HB 1140-2_ Filed 01/25/2006, 22:18
Adopted 1/26/2006
Text Box
Adopted Rejected
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COMMITTEE REPORT
YES:
21
NO:
0
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred House Bill 1140 ,
has had the same under consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (06)CR114001.1. -->
Page 1, between line 1 and the enacting clause, begin a new
paragraph and insert:
SOURCE: IC 6-1.1-4-12; (06)CR114001.1. -->
"SECTION 1. IC 6-1.1-4-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 12.
(a) As used in this section, "land developer" means a
person that holds land for sale in the ordinary course of the
person's trade or business.
(b) As used in this section, "land in inventory" means:
(1) a lot; or
(2) a tract that has not been subdivided into lots;
to which a land developer holds title in the ordinary course of the
land developer's trade or business.
(c) As used in this section, "title" refers to legal or equitable
title, including the interest of a contract purchaser.
(d) Except as provided in subsections (h) and (i), if:
(1) land assessed on an acreage basis is subdivided into lots;
the
land shall be reassessed on the basis of lots. If or
(2) land is rezoned for, or put to, a different use;
the land shall be reassessed on the basis of its new classification.
(e) If improvements are added to real property, the improvements
shall be assessed.
(f) An assessment or reassessment made under this section is
effective on the next assessment date. However, if land assessed on an
acreage basis is subdivided into lots, the lots may not be reassessed
until the next assessment date following a transaction which results in
a change in legal or equitable title to that lot.
(g) No petition to the department of local government finance is
necessary with respect to an assessment or reassessment made under
this section.
(h) Subject to subsection (i), land in inventory may not be
reassessed until the next assessment date following the earliest of:
(1) the date on which title to the land is transferred by:
(A) the land developer; or
(B) a successor land developer that acquires title to the
land;
to a person that is not a land developer;
(2) the date on which construction of a structure begins on the
land; or
(3) the date on which a building permit is issued for
construction of a building or structure on the land.
(i) Subsection (h) applies regardless of whether the land in
inventory is rezoned while a land developer holds title to the land.".
SOURCE: Page 5, line 5; (06)CR114001.5. -->
Page 5, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 6-1.1-22-9.5; (06)CR114001.3. -->
"SECTION 3. IC 6-1.1-22-9.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9.5. (a) This section
applies only to property taxes first due and payable in a year that begins
after December 31, 2003:
(1) with respect to a homestead (as defined in IC 6-1.1-20.9-1);
and
(2) that are not payable in one (1) installment under section 9(b)
of this chapter.
(b) At any time before the mailing or transmission of tax statements
for a year under section 8 of this chapter, a county may petition the
department of local government finance to establish a schedule of
installments for the payment of property taxes with respect to:
(1) real property that are based on the assessment of the property
in the immediately preceding year; or
(2) a mobile home or manufactured home that is not assessed as
real property that are based on the assessment of the property in
the current year.
The county fiscal body (as defined in IC 36-1-2-6) the county auditor,
and the county treasurer must approve a petition under this subsection.
(c) The department of local government finance:
(1) may not establish a date for:
(A) an installment payment that is earlier than May 10 of the
year in which the tax statement is mailed or transmitted;
(B) the first installment payment that is later than November
10 of the year in which the tax statement is mailed or
transmitted; or
(C) the last installment payment that is later than May 10 of the
year immediately following the year in which the tax statement
is mailed or transmitted; and
(2) shall:
(A) prescribe the form of the petition under subsection (b);
(B) determine the information required on the form; and
(C) notify the county fiscal body, the county auditor, and the
county treasurer of the department's determination on the
petition not later than twenty (20) days after receiving the
petition.
(d) Revenue from property taxes paid under this section in the year
immediately following the year in which the tax statement is mailed or
transmitted under section 8 of this chapter:
(1) is not considered in the determination of a levy excess under
IC 6-1.1-18.5-17 or IC 6-1.1-19-1.7 for the year in which the
property taxes are paid; and
(2) may be:
(A) used to repay temporary loans entered into by a political
subdivision for; and
(B) expended for any other reason by a political subdivision in
the year the revenue is received under an appropriation from;
the year in which the tax statement is mailed or transmitted under
section 8 of this chapter.
