HB 1568-1_ Filed 03/18/2013, 11:21
Adopted 3/18/2013

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Financial Institutions, to which was referred House Bill No. 1568, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 3, line 17; (13)CR156801.3. -->     Page 3, between lines 17 and 18, begin a new paragraph and insert:
SOURCE: IC 6-1.1-4-12; (13)CR156801.2. -->     "SECTION 2. IC 6-1.1-4-12, AS AMENDED BY P.L.154-2006, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: 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. The term includes a financial institution (as defined in IC 28-1-1-3(1)) if the financial institution's land in inventory is purchased, acquired, or held for one (1) or more of the purposes established under IC 28-1-11-5(a)(2), IC 28-1-11-5(a)(3), and IC 28-1-11-5(a)(4).
    (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) For purposes of this section, land purchased, acquired, or held by a financial institution for one (1) or more of the purposes established under IC 28-1-11-5(a)(2), IC 28-1-11-5(a)(3), and IC 28-1-11-5(a)(4) is considered held for sale in the ordinary course

of the financial institution's trade or business.
    (d) (e) Except as provided in subsections (h) and (i) and (j), if:
        (1) land assessed on an acreage basis is subdivided into lots; 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) (f) If improvements are added to real property, the improvements shall be assessed.
    (f) (g) An assessment or reassessment made under this section is effective on the next assessment date.
    (g) (h) No petition to the department of local government finance is necessary with respect to an assessment or reassessment made under this section.
    (h) (i) Subject to subsection (i), (j), land in inventory may not be reassessed until the next assessment date following the earliest of:
        (1) the date on which title to the land is transferred by:
            (A) the land developer; or
            (B) a successor land developer that acquires title to the land;
        to a person that is not a land developer;
        (2) the date on which construction of a structure begins on the land; or
        (3) the date on which a building permit is issued for construction of a building or structure on the land.
    (i) (j) Subsection (h) (i) applies regardless of whether the land in inventory is rezoned while a land developer holds title to the land.".

SOURCE: Page 3, line 23; (13)CR156801.3. -->     Page 3, between lines 23 and 24, begin a new paragraph and insert:
SOURCE: IC 6-1.1-10-38; (13)CR156801.4. -->     "SECTION 4. IC 6-1.1-10-38, AS AMENDED BY P.L.98-2010, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 38. This chapter does not contain all of the property tax exemption provisions. The property taxation exemption provisions include, but are not limited to, the following sections:
    IC 4-20.5-14-3    IC 21-35-2-19
    IC 4-20.5-19    IC 21-35-3-20
    IC 5-1-4-26    IC 20-47-2-21
    IC 6-1.1-10-5    IC 20-47-3-15
    IC 6-1.1-24-6.8(k)    IC 23-7-7-3
    IC 8-10-1-27    IC 36-1-10-18
    IC 8-23-7-31    IC 36-7-14-37
    IC 8-15-2-12    IC 36-7-15.1-25
    IC 8-21-9-31    IC 36-7-18-25
    IC 10-18-2-22    IC 36-9-4-52
    IC 10-18-1-36    IC 36-9-11-10
    IC 10-18-3-12    IC 36-9-11.1-11
    IC 10-18-4-21    IC 36-9-13-36
    IC 10-18-7-9    IC 36-9-13-37
    IC 14-33-20-27    IC 36-9-30-31
    IC 15-13-4-4    IC 36-10-8-18
    IC 16-22-6-34    IC 36-10-9-18
    IC 21-34-8-3".
SOURCE: Page 3, line 37; (13)CR156801.3. -->     Page 3, delete lines 37 through 42, begin a new paragraph and insert:
SOURCE: IC 6-1.1-24-6.8; (13)CR156801.5. -->     "SECTION 5. IC 6-1.1-24-6.8, AS ADDED BY P.L.98-2010, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6.8. (a) For purposes of this section, in a county containing a consolidated city "county executive" refers to the board of commissioners of the county as provided in IC 36-3-3-10.
    (b) As used in this section, "vacant parcel" refers to a parcel that satisfies all the following:
        (1) A lien has been acquired on the parcel under section 6(a) of this chapter.
        (2) The parcel is unimproved on the date the parcel is offered for sale under this chapter.
        (3) (2) If the parcel is unimproved on the date the certificate of sale for the parcel is offered for sale under this chapter, the construction of a structure intended for residential use on the parcel is permitted by law.
         (3) If the parcel is improved on the date the certificate of sale for the parcel is offered for sale under this chapter, the following apply:
            (A) One (1) or more of the following are located on the parcel:

