Introduced Version
HOUSE BILL No. 1005
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 24-4.5-3-701; IC 28-1-5-16;
IC 28-5-1-26; IC 28-6.1-6-25; IC 28-7-1-38.
Synopsis: Property tax benefits and study commission. With respect
to a residential real property financing or refinancing, requires a
financial institution to provide to each customer information on
property tax deductions and the homestead credit on a form prescribed
by the department of local government finance. Imposes a penalty on
a financial institution that does not comply. Provides for additional
information about property taxes to be provided with the property tax
statement of current and delinquent taxes and special assessments.
Provides for state reimbursement of the expenditures made by a county
to provide the additional information. Establishes the local government
finance study commission.
Effective: Upon passage; July 1, 2004.
Reske, Chowning, Austin
December 4, 2003, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 113th General Assembly (2004)
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 2003 Regular Session of the General Assembly.
HOUSE BILL No. 1005
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 6-1.1-12-43; (04)IN1005.1.1. -->
SECTION 1. IC 6-1.1-12-43 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to:
(A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26,
29, 31, 33, or 34 of this chapter; or
(B) the homestead credit under IC 6-1.1-20.9-2; and
(2) "financial institution" has the meaning set forth in
IC 28-1-1-3(1).
(b) Before closing a residential real property financing or
refinancing after June 30, 2004, a financial institution must provide
to the customer the form referred to in subsection (c).
(c) Before June 1, 2004, the department of local government
finance shall prescribe the form to be provided by financial
institutions to customers under subsection (b). The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under
section 1 of this chapter is required when residential real
property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed on one (1) of two (2) or more colors of paper
prescribed by the department of local government finance
that distinguish the form from other documents typically used
in a closing referred to in subsection (b).
(d) A financial institution:
(1) may reproduce the form referred to in subsection (c); and
(2) in reproducing the form, must use a paper color
prescribed by the department of local government finance.
(e) A financial institution to which this section applies shall
document its compliance with this section with respect to each
residential real property financing or refinancing transaction in
the form of verification of compliance signed by the customer.
(f) A financial institution is subject to a civil penalty of fifty
dollars ($50) for each instance in which the financial institution
fails to comply with this section with respect to a customer. The
penalty:
(1) may be recovered under IC 28-11-4; and
(2) shall be paid into the property tax replacement fund.
(g) The department of financial institutions shall:
(1) examine financial institutions to determine compliance
with this section; and
(2) impose and collect penalties under subsection (f).
SOURCE: IC 6-1.1-22-8; (04)IN1005.1.2. -->
SECTION 2. 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) For taxes first due and payable after December 31, 2004,
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
information that must be provided is the following:
(1) A breakdown showing the total property tax and special
assessment liability and the percentage 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 the change in the amount of
property taxes and special assessments imposed by each
taxing unit in which the property is located.
(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 petition
described in clause (C).
The department of local government finance shall provide the
explanation required by this subdivision to each county
treasurer.
(e) The information required to be mailed under subsection (d)
must be simply and clearly presented and understandable to the
average individual.
(f) The county treasurer of a county that incurs computer
programming or printing costs directly related to mailing
information under subsection (d) 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 submitted under this section on a warrant of the
auditor of state.
SOURCE: IC 24-4.5-3-701; (04)IN1005.1.3. -->
SECTION 3. IC 24-4.5-3-701 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 701. With respect to a consumer
loan secured by an interest in land used or expected to be used as
the principal dwelling of the debtor, a lender shall comply with
IC 6-1.1-12-43.
SOURCE: IC 28-1-5-16; (04)IN1005.1.4. -->
SECTION 4. IC 28-1-5-16 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 16. With respect to a residential real property
financing or refinancing, a corporation shall comply with
IC 6-1.1-12-43.
SOURCE: IC 28-5-1-26; (04)IN1005.1.5. -->
SECTION 5. IC 28-5-1-26 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 26. With respect to a residential real property
financing or refinancing, an industrial loan and investment
company shall comply with IC 6-1.1-12-43.
SOURCE: IC 28-6.1-6-25; (04)IN1005.1.6. -->
SECTION 6. IC 28-6.1-6-25 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 25. With respect to a residential real property
financing or refinancing, a savings bank shall comply with
IC 6-1.1-12-43.
SOURCE: IC 28-7-1-38; (04)IN1005.1.7. -->
SECTION 7. IC 28-7-1-38 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 38. With respect to a residential real property
financing or refinancing, a credit union shall comply with
IC 6-1.1-12-43.
SOURCE: ; (04)IN1005.1.8. -->
SECTION 8. [EFFECTIVE JULY 1, 2004]
(a) The local
government finance study commission is established.
(b) The commission consists of eight (8) members appointed as
follows:
(1) Four (4) members of the senate, not more than two (2) of
whom may be of the same political party, to be appointed by
the president pro tempore of the senate with the advice of the
minority leader of the senate.
(2) Four (4) members of the house of representatives, not
more than two (2) of whom may be of the same political party,
to be appointed by the speaker of the house of representatives
with the advice of the minority leader of the house of
representatives.
(c) The commission has twelve (12) nonvoting advisers as
follows:
(1) Four (4) city or town officials, not more than two (2) of
whom may be of the same political party, to be appointed as
follows:
(A) Two (2) appointed by the president pro tempore of the
senate with the advice of the minority leader of the senate.
(B) Two (2) appointed by the speaker of the house of
representatives with the advice of the minority leader of
the house of representatives.
(2) Four (4) county officials, not more than two (2) of whom
may be of the same political party, to be appointed as follows:
(A) Two (2) appointed by the president pro tempore of the
senate with the advice of the minority leader of the senate.
(B) Two (2) appointed by the speaker of the house of
representatives with the advice of the minority leader of
the house of representatives.
(3) Four (4) private citizens, not more than two (2) of whom
may be of the same political party, to be appointed by the
governor.
(d) A member or adviser appointed to the commission serves at
the pleasure of the appointing authority. If a vacancy exists on the
commission or among the advisers, the vacancy shall be filled by
the appointing authority who made the original appointment.
(e) The chairman of the legislative council shall name the
chairperson of the commission.
(f) The commission shall conduct a study of ways to replace ad
valorem property taxes as a source of funding for local
government. The commission may study any other topic assigned
to the commission by the legislative council.
(g) The commission shall operate under the policies governing
study committees adopted by the legislative council.
(h) The affirmative votes of a majority of the voting members
appointed to the commission are required for the commission to
take action on any measure, including final reports.
(i) This SECTION expires December 31, 2005.
SOURCE: ; (04)IN1005.1.9. -->
SECTION 9. [EFFECTIVE UPON PASSAGE] IC 6-1.1-22-8, as
amended by this act, applies only to statements prepared and
mailed for property taxes and special assessments first due and
payable after December 31, 2004.
SOURCE: ; (04)IN1005.1.10. -->
SECTION 10.
An emergency is declared for this act.