SOURCE: IC 6-1.1-37-10; (06)CR114001.4. -->
SECTION 4. IC 6-1.1-37-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. (a) Except as
provided in section 10.5 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.
The penalty
is equal to an amount determined as follows:
(1) If:
(A) an installment of property taxes is completely paid on
or before the date thirty (30) days after the due date; and
(B) the taxpayer is not liable for delinquent property taxes
first due and payable in a previous year for the same
parcel;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(2) If subdivision (1) does not apply, the amount of the penalty
is equal to ten percent (10%) of the amount of delinquent
taxes.
(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: Page 5, line 18; (06)CR114001.5. -->
Page 5, between lines 18 and 19, begin a new paragraph and insert:
SOURCE: IC 14-33-10-3; (06)CR114001.6. -->
"SECTION 6. IC 14-33-10-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. (a) An assessment
not paid in full shall be paid in annual installments over the time
commensurate with the term of the bond issue or other financing
determined by resolution adopted by the board. Interest shall be
charged on the unpaid balance at the same rate per year as the penalty
charged on delinquent property tax payments under IC 6-1.1-37-10.
IC 6-1.1-37-10(a). All payments of installments, interest, and penalties
shall be entered on the assessment roll in the office of the district.
(b) Upon payment in full of the assessment, including interest and
penalties, the board shall have the lien released and satisfied on the
records in the office of the recorder of the county in which the real
property assessed is located.
(c) The procedure for collecting assessments for maintenance and
operation is the same as for the original assessment, except that the
assessments may not be paid in installments.
SOURCE: IC 36-9-36-37; (06)CR114001.7. -->
SECTION 7. IC 36-9-36-37 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 37. (a) Except as
provided in section 38 of this chapter, the entire assessment is payable
in cash without interest not later than thirty (30) days after the approval
of the assessment roll by the works board if an agreement has not been
signed and filed under section 36 of this chapter.
(b) If the assessment is not paid when due, the total assessment
becomes delinquent and bears interest at the rate prescribed by
IC 6-1.1-37-10 IC 6-1.1-37-10(a) per year from the date of the final
acceptance of the completed improvement by the works board.
SOURCE: IC 36-9-36-55; (06)CR114001.8. -->
SECTION 8. IC 36-9-36-55 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 55. (a) An irregularity
or error in making a foreclosure sale under this chapter does not make
the sale ineffective, unless the irregularity or error substantially
prejudiced the property owner.
(b) A property owner has two (2) years from the date of sale in
which to redeem the owner's property. The property owner may redeem
the owner's property by paying the principal, interest, and costs of the
judgment, plus interest on the principal, interest, and costs at the rate
prescribed by IC 6-1.1-37-10. IC 6-1.1-37-10(a).
(c) If the property is not redeemed, the sheriff shall execute a deed
to the purchaser. The deed relates back to the final letting of the
contract for the improvement and is superior to all liens, claims, and
interests, except liens for taxes.
SOURCE: IC 36-9-37-19; (06)CR114001.9. -->
SECTION 9. IC 36-9-37-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 19. (a) If a person
defaults in the payment of a waivered installment of principal or interest
of an assessment, the municipal fiscal officer shall mail notice of the
default to the person. The notice must meet the following conditions:
(1) Be mailed not more than sixty (60) days after the default.
(2) Show the amount of the default, plus interest on that amount
for the number of months the person is in default at one-half (½)
the rate prescribed by IC 6-1.1-37-10. IC 6-1.1-37-10(a).
(3) State that the amount of the default, plus interest, is due by the
date determined as follows:
(A) If the person selected monthly installments under
IC 36-9-37-8.5(a)(1), section 8.5(a)(2) of this chapter, within
sixty (60) days after the date the notice is mailed.
(B) If the person selected annual installments under
IC 36-9-37-8.5(a)(2), section 8.5(a)(1) of this chapter, within
six (6) months after the date the notice is mailed.
(b) A notice that is mailed to the person in whose name the property
is assessed and addressed to the person within the municipality is
sufficient notice. However, the fiscal officer shall also attempt to
determine the name and address of the current owner of the property
and send a similar notice to the current owner.
