Introduced Version






HOUSE BILL No. 1752

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-37-10.7.

Synopsis: Waiver of property tax penalties. Allows the county treasurer to waive penalties on certain residential property taxes.

Effective: July 1, 2005.





Thompson




    January 19, 2005, read first time and referred to Committee on Local Government.







Introduced

First Regular Session 114th General Assembly (2005)


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 this style type.
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HOUSE BILL No. 1752



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-37-9; (05)IN1752.1.1. -->     SECTION 1. IC 6-1.1-37-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. (a) This section applies when:
        (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 (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 stayed under IC 4-21.5-5-9, 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 of ten percent (10%) per year 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.
    (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 10.5 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 10.5 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.

SOURCE: IC 6-1.1-37-10; (05)IN1752.1.2. -->     SECTION 2. IC 6-1.1-37-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 10. (a) Except as provided in section 10.5 or 10.7 of this chapter, if an installment of property taxes is not completely paid on or before the due date, a penalty equal to ten percent (10%) of the amount of delinquent taxes shall be added to the unpaid portion in the year of the initial delinquency.
    (b) With respect to property taxes due in two (2) equal installments under IC 6-1.1-22-9(a), on the day immediately following the due dates in May and November of each year following the year of the initial delinquency, an additional penalty equal to ten percent (10%) of any taxes remaining unpaid shall be added. With respect to property taxes due in installments under IC 6-1.1-22-9.5, an additional penalty equal to ten percent (10%) of any taxes remaining unpaid shall be added on the day immediately following each date that succeeds the last installment due date by:
        (1) six (6) months; or
        (2) a multiple of six (6) months.
    (c) The penalties under subsection (b) are imposed only on the principal amount of the delinquent taxes.
    (d) If the department of local government finance determines that

an emergency has occurred which precludes the mailing of the tax statement in any county at the time set forth in IC 6-1.1-22-8, the department shall establish by order a new date on which the installment of taxes in that county is due and no installment is delinquent if paid by the date so established.
    (e) If any due date falls on a Saturday, a Sunday, a national legal holiday recognized by the federal government, or a statewide holiday, the act that must be performed by that date is timely if performed by the next succeeding day that is not a Saturday, a Sunday, or one (1) of those holidays.
    (f) A payment to the county treasurer is considered to have been paid by the due date if the payment is:
        (1) received on or before the due date to the county treasurer or a collecting agent appointed by the county treasurer;
        (2) deposited in the United States mail:
            (A) properly addressed to the principal office of the county treasurer;
            (B) with sufficient postage; and
            (C) certified or postmarked by the United States Postal Service as mailed on or before the due date; or
        (3) deposited with a nationally recognized express parcel carrier and is:
            (A) properly addressed to the principal office of the county treasurer; and
            (B) verified by the express parcel carrier as:
                (i) paid in full for final delivery; and
                (ii) received on or before the due date.
For purposes of this subsection, "postmarked" does not mean the date printed by a postage meter that affixes postage to the envelope or package containing a payment.

SOURCE: IC 6-1.1-37-10.7; (05)IN1752.1.3. -->     SECTION 3. IC 6-1.1-37-10.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 10.7. (a) This section applies only to property taxes first due and payable after 2005 with respect to a homestead (as defined in IC 6-1.1-20.9-1).
    (b) A taxpayer may petition the county treasurer to waive all or part of the penalty imposed under section 10(a) of this chapter on an installment of property taxes.
    (c) The county treasurer may approve a petition under subsection (b) with respect to an installment of property taxes if:
        (1) the installment for which the waiver is sought is part of a billing of taxes that does not conform to the billing schedule

under IC 6-1.1-22-9(a);
        (2) the taxpayer was not liable for the installment that immediately preceded the installment for which the waiver is sought; and
        (3) the county treasurer did not mail the tax statement for
the installment for which the waiver is sought to:
            (A) the taxpayer; or
            (B) a mortgagee maintaining an escrow account for the taxpayer.