Introduced Version
HOUSE BILL No. 1147
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 29-1-7-23; IC 36-2-7-10; IC 36-7-38.
Synopsis: Land banks. Allows a county to adopt an ordinance
requiring every person who wishes to participate in a tax sale as a
bidder to pay a neighborhood investment fee of not more than $150 and
specifies the manner in which neighborhood investment fees collected
are to be distributed to land banks. Allows a county to adopt an
ordinance to impose, in addition to the 5% penalty for delinquent real
property taxes, an additional penalty of not more than 3% for a total
penalty that may not exceed 8% of the amount of delinquent real
property taxes (additional penalty ordinance). Exempts delinquent tax
payments attributable to real property receiving the homestead standard
deduction for the most recent assessment date from an additional
penalty ordinance. Specifies the manner in which the amounts collected
attributable to an additional penalty ordinance are to be distributed to
land banks. Allows a county to adopt an ordinance imposing a $15 fee
for each document recorded on a tract located in the territory of a land
bank and specifies the manner in which the fee is be distributed to land
banks. Makes various changes to the statutes governing land banks that
concern certain land bank powers, objectives, and duties. Provides that
a majority of the directors of a land bank's board must have
demonstrated competency in an occupation or discipline that is relevant
to the primary purpose of a land bank. Allows a land bank to establish
advisory committees composed of specified community members to
consult with and advise the land bank on: (1) properties within the
territory of the land bank that are imposing the greatest harm on
residents and neighborhoods; (2) resident and neighborhood priorities
for new uses of land bank properties; and (3) options for potential
(Continued next page)
Effective: July 1, 2023.
Errington, Bauer M
January 10, 2023, read first time and referred to Committee on Local Government.
2023 IN 1147—LS 6884/DI 129 Digest Continued
transferees of land bank properties. Provides, subject to certain
limitations, that a land bank may use an interlocal agreement to
establish processes to improve the quality of title and marketability of
property the land bank owns by extinguishing any liens that exist on the
property. Provides that, if a land bank enters into an interlocal
agreement, any employees of an eligible unit who may be contracted
to provide staffing services to the land bank pursuant to the interlocal
agreement retain their status as public employees of the eligible unit.
Requires a county executive to provide a land bank in the county with
a list of tracts located in the territory of the land bank that: (1) are
delinquent on property taxes; and (2) have been offered for public sale
at least two times and remain unsold; on an annual basis. Specifies that
list must be provided to the land bank within 60 days after the end of
the last tax sale for which the tracts went unsold. Allows the county
executive to transfer its interest in a tract on the list to a land bank if
requested by the land bank not later than 90 days after it receives the
list.
2023 IN 1147—LS 6884/DI 1292023 IN 1147—LS 6884/DI 129 Introduced
First Regular Session of the 123rd General Assembly (2023)
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 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1147
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-24-5.7, AS ADDED BY P.L.66-2021,
2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 5.7. (a) The county treasurer shall require each
4 person who will be bidding at the tax sale to sign a statement in a form
5 substantially similar to the following:
6 "Indiana law prohibits a person who owes delinquent taxes,
7 special assessments, penalties, interest, or costs directly
8 attributable to a prior tax sale of a tract or item of real property
9 listed under IC 6-1.1-24-1 from bidding on or purchasing tracts or
10 items of real property at a tax sale. I hereby affirm under the
11 penalties for perjury that I do not owe delinquent taxes, special
12 assessments, penalties, interest, costs directly attributable to a
13 prior tax sale, amounts from a final adjudication in favor of a
14 political subdivision, any civil penalties imposed for the violation
15 of a building code or county ordinance, or any civil penalties
2023 IN 1147—LS 6884/DI 129 2
1 imposed by a county health department. I also affirm that I am not
2 purchasing tracts or items of real property on behalf of or as an
3 agent for a person who is prohibited from purchasing at a tax sale.