                 (i) A structure that may be lawfully occupied for residential use.
                (ii) A structure used in conjunction with a structure that may be lawfully occupied for residential use.

         (B) The parcel is:
                (i) on the list of vacant or abandoned properties

designated under section 1(a)(2) of this chapter; or
                (ii) not occupied by a tenant or a person having a substantial property interest of public record in the parcel.

        (4) On the date the certificate of sale for the parcel is offered for sale under this chapter, the parcel is contiguous to one (1) or more parcels that satisfy the following:
            (A) One (1) or more of the following are located on the contiguous parcel:
                (i) A structure occupied for residential use.
                (ii) A structure used in conjunction with a structure occupied for residential use.
            (B) The contiguous parcel is eligible for the standard deduction under IC 6-1.1-12-37.
    (c) The A county legislative body may by adopt an ordinance establish authorizing the sale of certificates of sale in the county under this section and establishing criteria for the identification of vacant parcels for which the certificates of sale are to be offered for sale under this section. The criteria may include the following:
        (1) Limitations on the use of the parcel under local zoning and land use requirements.
        (2) If the parcel is unimproved, the minimum parcel area sufficient for construction of improvements.
        (3) Any other factor considered appropriate by the county legislative body.
In a county containing a consolidated city, the county legislative body may adopt an ordinance under this subsection only upon recommendation by the board of commissioners provided in IC 36-3-3-10.
    (d) If the county legislative body adopts an ordinance under subsection (c), the county executive shall for each tax sale under this section:
        (1) by resolution, and subject to the criteria adopted by the county legislative body under subsection (c), identify each vacant parcel that for which the county executive desires to sell the certificate of sale under this section; and
        (2) subject to subsection (e), give written notice to the owner of record of each parcel referred to in subsection (b)(4) that is

contiguous to the vacant parcel.
    (e) The notice under subsection (d)(2) with respect to each vacant parcel must include at least the following:
        (1) A description of the vacant parcel by:
            (A) legal description; and
            (B) parcel number or street address, or both.
        (2) Notice that the county executive will accept written applications from owners of parcels described in subsection (b)(4) as provided in subsection (f).
        (3) Notice of the deadline for applications referred to in subdivision (2) and of the information to be included in the applications.
        (4) Notice that the certificate of sale for the vacant parcel will be sold to the successful applicant for:
             (A) one dollar ($1); plus
            (B) the amounts described in section 5(f)(4) through 5(f)(6) of this chapter.

        (5) Notice of the exemption provisions of subsection (l).
    (f) To be eligible to purchase the certificate of sale for a vacant parcel under this section, the owner of a contiguous parcel referred to in subsection (b)(4) must file a written application with the county executive. The application must:
        (1) identify the vacant parcel certificate of sale that the applicant desires to purchase; and
        (2) include any other information required by the county executive.
    (g) If more than one (1) application to purchase the certificate of sale for a single vacant parcel is filed with the county executive, the county executive shall conduct a drawing between or among the applicants in which each applicant has an equal chance to be selected as the transferee of the certificate of sale for the vacant parcel.
    (h) The county executive shall by resolution make a final determination concerning the vacant parcels certificates of sale that are to be sold under this section.
    (i) After the final determination of the certificates of sale for vacant parcels to be sold under subsection (h), the county executive shall:
        (1) on behalf of the county, cause all delinquent taxes, special

