.
(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,
in any manner permitted by subsection (n), 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) (4) 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.
The information listed in this subsection may be transmitted to a
person by using electronic mail that provides a secure Internet link
to the information.
(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 or on the
date it is electronically submitted. 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. county treasurer
received a notice that the person's electronic mail was
undeliverable.
(n) A person may direct the county treasurer and county auditor
to transmit information by electronic mail under subsection (h) on
a form prescribed by the department submitted:
(1) in person;
(2) by mail; or
(3) in an online format developed by the county and approved
by the department.
(b) As used in this section, "monthly
(1) is adopted under this section; and
(2) provides for the monthly payment of tax liability
(B) the taxpayer making payments on a monthly basis during the payment period either by written instrument or electronically;
or both.
(c) As used in this section, "payment period" means the months designated under this section during which monthly payments may be made. The period may not exceed twelve (12) months and may not begin before December 1 of the preceding year or end after November 30 of the current year.
(1) may apply to more than one (1) calendar year; and
(2) must include at least the following:
(A) Identification of the property tax installment or installments and designation of the months of the payment period for which payment
is authorized.
(B) Provisions for notice to county taxpayers of the option to pay one (1) or more property tax installments
(C) Authority for the county treasurer to make available to county taxpayers a form to be completed by a taxpayer and submitted to the county treasurer to:
(i) direct the county treasurer to accept payment of the taxpayer's property taxes by automatic monthly deduction during the payment period from an account of the taxpayer that is held by a financial institution; and
(ii) authorize the financial institution that holds the taxpayer's account to deduct monthly during the designated payment period the appropriate amount from the account and to pay that amount to the county treasurer.
However, this clause applies only if the county fiscal body has adopted an ordinance under this section to allow taxpayers to pay property taxes by automatic monthly deductions during the designated payment period from an account of the taxpayer that is held by a financial institution.
(D) Authority for the county treasurer to accept payment of the taxpayer's property taxes
electronically.
An ordinance adopted under subsection (e) (f) may include a provision
authorizing taxpayers to make monthly deductions or monthly
installment payments in an amount determined by the taxpayer that is
different from the amount otherwise determined by the county treasurer
under subsection (h), (i), (j), or (k), or (l).
(g) (h) If an ordinance is adopted under subsection (e) (f) to allow
taxpayers to pay property taxes by automatic monthly deductions
during the designated payment period from an account of the
taxpayer that is held by a financial institution, the county treasurer shall
provide to each county taxpayer that submits to the county treasurer the
form referred to in subsection (f)(2)(C) (g)(2)(C) a statement that
includes at least the following:
(1) The amount to be deducted monthly from the taxpayer's
account.
(2) The designated payment period and identification of the day
each month, as chosen by the taxpayer, when the deduction will
be made.
(3) A calculation of the amount to be deducted.
(4) An explanation of the manner in which property taxes for the
current year will be reconciled under subsection (n) (o) and notice
that any property tax payments for the current year made by the
taxpayer by means other than automatic deduction from the
taxpayer's account will be taken into account in the reconciliation.
(5) An explanation of the penalties that apply if there are
insufficient funds in the taxpayer's account to cover one (1) or
more automatic deductions.
(h) (i) This subsection applies only if the county treasurer
determines that at the time the calculation under subsection (g)(3)
(h)(3) is made the amount of tax liability for the current year has not
been determined. Subject to subsections (i) and (j) and (k), the county
treasurer shall do the following:
(1) Determine the following:
(A) For a parcel of real property, the most recently determined
amount of tax liability that applied to the parcel for the
preceding year.
(B) For a personal property return, the most recently
determined amount of tax liability that applied for the personal
property return for the same location for the preceding year.
(C) For distributable property, the most recently determined
amount of tax liability that applied with respect to the
statement filed by the taxpayer under IC 6-1.1-8-19 for the
preceding year.
(D) For a mobile home subject to IC 6-1.1-7, the most recently
determined amount of tax liability that applied to the mobile
home for the preceding year.
(2) Determine the amount of the monthly deduction from the
account of the taxpayer that is held by a financial institution or the
amount payment due under a monthly installment payment plan
in the amount determined in the last STEP of by using the
following STEPS:
STEP ONE: Determine under subdivision (1) the amount of
tax liability that applied for the preceding year.
STEP TWO: Determine the quotient of:
(i) the number of property tax installments for the current
year identified in the ordinance under subsection (f)(2)(A);
(g)(2)(A); divided by
(ii) the total number of property tax installments for the
current year.
STEP THREE: Multiply the STEP ONE result by the STEP
TWO result.
STEP FOUR: Determine the quotient of:
(i) the STEP THREE result; divided by
(ii) the number of monthly deductions or, in the case of
payments under a monthly installment plan, the number of
monthly installments. months in the designated payment
period.
(i) (j) The county treasurer may determine the monthly deduction or
the amount of the monthly installment payment due under a monthly
installment payment plan in an amount different from the amount
determined under subsection (h) (i) if the county treasurer determines
that changes in circumstances have caused the amount determined
under subsection (h) (i) to differ substantially from the tax liability
likely to be determined for the current year.