4 Further, I hereby acknowledge that any successful bid I make in
5 violation of this statement is subject to forfeiture. In the event of
6 forfeiture, the amount by which my bid exceeds the minimum bid
7 on the tract or item or real property under IC 6-1.1-24-5(e), if any,
8 shall be applied to the delinquent taxes, special assessments,
9 penalties, interest, costs, judgments, or civil penalties I owe, and
10 a certificate will be issued to the county executive. I further
11 acknowledge that a person who knowingly or intentionally
12 provides false information on this affidavit commits perjury, a
13 Level 6 felony.".
14 (b) If a person purchases real property that the person was not
15 eligible to purchase under section 5.1, 5.3, or 5.4 of this chapter, the
16 sale of the real property is subject to forfeiture. If the county treasurer
17 determines or is notified not more than forty-five (45) days after the
18 date of the sale that the sale of the real property should be forfeited, the
19 county treasurer shall:
20 (1) not more than five (5) days after the county treasurer is
21 notified, notify the person in writing by first class mail that the
22 sale is subject to forfeiture if the person does not pay the amounts
23 the person owes within fifteen (15) days of the date the written
24 notice is mailed;
25 (2) if the person does not meet the conditions described in
26 subdivision (1) within fifteen (15) days after the written notice is
27 mailed, apply the surplus amount of the person's bid, if any, to the
28 delinquent taxes, special assessments, penalties, and interest on
29 the real property;
30 (3) remit the amounts owed from a final adjudication or civil
31 penalties in favor of a political subdivision to the political
32 subdivision;
33 (4) notify the county auditor that the sale has been forfeited; and
34 (5) file with the county recorder a certification identifying the
35 forfeited sale that includes:
36 (A) the date of the sale;
37 (B) the name of the buyer;
38 (C) the property identification number of the real property;
39 (D) the real property's legal description; and
40 (E) a statement that the sale has been forfeited and is null and
41 void because the buyer was not eligible to purchase the real
42 property.
2023 IN 1147—LS 6884/DI 129 3
1 Upon being notified that a sale has been forfeited, the county auditor
2 shall issue a certificate to the county executive under section 6 of this
3 chapter.
4 (c) A county treasurer may decline to forfeit a sale under this section
5 because of inadvertence or mistake, lack of actual knowledge by the
6 bidder, substantial harm to other parties with interests in the real
7 property, or other substantial reasons. If the treasurer declines to forfeit
8 a sale, the treasurer shall:
9 (1) prepare a written statement explaining the reasons for
10 declining to forfeit the sale;
11 (2) retain the written statement as an official record; and
12 (3) file with the county recorder a certification that includes:
13 (A) the date of the sale;
14 (B) the name of the buyer;
15 (C) the property identification number of the real property;
16 (D) the real property's legal description; and
17 (E) a statement that the sale has not been forfeited and is valid.
18 (d) If a sale is forfeited under this section and the tract or item of
19 real property is redeemed from the sale, the county auditor shall deposit
20 the amount of the redemption into the county general fund and notify
21 the county executive of the redemption. Upon being notified of the
22 redemption, the county executive shall surrender the certificate to the
23 county auditor.
24 (e) If a county treasurer does not take action under subsection (b)
25 within forty-five (45) days of the date the county treasurer determines
26 or is notified that a sale should be forfeited, the person is deemed to be
27 an eligible purchaser for that sale of that real property.
28 (f) If a tax deed is issued for real property under IC 6-1.1-25-4, this
29 section cannot be invoked to invalidate, rescind, or set aside the tax
30 deed.
31 (g) If a county has adopted an ordinance under section 16.5 of
32 this chapter authorizing the imposition of a neighborhood
33 investment fee to participate in a tax sale as a bidder, the
34 neighborhood investment fee is not refundable if a sale of real
35 property is forfeited under this section.
36 SECTION 2. IC 6-1.1-24-16.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2023]: Sec. 16.5. (a) This section applies to all
39 counties in which there is at least one (1) land bank established in
40 the county.
41 (b) As used in this section, "land bank" has the meaning set
42 forth in IC 36-7-38-1(3).
2023 IN 1147—LS 6884/DI 129 4
1 (c) The county fiscal body may adopt an ordinance requiring
2 every person who wishes to participate in a tax sale as a bidder to
3 pay a neighborhood investment fee of not more than one hundred
4 fifty dollars ($150).
5 (d) A county fiscal body that has adopted an ordinance under
6 subsection (c) that is in effect in the county may rescind the
7 ordinance adopted under subsection (c).
8 (e) An ordinance adopted under this section is effective on
9 January 1 of the year immediately following the year in which the
10 ordinance is adopted.
11 (f) If a county fiscal body adopts an ordinance to require the
12 payment of a neighborhood investment fee, the payment of the
13 neighborhood investment fee is in addition to any other fees or
14 charges a county may impose for registering to bid at a tax sale.
15 The neighborhood investment fee is not refundable if a sale of real
16 property is forfeited under section 5.7 of this chapter.
17 (g) The county treasurer shall distribute the proceeds collected
18 from the neighborhood investment fee semiannually to a land bank
19 located in the county. If there is more than one (1) land bank
20 established within a county, the county treasurer shall
21 semiannually distribute the proceeds collected from the
22 neighborhood investment fee to a land bank in an amount
23 proportional to the population of the territory of each land bank as
24 it bears to the total population in the county.
