Reprinted

January 24, 2006





SENATE BILL No. 260

_____


DIGEST OF SB 260 (Updated January 23, 2006 6:19 pm - DI 44)



Citations Affected: IC 6-1.1; IC 6-1.5; noncode.

Synopsis: Various property tax issues. Specifies when a lot or tract held for sale in the ordinary course of trade or business may be reassessed for property tax purposes. Provides that information regarding certain property tax benefits available to owners of single family residential property must be included in the instructions for completing the sales disclosure form used in transfers of real property interests. Adjusts the procedure for a public utility company to appeal the distributable property assessment of the department of local government finance (DLGF) to the board of tax review. For depreciable personal property eligible for tax abatement and subject to the 30% minimum valuation limitation, specifies the amount of assessed value used to compute the deduction. Allows a designee of the commissioner of the DLGF to attest copies of certain documents. Allows a taxpayer that initiated an appeal to the DLGF of a political subdivision's budget, rate, and levy to seek judicial review if the DLGF fails to act on the appeal in a timely manner. Allows the county auditor to amend assessed valuation information provided to the DLGF and political subdivisions that is used to set property tax rates. Provides that when a county auditor receives notice of a decision by the board of tax review in an appeal from a decision by a county property tax assessment board of appeals (PTBOA) or the DLGF, the county auditor (instead of the board of tax review) shall distribute copies of the
(Continued next page)


Effective: Upon passage; January 1, 2006 (retroactive); July 1, 2006.





Kenley, Simpson




    January 9, 2006, read first time and referred to Committee on Tax and Fiscal Policy.
    January 19, 2006, amended, reported favorably _ Do Pass.
    January 23, 2006, read second time, amended, ordered engrossed.





Digest Continued

decision to taxing units for which the assessed value of the appealed items is at least 1% of the total gross certified assessed value of the taxing unit. Provides that in an appeal from a decision of a local assessing official or a PTBOA, the board of tax review may subpoena witnesses and documents. (Current law gives the board this power with respect to appeals from DLGF decisions.) Provides that if the board of tax review fails to render a decision in an appeal from an action of the DLGF, the entity that initiated the appeal has the option of waiting for a DLGF decision or requesting judicial review. Provides that the DLGF rules for assessment of real property are not required to include instructions for determining depreciation or reproduction cost. Allows a civil taxing unit to appeal for an excessive property tax levy to cover a shortfall caused by tax delinquencies. Allows a civil taxing unit to appeal for an excessive property tax levy if the unit has a rate of population growth that exceeds the average for the entire state and a per capita levy that is less than the average per capita levy of similar civil taxing units. Allows an increase in a civil taxing unit's maximum permissible levy to offset the effects of temporary adjustments in any preceding year after 2003. Specifies the adjustments in tax levies that qualify as temporary adjustments for the purpose of determining a civil taxing unit's maximum levy for the ensuing year. Changes the annual deadline for filing for various property tax benefits for individuals from May 10 to June 10. Specifies when returns, other documents, and property tax payments are considered to be received for purposes of property tax statutes containing filing or payment deadlines. States requirements for maintaining a class action suit against the DLGF. Provides that information concerning the change in the amount of a property taxpayer's liability distributable to each taxing unit that is provided by certain counties under a pilot program (and all counties beginning in 2008) need not be stated as a percentage. Permits a county auditor to establish a special nonreverting fund to receive additional property taxes attributable to a contract for the discovery of property that has been undervalued or omitted from assessment. Provides that a public utility that meets certain criteria is eligible for a property tax credit with respect to property taxes paid in 2006 if the DLGF determines that the assessed value of the distributable property reported in the public utility's original return was incorrect and was correctly reported as a lower amount in a subsequent amended return.


Reprinted

January 24, 2006

Second Regular Session 114th General Assembly (2006)


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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2005 Regular Session of the General Assembly.

SENATE BILL No. 260



    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 6-1.1-4-12; (06)SB0260.2.1. -->     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 earlier of:
        (1) the date 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; or
        (2) the date on which construction of a structure begins 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: IC 6-1.1-5.5-5; (06)SB0260.2.2. -->     SECTION 2. IC 6-1.1-5.5-5, AS AMENDED BY P.L.228-2005, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The department of local government finance shall prescribe a sales disclosure form for use under this chapter. The form prescribed by the department of local government finance must include at least the following information:
        (1) The key number of the parcel (as defined in IC 6-1.1-1-8.5).
        (2) Whether the entire parcel is being conveyed.
        (3) The address of the property.
        (4) The date of the execution of the form.
        (5) The date the property was transferred.
        (6) Whether the transfer includes an interest in land or improvements, or both.
        (7) Whether the transfer includes personal property.
        (8) An estimate of any personal property included in the transfer.
        (9) The name, address, and telephone number of:
            (A) each transferor and transferee; and
            (B) the person that prepared the form.
        (10) The mailing address to which the property tax bills or other official correspondence should be sent.
        (11) The ownership interest transferred.
        (12) The classification of the property (as residential, commercial, industrial, agricultural, vacant land, or other).
        (13) The total price actually paid or required to be paid in exchange for the conveyance, whether in terms of money, property, a service, an agreement, or other consideration, but excluding tax payments and payments for legal and other services that are incidental to the conveyance.
        (14) The terms of seller provided financing, such as interest rate, points, type of loan, amount of loan, and amortization period, and whether the borrower is personally liable for repayment of the loan.
        (15) Any family or business relationship existing between the transferor and the transferee.
        (16) Other information as required by the department of local government finance to carry out this chapter.
If a form under this section includes the telephone number or the Social Security number of a party, the telephone number or the Social Security number is confidential.
     (b) The instructions for completing the form described in subsection (a) must include the information described in IC 6-1.1-12-43(c)(1).
SOURCE: IC 6-1.1-5.5-6; (06)SB0260.2.3. -->     SECTION 3. IC 6-1.1-5.5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The county auditor may not accept a conveyance document if:
        (1) the sales disclosure form signed by all the parties and attested as required under section 9 of this chapter is not included with the document; or
        (2) the sales disclosure form does not contain the information described in section 5 section 5(a) of this chapter.
    (b) The county recorder shall not record a conveyance document without evidence that the parties have filed a completed sales disclosure form with the county auditor.
SOURCE: IC 6-1.1-8-28; (06)SB0260.2.4. -->     SECTION 4. IC 6-1.1-8-28 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28. (a) Each year the department of local government finance shall notify each public utility company of:
        (1) the department's tentative assessment of the company's distributable property; and
        (2) the value of the company's distributable property used by the department to determine the tentative assessment.
     (b) The department of local government finance shall give the notice on or before required by subsection (a) not later than:
        (1)
September 1 in the case of railroad car companies; and shall give the notice on or before
         (2) June 1 in the case of all other public utility companies.
    (b) Within (c) Not later than ten (10) days after a public utility company receives the notice of the department of local government finance's tentative assessment, required by subsection (a), the company may:
        (1) file with the department its objections to the tentative assessment; and
        (2) demand request that the department hold a hearing preliminary conference on the tentative assessment.
     (d) If the public utility company does not file with the department of local government finance its objections to the tentative assessment under subsection (c)(1) within the time allowed:
         (1) the tentative assessment is considered final; and
         (2) the company may not be appealed. appeal the assessment under section 30 of this chapter.
SOURCE: IC 6-1.1-8-29; (06)SB0260.2.5. -->     SECTION 5. IC 6-1.1-8-29 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 29. (a) If a public utility company files its objections to and demands a hearing on, a tentative assessment within the time allowed under section 28(c) of this chapter, the department of local government finance shall may hold a hearing preliminary conference on the tentative assessment at a time and place fixed by the department. After the hearing, preliminary conference, if any, the department of local government finance shall:
         (1) make a final assessment of the company's distributable property; and shall
         (2) notify the company of the final assessment. However,
     (b) The department of local government finance must give notice of the final assessment before: under this section not later than:
        (1)
September 30 in the case of railroad car companies; and before
         (2) June 30 in the case of all other public utility companies.
SOURCE: IC 6-1.1-8-30; (06)SB0260.2.6. -->     SECTION 6. IC 6-1.1-8-30 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 30. If (a) A public utility company files its objections to the department of local government finance's tentative assessment of the company's distributable property in the manner prescribed in section 28 of this chapter, the company may initiate an appeal of the department's final assessment of that the company's distributable property by filing a petition with the Indiana board not more later than forty-five (45) days

after:
         (1) the public utility company receives notice of the tentative assessment under section 28(a) of this chapter if the final assessment becomes final under section 28(d) of this chapter; or
        (2)
the department of local government finance gives the public utility company notice of the final determination The under section 29(a) of this chapter.
    (b) A
public utility company may petition for judicial review of the Indiana board's final determination to the tax court under IC 4-21.5-5. However, the company must:
        (1) file a verified petition for judicial review; and
        (2) mail to the county auditor of each county in which the public utility company's distributable property is located:
            (A) a notice that the complaint was filed; and
            (B) instructions for obtaining a copy of the complaint;
within not later than forty-five (45) days after the date of the notice of the Indiana board's final determination.