(c) Failure to send the notice required by this section does not
preclude or otherwise affect the following:
(1) The sale of the property for delinquency as prescribed by
IC 6-1.1-24.
(2) The foreclosure of the assessment lien by the bondholder.
(3) The preservation of the assessment lien under section 22.5 of
this chapter.
SOURCE: IC 36-9-37-20; (06)CR114001.10. -->
SECTION 10. IC 36-9-37-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 20. (a) If any principal
and interest, or an installment of principal and interest, is not paid in
full when due, the municipal fiscal officer shall enforce payment of the
following:
(1) The unpaid amount of principal and interest.
(2) A penalty of interest at the rate prescribed by subsection (b).
(b) If payment is made after a default, the municipal fiscal officer
shall also collect a penalty of interest on the delinquent amount at
one-half (1/2) the rate prescribed by IC 6-1.1-37-10 IC 6-1.1-37-10(a)
for each six (6) month period, or fraction of a six (6) month period,
from the date when payment should have been made.
SOURCE: ; (06)CR114001.11. -->
SECTION 11. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)] IC 6-1.1-4-12, as amended by this act, applies
only to assessment dates after December 31, 2005.
SOURCE: ; (06)CR114001.12. -->
SECTION 12. [EFFECTIVE JULY 1, 2006]
IC 6-1.1-37-10, as
amended by this act, applies only to ad valorem property taxes first
due and payable after December 31, 2006.
SECTION 13. [EFFECTIVE UPON PASSAGE]
(a) The
definitions in IC 6-1.1-12 apply throughout this SECTION.
(b) As used in this SECTION, "department" refers to the
department of local government finance.
(c) As used in this SECTION, "taxpayer" means a person:
(1) who operates a grey iron foundry located in Grant County;
(2) who applied in 2001 for property tax deductions under
IC 6-1.1-12.1 for new manufacturing equipment located in an
economic revitalization area; and
(3) whose applications described in subdivision (2) were
denied.
(d) References to the Indiana Code in this SECTION refer to the
Indiana Code in effect on March 1, 2001, unless otherwise stated.
(e) Notwithstanding any other law, a taxpayer who complies
with the requirements of this SECTION is entitled to the property
tax deduction for new manufacturing equipment in the amounts
and for the number of years provided under IC 6-1.1-12.1-4.5, as
determined by the department under subsection (h).
(f) The taxpayer shall provide the department with copies of the
taxpayer's:
(1) statement of benefits; and
(2) applications for deductions from assessed value;
for new manufacturing equipment placed in service in an economic
revitalization area that the taxpayer filed in 2001.
(g) If there are any deficiencies in the taxpayer's filings
described in subsection (e), the department of local government
finance shall assist the taxpayer in completing the information
necessary to determine:
(1) the assessed value of the new manufacturing equipment;
and
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION.
(h) The department shall determine:
(1) the amount of the assessed value of the new manufacturing
equipment;
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION; and
(3) the percentages used to compute the taxpayer's
deductions;
in accordance with IC 6-1.1-12.1-4.5(d) and IC 6-1.1-12.1-4.5(e) as
if the taxpayer's had been approved in 2001.
(i) Notwithstanding IC 6-1.1-26 (as in effect on January 1, 2006),
when the department has completed the department's
determinations under subsection (h), the department shall issue an
order to the county auditor of the county in which the economic
revitalization area is located:
(1) describing the department's determinations under
subsection (h); and
(2) requiring the county auditor to accept the taxpayer's
refund claims as if the taxpayer's deduction application had
been approved in 2001.
The taxpayer shall provide the taxpayer with a copy of the order
issued under this subsection.
(j) Notwithstanding IC 6-1.1-26 (as in effect January 1, 2006),
the taxpayer may file refund claims for property taxes paid in
previous years that are affected by the department's order issued
under subsection (i). The taxpayer must attach a copy of the order
issued under subsection (i) to the taxpayer's refund claim.
(k) Notwithstanding IC 6-1.1-26 (as in effect January 1, 2006),
the county auditor shall pay the refund claims of the taxpayer filed
under subsection (j) if the refund claims are fully consistent with
the department's order issued under subsection (i).