25 SECTION 3. IC 6-1.1-37-10, AS AMENDED BY P.L.95-2021,
26 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2023]: Sec. 10. (a) If property taxes due and payable are not
28 completely paid on or before the due date, a penalty shall be added to
29 the unpaid portion in the year of the initial delinquency. The penalty is
30 equal to an amount determined as follows:
31 (1) If:
32 (A) subject to subsection (g), the real property taxes due and
33 payable are completely paid on or before the date thirty (30)
34 days after the due date; and
35 (B) the taxpayer is not liable for:
36 (i) delinquent property taxes first due and payable in a
37 previous tax payment for the same parcel; or
38 (ii) a penalty that is owed from a previous tax payment for
39 the same parcel;
40 the amount of the penalty is equal to five percent (5%) of the
41 amount of delinquent taxes. However, for a county in which an
42 ordinance adopted under section 10.2 of this chapter is in
2023 IN 1147—LS 6884/DI 129 5
1 effect in the county, the amount of the penalty imposed under
2 this subdivision is equal to five percent (5%) plus the
3 additional amount set forth in the ordinance adopted under
4 section 10.2 of this chapter.
5 (2) If:
6 (A) subject to subsection (g), personal property taxes due and
7 payable are not completely paid on or before the date thirty
8 (30) days after the due date; and
9 (B) the taxpayer is not liable for:
10 (i) delinquent property taxes first due and payable in a
11 previous tax payment for a personal property tax return for
12 property in the same taxing district; or
13 (ii) a penalty that is owed from a previous tax payment;
14 the amount of the penalty is equal to five percent (5%) of the
15 amount of delinquent taxes.
16 (3) If subdivision (1) or (2) does not apply, the amount of the
17 penalty is equal to ten percent (10%) of the amount due and
18 payable as of the tax date.
19 A payment received under this subsection shall be applied first to the
20 delinquent tax amount and then to any associated penalties. For a
21 county in which an ordinance adopted under section 10.2 of this
22 chapter is in effect in the county, the additional penalty amount
23 collected under subdivision (1) shall be distributed as provided in
24 section 10.2(g) of this chapter.
25 (b) With respect to property taxes due in two (2) equal installments
26 under IC 6-1.1-22-9(a), on the day immediately following the due dates
27 of the first and second installments in each year following the year of
28 the initial delinquency, an additional penalty equal to ten percent (10%)
29 of any taxes remaining unpaid shall be added. With respect to property
30 taxes due in installments under IC 6-1.1-22-9.5, an additional penalty
31 equal to ten percent (10%) of any taxes remaining unpaid shall be
32 added on the day immediately following each date that succeeds the
33 last installment due date by:
34 (1) six (6) months; or
35 (2) a multiple of six (6) months.
36 (c) The penalties under subsection (b) are imposed only on the
37 principal amount of the delinquent taxes.
38 (d) If the department of local government finance determines that
39 an emergency has occurred which precludes the mailing of the tax
40 statement in any county at the time set forth in IC 6-1.1-22-8.1, the
41 department shall establish by order a new date on which the installment
42 of taxes in that county is due and no installment is delinquent if paid by
2023 IN 1147—LS 6884/DI 129 6
1 the date so established.
2 (e) If any due date falls on a Saturday, a Sunday, a national legal
3 holiday recognized by the federal government, or a statewide holiday,
4 the act that must be performed by that date is timely if performed by
5 the next succeeding day that is not a Saturday, a Sunday, or one (1) of
6 those holidays.
7 (f) Subject to subsections (h) and (i), a payment to the county
8 treasurer is considered to have been paid by the due date if the payment
9 is:
10 (1) received on or before the due date by the county treasurer or
11 a collecting agent appointed by the county treasurer;
12 (2) deposited in United States first class mail:
13 (A) properly addressed to the principal office of the county
14 treasurer;
15 (B) with sufficient postage; and
16 (C) postmarked by the United States Postal Service as mailed
17 on or before the due date;
18 (3) deposited with a nationally recognized express parcel carrier
19 and is:
20 (A) properly addressed to the principal office of the county
21 treasurer; and
22 (B) verified by the express parcel carrier as:
23 (i) paid in full for final delivery; and
24 (ii) received by the express parcel carrier on or before the
25 due date;
26 (4) deposited to be mailed through United States registered mail,
27 United States certified mail, or United States certificate of
28 mailing:
29 (A) properly addressed to the principal office of the county
30 treasurer;
31 (B) with sufficient postage; and
32 (C) with a date of registration, certification, or certificate, as
33 evidenced by any record authenticated by the United States
34 Postal Service, on or before the due date;
35 (5) deposited in United States first class mail:
36 (A) properly addressed to the principal office of the county
37 treasurer;
38 (B) with sufficient metered postage from a meter postage
39 provider approved by the United States Postal Service; and
40 (C) with a postage meter stamp affixed to the envelope that
41 must bear the actual date the postage meter stamp was affixed
42 to the envelope, which must be on or before the due date;
2023 IN 1147—LS 6884/DI 129 7
1 and the payment is received by the county treasurer not later than
2 five (5) business days after the due date; or
3 (6) made by an electronic funds transfer and the taxpayer's bank
4 account is charged on or before the due date.