SOURCE: IC 6-1.1-12-2; (06)SB0260.2.7. -->     SECTION 7. IC 6-1.1-12-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as provided in section 17.8 of this chapter, a person who desires to claim the deduction provided by section 1 of this chapter must file a statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home not assessed as real property, or manufactured home not assessed as real property is located. With respect to real property, the statement must be filed during the twelve (12) months before May June 11 of each year for which the person wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 2 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. In addition to the statement required by this subsection, a contract buyer who desires to claim the deduction must submit a copy of the recorded contract or recorded memorandum of the contract, which must contain a legal description sufficient to meet the requirements of IC 6-1.1-5, with the first statement that the buyer files under this section with respect to a particular parcel of real property. Upon receipt of the statement and the recorded contract or recorded memorandum of the contract, the county auditor shall assign a separate

description and identification number to the parcel of real property being sold under the contract.
    (b) The statement referred to in subsection (a) must be verified under penalties for perjury, and the statement must contain the following information:
        (1) The balance of the person's mortgage or contract indebtedness on the assessment date of the year for which the deduction is claimed.
        (2) The assessed value of the real property, mobile home, or manufactured home.
        (3) The full name and complete residence address of the person and of the mortgagee or contract seller.
        (4) The name and residence of any assignee or bona fide owner or holder of the mortgage or contract, if known, and if not known, the person shall state that fact.
        (5) The record number and page where the mortgage, contract, or memorandum of the contract is recorded.
        (6) A brief description of the real property, mobile home, or manufactured home which is encumbered by the mortgage or sold under the contract.
        (7) If the person is not the sole legal or equitable owner of the real property, mobile home, or manufactured home, the exact share of the person's interest in it.
        (8) The name of any other county in which the person has applied for a deduction under this section and the amount of deduction claimed in that application.
    (c) The authority for signing a deduction application filed under this section may not be delegated by the real property, mobile home, or manufactured home owner or contract buyer to any person except upon an executed power of attorney. The power of attorney may be contained in the recorded mortgage, contract, or memorandum of the contract, or in a separate instrument.

SOURCE: IC 6-1.1-12-4; (06)SB0260.2.8. -->     SECTION 8. IC 6-1.1-12-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) An individual who satisfies the requirements of section 3 of this chapter may file a claim for a deduction, or deductions, provided by section 1 of this chapter during the twelve (12) months before May June 11 of the year following the year in which he the individual is discharged from military service. The individual shall file the claim, on the forms prescribed for claiming a deduction under section 2 of this chapter, with the auditor of the county in which the real property is located. The claim shall specify the particular year, or years, for which the deduction

is claimed. The individual shall attach to the claim an affidavit which states the facts concerning the individual's absence as a member of the United States armed forces.
    (b) The county property tax assessment board of appeals shall examine the individual's claim and shall determine the amount of deduction, or deductions, he the individual is entitled to and the year, or years, for which deductions are due. Based on the board's determination, the county auditor shall calculate the excess taxes paid by the individual and shall refund the excess to the individual from funds not otherwise appropriated. The county auditor shall issue, and the county treasurer shall pay, a warrant for the amount, if any, to which the individual is entitled.

SOURCE: IC 6-1.1-12-10.1; (06)SB0260.2.9. -->     SECTION 9. IC 6-1.1-12-10.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.1. (a) Except as provided in section 17.8 of this chapter, an individual who desires to claim the deduction provided by section 9 of this chapter must file a sworn statement, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home, or manufactured home is located. With respect to real property, the statement must be filed during the twelve (12) months before May June 11 of each year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed between January 15 and March 31, inclusive of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing.
    (b) The statement referred to in subsection (a) shall be in affidavit form or require verification under penalties of perjury. The statement must be filed in duplicate if the applicant owns, or is buying under a contract, real property, a mobile home, or a manufactured home subject to assessment in more than one (1) county or in more than one (1) taxing district in the same county. The statement shall contain:
        (1) the source and exact amount of gross income received by the individual and his the individual's spouse during the preceding calendar year;
        (2) the description and assessed value of the real property, mobile home, or manufactured home;
        (3) the individual's full name and his complete residence address;
        (4) the record number and page where the contract or memorandum of the contract is recorded if the individual is

buying the real property, mobile home, or manufactured home on contract; and
        (5) any additional information which the department of local government finance may require.
    (c) In order to substantiate his the deduction statement, the applicant shall submit for inspection by the county auditor a copy of his the applicant's and a copy of his the applicant's spouse's income tax returns for the preceding calendar year. If either was not required to file an income tax return, the applicant shall subscribe to that fact in the deduction statement.

SOURCE: IC 6-1.1-12-12; (06)SB0260.2.10. -->     SECTION 10. IC 6-1.1-12-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) Except as provided in section 17.8 of this chapter, a person who desires to claim the deduction provided in section 11 of this chapter must file an application, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home not assessed as real property, or manufactured home not assessed as real property is located. With respect to real property, the application must be filed during the twelve (12) months before May June 11 of each year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the application must be filed during the twelve (12) months before March 2 of each year for which the individual wishes to obtain the deduction. The application may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing.
    (b) Proof of blindness may be supported by:
        (1) the records of a county office of family and children, the division of family and children, or the division of disability, aging, and rehabilitative services; or
        (2) the written statement of a physician who is licensed by this state and skilled in the diseases of the eye or of a licensed optometrist.
    (c) The application required by this section must contain the record number and page where the contract or memorandum of the contract is recorded if the individual is buying the real property, mobile home, or manufactured home on a contract that provides that he the individual is to pay property taxes on the real property, mobile home, or manufactured home.
SOURCE: IC 6-1.1-12-15; (06)SB0260.2.11. -->     SECTION 11. IC 6-1.1-12-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Except as provided in section 17.8 of this chapter, an individual who desires to

claim the deduction provided by section 13 or section 14 of this chapter must file a statement with the auditor of the county in which the individual resides. With respect to real property, the statement must be filed during the twelve (12) months before May June 11 of each year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 2 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. The statement shall contain a sworn declaration that the individual is entitled to the deduction.
    (b) In addition to the statement, the individual shall submit to the county auditor for the auditor's inspection:
        (1) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 13 of this chapter;
        (2) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 14 of this chapter; or
        (3) the appropriate certificate of eligibility issued to the individual by the Indiana department of veterans' affairs if the individual claims the deduction provided by section 13 or 14 of this chapter.
    (c) If the individual claiming the deduction is under guardianship, the guardian shall file the statement required by this section.
    (d) If the individual claiming a deduction under section 13 or 14 of this chapter is buying real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property under a contract that provides that the individual is to pay property taxes for the real estate, mobile home, or manufactured home, the statement required by this section must contain the record number and page where the contract or memorandum of the contract is recorded.

SOURCE: IC 6-1.1-12-17; (06)SB0260.2.12. -->     SECTION 12. IC 6-1.1-12-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17. Except as provided in section 17.8 of this chapter, a surviving spouse who desires to claim the deduction provided by section 16 of this chapter must file a statement with the auditor of the county in which the surviving spouse resides. With respect to real property, the statement must be filed during the twelve (12) months before May June 11 of each year for which the surviving spouse wishes to obtain the deduction. With

respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 2 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. The statement shall contain:
        (1) a sworn statement that the surviving spouse is entitled to the deduction; and
        (2) the record number and page where the contract or memorandum of the contract is recorded, if the individual is buying the real property on a contract that provides that the individual is to pay property taxes on the real property.
In addition to the statement, the surviving spouse shall submit to the county auditor for the auditor's inspection a letter or certificate from the United States Department of Veterans Affairs establishing the service of the deceased spouse in the military or naval forces of the United States before November 12, 1918.

SOURCE: IC 6-1.1-12-17.5; (06)SB0260.2.13. -->     SECTION 13. IC 6-1.1-12-17.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17.5. (a) Except as provided in section 17.8 of this chapter, a veteran who desires to claim the deduction provided in section 17.4 of this chapter must file a sworn statement, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home, or manufactured home is assessed. With respect to real property, the veteran must file the statement during the twelve (12) months before May June 11 of each year for which the veteran wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 2 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing.
    (b) The statement required under this section shall be in affidavit form or require verification under penalties of perjury. The statement shall be filed in duplicate if the veteran has, or is buying under a contract, real property in more than one (1) county or in more than one (1) taxing district in the same county. The statement shall contain:
        (1) a description and the assessed value of the real property, mobile home, or manufactured home;
        (2) the veteran's full name and complete residence address;
        (3) the record number and page where the contract or memorandum of the contract is recorded, if the individual is buying the real property, mobile home, or manufactured home on a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home; and
        (4) any additional information which the department of local government finance may require.
SOURCE: IC 6-1.1-12-17.8; (06)SB0260.2.14. -->     SECTION 14. IC 6-1.1-12-17.8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17.8. (a) An individual who receives a deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this chapter in a particular year and who remains eligible for the deduction in the following year is not required to file a statement to apply for the deduction in the following year.
    (b) An individual who receives a deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this chapter in a particular year and who becomes ineligible for the deduction in the following year shall notify the auditor of the county in which the real property, mobile home, or manufactured home for which he the individual claims the deduction is located of his the individual's ineligibility before May June 10 of the year in which he the individual becomes ineligible.
    (c) The auditor of each county shall, in a particular year, apply a deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this chapter to each individual who received the deduction in the preceding year unless the auditor determines that the individual is no longer eligible for the deduction.
    (d) An individual who receives a deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this chapter for property that is jointly held with another owner in a particular year and remains eligible for the deduction in the following year is not required to file a statement to reapply for the deduction following the removal of the joint owner if:
        (1) the individual is the sole owner of the property following the death of the individual's spouse;
        (2) the individual is the sole owner of the property following the death of a joint owner who was not the individual's spouse; or
        (3) the individual is awarded sole ownership of the property in a divorce decree.
SOURCE: IC 6-1.1-12.1-4.5; (06)SB0260.2.15. -->     SECTION 15. IC 6-1.1-12.1-4.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4.5. (a) For purposes of this section, "personal property" means personal property other than inventory (as defined in IC 6-1.1-3-11(a)).
    (b) An applicant must provide a statement of benefits to the designating body. The applicant must provide the completed statement

