Citations Affected: IC 6-1.1; IC 6-9; IC 36-2.
January 13, 2009, read first time and referred to Committee on Ways and Means.
February 19, 2009, amended, reported _ Do Pass.
February 23, 2009, read second time, amended, ordered engrossed.
applied if a provisional statement is used two consecutive years. Requires instruments recorded with the county recorder, in certain cases, to identify an individual's name either as it appears in the records of the Social Security Administration or as it appears when the individual signs the individual's name on legal documents. Imposes a civil penalty of 10% of the tax due for a person who wrongly takes a standard deduction or credit. Provides that the county auditor shall prepare and send a notice of taxes due when a standard deduction is wrongly claimed. Permits a county auditor to use delinquent taxes, interest, and penalties collected in response to the termination of a standard deduction to pay for the costs of discovering erroneously granted standard deductions and for other expenses of the office of the county auditor, including the cost of verification notices on tax statements. Makes other changes to reconcile differences in the law related to the enactment of HEA 1001-2008 and HEA 1293-2008.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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.
However, for purposes of a deduction under section 37 of this
chapter, if the removal of the joint owner occurs before the date
that a notice described in IC 6-1.1-22-8.1(b)(9) is sent, the county
auditor may, in the county auditor's discretion, terminate the
deduction if the individual does not comply with the requirement
in IC 6-1.1-22-8.1(b)(9), in 2009, 2010, or 2011, as determined by
the county auditor.
(e) A trust entitled to a deduction under section 9, 11, 13, 14, 16, or
17.4, or 37 of this chapter for real property owned by the trust and
occupied by an individual in accordance with section 17.9 17.9(a) of
this chapter is not required to file a statement to apply for the
deduction, if:
(1) the individual who occupies the real property receives a
deduction provided under section 9, 11, 13, 14, 16, or 17.4, or 37
of this chapter in a particular year; and
(2) the trust remains eligible for the deduction in the following
year.
However, for purposes of a deduction under section 37 of this
chapter, the individuals that qualify the trust for a deduction must
comply with the requirement in IC 6-1.1-22-8.1(b)(9), in 2009,
2010, or 2011, as determined by the county auditor.
(f) A cooperative housing corporation (as defined in 26 U.S.C.
216) that is entitled to a deduction under section 37 of this chapter
in the immediately preceding calendar year for a homestead (as
defined in section 37 of this chapter) is not required to file a
statement to apply for the deduction for the current calendar year
if the cooperative housing corporation remains eligible for the
deduction for the current calendar year. However, the county
auditor may, in the county auditor's discretion, terminate the
deduction if the individuals that qualify the cooperative housing
corporation for a deduction do not comply with the requirement in
IC 6-1.1-22-8.1(b)(9), in 2009, 2010, or 2011, as determined by the
county auditor.
(g) An individual who:
(1) was eligible for a homestead credit under IC 6-1.1-20.9
(repealed) for property taxes imposed for the March 1, 2007,
or January 15, 2008, assessment date; or
(2) would have been eligible for a homestead credit under
IC 6-1.1-20.9 (repealed) for property taxes imposed for the
March 1, 2008, or January 15, 2009, assessment date if
IC 6-1.1-20.9 had not been repealed;
is not required to file a statement to apply for a deduction under
section 37 of this chapter if the individual or entity remains eligible
for the deduction in the current year. An individual who filed for
a homestead credit under IC 6-1.1-20.9 (repealed) for an
assessment date after March 1, 2007 (if the property is real
property), or after January 1, 2008 (if the property is personal
property), shall be treated as an individual who has filed for a
deduction under section 37 of this chapter. However, the county
auditor may, in the county auditor's discretion, terminate the
deduction if the individual who qualifies the property for a
deduction does not comply with the requirement in
IC 6-1.1-22-8.1(b)(9), in 2009, 2010, or 2011, as determined by the
county auditor.
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9(a) of this
chapter that is owned by a trust if the individual is an
individual described in section 17.9(a) of this chapter;
and
(C) that consists of a dwelling and the real estate, not
exceeding one (1) acre, that immediately surrounds that
dwelling.
The term does not include property owned by a corporation,
partnership, limited liability company, or other entity not
described in this subdivision.
(b) Each year an individual who on March 1 of a particular year or,
in the case of a mobile home that is assessed as personal property, the
immediately following January 15, either owns or is buying a
homestead under a contract, recorded in the county recorder's office,
that provides the individual is to pay property taxes on the a homestead
is entitled to eligible for a standard deduction from the assessed value
of the homestead for an assessment date. The deduction provided by
this section applies to property taxes first due and payable for an
assessment date only if an individual has an interest in the
homestead described in subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the person individual or entity qualifying for
the deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) forty-five thousand dollars ($45,000).