5 (g) As used in this subsection, "initial penalty period" means the
6 period after the due date and not later than thirty (30) days after the due
7 date. A person who makes a payment within the initial penalty period
8 is subject to a penalty equal to five percent (5%) of the amount of the
9 delinquent taxes as provided in subsection (a)(1) or (a)(2). However,
10 for a county in which an ordinance adopted under section 10.2 of
11 this chapter is in effect in the county, the amount of the penalty
12 imposed under subsection (a)(1) is equal to five percent (5%) plus
13 the additional amount set forth in the ordinance adopted under
14 section 10.2 of this chapter. A payment to the county treasurer is
15 considered to have been paid within the initial penalty period and
16 subject to the five percent (5%) penalty or, in the case of subsection
17 (a)(1), five percent (5%) plus the additional amount set forth in the
18 ordinance adopted under section 10.2 of this chapter if the payment
19 is:
20 (1) received within the penalty period by the county treasurer or
21 a collecting agent appointed by the county treasurer;
22 (2) deposited in United States first class mail:
23 (A) properly addressed to the principal office of the county
24 treasurer;
25 (B) with sufficient postage; and
26 (C) postmarked by the United States Postal Service as mailed
27 on or before the thirtieth day after the due date;
28 (3) deposited with a nationally recognized express parcel carrier
29 and is:
30 (A) properly addressed to the principal office of the county
31 treasurer; and
32 (B) verified by the express parcel carrier as:
33 (i) paid in full for final delivery; and
34 (ii) received by the express parcel carrier on or before the
35 thirtieth day after the due date;
36 (4) deposited to be mailed through United States registered mail,
37 United States certified mail, or United States certificate of
38 mailing:
39 (A) properly addressed to the principal office of the county
40 treasurer;
41 (B) with sufficient postage; and
42 (C) with a date of registration, certification, or certificate, as
2023 IN 1147—LS 6884/DI 129 8
1 evidenced by any record authenticated by the United States
2 Postal Service, on or before the thirtieth day after the due date;
3 or
4 (5) deposited in United States first class mail:
5 (A) properly addressed to the principal office of the county
6 treasurer;
7 (B) with sufficient metered postage from a meter postage
8 provider approved by the United States Postal Service; and
9 (C) with a postage meter stamp affixed to the envelope that
10 must bear the actual date the postage meter stamp was affixed
to the envelope, which must be on or before 11 the thirtieth day
12 after the due date;
13 and the payment is received by the county treasurer not later than
five (5) business days 14 after the thirtieth day after the due date.
15 (h) As used in this subsection, "initial penalty period" has the
16 meaning set forth in subsection (g). If a payment is mailed through the
17 United States mail and is physically received after the due date or after
18 the initial penalty period without a legible correct postmark, the person
19 who mailed the payment is considered to have made the payment:
20 (1) on or before the due date if the person can show by reasonable
21 evidence that the payment was deposited in the United States mail
22 on or before the due date; or
23 (2) within the initial penalty period, if the person can show by
24 reasonable evidence that the payment was deposited in the United
25 States mail on or before the thirtieth day after the due date.
26 (i) As used in this subsection, "initial penalty period" has the
27 meaning set forth in subsection (g). This section applies if a payment
28 is sent via the United States mail or a nationally recognized express
29 parcel carrier but is not received by the designated recipient, the person
30 who sent the payment is considered to have made the payment:
31 (1) on or before the due date if the person:
32 (A) can show by reasonable evidence that the payment was
33 deposited in the United States mail, or with the express parcel
34 carrier, on or before the due date; and
35 (B) makes a duplicate payment within thirty (30) days after the
36 date the person is notified that the payment was not received;
37 or
38 (2) within the initial penalty period, if the person:
39 (A) can show by reasonable evidence that the payment was
40 deposited in the United States mail, or with the express parcel
41 carrier, on or before the thirtieth day after the due date; and
42 (B) makes a duplicate payment within thirty (30) days after the
2023 IN 1147—LS 6884/DI 129 9
1 date the person is notified that the payment was not received.