of benefits form to the designating body before the hearing specified in section 2.5(c) of this chapter or before the installation of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment for which the person desires to claim a deduction under this chapter. The department of local government finance shall prescribe a form for the statement of benefits. The statement of benefits must include the following information:
        (1) A description of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment that the person proposes to acquire.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment, new logistical distribution equipment, or new information technology equipment;
        an estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the installation of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment and an estimate of the annual salaries of these individuals.
        (3) An estimate of the cost of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, an estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products by the new manufacturing equipment.
The statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public record that may be inspected and copied under IC 5-14-3-3.
    (c) The designating body must review the statement of benefits required under subsection (b). The designating body shall determine whether an area should be designated an economic revitalization area or whether the deduction shall be allowed, based on (and after it has

made) the following findings:
        (1) Whether the estimate of the cost of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment is reasonable for equipment of that type.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment, new logistical distribution equipment, or new information technology equipment;
        whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
        (3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, whether the estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products can be reasonably expected to result from the installation of the new manufacturing equipment.
        (5) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
        (6) Whether the totality of benefits is sufficient to justify the deduction.
The designating body may not designate an area an economic revitalization area or approve the deduction unless it makes the findings required by this subsection in the affirmative.


    (d) Except as provided in subsection (h), and subject to subsection (i), an owner of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment whose statement of benefits is approved after June 30, 2000, is entitled to a deduction from the assessed value of that equipment for the number of years determined by the designating body under subsection (g). Except as provided in subsection (f) and in section 2(i)(3) of this chapter, and subject to subsection (i), the amount of the deduction that an owner is entitled to for a particular year equals the product of:
        (1) the assessed value of the new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment in the year of deduction under the appropriate table set forth in subsection (e); multiplied by
        (2) the percentage prescribed in the appropriate table set forth in subsection (e).
    (e) The percentage to be used in calculating the deduction under subsection (d) is as follows:
        (1) For deductions allowed over a one (1) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd and thereafter    0%
        (2) For deductions allowed over a two (2) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    50%
    3rd and thereafter    0%
        (3) For deductions allowed over a three (3) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    66%
    3rd    33%
    4th and thereafter    0%
        (4) For deductions allowed over a four (4) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    75%
    3rd    50%
    4th    25%
    5th and thereafter    0%
        (5) For deductions allowed over a five (5) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    80%
    3rd    60%
    4th    40%
    5th    20%
    6th and thereafter    0%
        (6) For deductions allowed over a six (6) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    85%
    3rd    66%
    4th    50%
    5th    34%
    6th    25%
    7th and thereafter    0%
        (7) For deductions allowed over a seven (7) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    85%
    3rd    71%
    4th    57%
    5th    43%
    6th    29%
    7th    14%
    8th and thereafter    0%
        (8) For deductions allowed over an eight (8) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    88%
    3rd    75%
    4th    63%
    5th    50%
    6th    38%
    7th    25%
    8th    13%
    9th and thereafter    0%
        (9) For deductions allowed over a nine (9) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    88%
    3rd    77%
    4th    66%
    5th    55%
    6th    44%
    7th    33%
    8th    22%
    9th    11%
    10th and thereafter    0%
        (10) For deductions allowed over a ten (10) year period:
    YEAR OF DEDUCTION         PERCENTAGE
    1st    100%
    2nd    90%
    3rd    80%
    4th    70%
    5th    60%
    6th    50%
    7th    40%
    8th    30%
    9th    20%
    10th    10%
    11th and thereafter    0%
    (f) With respect to new manufacturing equipment and new research and development equipment installed before March 2, 2001, the deduction under this section is the amount that causes the net assessed value of the property after the application of the deduction under this section to equal the net assessed value after the application of the deduction under this section that results from computing:
        (1) the deduction under this section as in effect on March 1, 2001; and
        (2) the assessed value of the property under 50 IAC 4.2, as in effect on March 1, 2001, or, in the case of property subject to IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
    (g) For an economic revitalization area designated before July 1, 2000, the designating body shall determine whether a property owner whose statement of benefits is approved after April 30, 1991, is entitled to a deduction for five (5) or ten (10) years. For an economic revitalization area designated after June 30, 2000, the designating body shall determine the number of years the deduction is allowed. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
        (1) as part of the resolution adopted under section 2.5 of this chapter; or
        (2) by resolution adopted within sixty (60) days after receiving a

copy of a property owner's certified deduction application from the county auditor. A certified copy of the resolution shall be sent to the county auditor.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
    (h) The owner of new manufacturing equipment that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
        (1) is convicted of a violation under IC 13-7-13-3 (repealed), IC 13-7-13-4 (repealed), or IC 13-30-6; or
        (2) is subject to an order or a consent decree with respect to property located in Indiana based on a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.
     (i) For purposes of subsection (d), the assessed value of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment that is part of an owner's assessable depreciable personal property in a single taxing district subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the product of:
        (1) the assessed value of the equipment determined without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9; multiplied by
        (2) the quotient of:
            (A) the amount of the valuation limitation determined under 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's depreciable personal property in the taxing district; divided by
            (B) the total true tax value of all of the owner's depreciable personal property in the taxing district that is subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 determined:
                (i) under the depreciation schedules in the rules of the department of local government finance before any adjustment for abnormal obsolescence; and
                (ii) without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9.

SOURCE: IC 6-1.1-14-5; (06)SB0260.2.16. -->     SECTION 16. IC 6-1.1-14-5 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) After holding the hearings referred to in section 4 of this chapter, the department of local government finance shall, in order to equalize assessed values in any county or in the state as a whole, issue an order increasing or decreasing assessed values of any tangible property if the department finds:
        (1) that the assessed values in any county are not uniform and equal as to townships, portions of the same township, or classes of property; or
        (2) that the assessed values in this state are not uniform and equal either as between counties or as to classes of property.
    (b) The department of local government finance may not issue an equalization order to increase or decrease assessed values under this section more than twelve (12) months after the county estimates of assessed valuation required under IC 6-1.1-17-1 IC 6-1.1-17-1(a) are filed with the department.
    (c) If the department of local government finance issues an equalization order under this section, the department shall state in the order the percentage to be added to or deducted from the assessed value of the tangible property affected by the order.
    (d) In issuing an equalization order under this section, the department of local government finance may not reduce or increase the aggregate assessed values of any township beyond the amounts actually necessary for a just and proper equalization of assessments within the entire state.

SOURCE: IC 6-1.1-15-4; (06)SB0260.2.17. -->     SECTION 17. IC 6-1.1-15-4, AS AMENDED BY P.L.199-2005, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) After receiving a petition for review which is filed under section 3 of this chapter, the Indiana board shall conduct a hearing at its earliest opportunity. The Indiana board may:
        (1) assign:
            (A) full;
            (B) limited; or
            (C) no;
        evidentiary value to the assessed valuation of tangible property determined by stipulation submitted as evidence of a comparable sale; and
        (2) correct any errors that may have been made, and adjust the assessment in accordance with the correction.
    (b) If the Indiana board conducts a site inspection of the property as part of its review of the petition, the Indiana board shall give notice to all parties of the date and time of the site inspection. The Indiana board

is not required to assess the property in question. The Indiana board shall give notice of the date fixed for the hearing, by mail, to the taxpayer and to the appropriate township assessor, county assessor, and county auditor. With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notice must include the following:
        (1) The action of the county property tax assessment board of appeals with respect to the appealed items.
        (2) A statement that a taxing unit receiving the notice from the county auditor under subsection (c) may:
            (A) attend the hearing; and
            (B) offer testimony.
A taxing unit that receives a notice from the county auditor under subsection (c) is not a party to the appeal. The Indiana board shall give these notices at least thirty (30) days before the day fixed for the hearing. The property tax assessment board of appeals that made the determination under appeal under this section may, with the approval of the county executive, file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the property tax assessment board of appeals in filing the amicus curiae brief shall be paid from the property reassessment fund under IC 6-1.1-4-27.5. The executive of a taxing unit may file an amicus curiae brief in the review proceeding under this section if the property whose assessment is under appeal is subject to assessment by that taxing unit.
    (c) If, after receiving notice of a hearing under subsection (b), the county auditor determines that the assessed value of the appealed items constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. A taxing unit that receives a notice from the county auditor under this subsection is not a party to the appeal. Failure of the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.
    (d) If a petition for review does not comply with the Indiana board's instructions for completing the form prescribed under section 3 of this chapter, the Indiana board shall return the petition to the petitioner and include a notice describing the defect in the petition. The petitioner then has thirty (30) days from the date on the notice to cure the defect and file a corrected petition. The Indiana board shall deny a corrected petition for review if it does not substantially comply with the Indiana board's instructions for completing the form prescribed under section