2010,
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter
and subject to section 45 of this chapter, an individual who desires
to claim the deduction provided by this section 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 must include:
(1) the parcel number or key number of the property and the
name of the city, town, or township in which the property is
located;
(2) the name of any other location in which the applicant or
the applicant's spouse owns, is buying, or has a beneficial
interest in residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United
States Social Security Administration for the purposes of
the issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign
their names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if
any):
(i) as the names appear in the records of the United
States Social Security Administration for the purposes of
the issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign
their names on legal documents;
if the applicant is not an individual; and
(4) the last five (5) digits of the transferee's Social Security
number and the last five (5) digits of the Social Security
number of the transferee's spouse (if any).
If a form or statement provided to the county auditor under this
section, IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone
number or part or all of the Social Security number of a party, the
telephone number and the Social Security number included is
confidential. The statement may be filed in person or by mail. If the
statement is 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 deduction is allowed. With
respect to real property, the person must file the statement during
the year for which the person desires to obtain the deduction. With
respect to a mobile home that is not assessed as real property, the
person must file the statement during the twelve (12) months
before March 31 of the year for which the person desires to obtain
the deduction. With respect to real property owned by an entity
described in section 17.9(b) of this chapter, the deduction applies
only for the year the deduction application is properly filed and is
not to be carried over to any subsequent year unless a new
application is filed and approved by the county auditor.
(f) If an individual who is receiving the deduction provided by
this section or who otherwise qualifies property for a deduction
under this section:
(1) changes the use of the individual's property so that part or
all of the property no longer qualifies for the deduction under
this section; or
(2) is no longer eligible for a deduction under this section on
another parcel of property because:
(A) the individual would otherwise receive the benefit of
more than one (1) deduction under this chapter; or
(B) the individual maintains the individual's principal
place of residence with another individual who receives a
deduction under this section;
the individual must file a certified statement with the auditor of the
county, notifying the auditor of the change of use, not more than
sixty (60) days after the date of that change. An individual who
fails to file the statement required by this subsection is liable for
any additional taxes that would have been due on the property if
the individual had filed the statement as required by this
subsection plus a civil penalty equal to ten percent (10%) of the
additional taxes due. The civil penalty imposed under this
subsection is in addition to any interest and penalties for a
delinquent payment that might otherwise be due. This amount
becomes part of the property tax liability for purposes of this
article.
(e) (g) The department of local government finance shall adopt rules
or guidelines concerning the application for a deduction under this
section.
(f) (h) This subsection does not apply to property in the first
year for which a deduction is claimed under this section if the sole
reason that a deduction is claimed on other property is that the
individual or married couple maintained a principal residence at
the other property on March 1 in the same year in which an
application for a deduction is filed under this section or, if the
application is for a homestead that is assessed as personal
property, on March 1 in the immediately preceding year and the
individual or married couple is moving the individual's or married
couple's principal residence to the property that is the subject of
the application. The county auditor may not grant an individual or a
married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide
secure access to county auditors to a homestead property data base
that includes access to the homestead owner's name and the last
five (5) digits of the homestead owner's Social Security number for
the sole purpose of verifying whether an owner is wrongly claiming
a deduction under this chapter or a credit under IC 6-1.1-20.4,
IC 6-1.1-20.6, or IC 6-3.5.
in hard copy and electronic form. County assessors, county auditors,
and county treasurers shall make the form available to the general
public. 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
(B) sufficient instructions and information to permit a
party to terminate a standard deduction under section 37
of this chapter on any property on which the party or the
spouse of the party will no longer be eligible for the
standard deduction under section 37 of this chapter after
the party or the party's spouse begins to reside at the
property that is the subject of the closing, including an
explanation of the tax consequences and applicable
penalties, if a party unlawfully claims a standard
deduction under section 37 of this chapter; and
(3) be printed in one (1) of two (2) or more colors 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 closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of the
form.
(e) This subsection applies to a transaction that is closed after
December 31, 2009. In addition to providing the customer the form
described in subsection (c) before closing the transaction, a closing
agent shall do the following as soon as possible after the closing, and
within the time prescribed by the department of insurance under
IC 27-7-3-15.5:
(1) To the extent determinable, input the information described in
IC 27-7-3-15.5(c)(2) into the system maintained by the
department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data
base described in IC 27-7-3-15.5(c)(2)(D).
(e) (f) A closing agent to which this section applies shall document
its the closing agent's compliance with this section with respect to each
transaction in the form of verification of compliance signed by the
customer.