2 SECTION 4. IC 6-1.1-37-10.2 IS ADDED TO THE INDIANA
3 CODE AS A NEW SECTION TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2023]: Sec. 10.2. (a) This section applies to all
5 counties in which there is at least one (1) land bank established in
6 the county.
7 (b) As used in this section, "land bank" has the meaning set
8 forth in IC 36-7-38-1(3).
9 (c) Subject to subsection (d), a county fiscal body may adopt an
10 ordinance to impose, in addition to the five percent (5%) penalty
11 set forth in section 10(a)(1) of this chapter for delinquent real
12 property taxes, an additional penalty of not more than three
13 percent (3%) for a total penalty that may not exceed eight percent
14 (8%) of the amount of delinquent taxes.
15 (d) The county fiscal body may not impose the additional
16 penalty described in subsection (c) on delinquent real property tax
17 payments that are attributable to real property receiving a
18 homestead standard deduction under IC 6-1.1-12-37 for the most
19 recent assessment date.
20 (e) A county fiscal body that has adopted an ordinance under
21 subsection (c) that is in effect in the county may rescind the
22 ordinance adopted under subsection (c).
23 (f) An ordinance adopted under this section is effective on
24 January 1 of the year immediately following the year in which the
25 ordinance is adopted.
26 (g) Notwithstanding section 12 of this chapter, IC 6-1.1-22-9(f),
27 or any other law, if an ordinance adopted under subsection (c) is in
28 effect in a county, the county treasurer shall do the following:
29 (1) For a county in which there is only one (1) land bank,
30 quarterly distribute the additional penalty authorized under
31 this section to the land bank.
32 (2) For a county in which there is more than one (1) land
33 bank, quarterly distribute the additional penalty authorized
34 under this section to each land bank in an amount
35 proportional to the population of the territory of each land
36 bank as it bears to the total population in the county.
37 SECTION 5. IC 29-1-7-23, AS AMENDED BY P.L.26-2022,
38 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2023]: Sec. 23. (a) When a person dies, the person's real and
40 personal property passes to persons to whom it is devised by the
41 person's last will or, in the absence of such disposition, to the persons
42 who succeed to the person's estate as the person's heirs; but it shall be
2023 IN 1147—LS 6884/DI 129 10
1 subject to the possession of the personal representative and to the
2 election of the surviving spouse and shall be chargeable with the
3 expenses of administering the estate, the payment of other claims and
4 the allowances under IC 29-1-4-1, except as otherwise provided in
5 IC 29-1.
6 (b) A person may sign and record an affidavit to establish prima
7 facie evidence of the passage of real estate title to distributees under
8 this section. An affidavit under this section may contain the following
9 information:
10 (1) The decedent's name and date of death.
11 (2) A statement of the affiant's relationship to the decedent.
12 (3) A description of how the following deeds or other instruments
13 vested in the decedent an ownership or leasehold interest in real
14 property, with a cross-reference if applicable, under
15 IC 36-2-7-10(l) IC 36-2-7-10(m) to each deed or other
16 instrument:
17 (A) Deeds or other instruments recorded in the office of the
18 recorder where the real property is located.
19 (B) Deeds or other instruments that disclose a title transaction
20 (as defined in IC 32-20-2-7).
21 (4) The legal description of the conveyed real property as it
22 appears in instruments described in subdivision (3).
23 (5) The names of all distributees known to the affiant.
24 (6) An explanation of how each interest in the real property
25 passed upon the decedent's death to each distributee by:
26 (A) intestate succession under IC 29-1-2-1; or
27 (B) the decedent's last will and testament that has been
28 admitted to probate under section 13 of this chapter, with
29 references to:
30 (i) the name and location of the court that issued the order
31 admitting the will to probate; and
32 (ii) the date when the court admitted the decedent's will to
33 probate.
34 (7) An explanation of how any fractional interests in the real
35 property that may have passed to multiple distributees were
36 calculated and apportioned.
37 (c) Upon presentation of an affidavit described in subsection (b), the
38 auditor of the county where the real property described in the affidavit
39 is located must endorse the affidavit as an instrument that is exempt
40 from the requirements to file a sales disclosure form and must enter the
41 names of the distributees shown on the affidavit on the tax duplicate on
42 which the real property is transferred, assessed, and taxed under
2023 IN 1147—LS 6884/DI 129 11
1 IC 6-1.1-5-7. After December 31, 2023, an auditor may not refuse to
2 endorse an affidavit because the affidavit is an electronic document.