(j) (k) This subsection applies only if before an ordinance is adopted
under subsection (e) (f) the county treasurer determines to use
provisional property tax statements under IC 6-1.1-22.5 for the current
year. For purposes of determining the amount of the monthly deduction
from the account of the taxpayer that is held by a financial institution
or the amount of the taxpayer's monthly installment payment under a
monthly installment payment plan, the county treasurer shall substitute
for the tax liability that applied to the parcel for the preceding year
under subsection (h) (i) the tax liability to be indicated on the
provisional statement.
(1) The sum of:
(A) the taxpayer's actual tax liability for the current year; plus
(B) any penalty that applies for the current year.
(2) The total amount paid for the current year
(3) If the amount under subdivision (1) exceeds the amount under subdivision (2), the deficiency is payable by the taxpayer:
(A) as a final reconciliation of the tax liability; and
(B) not later than thirty (30) days after the date of the reconciling statement.
(4) If the amount under subdivision (2) exceeds the amount under subdivision (1), that the county treasurer will apply the excess as a credit against the taxpayer's tax liability for the immediately
succeeding calendar year unless the taxpayer makes a claim for
refund of the excess under IC 6-1.1-26.
(o) (p) The county treasurer shall deposit the tax collections under
this section under IC 5-13-6-3(a). The collections must remain in the
funds in which they are deposited until the county auditor makes the
distributions to the appropriate taxing units at the semiannual
settlements under IC 6-1.1-27. However, this subsection does not
prohibit a county treasurer from making an advance to a political
subdivision under IC 5-13-6-3 of a portion of the taxes collected.
(p) (q) IC 6-1.1-15:
(1) does not apply to a statement provided under subsection (g);
(h); and
(2) applies to a reconciling statement issued under subsection (n).
(o).
(q) (r) The following apply to a taxpayer that makes automatic
monthly deductions or monthly installments payments under this
section:
(1) If a taxpayer has approval to use a monthly payment plan
and makes automatic monthly deductions or timely monthly
installments payments of property taxes in the amount
determined by the county treasurer under subsection (h), (i), (j),
or (k), or (l), the taxpayer's property tax payments shall not be
considered delinquent for purposes of IC 6-1.1-37-10 and the
taxpayer is not subject to penalties under that section.
(2) If:
(A) a taxpayer makes automatic monthly deductions or
monthly installments payments of property taxes in an amount
that is less than the amount determined by the county treasurer
under subsection (h), (i), (j), or (k), or (l); and
(B) the total amount of property taxes paid by the taxpayer
under automatic monthly deductions, the monthly
installments, payment plan or any other method by the May
or November approved monthly due date is less than the
amount determined by the county treasurer under subsection
(h), (i), (j), or (k), or (l) that should have been paid by the
taxpayer for by the May or November approved monthly due
date;
the penalty provisions of IC 6-1.1-37-10 apply to the delinquent
property taxes.
(r) (s) IC 6-1.1-37-10 applies to any amounts due under a
reconciling statement issued under subsection (n) (o) that are not paid
within thirty (30) days after the date of the reconciling statement, as
required under subsection (n)(3). (o)(3).
(s) (t) For purposes of IC 6-1.1-24-1(a)(1):
(1) property taxes to be paid by automatic deduction or by
monthly installments under a monthly installment payment plan
under this section before June of the current year are considered
to be the taxpayer's spring installment of property taxes; and
(2) payment on a reconciling statement issued under subsection
(n) (o) is considered to be due before the due date of the first
installment of property taxes payable in the year immediately
following the current year.
(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 and the delinquent property tax or special assessments due exceed twenty-five dollars ($25).
(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. Except as provided in section 1.2 or another provision of this chapter, 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.
(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
(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.
(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 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 10.1 or 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 10.1 or 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) Each county legislative body shall before July 1, 2011, establish a county elected officials training fund. The county fiscal body shall appropriate money from the fund.
(c) The fund consists of money deposited under IC 36-2-7.5-6(c)(3) and any other sources required or permitted by law. Money in the fund
does not revert to the county general fund.
(d) Money in the fund shall be used solely to provide training of
county elected officials required by IC 36-2-9-2.5, IC 36-2-9.5-2.5,
IC 36-2-10-2.5, IC 36-2-11-2.5, IC 36-2-12-2.5, and other similar laws.
(b) An individual elected to the office of county auditor after November 6, 2012, shall complete at least:
(1) fifteen (15) hours of training courses within one (1) year; and
(2) forty (40) hours of training courses within three (3) years;
after beginning the county auditor's term.
(b) An individual elected to the office of county auditor after November 6, 2012, shall complete at least:
(1) fifteen (15) hours of training courses within one (1) year; and
(2) forty (40) hours of training courses within three (3) years;
after beginning the county auditor's term.
(b) An individual elected to the office of county treasurer after November 6, 2012, shall complete at least:
(1) fifteen (15) hours of training courses within one (1) year; and
(2) forty (40) hours of training courses within three (3) years;
after beginning the county treasurer's term.
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