3 of this chapter.
    (e) The Indiana board shall prescribe a form for use in processing petitions for review of actions by the county property tax assessment board of appeals. The Indiana board shall issue instructions for completion of the form. The form must require the Indiana board to indicate agreement or disagreement with each item that is:
        (1) if the county or township official held a preliminary conference under section 1(f) of this chapter, indicated on the petition submitted under that section by the taxpayer and the official; and
        (2) included in the county property tax assessment board of appeals' findings, record, and determination under section 2.1(d) of this chapter.
The form must also require the Indiana board to indicate the issues in dispute and its reasons in support of its resolution of those issues.
    (f) After the hearing the Indiana board shall give the petitioner, the township assessor, the county assessor, and the county auditor: and the affected taxing units required to be notified under subsection (c):
        (1) notice, by mail, of its final determination;
        (2) a copy of the form completed under subsection (e); and
        (3) notice of the procedures they must follow in order to obtain court review under section 5 of this chapter.
The county auditor shall provide copies of the documents described in subdivisions (1) through (3) to the taxing units entitled to notice under subsection (c).
    (g) Except as provided in subsection (h), the Indiana board shall conduct a hearing not later than nine (9) months after a petition in proper form is filed with the Indiana board, excluding any time due to a delay reasonably caused by the petitioner.
    (h) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the Indiana board shall conduct a hearing not later than one (1) year after a petition in proper form is filed with the Indiana board, excluding any time due to a delay reasonably caused by the petitioner.
    (i) Except as provided in subsection (j), the Indiana board shall make a determination not later than the later of:
        (1) ninety (90) days after the hearing; or
        (2) the date set in an extension order issued by the Indiana board.
    (j) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the Indiana board shall make

a determination not later than the later of:
        (1) one hundred eighty (180) days after the hearing; or
        (2) the date set in an extension order issued by the Indiana board.
    (k) Except as provided in subsection (p), The Indiana board may not extend the final determination date under subsection (i) or (j) by more than one hundred eighty (180) days. If the Indiana board fails to make a final determination within the time allowed by this subsection, section after a hearing, the entity that initiated the petition may:
        (1) take no action and wait for the Indiana board to make a final determination; or
        (2) petition for judicial review under section 5(g) of this chapter.
    (l) A final determination must include separately stated findings of fact for all aspects of the determination. Findings of ultimate fact must be accompanied by a concise statement of the underlying basic facts of record to support the findings. Findings must be based exclusively upon the evidence on the record in the proceeding and on matters officially noticed in the proceeding. Findings must be based upon a preponderance of the evidence.
    (m) The Indiana board may limit the scope of the appeal to the issues raised in the petition and the evaluation of the evidence presented to the county property tax assessment board of appeals in support of those issues only if all persons participating in the hearing required under subsection (a) agree to the limitation. A person participating in the hearing required under subsection (a) is entitled to introduce evidence that is otherwise proper and admissible without regard to whether that evidence has previously been introduced at a hearing before the county property tax assessment board of appeals.
    (n) The Indiana board:
        (1) may require the parties to the appeal to file not more than five (5) business days before the date of the hearing required under subsection (a) documentary evidence or summaries of statements of testimonial evidence; and
        (2) may require the parties to the appeal to file not more than fifteen (15) business days before the date of the hearing required under subsection (a) lists of witnesses and exhibits to be introduced at the hearing.
    (o) A party to a proceeding before the Indiana board shall provide to another party to the proceeding the information described in subsection (n) if the other party requests the information in writing at least ten (10) days before the deadline for filing of the information under subsection (n).
    (p) The county assessor may:


        (1) appear as an additional party if the notice of appearance is filed before the review proceeding; or
        (2) with the approval of the township assessor, represent the township assessor;
in a review proceeding under this section.
    (q) The Indiana board may base its final determination on a stipulation between the respondent and the petitioner. If the final determination is based on a stipulated assessed valuation of tangible property, the Indiana board may order the placement of a notation on the permanent assessment record of the tangible property that the assessed valuation was determined by stipulation. The Indiana board may:
        (1) order that a final determination under this subsection has no precedential value; or
        (2) specify a limited precedential value of a final determination under this subsection.
SOURCE: IC 6-1.1-15-15; (06)SB0260.2.18. -->     SECTION 18. IC 6-1.1-15-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. A class action suit against the Indiana board or the department of local government finance may not be maintained in any court, including the Indiana tax court, on behalf of a person who has not complied with the requirements of this chapter or IC 6-1.1-26 before the certification of the class.
SOURCE: IC 6-1.1-17-1; (06)SB0260.2.19. -->     SECTION 19. IC 6-1.1-17-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) On or before August 1 of each year, the county auditor shall send a certified statement, under the seal of the board of county commissioners, to the fiscal officer of each political subdivision of the county and the department of local government finance. The statement shall contain:
        (1) information concerning the assessed valuation in the political subdivision for the next calendar year;
        (2) an estimate of the taxes to be distributed to the political subdivision during the last six (6) months of the current calendar year;
        (3) the current assessed valuation as shown on the abstract of charges;
        (4) the average growth in assessed valuation in the political subdivision over the preceding three (3) budget years, excluding years in which a general reassessment occurs, determined according to procedures established by the department of local government finance; and
        (5) any other information at the disposal of the county auditor that

might affect the assessed value used in the budget adoption process.
    (b) The estimate of taxes to be distributed shall be based on:
        (1) the abstract of taxes levied and collectible for the current calendar year, less any taxes previously distributed for the calendar year; and
        (2) any other information at the disposal of the county auditor which might affect the estimate.
    (c) The fiscal officer of each political subdivision shall present the county auditor's statement to the proper officers of the political subdivision.
     (d) Subject to subsection (e) and except as provided in subsection (f), after the county auditor sends a certified statement under subsection (a) or an amended certified statement under this subsection with respect to a political subdivision and before the department of local government finance certifies its action with respect to the political subdivision under section 16(f) of this chapter, the county auditor may amend the information concerning assessed valuation included in the earlier certified statement. The county auditor shall send a certified statement amended under this subsection, under the seal of the board of county commissioners, to:
        (1) the fiscal officer of each political subdivision affected by the amendment; and
        (2) the department of local government finance.
    (e) Except as provided in subsection (g), before the county auditor makes an amendment under subsection (d), the county auditor must provide an opportunity for public comment on the proposed amendment at a public hearing. The county auditor must give notice of the hearing under IC 5-3-1. If the county auditor makes the amendment as a result of information provided to the county auditor by an assessor, the county auditor shall give notice of the public hearing to the assessor.
    (f) Subsection (d) does not apply to an adjustment of assessed valuation under IC 36-7-15.1-26.9(d).
    (g) The county auditor is not required to hold a public hearing under subsection (e) if:
        (1) the amendment under subsection (d) is proposed to correct a mathematical error made in the determination of the amount of assessed valuation included in the earlier certified statement;
        (2) the amendment under subsection (d) is proposed to add to

the amount of assessed valuation included in the earlier certified statement assessed valuation of omitted property discovered after the county auditor sent the earlier certified statement; or
        (3) the county auditor determines that the amendment under subsection (d) will not result in an increase in the tax rate or tax rates of the political subdivision.

SOURCE: IC 6-1.1-17-5; (06)SB0260.2.20. -->     SECTION 20. IC 6-1.1-17-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The officers of political subdivisions shall meet each year to fix the budget, tax rate, and tax levy of their respective subdivisions for the ensuing budget year as follows:
        (1) The fiscal body of a consolidated city and county, not later than the last meeting of the fiscal body in September.
        (2) The fiscal body of a second class city, not later than September 30.
        (3) The board of school trustees of a school corporation that is located in a city having a population of more than one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000), not later than:
            (A) the time required in section 5.6(b) of this chapter; or
            (B) September 20 if a resolution adopted under section 5.6(d) of this chapter is in effect.
        (4) The proper officers of all other political subdivisions, not later than September 20.
Except in a consolidated city and county and in a second class city, the public hearing required by section 3 of this chapter must be completed at least ten (10) days before the proper officers of the political subdivision meet to fix the budget, tax rate, and tax levy. In a consolidated city and county and in a second class city, that public hearing, by any committee or by the entire fiscal body, may be held at any time after introduction of the budget.
    (b) Ten (10) or more taxpayers may object to a budget, tax rate, or tax levy of a political subdivision fixed under subsection (a) by filing an objection petition with the proper officers of the political subdivision not more than seven (7) days after the hearing. The objection petition must specifically identify the provisions of the budget, tax rate, and tax levy to which the taxpayers object.
    (c) If a petition is filed under subsection (b), the fiscal body of the political subdivision shall adopt with its budget a finding concerning the objections in the petition and any testimony presented at the adoption hearing.
    (d) This subsection does not apply to a school corporation. Each year at least two (2) days before the first meeting of the county board of tax adjustment held under IC 6-1.1-29-4, a political subdivision shall file with the county auditor:
        (1) a statement of the tax rate and levy fixed by the political subdivision for the ensuing budget year;
         (2) a statement that specifies the amount and revenue sources used to temporarily decrease the tax rate and levy fixed by the political subdivision for the ensuing budget year, in the form prescribed by the department of local government finance;
        (2) (3) two (2) copies of the budget adopted by the political subdivision for the ensuing budget year; and
        (3) (4) two (2) copies of any findings adopted under subsection (c).
Each year the county auditor shall present these items to the county board of tax adjustment at the board's first meeting.
    (e) In a consolidated city and county and in a second class city, the clerk of the fiscal body shall, notwithstanding subsection (d), file the adopted budget and tax ordinances with the county board of tax adjustment within two (2) days after the ordinances are signed by the executive, or within two (2) days after action is taken by the fiscal body to override a veto of the ordinances, whichever is later.
    (f) If a fiscal body does not fix the budget, tax rate, and tax levy of the political subdivisions for the ensuing budget year as required under this section, the most recent annual appropriations and annual tax levy are continued for the ensuing budget year.
SOURCE: IC 6-1.1-17-15.2; (06)SB0260.2.21. -->     SECTION 21. IC 6-1.1-17-15.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15.2 (a) This section does not apply to a school corporation.
    (b) When the county auditor certifies the levy, tax rate, and budget of a political subdivision to the department of local government finance for review, the county auditor shall forward with the political subdivision's levy, tax rate, and budget the political subdivision's statement that specifies the amount and revenue sources used to temporarily decrease the tax rate and levy fixed by the political subdivision for the ensuing budget year, in the form prescribed by the department of local government finance.