3 (d) Upon presentation of an affidavit described in subsection (b), the
4 recorder of the county where the real property described in the affidavit
5 is located must:
6 (1) record the affidavit; and
7 (2) index the affidavit as the most recent instrument responsible
8 for the transfer of the real property described in subsection (b)(4).
9 (e) Any person may rely upon an affidavit recorded with the county
10 recorder:
11 (1) made in good faith; and
12 (2) under this section;
13 as prima facie evidence of an effective transfer of the decedent's title
14 to the real property interest under subsection (a) to the distributee
15 described in the affidavit.
16 (f) If:
17 (1) at least seven (7) months have elapsed since the decedent's
18 death;
19 (2) the clerk of the court described in subsection (b)(6)(B) has not
20 issued letters testamentary or letters of administration to the court
21 appointed personal representative for the decedent within the time
22 limits specified under section 15.1(d) of this chapter; and
23 (3) the court described in subsection (b)(6)(B) has not issued
24 findings and an accompanying order preventing the limitations in
25 section 15.1(b) of this chapter from applying to the decedent's real
26 property;
27 any person may rely upon the affidavit described in subsection (e) as
28 evidence that the real property may not be sold by an executor or
29 administrator of the decedent's estate to pay a debt or obligation of the
30 decedent, which is not a lien of record in the county in which the real
31 property is located, or to pay any costs of administration of the
32 decedent's estate.
33 SECTION 6. IC 36-2-7-10, AS AMENDED BY P.L.19-2021,
34 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2023]: Sec. 10. (a) The following definitions apply to this
36 section:
37 (1) "Copy" means:
38 (A) transcribing or duplicating a document by handwriting,
39 photocopy, xerography, or duplicating machine;
40 (B) duplicating electronically stored data onto a disk, tape,
41 drum, or any other means of electronic data storage; or
42 (C) reproducing a document by any other means.
2023 IN 1147—LS 6884/DI 129 12
1 (2) "Mortgage" means a transfer of rights to real property, in a
2 form substantially similar to that set forth in IC 32-29-1-5, with or
3 without warranty from the grantor. The term does not include:
4 (A) a mortgage modification;
5 (B) a mortgage assignment; or
6 (C) a mortgage release.
7 (3) "Multiple transaction document" means a document
8 containing two (2) or more transactions of the same type.
9 (4) "Record" or "recording" means the act of placing a document
into the official records of the county recorder and 10 includes the
11 functions of filing and filing for record.
12 (b) The county recorder shall charge and collect the fees prescribed
13 by this section for recording, filing, copying, and other services the
14 recorder renders, and shall pay them into the county treasury at the end
15 of each calendar month. The fees prescribed and collected under this
16 section supersede all other recording fees required by law to be charged
17 for services rendered by the county recorder.
18 (c) The county recorder shall charge the following:
19 (1) Twenty-five dollars ($25) for recording any deed or other
20 instrument, other than a mortgage.
21 (2) Fifty-five dollars ($55) for recording any mortgage.
22 (3) For pages larger than eight and one-half (8 1/2) inches by
23 fourteen (14) inches twenty-five dollars ($25) for the first page
24 and five dollars ($5) for each additional page of any document the
25 recorder records, if the pages are larger than eight and one-half (8
26 1/2) inches by fourteen (14) inches.
27 (4) If the county recorder has elected to attest to the release,
28 partial release, or assignment of any mortgage, judgment, lien, or
29 oil and gas lease contained on a multiple transaction document,
30 the fee for each transaction after the first is seven dollars ($7) plus
31 the amount provided in subdivision (1).
32 (5) For furnishing copies of records, the fee for each copy is:
33 (A) one dollar ($1) per page that is not larger than eleven (11)
34 inches by seventeen (17) inches; and
35 (B) five dollars ($5) per page that is larger than eleven (11)
36 inches by seventeen (17) inches.
37 (6) Five dollars ($5) for acknowledging or certifying to a
38 document.
39 (7) A fee in an amount authorized by an ordinance adopted by the
40 county legislative body for duplicating a computer tape, a
41 computer disk, an optical disk, microfilm, or similar media. This
42 fee may not cover making a handwritten copy or a photocopy or
2023 IN 1147—LS 6884/DI 129 13
1 using xerography or a duplicating machine.
