February 16, 2007



DIGEST OF HB 1478 (Updated February 15, 2007 2:14 pm - DI 92)

Citations Affected: IC 6-1.1.

Synopsis: Personal property tax assessment. Specifies that a person contracted to discover omitted or undervalued property may review only the three assessment years ending before January 1of the year in which a taxpayer receives notice of the person's actions under the contract. Specifies the priority of payments from a special nonreverting fund created for the deposit of taxes resulting from additional assessments on undervalued or omitted property.

Effective: July 1, 2007.


    January 23, 2007, read first time and referred to Committee on Ways and Means.
    February 15, 2007, amended, reported _ Do Pass.

February 16, 2007

First Regular Session 115th General Assembly (2007)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    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 6-1.1-36-12; (07)HB1478.1.1. -->     SECTION 1. IC 6-1.1-36-12, AS AMENDED BY P.L.154-2006, SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12. (a) A board of county commissioners, a county assessor, or an elected township assessor may enter into a 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 or the county assessor; and
        (2) compare a return with the books and records of the taxpayer and with personal property owned, held, possessed, controlled, or occupied by the taxpayer.
     (b) The actions of a contractor under subsection (a)(1) or (a)(2)

must be limited in scope to the three (3) assessment years ending before January 1 of the calendar year in which the taxpayer receives notice of the contractor's actions. Notice provided under this section must be in writing and must list each year for which returns and other records may be reviewed under subsection (a). For purposes of this subsection, notice is considered to have been received by the taxpayer as of the date of the notice.
    (c) IC 6-1.1-9-3 does not apply to a contractor's actions under subsection (a).

    (b) (d) This subsection applies if funds are not appropriated 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 shall deposit the 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 after deducting the amount of any property tax credits that reduce the owner's property tax liability for the undervalued or omitted property. The fund remains in existence during the term of the contract. Distributions shall be made from the fund without appropriation only for the following purposes and in the following order:
        (1) First, for all contract fees and other costs related to the contract.
         (2) Second, for deposit in the county's reassessment fund. The amount deposited in the county's reassessment fund under this subdivision may not exceed twenty percent (20%) of the remaining money collected as a result of a contract entered into under this section.
    (2) (e) After the payments required by subdivision (1) subsection (d) have been made and the contract has expired, the county auditor shall distribute all money remaining in the fund to the appropriate taxing units in the county using the property tax rates of each taxing unit in effect at the time of the distribution.
    (f) If the money in the fund established under subsection (b) is insufficient to pay the fees and costs related to a contract described in subsection (a), the county may pay the remaining fees and costs from the county's reassessment fund.
    (c) (g) 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.
    (h) The department shall adopt rules under IC 4-22-2 to govern the certification of persons who wish to obtain a contract under this section.