SOURCE: IC 6-1.1-17-16; (06)SB0260.2.22. -->     SECTION 22. IC 6-1.1-17-16, AS AMENDED BY P.L.228-2005, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 16. (a) Subject to the limitations and requirements prescribed in this section, the department of local government finance

may revise, reduce, or increase a political subdivision's budget by fund, tax rate, or tax levy which the department reviews under section 8 or 10 of this chapter.
    (b) Subject to the limitations and requirements prescribed in this section, the department of local government finance may review, revise, reduce, or increase the budget by fund, tax rate, or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision whose budget, tax rate, or tax levy is the subject of an appeal initiated under this chapter.
    (c) Except as provided in subsections (j) and (k), before the department of local government finance reviews, revises, reduces, or increases a political subdivision's budget by fund, tax rate, or tax levy under this section, the department must hold a public hearing on the budget, tax rate, and tax levy. The department of local government finance shall hold the hearing in the county in which the political subdivision is located. The department of local government finance may consider the budgets by fund, tax rates, and tax levies of several political subdivisions at the same public hearing. At least five (5) days before the date fixed for a public hearing, the department of local government finance shall give notice of the time and place of the hearing and of the budgets by fund, levies, and tax rates to be considered at the hearing. The department of local government finance shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general circulation is published in the county, the department of local government finance shall publish the notice in that newspaper.
    (d) Except as provided in subsection (i), IC 6-1.1-19, or IC 6-1.1-18.5, the department of local government finance may not increase a political subdivision's budget by fund, tax rate, or tax levy to an amount which exceeds the amount originally fixed by the political subdivision. The department of local government finance shall give the political subdivision written notification specifying any revision, reduction, or increase the department proposes in a political subdivision's tax levy or tax rate. The political subdivision has one (1) week from the date the political subdivision receives the notice to provide a written response to the department of local government finance's Indianapolis office specifying how to make the required reductions in the amount budgeted by fund. The department of local government finance shall make reductions as specified in the political subdivision's response if the response is provided as required by this subsection and sufficiently specifies all necessary reductions. The department of local government finance may make a revision, a

reduction, or an increase in a political subdivision's budget only by fund.
    (e) The department of local government finance may not approve a levy for lease payments by a city, town, county, library, or school corporation if the lease payments are payable to a building corporation for use by the building corporation for debt service on bonds and if:
        (1) no bonds of the building corporation are outstanding; or
        (2) the building corporation has enough legally available funds on hand to redeem all outstanding bonds payable from the particular lease rental levy requested.
    (f) The department of local government finance shall certify its action to:
        (1) the county auditor;
        (2) the political subdivision if the department acts pursuant to an appeal initiated by the political subdivision;
        (3) the taxpayer that initiated an appeal under section 13 of this chapter, or, if the appeal was initiated by multiple taxpayers, the first ten (10) taxpayers whose names appear on a petition filed under section 13 of this chapter; the statement filed to initiate the appeal; and
        (4) a taxpayer that owns property that represents at least ten percent (10%) of the taxable assessed valuation in the political subdivision.
    (g) The following may petition for judicial review of the final determination of the department of local government finance under subsection (f):
        (1) If the department acts under an appeal initiated by a political subdivision, the political subdivision.
        (2) If the department:
             (A) acts under an appeal initiated by one (1) or more taxpayers under section 13 of this chapter; or
            (B) fails to act on the appeal before the department certifies its action under subsection (f);

        a taxpayer who signed the petition under that section. statement filed to initiate the appeal.
        (3) If the department acts under an appeal initiated by the county auditor under section 14 of this chapter, the county auditor.
        (4) A taxpayer that owns property that represents at least ten percent (10%) of the taxable assessed valuation in the political subdivision.
The petition must be filed in the tax court not more than forty-five (45) days after the department certifies its action under subsection (f).


    (h) The department of local government finance is expressly directed to complete the duties assigned to it under this section not later than February 15th of each year for taxes to be collected during that year.
    (i) Subject to the provisions of all applicable statutes, the department of local government finance may increase a political subdivision's tax levy to an amount that exceeds the amount originally fixed by the political subdivision if the increase is:
        (1) requested in writing by the officers of the political subdivision;
        (2) either:
            (A) based on information first obtained by the political subdivision after the public hearing under section 3 of this chapter; or
            (B) results from an inadvertent mathematical error made in determining the levy; and
        (3) published by the political subdivision according to a notice provided by the department.
    (j) The department of local government finance shall annually review the budget by fund of each school corporation not later than April 1. The department of local government finance shall give the school corporation written notification specifying any revision, reduction, or increase the department proposes in the school corporation's budget by fund. A public hearing is not required in connection with this review of the budget.
    (k) The department of local government finance may hold a hearing under subsection (c) only if the notice required in IC 6-1.1-17-12 is published at least ten (10) days before the date of the hearing.
SOURCE: IC 6-1.1-18.5-1; (06)SB0260.2.23. -->     SECTION 23. IC 6-1.1-18.5-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. As used in this chapter:
    "Ad valorem property tax levy for an ensuing calendar year" means the total property taxes imposed by a civil taxing unit for current property taxes collectible in that ensuing calendar year.
    "Adopting county" means any county in which the county adjusted gross income tax is in effect.
    "Civil taxing unit" means any taxing unit except a school corporation.
     "Levy excess" has the meaning set forth in section 17 of this chapter.
    "Maximum permissible ad valorem property tax levy for the preceding calendar year" means the civil taxing unit's ad valorem

property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined by the department of local government finance in fixing the civil taxing unit's budget, levy, and rate for that preceding calendar year under IC 6-1.1-17, and after eliminating the effects of temporary excessive levy appeals and temporary adjustments made to the working maximum levy for the any calendar year immediately preceding after 2003 that precedes the ensuing calendar year, as determined by the department of local government finance.
    "Taxable property" means all tangible property that is subject to the tax imposed by this article and is not exempt from the tax under IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this chapter, the term "taxable property" is further defined in section 6 of this chapter.
     "Temporary adjustment" refers to an adjustment in the part of a civil taxing unit's ad valorem property tax levy subject to the ad valorem property tax limits under section 3 of this chapter that results from the inclusion of any of the following in the civil taxing unit's levy or budget:
        (1) A levy excess.
        (2) Surplus operating cash balances.
        (3) Revenue received by the civil taxing unit under IC 6-3.5-1.1, IC 6-3.5-6, or IC 6-3.5-7.
        (4) Any other levy adjustment determined by the department of local government finance to be extraordinary.

    "Unadjusted assessed value" means the assessed value of a civil taxing unit as determined by local assessing officials and the department of local government finance in a particular calendar year before the application of an annual adjustment under IC 6-1.1-4-4.5 for that particular calendar year or any calendar year since the last general reassessment preceding the particular calendar year.

SOURCE: IC 6-1.1-18.5-13.7; (06)SB0260.2.24. -->     SECTION 24. IC 6-1.1-18.5-13.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.7. (a) With respect to an appeal filed under section 12 of this chapter, the local government tax control board may recommend that the department of local government finance give permission to a civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the civil taxing unit meets the following criteria:
        (1) The civil taxing unit's per capita ad valorem tax levy for the calendar year immediately preceding the ensuing calendar

year is below the statewide average for similar civil taxing units in Indiana for the same year.
        (2) Subject to subsection (b), the civil taxing unit's rate of population increase during the calendar year that immediately precedes the calendar year described in subdivision (1) is greater than the statewide rate of population increase during the same calendar year.
    (b) For purposes of:
        (1) determining a civil taxing unit's population during the year described in subsection (a)(2); and
        (2) comparing that population to the population of the civil taxing unit during the calendar year immediately preceding that year, in order to compute a rate of population increase under subsection (a)(2);
the department of local government finance shall reduce the civil taxing unit's population by the amount of any population increase that is attributable to an annexation or other expansion of the civil taxing unit's territory that takes effect during the year described in subsection (a)(2).
    (c) Notwithstanding IC 1-1-3.5, if the department of local government finance determines that information available from the Bureau of the Census is not sufficient for the purposes of making accurate determinations of population under this section, the civil taxing unit shall submit the information that the department considers necessary to make a determination under this subdivision.