2 (8) Twenty-five dollars ($25) per parcel for recording the release
3 of a lien or liens of a political subdivision for a property sold or
4 transferred under IC 6-1.1-24-6.1 or IC 36-1-11, regardless of the
5 number of liens held by the political subdivision. This fee applies
6 to each political subdivision with a lien or liens on a parcel. In
7 addition to the fee under this subdivision, if a county fiscal body
8 adopts a fee under section 10.7 of this chapter, the county
9 recorder may charge the fee under section 10.7 of this chapter for
10 each document recorded by a political subdivision under this
11 subdivision.
12 (9) This subdivision applies in a county only if at least one (1)
13 unit in the county has established an affordable housing fund
14 under IC 5-20-5-15.5 and the county fiscal body adopts an
15 ordinance authorizing the fee described in this subdivision. An
16 ordinance adopted under this subdivision may authorize the
17 county recorder to charge a fee of ten dollars ($10) for each
18 document the recorder records.
19 (10) This subdivision applies in a county containing a
20 consolidated city that has established a housing trust fund under
21 IC 36-7-15.1-35.5(e). This subdivision does not apply if the
22 county fiscal body adopts a fee under section 10.7 of this chapter.
23 The county fiscal body may adopt an ordinance authorizing the
24 fee described in this subdivision. An ordinance adopted under this
25 subdivision may authorize the county recorder to charge a fee of:
26 (A) two dollars and fifty cents ($2.50) for the first page; and
27 (B) one dollar ($1) for each additional page;
28 of each document the recorder records.
29 (11) This subdivision applies in a county where an eligible unit
30 (as defined in IC 36-7-38-1(2)) has established a land bank
31 under IC 36-7-38-2. The county fiscal body may adopt an
32 ordinance authorizing the fee described in this subdivision. An
33 ordinance adopted under this subdivision may authorize the
34 county recorder to charge a fee of fifteen dollars ($15) for
35 each document recorded on a tract located in the territory of
36 a land bank.
37 (d) This subsection does not apply in a county containing a
38 consolidated city. Section 10.5 of this chapter applies to the deposit of
39 fees collected under subsection (c)(1) and (c)(8) in a county containing
40 a consolidated city. The county recorder shall deposit the fees collected
41 under subsection (c)(1) and (c)(8) as follows:
42 (1) Eight dollars ($8) in the county general fund.
2023 IN 1147—LS 6884/DI 129 14
1 (2) Five dollars ($5) in the county surveyor's corner perpetuation
2 fund for use as provided under IC 21-47-3-3 or IC 36-2-12-11(e).
3 (3) Ten dollars ($10) in the county recorder's records perpetuation
4 fund established under subsection (f).
5 (4) One dollar ($1) in the county identification security protection
6 fund established under IC 36-2-7.5-11.
7 (5) One dollar ($1) in the county elected officials training fund
8 under IC 36-2-7-19.
9 (e) This subsection does not apply in a county containing a
10 consolidated city. Section 10.5 of this chapter applies to the deposit of
11 fees collected under subsection (c)(2) in a county containing a
12 consolidated city. The county recorder shall deposit the fees collected
13 under subsection (c)(2) as follows:
14 (1) Thirty-four dollars ($34) in the county general fund.
15 (2) Five dollars ($5) in the county surveyor's corner perpetuation
16 fund for use as provided under IC 21-47-3-3 or IC 36-2-12-11(e).
17 (3) Eleven dollars and fifty cents ($11.50) in the county recorder's
18 records perpetuation fund established under subsection (f).
19 (4) Two dollars and fifty cents ($2.50) with the county treasurer
20 to be distributed in accordance with IC 24-9-9-3 and IC 24-9-9-4.
21 (5) One dollar ($1) in the county identification security protection
22 fund established under IC 36-2-7.5-11.
23 (6) One dollar ($1) in the county elected officials training fund
24 under IC 36-2-7-19.
25 (f) The county treasurer shall establish a county recorder's records
26 perpetuation fund. The fund consists of all fees collected under this
27 section for deposit in the fund and amounts transferred to the fund from
the county identification security protection fund under IC 36-2-7.5-11.28
29 Except as provided in section 10.2 of this chapter, the county recorder
30 may use any money in this fund without appropriation for:
31 (1) the preservation of records; and
32 (2) the improvement of record keeping systems and equipment;
33 within the control of the county recorder. Money from the fund may not
34 be deposited or transferred into the county general fund and does not
35 revert to the county general fund at the end of a fiscal year.
36 (g) The county recorder shall post the fees set forth in subsection (c)
37 in a prominent place within the county recorder's office where the fee
38 schedule will be readily accessible to the public.