(f) (g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a
civil penalty of twenty-five dollars ($25) for each instance in which the
closing agent fails to comply with this section with respect to a
customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into:
(A) the property tax replacement state general fund, if the
closing agent fails to comply with subsection (b); or
(B) the home ownership education account established by
IC 5-20-1-27, if the closing agent fails to comply with
subsection (e) in a transaction that is closed after December
31, 2009.
(h) A closing agent is not liable for any other damages claimed by
a customer because of:
(1) the closing agent's mere failure to provide the appropriate
document to the customer under subsection (b); or
(2) with respect to a transaction that is closed after December 31,
2009, the closing agent's failure to input the information or
submit the form described in subsection (e).
(g) (i) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
(2) impose and collect penalties under subsection (f). (g).
assessor by or on behalf of the purchaser of a homestead (as
defined in IC 6-1.1-20.9-1) section 37 of this chapter) assessed
as real property;
(2) that is accurate and complete;
(3) that is approved by the county assessor as eligible for filing
with the county auditor; and
(4) that is filed:
(A) as a paper form; or
(B) electronically;
with the county auditor by or on behalf of the purchaser;
constitutes an application for the deductions provided by sections 26,
29, 33, and 34, and 37 of this chapter with respect to property taxes
first due and payable in the calendar year that immediately succeeds
the calendar year referred to in subdivision (1).
(b) Except as provided in subsection (c), if:
(1) the county auditor receives in a calendar year a sales
disclosure form that meets the requirements of subsection (a); and
(2) the homestead for which the sales disclosure form is submitted
is otherwise eligible for a deduction referred to in subsection (a);
the county auditor shall apply the deduction to the homestead for
property taxes first due and payable in the calendar year for which the
homestead qualifies under subsection (a) and in any later year in which
the homestead remains eligible for the deduction.
(c) Subsection (b) does not apply if the county auditor, after
receiving a sales disclosure form from or on behalf of a purchaser
under subsection (a)(4), determines that the homestead is ineligible for
the deduction.
IC 6-3.5-6-13, or another law and each deduction.
(C) (D) 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) (E) The forms that must be filed for an appeal or a petition
described in clause (C). (D).
(F) The procedure and deadline that a taxpayer must
follow and the forms that must be used if a credit or
deduction has been granted for the property and the
taxpayer is no longer eligible for the credit or deduction.
The department of local government finance shall provide the
explanation required by this subdivision to each county treasurer.
(8) A checklist that shows:
(A) the homestead credit credits under IC 6-1.1-20.4,
IC 6-3.5-6-13, or another law and all property tax
deductions; and
(B) whether the each homestead credit and each property tax
deduction applies in the current statement for the property
transmitted under subsection (b). (a).
(9) This subdivision applies to any property for which a
deduction or credit is listed under subdivision (8) if the notice
required under this subdivision was not provided to a
taxpayer on a reconciling statement under IC 6-1.1-22.5-12.
In 2009, 2010, or 2011, as determined by the county auditor,
a notice that must be returned by the taxpayer to the county
auditor with the taxpayer's verification of the items required
by this subdivision. The notice must explain the tax
consequences and applicable penalties if a taxpayer
unlawfully claims a standard deduction under IC 6-1.1-12-37
on:
(A) more than one (1) parcel of property; or
(B) property that is not the taxpayer's principal place of
residence or is otherwise not eligible for the standard
deduction.
The notice must include a place for the taxpayer to indicate,
under penalties of perjury, for each deduction and credit
listed under subdivision (8), whether the property is eligible
for the deduction or credit listed under subdivision (8). The
notice must also include a place for each individual who
qualifies the property for a deduction or credit listed in
subdivision (8) to indicate the name of the individual and the
name of the individual's spouse (if any), as the names appear
in the records of the United States Social Security
Administration for the purposes of the issuance of a Social
Security card and Social Security number (or that they use as
their legal names when they sign their names on legal
documents), and the last five (5) digits of each individual's
Social Security number. The notice must explain that the
taxpayer must complete and return the notice with the
required information and that failure to complete and return
the notice may result in disqualification of property for
deductions and credits listed in subdivision (8), must explain
how to return the notice, and must be on a separate form
printed on paper that is a different color than the tax
statement. The notice must be prepared in the form
prescribed by the department of local government finance and
include any additional information required by the
department of local government finance. This subdivision
expires January 1, 2012.
(d) (c) The county treasurer may mail or transmit the statement 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. If a statement is returned to
the county treasurer as undeliverable and the forwarding order is
expired, the county treasurer shall notify the county auditor of this
fact. Upon receipt of the county treasurer's notice, the county
auditor may, at the county auditor's discretion, treat the property
as not being eligible for any deductions under IC 6-1.1-12 or any
homestead credits under IC 6-1.1-20.4 and IC 6-3.5-6-13.
(e) (d) 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.