SOURCE: IC 6-1.1-18.5-16; (06)SB0260.2.25. -->     SECTION 25. IC 6-1.1-18.5-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) A civil taxing unit may request permission from the local government tax control board to impose an ad valorem property tax levy that exceeds the limits imposed by section 3 of this chapter if:
        (1) the civil taxing unit experienced a property tax revenue shortfall that resulted from erroneous assessed valuation figures being provided to the civil taxing unit;
        (2) the erroneous assessed valuation figures were used by the civil taxing unit in determining its total property tax rate; and
        (3) the error in the assessed valuation figures was found after the civil taxing unit's property tax levy resulting from that total rate was finally approved by the department of local government finance.
    (b) A civil taxing unit may request permission from the local government tax control board to impose an ad valorem property tax

levy that exceeds the limits imposed by section 3 of this chapter if the civil taxing unit experienced a property tax revenue shortfall because of:
         (1) the payment of refunds that resulted from appeals under this article and IC 6-1.5; or
        (2) one (1) or more property tax delinquencies.

    (c) If the local government tax control board determines that a shortfall described in subsection (a) or (b) has occurred, it shall recommend to the department of local government finance that the civil taxing unit be allowed to impose a property tax levy exceeding the limit imposed by section 3 of this chapter, and the department may adopt such recommendation. However, the maximum amount by which the civil taxing unit's levy may be increased over the limits imposed by section 3 of this chapter equals the remainder of the civil taxing unit's property tax levy for the particular calendar year as finally approved by the department of local government finance minus the actual property tax levy collected by the civil taxing unit for that particular calendar year.
    (d) Any property taxes collected by a civil taxing unit over the limits imposed by section 3 of this chapter under the authority of this section may not be treated as a part of the civil taxing unit's maximum permissible ad valorem property tax levy for purposes of determining its maximum permissible ad valorem property tax levy for future years.
    (e) If the department of local government finance authorizes an excess tax levy under this section, it shall take appropriate steps to insure that the proceeds are first used to repay any loan made to the civil taxing unit for the purpose of meeting its current expenses.

SOURCE: IC 6-1.1-20.9-3; (06)SB0260.2.26. -->     SECTION 26. IC 6-1.1-20.9-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) An individual who desires to claim the credit provided by section 2 of this chapter must file a certified statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the homestead is located. The statement shall include the parcel number or key number of the real estate and the name of the city, town, or township in which the real estate is located. With respect to real property, the statement must be filed during the twelve (12) months before May June 11 of the year prior to the first year for which the person wishes to obtain the credit for the homestead. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 2 of the first year for which the individual wishes to obtain the credit. The statement

may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. The statement applies for that first year and any succeeding year for which the credit is allowed.
    (b) The certified statement referred to in subsection (a) shall contain the name of any other county and township in which the individual owns or is buying real property.
    (c) If an individual who is receiving the credit provided by this chapter changes the use of the individual's real property, so that part or all of that real property no longer qualifies for the homestead credit provided by this chapter, the individual must file a certified statement with the auditor of the county, notifying the auditor of the change of use within sixty (60) days after the date of that change. An individual who changes the use of the individual's real property and fails to file the statement required by this subsection is liable for the amount of the credit he the individual was allowed under this chapter for that real property.
    (d) An individual who receives the credit provided by section 2 of this chapter for property that is jointly held with another owner in a particular year and remains eligible for the credit in the following year is not required to file a statement to reapply for the credit following the removal of the joint owner if:
        (1) the individual is the sole owner of the property following the death of the individual's spouse;
        (2) the individual is the sole owner of the property following the death of a joint owner who was not the individual's spouse; or
        (3) the individual is awarded sole ownership of property in a divorce decree.

SOURCE: IC 6-1.1-22-8; (06)SB0260.2.27. -->     SECTION 27. IC 6-1.1-22-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) The county treasurer shall either:
        (1) mail to the last known address of each person liable for any property taxes or special assessment, as shown on the tax duplicate or special assessment records, or to the last known address of the most recent owner shown in the transfer book a statement of current and delinquent taxes and special assessments; or
        (2) transmit by written, electronic, or other means to a mortgagee maintaining an escrow account for a person who is liable for any property taxes or special assessments, as shown on the tax duplicate or special assessment records a statement of current and delinquent taxes and special assessments.
    (b) The county treasurer may include the following in the statement:
        (1) An itemized listing for each property tax levy, including:
            (A) the amount of the tax rate;
            (B) the entity levying the tax owed; and
            (C) the dollar amount of the tax owed.
        (2) Information designed to inform the taxpayer or mortgagee clearly and accurately of the manner in which the taxes billed in the tax statement are to be used.
A form used and the method by which the statement and information, if any, are transmitted must be approved by the state board of accounts. The county treasurer may mail or transmit the statement and information, if any, one (1) time each year at least fifteen (15) days before the date on which the first or only installment is due. Whenever a person's tax liability for a year is due in one (1) installment under IC 6-1.1-7-7 or section 9 of this chapter, a statement that is mailed must include the date on which the installment is due and denote the amount of money to be paid for the installment. Whenever a person's tax liability is due in two (2) installments, a statement that is mailed must contain the dates on which the first and second installments are due and denote the amount of money to be paid for each installment.
    (c) All payments of property taxes and special assessments shall be made to the county treasurer. The county treasurer, when authorized by the board of county commissioners, may open temporary offices for the collection of taxes in cities and towns in the county other than the county seat.
    (d) Before July 1, 2004, the department of local government finance shall designate five (5) counties to participate in a pilot program to implement the requirements of subsection (e). The department shall immediately notify the county treasurer, county auditor, and county assessor in writing of the designation under this subsection. The legislative body of a county not designated for participation in the pilot program may adopt an ordinance to implement the requirements of subsection (e). The legislative body shall submit a copy of the ordinance to the department of local government finance, which shall monitor the county's implementation of the requirements of subsection (e) as if the county were a participant in the pilot program. The requirements of subsection (e) apply:
        (1) only in:
            (A) a county designated to participate in a pilot program under this subsection, for property taxes first due and payable after December 31, 2004, and before January 1, 2008; or
            (B) a county adopting an ordinance under this subsection, for

property taxes first due and payable after December 31, 2003, or December 31, 2004 (as determined in the ordinance), and before January 1, 2008; and
        (2) in all counties for taxes first due and payable after December 31, 2007.
    (e) Subject to subsection (d), regardless of whether a county treasurer transmits a statement of current and delinquent taxes and special assessments to a person liable for the taxes under subsection (a)(1) or to a mortgagee under subsection (a)(2), the county treasurer shall mail the following information to the last known address of each person liable for the property taxes or special assessments or to the last known address of the most recent owner shown in the transfer book. The county treasurer shall mail the information not later than the date the county treasurer transmits a statement for the property under subsection (a)(1) or (a)(2). The county treasurer, county auditor, and county assessor shall cooperate to generate the information to be included on the form. The information that must be provided is the following:
        (1) A breakdown showing the total property tax and special assessment liability and the amount of the taxpayer's liability that will be distributed to each taxing unit in the county.
        (2) A comparison showing any change in the assessed valuation for the property as compared to the previous year.
        (3) A comparison showing any change in the property tax and special assessment liability for the property as compared to the previous year. The information required under this subdivision must identify:
            (A) the amount of the taxpayer's liability distributable to each taxing unit in which the property is located in the current year and in the previous year; and
            (B) the percentage change, if any, in the amount of the taxpayer's liability distributable to each taxing unit in which the property is located from the previous year to the current year.
        (4) An explanation of the following:
            (A) The homestead credit and all property tax deductions.
            (B) The procedure and deadline for filing for the homestead credit and each deduction.
            (C) The procedure that a taxpayer must follow to:
                (i) appeal a current assessment; or
                (ii) petition for the correction of an error related to the taxpayer's property tax and special assessment liability.


