2016 Indiana Legislative Update

indiana legislative update

2018 Edition  |  Table of Contents
 

Tax Sales 
By Donna L. Niesen, CPA and Chad Miller 

Affected Code Section: Ind. Code § 6-1.1-4-14 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 392 § 4
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code § 6-1.1-4-14.1 (addition)
Effective Date: July 1, 2018
Enacted By: Senate Bill 392 § 5
Explanation: Applies to land to which Ind. Code § 6-1.1-4-14 does not apply. Provides that land may be divided and transferred in equal shares to an adjacent property owner or owners who consent to the transfer of the divided land for no money if: (1) a county, city, or town owns the land that is divided; (2) the divided land has an area that does not exceed three hundred (300) square feet; and (3) the shape and area of the land or divided land indicates that the legal description of the land is in error. Specifies that if such land has not been transferred by deed to a person who holds the land adjacent to the land, the land shall be assessed equally to the owner or owners of the adjacent parcel or parcels. However, the assessed value of the adjacent parcel or parcels shall be adjusted to reflect the assessed value attributable to the adjacent parcel or parcels. If an assessor and an adjacent property owner fail to agree on the area of the land that the assessor assesses, the assessor shall have the county surveyor make a survey. The assessor shall use the results of the survey to adjust the assessed value of the land assessed to the adjacent parcel owner or owners.

Affected Code Section: Ind. Code § 6-1.1-23.9-0.5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1320 § 1
Explanation: Provides that, except as otherwise provided, the definitions in this chapter apply throughout this chapter, Ind. Code Chapter 6-1.1-24, Ind. Code Chapter 6-1.1-24.5, and Ind. Code Chapter 6-1.1-25.

Affected Code Section: Ind. Code § 6-1.1-23.9-1 (addition)
Effective Date: July 1, 2018
Enacted By: Senate Bill 296 § 1
Explanation: Defines “county executive” as the following: (1) In a county not containing a consolidated city, the county executive or the county executive’s designee. (2) In a county containing a consolidated city, the executive of the consolidated city. Defines “necessary repairs” as repairs or abatements of a vacant or abandoned property that are determined by an enforcement authority to be necessary under Ind. Code Chapter 36-7-9. Defines “substantial property interest of public record” as title to or interest in a tract possessed by a person and recorded in the office of a county recorder or available for public inspection in the office of a circuit court clerk no later than the hour and date a sale is scheduled to commence under Ind. Code Chapter 6-1.1-24. Provides that the term does not include a lien held by the state or a political subdivision.

Affected Code Section: Ind. Code § 6-1.1-23.9-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1320 § 2
Explanation: Amends the definition of “substantial property interest of public record” for purposes of the tax sale statutes to specify that the term means title to or interest in a tract that is within the tract’s chain of record title and (1) possessed by a person and (2) either (A) recorded or (B) available for public inspection and properly indexed in the county in which the tract is located. Provides that for purposes of Ind. Code Chapter 6-1.1-24 and Ind. Code Chapter 6-1.1-25 only, chain of record title includes instruments executed by the owner within the five (5) day period before the date the owner acquires title to the tract.

Affected Code Section: Ind. Code § 6-1.1-24-1.4 (addition)
Effective Date: July 1, 2018
Enacted By: Senate Bill 296 § 2
Explanation: Applies to real property that is on an executive’s certified list of vacant and abandoned property established under Ind. Code § 6-1.1-24-1.5(a). Provides that the executive of a county, city, or town may submit to the county auditor copies of one (1) or more orders for necessary repairs for any property on the executive’s certified list of vacant or abandoned property. Provides that an executive of a county, city, or town that submits orders for necessary repairs to the county auditor shall make information about the necessary repairs available to the public, upon request or otherwise, at least forty (40) days before the sale conducted under Ind. Code § 6-1.1-24-1.5. Specifies that if the executive of a county, city, or town submits a copy of an order for necessary repairs for a vacant or abandoned property to the county auditor and makes the information about the necessary repairs available to the public, a successful bidder for the vacant or abandoned property at a tax sale takes the successful bidder’s interest in the vacant or abandoned property subject to the order for necessary repairs for the vacant or abandoned property. Provides that if a tax deed for a vacant or abandoned property has been issued to a successful bidder and there is an order for necessary repairs for the vacant or abandoned property, the enforcement authority with jurisdiction may enforce the order for necessary repairs under Ind. Code Chapter 36-7-9 against the successful bidder.

Affected Code Section: Ind. Code § 6-1.1-24-1.5 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 296 § 3
Explanation: Deletes the definition of “county executive.” Provides that the executive of the county, city, or town may, after providing required notice, certify a list of vacant or abandoned property to the county auditor and attach copies of any orders for necessary repairs for any properties on the list. Provides that tax sale notices must contain, among other things, a statement for informational purposes only, describing for each item of real property on the list: (A) the location of the item of real property by key number, if any, and street address, if any, or a common description of the property other than a legal description; (B) whether there are one (1) or more orders to make necessary repairs on the real property; and (C) where information can be found regarding the orders to make necessary repairs for the real property, if any. Provides that if the property is not sold at the initial tax sale, the county auditor may omit the information on orders to make necessary repairs from its subsequent notice of sale if specific conditions exist.

Affected Code Section: Ind. Code § 6-1.1-24-1.9 (deletion)
Effective Date: July 1, 2018
Enacted By: Senate Bill 296 § 4
Explanation: Repeals the section defining “substantial property interest of public record.”

Affected Code Section: Ind. Code § 6-1.1-24-6.1 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 392 § 6
Explanation: Provides that, in a tax sale, a county executive may include any costs directly attributable to the county, as opposed to the costs to the county executive, in the price for the sale of a certificate of sale.

Affected Code Section: Ind. Code § 6-1.1-24.5-1 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 296 § 5
Explanation: Deletes reference to the definition of “substantial property interest of public record” in Ind. Code § 6-1.1-24-1.9, which was repealed.

Affected Code Section: Ind. Code § 6-1.1-25-2 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1320 § 3
Explanation: Eliminates the requirement that if property is not redeemed under Ind. Code § 6-1.1-25-4(c), a person that redeems property sold in a tax sale must pay an amount equal to the amounts prescribed in subsections (b) through (f) plus the amount held in the tax surplus fund at the time of the tax sale. Instead, if property is not redeemed under Ind. Code § 6-1.1-25-4(c), a person that redeems property sold in a tax sale must pay an amount equal to the amounts prescribed in subsections (b) through (f). Continues current law requiring the redeeming party to pay five percent (5%) interest on that money, and makes conforming changes.

Affected Code Section: Ind. Code § 32-21-2-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1320 § 4
Explanation: Revises the requirement that mailing addresses be included in the conveyance for it to be recorded by requiring a specific statement containing substantially the following information: “The mailing address to which statements should be mailed under Ind. Code § 6-1.1-22-8.1 is [insert proper mailing address]. The mailing address of the grantee is [insert proper mailing address].”

 

Connect with Donna 
Donna L. Niesen is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Donna helps keep clients up-to-date on the multitude of tax rules and requirements in all 50 states. She guides them in the right direction as they address complex issues that emerge on the state and local levels.

Connect with Chad 
Chad Miller is the property tax practice leader in KSM’s State and Local Tax Group. Chad has 13 years of Indiana property tax experience, having previously worked in the Hamilton County, Indiana Assessor’s office as a real property appraisal manager.