SENATE BILL No. 510
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-37-7.
Synopsis: Penalty for incomplete personal property returns. Imposes
a penalty on a personal property taxpayer that fails to include on a
return the information necessary for the township assessor to assign the
appropriate assessed value to the return. The penalty is the lesser of
10% of the taxes on the assessed value determined by the township
assessor or $1,000.
Effective: July 1, 2005.
Young R Michael
January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
First Regular Session 114th General Assembly (2005)
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SENATE BILL No. 510
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-37-7; (05)IN0510.1.1. -->
SECTION 1. IC 6-1.1-37-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: 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
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
his the individual's
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
(d) Subject to subsection (h),
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
or IC 6-1.1-5-13, and
(2) the township assessor:
(A) is unable as a result of the person's failure under
subdivision (1) to:
(i) identify which property reported on the return is
subject to assessment; or
(ii) otherwise determine the amount of personal property
assessed value the person intends to report on the return;
in the township assessor's township; and
(B) corrects the deficiencies described in clause (A) and
assigns a personal property assessed value to the return;
the county auditor shall add a penalty to the property tax installment
next due for the return.
The amount of the penalty under subsection (d)
dollars ($25). the lesser of:
(1) ten percent (10%) of the taxes finally determined to be due
with respect to the personal property assigned by the
township assessor to the person's personal property return
under subsection (d)(2)(B); or
(2) one thousand dollars ($1,000).
(e) (f) Subject to subsection (h),
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 percent (5%) of the value
that should have been reported on the return, then the county auditor
shall add a penalty of twenty percent (20%) 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.
(g) If a person fails to include on a personal property return the
information, if any, the department of local government finance
requires under IC 6-1.1-5-13, the county auditor shall add a
penalty of twenty-five dollars ($25) to the property tax installment
next due for the return.
(h) If a township assessor assigns personal property assessed
value to a personal property return based on the failure of a person
to provide information under subsection (d) or an undervaluation
under subsection (f), the county auditor may not apply both:
(1) the penalty under subsection (d); and
(2) the penalty under subsection (f);
based on that assignment.
(f) (i) A penalty is due with an installment under subsection (a), (d),
or (e) (f), or (g) whether or not an appeal is filed under IC 6-1.1-15-5
with respect to the tax due on that installment.
SOURCE: ; (05)IN0510.1.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2005] IC 6-1.1-37-7, as
amended by this act, applies only to personal property returns filed
after June 30, 2005.