            (D) The forms that must be filed for an appeal or a petition described in clause (C).
        The department of local government finance shall provide the explanation required by this subdivision to each county treasurer.
        (5) A checklist that shows:
            (A) the homestead credit and all property tax deductions; and
            (B) whether the homestead credit and each property tax deduction applies in the current statement for the property transmitted under subsection (a)(1) or (a)(2).
    (f) The information required to be mailed under subsection (e) must be simply and clearly presented and understandable to the average individual.
    (g) A county that incurs:
        (1) initial computer programming costs directly related to implementation of the requirements of subsection (e); or
        (2) printing costs directly related to mailing information under subsection (e);
shall submit an itemized statement of the costs to the department of local government finance for reimbursement from the state. The treasurer of state shall pay a claim approved by the department of local government finance and submitted under this section on a warrant of the auditor of state. However, the treasurer of state may not pay any additional claims under this subsection after the total amount of claims paid reaches fifty thousand dollars ($50,000).
SOURCE: IC 6-1.1-30-6; (06)SB0260.2.28. -->     SECTION 28. IC 6-1.1-30-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The department of local government finance shall keep a record of its proceedings and orders. The department of local government finance's record is a public record. A copy of the appropriate portion of the record is sufficient evidence in all courts or proceedings to prove an action, rule, or order of the department of local government finance if the copy is:
        (1) certified by the commissioner of the department; and
        (2) attested to by the deputy a designee of the commissioner of the department.
SOURCE: IC 6-1.1-31-6; (06)SB0260.2.29. -->     SECTION 29. IC 6-1.1-31-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) With respect to the assessment of real property, the rules of the department of local government finance shall provide for:
        (1) the classification of land on the basis of:
            (i) acreage;
            (ii) lots;
            (iii) size;
            (iv) location;
            (v) use;
            (vi) productivity or earning capacity;
            (vii) applicable zoning provisions;
            (viii) accessibility to highways, sewers, and other public services or facilities; and
            (ix) any other factor that the department determines by rule is just and proper; and
        (2) the classification of improvements on the basis of:
            (i) size;
            (ii) location;
            (iii) use;
            (iv) type and character of construction;
            (v) age;
            (vi) condition;
            (vii) cost of reproduction; and
            (viii) any other factor that the department determines by rule is just and proper.
    (b) With respect to the assessment of real property, the rules of the department of local government finance shall include instructions for determining:
        (1) the proper classification of real property;
        (2) the size of real property;
        (3) the effects that location and use have on the value of real property;
        (4) the depreciation, including physical deterioration and obsolescence, of real property;
        (5) the cost of reproducing improvements;
        (6) (4) the productivity or earning capacity of:
            (A) agricultural land; and
            (B) real property regularly used to rent or otherwise furnish residential accommodations for periods of thirty (30) days or more;
        (7) (5) sales data for generally comparable properties; and
        (8) (6) the true tax value of real property based on the factors listed in this subsection and any other factor that the department determines by rule is just and proper.
    (c) With respect to the assessment of real property, true tax value does not mean fair market value. Subject to this article, true tax value is the value determined under the rules of the department of local government finance.
SOURCE: IC 6-1.1-36-1.5; (06)SB0260.2.30. -->     SECTION 30. IC 6-1.1-36-1.5 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1.5. (a) Subject to subsections (b) and (c), and except as provided in subsection (d), a document, including a form, a return, or a writing of any type, which must be filed by a due date under this article or IC 6-1.5, is considered to be filed by the due date if the document is:
        (1) received on or before the due date by the appropriate recipient;
        (2) deposited in United States first class mail:
            (A) properly addressed to the appropriate recipient;
            (B) with sufficient postage; and
            (C) postmarked by the United States Postal Service as mailed on or before the due date;
        (3) deposited with a nationally recognized express parcel carrier and is:
            (A) properly addressed to the appropriate recipient; and
            (B) verified by the express parcel carrier as:
                (i) paid in full for final delivery; and
                (ii) received by the express parcel carrier on or before the due date; or
        (4) deposited to be mailed through United States registered mail, United States certified mail, or United States certificate of mailing:
            (A) properly addressed to the appropriate recipient;
            (B) with sufficient postage; and
            (C) with a date of registration, certification, or certificate, as evidenced by any record authenticated by the United States Postal Service, 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.
    (b) If a document is mailed through the United States mail and is physically received after the due date without a legible correct postmark, the person who mailed the document is considered to have filed the document on or before the due date if the person can show by reasonable evidence that the document was deposited in the United States mail on or before the due date.
    (c) If a document is sent via the United States mail or a nationally recognized express parcel carrier but is not received by the designated recipient, the person who sent the document is considered to have filed the document on or before the due date if the person:


        (1) can show by reasonable evidence that the document was deposited in the United States mail, or with the express parcel carrier, on or before the due date; and
        (2) files a duplicate document within thirty (30) days after the date the person is notified that the document was not received.
    (d) This section does not apply to a payment addressed in IC 6-1.1-37-10(f).

SOURCE: IC 6-1.1-36-12; (06)SB0260.2.31. -->     SECTION 31. IC 6-1.1-36-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 12. (a) For purposes of this section, a board of county commissioners, a county assessor, or an elected township assessor may enter into a properly approved contract for the discovery of property that has been undervalued or omitted from assessment. The contract must prohibit payment to the contractor for discovery of undervaluation or omission with respect to a parcel or personal property return before all appeals of the assessment of the parcel or the assessment under the return have been finalized. The contract may require the contractor to:
        (1) examine and verify the accuracy of personal property returns filed by taxpayers with a township assessor of a township in the county; and
        (2) compare a return with the books of the taxpayer and with personal property owned, held, possessed, controlled, or occupied by the taxpayer.
    (b) The investigation and collection expenses of a contract under subsection (a) may be deducted from the gross amount of taxes collected on the undervalued or omitted property that is so discovered. Subject to subsection (c), the remainder of the taxes collected on the undervalued or omitted property shall be distributed to the appropriate taxing units.
     (c) This subsection applies if funds are not budgeted for payment of services performed under a contract described in subsection (a). The county auditor may create a special nonreverting fund in which the county treasurer may deposit the net amount of taxes, including penalties and interest, that result from additional assessments on undervalued or omitted property collected from all taxing jurisdictions in the county. The fund remains in existence during the term of the contract. Distributions shall be made from the fund only for the following purposes:
        (1) All refunds due to taxpayers as a result of the contract.
        (2) All contract fees and other costs related to the contract.
        (3) After the payments required by subdivisions (1) and (2) have been made and the contract has expired, all money

remaining in the fund shall be distributed by the county auditor to the appropriate taxing units in the county.
    (c) (d) A board of county commissioners, a county assessor, or an elected township assessor may not contract for services under subsection (a) on a percentage basis.

SOURCE: IC 6-1.1-37-10; (06)SB0260.2.32. -->     SECTION 32. 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.
    (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) Subject to subsections (g) and (h), 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 by the county treasurer or a collecting agent appointed by the county treasurer;
        (2) deposited in the United States first class 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 by the express parcel carrier on or before the due date;
        (4)
deposited to be mailed through United States registered mail, United States certified mail, or United States certificate of mailing:
            (A) properly addressed to the principal office of the county treasurer;
            (B) with sufficient postage; and
            (C) with a date of registration, certification, or certificate, as evidenced by any record authenticated by the United States Postal Service, on or before the due date; or
        (5) made by an electronic fund transfer and the taxpayer's bank account is charged 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.
     (g) If a payment is mailed through the United States mail and is physically received after the due date without a legible correct postmark, the person who mailed the payment is considered to have made the payment on or before the due date if the person can show by reasonable evidence that the payment was deposited in the United States mail on or before the due date.
    (h) If a payment is sent via the United states mail or a nationally recognized express parcel carrier but is not received by the designated recipient, the person who sent the payment is considered to have made the payment on or before the due date if the person:
        (1) can show by reasonable evidence that the payment was deposited in the United States mail, or with the express parcel carrier, on or before the due date; and
        (2) makes a duplicate payment within thirty (30) days after the date the person is notified that the payment was not

received.

SOURCE: IC 6-1.1-40-10; (06)SB0260.2.33. -->     SECTION 33. IC 6-1.1-40-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. (a) Subject to subsection (e), an owner of new manufacturing equipment or inventory, or both, whose statement of benefits is approved is entitled to a deduction from the assessed value of that equipment and inventory for a period of ten (10) years. Except as provided in subsections (c) and (d), and subject to subsection (e), for the first five (5) years, the amount of the deduction for new manufacturing equipment that an owner is entitled to for a particular year equals the assessed value of the new manufacturing equipment. Subject to subsection (e), for the sixth through the tenth year, the amount of the deduction equals the product of:
        (1) the assessed value of the new manufacturing equipment; multiplied by
        (2) the percentage prescribed in the following table:
    YEAR OF DEDUCTION     PERCENTAGE
    6th    100%
    7th    95%
    8th    80%
    9th    65%
    10th    50%
    11th and thereafter    0%
    (b) For the first year the amount of the deduction for inventory equals the assessed value of the inventory. For the next nine (9) years, the amount of the deduction equals:
        (1) the assessed value of the inventory for that year; multiplied by
        (2) the owner's export sales ratio for the previous year, as certified by the department of state revenue under IC 6-3-2-13.
    (c) A deduction under this section is not allowed in the first year the deduction is claimed for new manufacturing equipment to the extent that it would cause the assessed value of all of the personal property of the owner in the taxing district in which the equipment is located to be less than the assessed value of all of the personal property of the owner in that taxing district in the immediately preceding year.
    (d) If a deduction is not fully allowed under subsection (c) in the first year the deduction is claimed, then the percentages specified in subsection (a) apply in the subsequent years to the amount of deduction that was allowed in the first year.
     (e) For purposes of subsection (a), the assessed value of new manufacturing equipment that is part of an owner's assessable depreciable personal property in a single taxing district subject to

the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the product of:
        (1) the assessed value of the equipment determined without regard to the valuation limitation in 50 IAC 4.2-4-9
or 50 IAC 5.1-6-9; multiplied by
        (2) the quotient of:
            (A) the amount of the valuation limitation determined under 50 IAC 4.2-4-9
or 50 IAC 5.1-6-9 for all of the owner's depreciable personal property in the taxing district; divided by
            (B)
the total true tax value of all of the owner's depreciable personal property in the taxing district that is subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 determined:
                (i)
under the depreciation schedules in the rules of the department of local government finance before any adjustment for abnormal obsolescence; and
                (ii) without regard to the valuation limitation in
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9.

