Bill Text: IN SB0275 | 2013 | Regular Session | Amended
Bill Title: Property tax payments.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 48 [SB0275 Detail]
Download: Indiana-2013-SB0275-Amended.html
Citations Affected: IC 6-1.1.
Synopsis: Property tax installment payments. Allows any person who
does not pay property taxes through an escrow account maintained by
the person's mortgagee to pay the person's property taxes using a
monthly payment plan (under current law it is a county option to allow
monthly payments). Requires the department of local government
finance (DLGF) to prescribe a standard form that can be used by a
taxpayer and requires each county treasurer and the DLGF to make a
printable version of the form available on the Internet. Requires DLGF
to adopt rules to establish a uniform system.
Effective: December 1, 2013.
January 8, 2013, read first time and referred to Committee on Appropriations.
February 4, 2013, amended, reported favorably _ Do Pass.
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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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) As used in this section, "monthly payment plan" means a plan
(c) As used in this section, "payment period" means the
designated under this section during which monthly payments may be
made. The period may not exceed twelve (12) months and may not
begin before beginning December 1 of the preceding year or end after
November 30 and ending November 28 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 After November 30, 2013, all county
taxpayers may elect to pay one (1) or more installments of property
taxes by making payments under a monthly payment plan during a
designated payment period. A taxpayer may elect to make monthly
payments by either either automatic monthly deductions or making
monthly payments:
(1) by written instrument or electronically; or
(2) by both written instrument and electronically.
A taxpayer may choose the monthly payment date. However, the
taxpayer may not choose the twenty-ninth, thirtieth, or thirty-first
day of a month as a payment date. A taxpayer may terminate the
taxpayer's monthly payment plan. A taxpayer who was using a
monthly payment plan under this section for 2012 may continue
using a monthly payment plan without filing a new election.
(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:
(g) The department of local government finance shall prescribe
the form that must be completed by a taxpayer and submitted to
the county treasurer to elect one (1) of the monthly payment
options under subsection (f) or to terminate a monthly payment
plan. Each county treasurer shall make available to county
taxpayers a printable version of the form on the county treasurer's
Internet web site. In addition, the department of local government
finance shall make a printable version of the form available on the
department's Internet web site. The form must provide for a
taxpayer that elects the automatic monthly deduction option a
place for the taxpayer to:
(i) (1) 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) (2) 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. or
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.
Anordinance 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 a taxpayer elects 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 the 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
(i) the STEP
(ii) the number of months remaining in the
(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
(l) This subsection applies only if the county treasurer determines that at the time the calculation under subsection (h)(3) is made the actual 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
(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)
(1) The sum of:
(A) the taxpayer's actual tax liability for the current year that is due through:
(i) May of the current year for the first reconciliation; and
(ii) November of the current year for the second reconciliation; 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):
(A) for the first reconciliation, the amount of the deficiency and a statement that the deficiency is
(B) for the second reconciliation, the amount of the deficiency and a statement that the deficiency is:
(4) If the amount under subdivision (2) exceeds the amount under subdivision (1)
(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
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
taxpayer's 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 taxpayer's 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). by the due date.
(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.
(u) The department of local government finance shall adopt
rules, under IC 4-22-2, to establish a uniform statewide monthly
payment plan system that is optional for taxpayers.