SOURCE: Page 6, line 36; (10)MO132404.6. -->
Page 6, delete lines 36 through 42, begin a new paragraph and
insert:
SOURCE: IC 6-8.1-8-2; (10)MO132404.4. -->
"SECTION 4. IC 6-8.1-8-2, AS AMENDED BY P.L.111-2006,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: Sec. 2. (a) Except as provided in IC 6-8.1-5-3, the
department must issue a demand notice for the payment of a tax and
any interest or penalties accrued on the tax, if a person files a tax return
without including full payment of the tax or if the department, after
ruling on a protest, finds that a person owes the tax before the
department issues a tax warrant. The demand notice must state the
following:
(1) That the person has ten (10) days from the date the department
mails the notice to either pay the amount demanded or show
reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of
a tax warrant.
(3) The earliest date on which a tax warrant may be filed and
recorded.
(4) The statutory authority for the department to levy against a
person's property that is held by a financial institution.
(5) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the amount
of the tax, interest, penalties, collection fee, sheriff's costs, clerk's costs,
and fees established under section 4(b) of this chapter when applicable.
When the department issues a tax warrant, a collection fee of ten
percent (10%) of the unpaid tax is added to the total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the demand
notice was mailed to the taxpayer. The department may also send the
warrant to the sheriff of any county in which the person owns property
and direct the sheriff to file the warrant with the circuit court clerk:
(1) at least twenty (20) days after the date the demand notice was
mailed to the taxpayer; and
(2) no later than five (5) days after the date the department issues
the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by making
an entry in the judgment debtor's column of the judgment record,
listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant
becomes a judgment against the person owing the tax. The judgment
creates a lien in favor of the state that attaches to all the person's
interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10) years
from the date the judgment is filed. The department may renew the
judgment for only one (1) additional ten (10) year periods period by
filing an alias tax warrant with the circuit court clerk of the county in
which the judgment previously existed. The department may not
initiate a proceeding to foreclose on a lien described in subsection
(e) more than:
(1) ten (10) years after the judgment creating the lien is filed,
if the judgment is not renewed under this subsection; or
(2) twenty (20) years after the judgment creating the lien is
initially filed, if the judgment is renewed under this
subsection.
If the department does not initiate proceedings to foreclose on the
lien within the time required by this subsection, the lien shall be
released.
(g) A judgment arising from a tax warrant in a county may be
released by the department:
(1) after the judgment, including all accrued interest to the date of
payment, has been fully satisfied; or
(2) if the department determines that the tax assessment or the
issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant was
in error, the department shall mail a release of the judgment to the
taxpayer and the circuit court clerk of each county where the warrant
was filed. The department shall mail the release as soon as possible but
no later than seven (7) days after:
(1) the determination by the department that the filing of the
warrant was in error; and
(2) the receipt of information by the department that the judgment
has been recorded under subsection (d).
(i) If the department determines that a judgment described in
subsection (h) is obstructing a lawful transaction, the department shall
mail a release of the judgment to the taxpayer and the circuit court
clerk of each county where the judgment was filed immediately upon
making the determination.
(j) A release issued under subsection (h) or (i) must state that the
filing of the tax warrant was in error. Upon the request of the taxpayer,
the department shall mail a copy of a release issued under subsection
(h) or (i) to each major credit reporting company located in each county
where the judgment was filed.
(k) The commissioner shall notify each state agency or officer
supplied with a tax warrant list of the issuance of a release under
subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the sheriff
shall disburse the money collected in the manner provided in section
3(c) of this chapter. If a judgment has been partially or fully satisfied
by a person's surety, the surety becomes subrogated to the department's
rights under the judgment. If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount collected;
or
(3) after the sheriff has returned the tax warrant to the department;
the sheriff commits a Class B misdemeanor and is personally liable for
the part of the judgment not remitted to the department.".
Delete pages 7 through 9.
Renumber all SECTIONS consecutively.
(Reference is to EHB 1324 as printed February 19, 2010.)
________________________________________
Senator LAWSON C