SOURCE: IC 6-1.5-4-2; (06)SB0260.2.34. -->     SECTION 34. IC 6-1.5-4-2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. In order to obtain information that is necessary to the Indiana board's conduct of a necessary or proper inquiry, the Indiana board or a board administrative law judge may:
        (1) subpoena and examine witnesses;
        (2) administer oaths; and
        (3) subpoena and examine books or papers that are in the hands of any person.

SOURCE: IC 6-1.5-5-2; (06)SB0260.2.35. -->     SECTION 35. IC 6-1.5-5-2, AS AMENDED BY P.L.199-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) After receiving a petition for review that is filed under a statute listed in section 1(a) of this chapter, the Indiana board shall, at its earliest opportunity:
        (1) conduct a hearing; or
        (2) cause a hearing to be conducted by an administrative law judge.
The Indiana board may determine to conduct the hearing under subdivision (1) on its own motion or on request of a party to the appeal.
    (b) In its resolution of a petition, the Indiana board may:
        (1) assign:
            (A) full;
            (B) limited; or
            (C) no;
        evidentiary value to the assessed valuation of tangible property determined by stipulation submitted as evidence of a comparable sale; and
        (2) correct any errors that may have been made, and adjust the assessment in accordance with the correction.
    (c) The Indiana board shall give notice of the date fixed for the hearing by mail to:
        (1) the taxpayer;
        (2) the department of local government finance; and
        (3) the appropriate:
            (A) township assessor;
            (B) county assessor; and
            (C) county auditor.
    (d) With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notices required under subsection (c) must include the following:
        (1) The action of the department of local government finance with respect to the appealed items.
        (2) A statement that a taxing unit receiving the notice from the county auditor under subsection (e) may:
            (A) attend the hearing;
            (B) offer testimony; and
            (C) file an amicus curiae brief in the proceeding.
A taxing unit that receives a notice from the county auditor under subsection (e) is not a party to the appeal.
    (e) If, after receiving notice of a hearing under subsection (c), the county auditor determines that the assessed value of the appealed items constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. A taxing unit that receives a notice from the county auditor under this subsection is not a party to the appeal. Failure of the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.
    (f) The Indiana board shall give the notices required under subsection (c) at least thirty (30) days before the day fixed for the hearing.
SOURCE: IC 6-1.5-5-5; (06)SB0260.2.36. -->     SECTION 36. IC 6-1.5-5-5, AS AMENDED BY P.L.199-2005, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

UPON PASSAGE]: Sec. 5. After the hearing, the Indiana board shall give the petitioner, the township assessor, the county assessor, the county auditor, the affected taxing units required to be notified under section 2(e) of this chapter, and the department of local government finance:
        (1) notice, by mail, of its final determination, findings of fact, and conclusions of law; and
        (2) notice of the procedures the petitioner or the department of local government finance must follow in order to obtain court review of the final determination of the Indiana board.
The county auditor shall provide copies of the documents described in subdivisions (1) and (2) to the taxing units entitled to notice under section 2(e) of this chapter.

SOURCE: IC 6-1.5-5-6; (06)SB0260.2.37. -->     SECTION 37. IC 6-1.5-5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. (a) The Indiana board shall conduct a hearing or cause a hearing to be conducted within six (6) months after a petition in proper form is filed with the Indiana board, excluding any time due to a delay reasonably caused by the petitioner.
    (b) The Indiana board shall make a final determination within the later of forty-five (45) days after the hearing or the date set in an extension order issued by the Indiana board. However, the Indiana board may not extend the final determination date by more than one hundred eighty (180) days.
     (c) The failure of the Indiana board to conduct a hearing within the period prescribed in this section does not constitute notice to the person of an Indiana board final determination.
    (c) The failure of (d) If the Indiana board fails to make a final determination within the time allowed by this section shall be treated as a final determination of after a hearing, the entity that initiated the petition may:
        (1)
take no action and wait for the Indiana board to deny the petition. make a final determination; or
        (2) initiate a proceeding for judicial review by taking the action required by IC 6-1.1-15-5(b) at any time after the maximum time elapses.
    (e) If:
        (1) a judicial proceeding is initiated under subsection (d); and
        (2) the Indiana board has not issued a determination;
the tax court shall determine the matter de novo.

SOURCE: ; (06)SB0260.2.38. -->     SECTION 38. [EFFECTIVE UPON PASSAGE] The following, all as added or amended by this act, apply only to property taxes first

due and payable after December 31, 2006:
        (1) IC 6-1.1-8-28.
        (2) IC 6-1.1-8-29.
        (3) IC 6-1.1-8-30.
        (4) IC 6-1.1-12-2.
        (5) IC 6-1.1-12-4.
        (6) IC 6-1.1-12-10.1.
        (7) IC 6-1.1-12-12.
        (8) IC 6-1.1-12-15.
        (9) IC 6-1.1-12-17.
        (10) IC 6-1.1-12-17.5.
        (11) IC 6-1.1-12-17.8.
        (12) IC 6-1.1-12.1-4.5.

         (13) IC 6-1.1-17-5.
        (14) IC 6-1.1-17-15.2.
        (15) IC 6-1.1-18.5-1.
        (16) IC 6-1.1-18.5-13.7.
        (17) IC 6-1.1-18.5-16.
        (18) IC 6-1.1-20.9-3.

         (19) IC 6-1.1-40-10.

SOURCE: ; (06)SB0260.2.39. -->     SECTION 39. [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)SB0260.2.40. -->     SECTION 40. [EFFECTIVE UPON PASSAGE] (a) This SECTION applies notwithstanding IC 6-1.1-8 or 50 IAC 5.1.
    (b) As used in this SECTION, "amended return" means a return:
        (1) that was filed after July 31, 2005; and
        (2) that the department accepts as a taxpayer's final amended return for the assessment date.
    (c) As used in this SECTION, "assessment date" means the March 1, 2005, assessment date.
    (d) As used in this SECTION, "department" refers to the department of local government finance.
    (e) As used in this SECTION, "return" means the statement of value and description of property required under IC 6-1.1-8-19 that is filed on the Annual Report (U.D. Form 45), as prescribed by the department, and is filed with the department on or before July 31, 2005.
    (f) As used in this SECTION, "taxpayer" means a taxpayer that meets the requirements of subsection (g).
    (g) This SECTION applies to any taxpayer that:
        (1) is a public utility that provides water utility services in Indiana and is subject to taxation under IC 6-1.1-8;
        (2) is required to file a return under IC 6-1.1-8-19;
        (3) filed a return with the department with respect to the assessment date; and
        (4) filed an amended return with the department with respect to the assessment date.
    (h) Before June 1, 2006, the department shall review the assessed value identified on line 47 of the taxpayer's amended return as the assessed value of all the taxpayer's distributable property as of the assessment date. If the department determines that this assessed value:
        (1) is correct; and
        (2) is less than the assessed value identified in the taxpayer's return as the assessed value of all the taxpayer's distributable property as of the assessment date;
the taxpayer is entitled to a credit under this SECTION.
    (i) Before July 1, 2006, the department shall determine the amount of the credit to which a taxpayer is entitled under this SECTION and notify the county auditor of that amount. For purposes of this subsection, the department shall assume that the taxpayer will pay the full amount of the taxpayer's installment or installments of property taxes first due and payable after June 30, 2006, and before January 1, 2007.
    (j) The amount of the credit under this SECTION:
        (1) is the remainder of:
            (A) the amount of property taxes the taxpayer pays with respect to its distributable property for taxes first due and payable in 2006; minus
            (B) the amount of property taxes for which the taxpayer would have been liable with respect to its distributable property for taxes first due and payable in 2006 if those property taxes had been based on the assessed value identified on line 47 of the taxpayer's amended return instead of the assessed value identified in the taxpayer's return; and
        (2) applies proportionately to the taxpayer's installments of property taxes first due and payable in 2007.
    (k) Interest does not apply in the determination of the amount of the credit under this SECTION.
    (l) The county auditor shall adjust the assessed value used in setting property tax rates for each political subdivision in the

county for property taxes first due and payable in 2007 to eliminate levy reductions that would otherwise result from the application of credits under this SECTION.
    (m) In setting property tax rates for property taxes first due and payable in 2007 for each political subdivision in the county, the department shall:
        (1) use the assessed value as adjusted by the county auditor under subsection (l); or
        (2) further adjust the assessed value for the following purposes:
            (A) To ensure the elimination of levy reductions that would otherwise result from the application of credits under this SECTION.
            (B) To account for a failure of the taxpayer to pay property taxes in the amount assumed under subsection (i).

SOURCE: ; (06)SB0260.2.41. -->     SECTION 41. An emergency is declared for this act.