assessments, penalties, and interest and costs of sale with respect to the vacant parcels to be removed from the tax duplicate; and
        (2) give notice of the final determination to:
            (A) the successful applicant;
            (B) the county auditor; and
            (C) the township assessor, or the county assessor if there is no township assessor for the township.
    (j) Upon receipt of notice under subsection (i)(2), (1) the county auditor shall (A) collect the purchase price from each successful applicant. and (B) subject to subsection (k), prepare a deed transferring each vacant parcel to the successful applicant; and (2) the township assessor or county assessor shall consolidate each vacant parcel sold and the contiguous parcel owned by the successful applicant into a single parcel.
    (k) The county auditor shall include in the deed prepared under subsection (j)(1)(B) reference to the exemption under subsection (l).
    (l) (k) This subsection applies only to a vacant parcel consolidated with a successful applicant's contiguous parcel under this section before July 1, 2013. Except as provided in Subject to subsection (m), (l), each consolidated parcel referred to in subsection (j)(2) is entitled to an exemption exempt from property taxation for the period beginning on the assessment date that next succeeds the consolidation in the amount of the assessed value at the time of consolidation of the vacant parcel that was subject to the consolidation.
    (m) (l) This subsection applies only to a vacant parcel consolidated with a successful applicant's contiguous parcel under this section before July 1, 2013. The exemption under subsection (l) (k) is terminated as of the assessment date that next succeeds the earlier of the following:
        (1) Five (5) years after the transfer of title to the successful applicant.
        (2) The first transfer of title to the consolidated parcel that occurs after the consolidation.".
    Delete pages 4 through 6.
    Page 7, delete line 1.

SOURCE: Page 7, line 1.
    Page; (13)CR156801.7. -->     Page 9, between lines 23 and 24, begin a new paragraph and insert:
SOURCE: IC 6-1.1-25-4.6; (13)CR156801.7. -->     "SECTION 7. IC 6-1.1-25-4.6, AS AMENDED BY P.L.56-2012, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JULY 1, 2013]: Sec. 4.6. (a) After the expiration of the redemption period specified in section 4 of this chapter but not later than six (6) months after the expiration of the period of redemption:
        (1) the purchaser, the purchaser's assignee, the county executive, or the purchaser of the certificate of sale under IC 6-1.1-24 may; or
        (2) in a county where the county auditor and county treasurer have an agreement under section 4.7 of this chapter, the county auditor shall, upon the request of the purchaser or the purchaser's assignee;
file a verified petition in the same court and under the same cause number in which the judgment of sale was entered asking the court to direct the county auditor to issue a tax deed if the real property is not redeemed from the sale. Notice of the filing of this petition shall be given to the same parties and in the same manner as provided in section 4.5 of this chapter, except that, if notice is given by publication, only one (1) publication is required. The notice required by this section is considered sufficient if the notice is sent to the address required by section 4.5(d) of this chapter. Any person owning or having an interest in the tract or real property may file a written objection to the petition with the court not later than thirty (30) days after the date the petition was filed. If a written objection is timely filed, the court shall conduct a hearing on the objection.
    (b) Not later than sixty-one (61) days after the petition is filed under subsection (a), the court shall enter an order directing the county auditor (on the production of the certificate of sale and a copy of the order) to issue to the petitioner a tax deed if the court finds that the following conditions exist:
        (1) The time of redemption has expired.
        (2) The tract or real property has not been redeemed from the sale before the expiration of the period of redemption specified in section 4 of this chapter.
        (3) Except with respect to a petition for the issuance of a tax deed under a sale of the certificate of sale on the property under IC 6-1.1-24-6.1 or IC 6-1.1-24-6.8, all taxes and special assessments, penalties, and costs have been paid.
        (4) The notices required by this section and section 4.5 of this chapter have been given.