SOURCE: ; (06)CR114001.14. -->
SECTION 14. [EFFECTIVE UPON PASSAGE]
(a) This
SECTION applies to property that:
(1) is used for a fraternity for students attending Butler
University;
(2) is owned by a nonprofit corporation that was, before the
effective date of this SECTION, determined by the auditor of
the county in which the property is located to be eligible to
receive a property tax exemption under IC 6-1.1-10-16 or
IC 6-1.1-10-24; and
(3) is not eligible for the property tax exemption under
IC 6-1.1-10-16 or IC 6-1.1-10-24 for property taxes first due
and payable in 2001, 2002, 2003, and 2004 because the
nonprofit corporation failed to timely file an application
under IC 6-1.1-11-3.5.
(b) Notwithstanding IC 6-1.1-11-1 and IC 6-1.1-11-3.5, the
auditor of the county in which the property described in subsection
(a) is located shall:
(1) waive the noncompliance with the timely filing
requirement for the exemption application in question; and
(2) grant the appropriate exemption.
(c) A property tax exemption granted under this SECTION
applies to:
(1) property taxes first due and payable in 2001;
(2) property taxes first due and payable in 2002;
(3) property taxes first due and payable in 2003; and
(4) property taxes first due and payable in 2004.
(d) This SECTION expires July 1, 2007.
SOURCE: ; (06)CR114001.15. -->
SECTION 15. P.L.228-2005, SECTION 35, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: SECTION
35. (a) The definitions in IC 6-1.1-1 apply throughout this SECTION.
(b) As used in this SECTION, "taxpayer" means a nonprofit
corporation that is an owner of land and improvements:
(1) that were:
(A) owned and occupied by the taxpayer during the period
preceding the assessment date in 1999 and continuing through
the date that this SECTION is effective; and
(B) used to prepare and create a soccer facility to provide
youths with the opportunity to play supervised and organized
soccer against other youths;
(2) for which the property tax liability imposed for property taxes
first due and payable in 2000, 2001, 2002, 2003, and 2004
exceeded
thirty-three thirty thousand dollars
($33,000) ($30,000),
in total, which has been paid by the taxpayer;
(3) that would have qualified for an exemption under IC 6-1.1-10
from property taxes first due and payable in 2000, 2001, 2002,
2003, and 2004 if the taxpayer had complied with the filing
requirements for the exemption in a timely manner; and
(4) that have been granted an exemption under IC 6-1.1-10 from
property taxes first due and payable in 2005.
(c) Land and improvements described in subsection (b) are exempt
under IC 6-1.1-10-16 from property taxes first due and payable in 2003
and 2004, notwithstanding that the taxpayer failed to make a timely
application for the exemption for those years.
(d) The taxpayer may file claims with the county auditor for a refund
for the amounts paid toward property taxes on land and improvements
described in subsection (b) that were billed to the taxpayer for property
taxes first due and payable in 2003 and 2004. The claims must be filed
as set forth in IC 6-1.1-26-1(1) through IC 6-1.1-26-1(3). The claims
must present sufficient facts for the county auditor to determine
whether the claimant is a person that meets the qualifications described
in subsection (b) and the amount that should be refunded to the
taxpayer.
(e) Upon receiving a claim filed under this SECTION, the county
auditor shall determine whether the claim is correct. If the county
auditor determines that the claim is correct, the county auditor shall
submit the claim under IC 6-1.1-26-4 to the county board of
commissioners for review. The only grounds for disallowing the claim
under IC 6-1.1-26-4 are that the claimant is not a person that meets the
qualifications described in subsection (b) or that the amount claimed is
not the amount due to the taxpayer. If the claim is allowed, the county
auditor shall, without an appropriation being required, issue a warrant
to the claimant payable from the county general fund for the amount
due the claimant under this SECTION. The amount of the refund must
equal the amount of the claim allowed. Notwithstanding IC 6-1.1-26-5,
no interest is payable on the refund.
(f) This SECTION shall be liberally construed in favor of the
taxpayer to give effect to the purposes of this SECTION.
(f) (g) This SECTION expires December 31, 2007.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1140 as printed January 20, 2006.)
and when so amended that said bill do pass.
__________________________________
CR114001/DI 113 2006