(f) (e) The county treasurer, county auditor, and county assessor
shall cooperate to generate the information to be included in the
statement under subsection (c). (b).
deduction; and
(C) an explanation of the tax consequences and applicable
penalties if a taxpayer unlawfully claims a standard
deduction under IC 6-1.1-12-37 on:
(i) more than one (1) parcel of property; or
(ii) property that is not the taxpayer's principal place of
residence or is otherwise not eligible for a standard
deduction; and
(6) (7) include any other information the county treasurer
requires.
(b) The county treasurer may apply a deduction or a homestead
credit to a qualified property on a provisional bill. If a provisional
bill has been used for property tax billings for two (2) consecutive
years and a property qualifies for a deduction or a homestead
credit under IC 6-1.1-20.4 or IC 6-3.5-6-13 for the second year a
provisional bill is used, the county treasurer shall apply the
deductions and homestead credits on the provisional bill.
the:
(1) preparation; and
(2) mailing or transmittal;
of the reconciling statement at least thirty (30) days before the due date
of the second installment specified in the provisional statement, the
county treasurer may request in writing that the department of local
government finance permit the county treasurer to issue a reconciling
statement that adjusts the amount of the second installment that was
specified in the provisional statement. If the department approves the
county treasurer's request, the county treasurer shall prepare and mail
or transmit the reconciling statement at least thirty (30) days before the
due date of the second installment specified in the provisional
statement.
(c) A reconciling statement prepared under subsection (b) must
indicate:
(1) the actual property tax liability under this article on the
assessment determined for the assessment date for the property
for which the reconciling statement is issued;
(2) the total amount of the first installment paid under the
provisional statement for the property for which the reconciling
statement is issued;
(3) if the amount under subdivision (1) exceeds the amount under
subdivision (2), the adjusted amount of the second installment
that is payable by the taxpayer:
(A) as a final reconciliation of the tax liability; and
(B) not later than:
(i) November 10; or
(ii) if the county treasurer requests in writing that the
commissioner designate a later date, the date designated by
the commissioner; and
(4) if the amount under subdivision (2) exceeds the amount under
subdivision (1), that the taxpayer may claim a refund of the excess
under IC 6-1.1-26.
(d) At the election of a county auditor, a checklist required by
IC 6-1.1-22-8.1(b)(8) and a notice required by IC 6-1.1-22-8.1(b)(9)
may be sent to a taxpayer with a reconciling statement under this
section. This subsection expires January 1, 2012.
nonreverting fund, and expenditures from a reverting fund may
not be considered in establishing the budget of the office of the
county auditor or in setting property tax levies that will be used in
any part to fund the office of the county auditor.
records of:
(1) deeds for real estate; and
(2) mortgages on real estate;
in the recorder's office. The recorder shall index each deed or mortgage
alphabetically, by the name of each grantor and grantee or mortgagor
and mortgagee, and shall include in each index entry a concise
description of the real property, the date of the deed or mortgage, and
the number or letter of the book and the page at which each deed or
mortgage is recorded.
of that individual as it appears in the records of the United
States Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security number
(or that they use as their legal names when they sign their
names on legal documents) or identify each individual by the
name of that individual as it appears in the records of the
United States Social Security Administration for the purposes
of the issuance of a Social Security card and Social Security
number (or that they use as their legal names when they sign
their names on legal documents).
(2) (3) The name of each witness to the instrument is legibly
printed, typewritten, or stamped immediately beneath the
signature of the witness or the signature itself is printed,
typewritten, or stamped.
(3) (4) The name of each notary public whose signature appears
on the instrument is legibly printed, typewritten, or stamped
immediately beneath the signature of the notary public or the
signature itself is printed, typewritten, or stamped.
(4) (5) The name of each person who executed the instrument
appears identically in the body of the instrument, in the
acknowledgment or jurat, in the person's signature, and beneath
the person's signature.
(5) (6) If the instrument is a copy, the instrument is marked
"Copy".
(d) The recorder may receive for record an instrument that does not
comply with subsection (c) if all of the following requirements are met:
(1) A printed or typewritten affidavit of a person with personal
knowledge of the facts is recorded with the instrument.
(2) The affidavit complies with this section.
(3) The affidavit states the correct name of a person, if any, whose
signature cannot be identified or whose name is not printed,
typewritten, or stamped on the instrument as prescribed by this
section.
(4) When the instrument does not comply with subsection (c)(4),
the affidavit states the correct name of the person and states that
each of the names used in the instrument refers to the person.
(5) If the instrument is a copy, the instrument is marked "Copy".
(e) The recorder shall record a document presented for recording or
a copy produced by a photographic process of the document presented
for recording if:
(1) the document complies with other statutory recording
requirements; and