        (5) The petitioner has complied with all the provisions of law entitling the petitioner to a deed.
The county auditor shall execute deeds issued under this subsection in the name of the state under the county auditor's name. If a certificate of sale is lost before the execution of a deed, the county auditor shall issue a replacement certificate if the county auditor is satisfied that the original certificate existed.
    (c) Upon application by the grantee of a valid tax deed in the same court and under the same cause number in which the judgment of sale was entered, the court shall enter an order to place the grantee of a valid tax deed in possession of the real estate. The court may enter any orders and grant any relief that is necessary or desirable to place or maintain the grantee of a valid tax deed in possession of the real estate.
    (d) Except as provided in subsections (e) and (f), if:
        (1) the verified petition referred to in subsection (a) is timely filed; and
        (2) the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure of the petitioner under subsection (a) to fulfill the notice requirement of subsection (a);
the court shall order the return of the amount, if any, by which the purchase price exceeds the minimum bid on the property under IC 6-1.1-24-5 minus a penalty of twenty-five percent (25%) of that excess. The petitioner is prohibited from participating in any manner in the next succeeding tax sale in the county under IC 6-1.1-24. The county auditor shall deposit penalties paid under this subsection in the county general fund.
    (e) Notwithstanding subsection (d), in all cases in which:
        (1) the verified petition referred to in subsection (a) is timely filed;
        (2) the petitioner under subsection (a) has made a bona fide attempt to comply with the statutory requirements under subsection (b) for the issuance of the tax deed but has failed to comply with these requirements;
        (3) the court refuses to enter an order directing the county auditor to execute and deliver the tax deed because of the failure to comply with these requirements; and
        (4) the purchaser, the purchaser's successors or assignees, or the

purchaser of the certificate of sale under IC 6-1.1-24 files a claim with the county auditor for refund not later than thirty (30) days after the entry of the order of the court refusing to direct the county auditor to execute and deliver the tax deed;
the county auditor shall not execute the deed but shall refund the purchase money minus a penalty of twenty-five percent (25%) of the purchase money from the county treasury to the purchaser, the purchaser's successors or assignees, or the purchaser of the certificate of sale under IC 6-1.1-24. The county auditor shall deposit penalties paid under this subsection in the county general fund. All the delinquent taxes and special assessments shall then be reinstated and recharged to the tax duplicate and collected in the same manner as if the property had not been offered for sale. The tract or item of real property, if it is then eligible for sale under IC 6-1.1-24, shall be placed on the delinquent list as an initial offering under IC 6-1.1-24.
    (f) Notwithstanding subsections (d) and (e), the court shall not order the return of the purchase price or any part of the purchase price if:
        (1) the purchaser or the purchaser of the certificate of sale under IC 6-1.1-24 has failed to provide notice or has provided insufficient notice as required by section 4.5 of this chapter; and
        (2) the sale is otherwise valid.
    (g) A tax deed executed under this section vests in the grantee an estate in fee simple absolute, free and clear of all liens and encumbrances created or suffered before or after the tax sale except those liens granted priority under federal law, and the lien of the state or a political subdivision for taxes and special assessments that accrue subsequent to the sale. However, the estate is subject to all easements, covenants, declarations, and other deed restrictions and laws governing land use, including all zoning restrictions and liens and encumbrances created or suffered by the purchaser at the tax sale. The deed is prima facie evidence of:
        (1) the regularity of the sale of the real property described in the deed;
        (2) the regularity of all proper proceedings; and
        (3) valid title in fee simple in the grantee of the deed.
    (h) A tax deed issued under this section is incontestable except by appeal from the order of the court directing the county auditor to issue the tax deed filed not later than sixty (60) days after the date of the

court's order.".

SOURCE: Page 15, line 38; (13)CR156801.15. -->     Page 15, line 38, delete "or" and insert " or".
    Page 17, line 29, after "chapter" insert " ,".
    Page 17, line 38, after "dwelling;" delete "and".
    Page 19, line 41, delete "assure" and insert " ensure".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1568 as printed February 15, 2013.)

and when so amended that said bill do pass.

Committee Vote: Yeas 7, Nays 0.

____________________________________

    Holdman
Chairperson


CR156801/DI 110    2013