Citations Affected:
IC 6-1.1-37-7.
Synopsis: Personal property tax undervaluation penalty. Increases
from 5% to 10% the threshold for application of the penalty for
undervaluation of property on a personal property tax return, and
decreases the penalty from 20% to 10% of the taxes due on the
undervaluation.
Effective: July 1, 2003.
January 7, 2003, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-1.1-37-7
, AS AMENDED BY P.L.90-2002,
SECTION 261, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 7. (a) If a person fails to file a
required personal property return on or before the due date, the county
auditor shall add a penalty of twenty-five dollars ($25) to the person's
next property tax installment. The county auditor shall also add an
additional penalty to the taxes payable by the person if he the person
fails to file the personal property return within thirty (30) days after the
due date. The amount of the additional penalty is twenty percent (20%)
of the taxes finally determined to be due with respect to the personal
property which should have been reported on the return.
(b) For purposes of this section, a personal property return is not due
until the expiration of any extension period granted by the township
assessor under
IC 6-1.1-3-7
(b).
(c) The penalties prescribed under this section do not apply to an
individual or his the individual's dependents if he: the individual:
(1) is in the military or naval forces of the United States on the
assessment date; and
(2) is covered by the federal Soldiers' and Sailors' Civil Relief
Act.
(d) If a person subject to
IC 6-1.1-3-7
(d) fails to include on a
personal property return the information, if any, that the department of
local government finance requires under
IC 6-1.1-3-9
or
IC 6-1.1-5-13
,
the county auditor shall add a penalty to the property tax installment
next due for the return. The amount of the penalty is twenty-five dollars
($25).
(e) If the total assessed value that a person reports on a personal
property return is less than the total assessed value that the person is
required by law to report and if the amount of the undervaluation
exceeds five ten percent (5%) (10%) of the value that should have
been reported on the return, then the county auditor shall add a penalty
of twenty ten percent (20%) (10%) of the additional taxes finally
determined to be due as a result of the undervaluation. The penalty
shall be added to the property tax installment next due for the return on
which the property was undervalued. If a person has complied with all
of the requirements for claiming a deduction, an exemption, or an
adjustment for abnormal obsolescence, then the increase in assessed
value that results from a denial of the deduction, exemption, or
adjustment for abnormal obsolescence is not considered to result from
an undervaluation for purposes of this subsection.
(f) A penalty is due with an installment under subsection (a), (d), or
(e) whether or not an appeal is filed under
IC 6-1.1-15-5
with respect
to the tax due on that installment.
SECTION 2. [EFFECTIVE JULY 1, 2003] (a)
IC 6-1.1-37-7
, as
amended by this act, applies only to property taxes first due and
payable after December 31, 2003.
(b) This SECTION expires January 1, 2005.