Bill Text: IN SB0275 | 2013 | Regular Session | Enrolled
Bill Title: Property tax payments.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 48 [SB0275 Detail]
Download: Indiana-2013-SB0275-Enrolled.html
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AN ACT to amend the Indiana Code concerning taxation.
(1) delinquent taxes and special assessments due before the date the list on which the property appears was certified under section 1 of this chapter; and
(2) penalties due on the delinquency, interest, and costs directly attributable to the tax sale;
have been paid in full.
(b) A county treasurer may accept partial payments of delinquent property taxes, assessments, penalties, interest, or costs under subsection (a) after the list of real property is certified under section 1 of this chapter. However, a partial payment does not remove a tract or an item from the list certified under section 1 of this chapter unless the taxpayer complies with subsection (a) or (c) before the date of the tax sale.
(c) A county auditor
(d) The county auditor
(1) the arrangement described in subsection (c):
(2) the county treasurer has provided a copy of the written agreement to the county auditor.
(e) If the taxpayer fails to make a payment under the arrangement described in subsection (c):
(1) the arrangement is void; and
(2) the county auditor shall immediately place the tract or item of real property on the list of real property eligible for sale at a tax sale.
(f) If the county auditor acts under subsection (e) with respect to a tract or item subject to an arrangement described in subsection (c), the taxpayer may not enter into another arrangement under subsection (c) with respect to that tract or item after the due date of the payment referred to in subsection (d) and before the date that succeeds by five (5) years the date on which the original arrangement would have expired if the arrangement had not become void under subsection (e).
(b) As used in this section, "monthly payment plan" means a plan that:
(1) is adopted under this section; and
(2) provides for the monthly payment of tax liability either by:
(A) an automatic monthly deduction during the payment period from an account of the taxpayer that is held by a financial institution; or
(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.
(d) As used in this section, "preceding year" refers to the calendar
year that immediately precedes the current year.
(e) As used in this section, "tax liability" includes liability for
special assessments and refers to liability for property taxes after the
application of all allowed deductions and credits.
(f) The county fiscal body (as defined in IC 36-1-2-6) may at any
time adopt an ordinance to allow all county taxpayers to pay one (1) or
more installments of property taxes by making payments under a
monthly payment plan during a designated payment period. If a county
fiscal body does not adopt an ordinance under this section, the
county treasurer shall develop and implement a plan to accept
partial payments of property taxes. The county treasurer shall
notify taxpayers on the property tax bill or envelope used to mail
property taxes that the county has adopted a plan to accept partial
payments.
(g) An ordinance adopted under subsection (f):
(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 under a monthly payment plan is
authorized.
(B) Provisions for notice to county taxpayers of the option to
pay one (1) or more property tax installments under a monthly
payment plan.
(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 on a monthly basis during the
designated payment period either by written instrument or
electronically. However, this clause applies only if the county
fiscal body has adopted an ordinance under this section to
allow taxpayers to pay property taxes on a monthly basis
during the designated payment period either by written
instrument or electronically.
An ordinance adopted under subsection (f) may include a provision
authorizing taxpayers to make monthly payments in an amount
determined by the taxpayer that is different from the amount otherwise
determined by the county treasurer under subsection (i), (j), (k), or (l).
(h) If an ordinance is adopted under subsection (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 (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 (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.
(i) This subsection applies only if the county treasurer determines
that at the time the calculation under subsection (h)(3) is made the
amount of tax liability for the current year has not been determined.
Subject to subsections (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 payment due under a
monthly payment plan 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 (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 months in the designated payment period.
(j) The county treasurer may determine the monthly payment due
under a monthly payment plan in an amount different from the amount
determined under subsection (i) if the county treasurer determines that
changes in circumstances have caused the amount determined under
subsection (i) to differ substantially from the tax liability likely to be
determined for the current year.
(k) This subsection applies only if before an ordinance is adopted
under subsection (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 taxpayer's monthly payment
under a monthly payment plan, the county treasurer shall substitute for
the tax liability that applied to the parcel for the preceding year under
subsection (i) the tax liability to be indicated on the provisional
statement.
(l) This subsection applies only if the county treasurer determines
that at the time the calculation under subsection (h)(3) is made the
amount of tax liability for the current year has been determined. The
amount of the taxpayer's monthly payment under a monthly payment
plan is the amount of the tax liability for the current year payable in the
installment or installments identified in the ordinance under subsection
(g)(2)(A) divided by the number of months in the designated payment
period.
(m) Tax liability paid under this section by automatic deduction
from an account of the taxpayer that is held by a financial institution is
not finally discharged and the person has not paid the tax until the
taxpayer's account is charged for the payment.
(n) Penalties apply under IC 6-1.1-37-10 as specified in this section
to taxes payable under a monthly payment plan under this section.
(o) After the last monthly payment under a monthly payment plan
under this section for the current year has been made and after the
amount of tax liability for the current year has been determined, the
county treasurer shall issue a reconciling statement to the taxpayer.
Each reconciling statement must indicate at least the following:
(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 under a monthly
payment plan, and by means other than under a monthly payment
plan.
(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.
(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.
(q) IC 6-1.1-15:
(1) does not apply to a statement provided under subsection (h); and
(2) applies to a reconciling statement issued under subsection (o).
(r) The following apply to a taxpayer that makes monthly payments under this section:
(1) If a taxpayer has approval to use a monthly payment plan and makes timely monthly payments of property taxes in the amount determined by the county treasurer under subsection (i), (j), (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 monthly payments of property taxes in an amount that is less than the amount determined by the county treasurer under subsection (i), (j), (k), or (l); and
(B) the total amount of property taxes paid by the taxpayer under the monthly payment plan or any other method by the November approved monthly due date is less than the amount determined by the county treasurer under subsection (i), (j), (k), or (l) that should have been paid by the taxpayer by the November approved monthly due date;
the penalty provisions of IC 6-1.1-37-10 apply to the delinquent property taxes.
(s) IC 6-1.1-37-10 applies to any amounts due under a reconciling statement issued under subsection (o) that are not paid within thirty (30) days after the date of the reconciling statement, as required under subsection (o)(3).
(t) For purposes of IC 6-1.1-24-1(a)(1):
(1) property taxes to be paid under a monthly 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 (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.
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