39 (h) The county recorder may not charge or collect any fee for:
40 (1) recording an official bond of a public officer, a deputy, an
41 appointee, or an employee; or
42 (2) performing any service under any of the following:
2023 IN 1147—LS 6884/DI 129 15
1 (A) IC 6-1.1-22-2(c).
2 (B) IC 8-23-7.
3 (C) IC 8-23-23.
4 (D) IC 10-17-2-3.
5 (E) IC 10-17-3-2.
6 (F) IC 12-14-13.
7 (G) IC 12-14-16.
8 (i) The state and its agencies and instrumentalities are required to
9 pay the recording fees and charges that this section prescribes.
10 (j) This subsection applies to a county other than a county
11 containing a consolidated city. The county treasurer shall distribute
12 money collected by the county recorder under subsection (c)(9) as
13 follows:
14 (1) Sixty percent (60%) of the money collected by the county
15 recorder under subsection (c)(9) shall be distributed to the units
16 in the county that have established an affordable housing fund
17 under IC 5-20-5-15.5 for deposit in the fund. The amount to be
18 distributed to a unit is the amount available for distribution
19 multiplied by a fraction. The numerator of the fraction is the
20 population of the unit. The denominator of the fraction is the
21 population of all units in the county that have established an
22 affordable housing fund. The population to be used for a county
23 that establishes an affordable housing fund is the population of
24 the county outside any city or town that has established an
25 affordable housing fund.
26 (2) Forty percent (40%) of the money collected by the county
27 recorder under subsection (c)(9) shall be distributed to the
28 treasurer of state for deposit in the affordable housing and
29 community development fund established under IC 5-20-4-7 for
30 the purposes of the fund.
31 Money shall be distributed under this subsection before the sixteenth
32 day of the month following the month in which the money is collected
33 from the county recorder.
34 (k) This subsection applies to a county described in subsection
35 (c)(10). The county treasurer shall distribute money collected by the
36 county recorder under subsection (c)(10) as follows:
37 (1) Sixty percent (60%) of the money collected by the county
38 recorder under subsection (c)(10) shall be deposited in the
39 housing trust fund established under IC 36-7-15.1-35.5(e) for the
40 purposes of the fund.
41 (2) Forty percent (40%) of the money collected by the county
42 recorder under subsection (c)(10) shall be distributed to the
2023 IN 1147—LS 6884/DI 129 16
1 treasurer of state for deposit in the affordable housing and
2 community development fund established under IC 5-20-4-7 for
3 the purposes of the fund.
4 Money shall be distributed under this subsection before the sixteenth
5 day of the month following the month in which the money is collected
6 from the county recorder.
7 (l) This subsection applies to a county described in subsection
8 (c)(11). The county treasurer shall distribute money collected by
9 the county recorder under subsection (c)(11) to a land bank located
10 in the county before the sixteenth day of the month following the
11 month in which the money is collected from the county recorder.
12 If there is more than one (1) land bank established within a county,
13 the county treasurer shall distribute the proceeds collected from
14 the county recorder to a land bank in an amount proportional to
15 the population of the territory of each land bank as it bears to the
16 total population in the county.
17 (l) (m) The county recorder may also include a cross-reference or
18 multiple cross-references identified in a document for recording under
19 this section. For cross-references not otherwise required by statute or
20 county ordinance, the person submitting the document for recording
21 shall clearly identify on the front page of the instrument the specific
22 cross-reference or cross-references to be included with the recorded
23 documents.
24 SECTION 7. IC 36-7-38-1, AS AMENDED BY P.L.26-2020,
25 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2023]: Sec. 1. The following definitions apply throughout this
27 chapter:
28 (1) "Distressed real property" includes real property in a neglected
29 or unmarketable condition.
30 (2) "Eligible unit" means:
31 (A) a county;
32 (B) a consolidated city;
33 (C) a second class city; or
34 (D) a third class city;
35 to which IC 36-7-9 applies.
36 (3) "Land bank" means an entity established under section 2 of
37 this chapter.
38 (4) "Person" means an individual, a corporation, a limited liability
39 company, a partnership, or other legal entity.
40 (5) "Vacant real property" has the meaning set forth in
41 IC 36-7-36-5.
42 SECTION 8. IC 36-7-38-2, AS AMENDED BY P.L.26-2020,
2023 IN 1147—LS 6884/DI 129 17
1 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2023]: Sec. 2. (a) The legislative body of an eligible unit may
3 adopt an ordinance:
4 (1) establishing a body corporate and politic; or
5 (2) directing the executive of the eligible unit to organize a
6 nonprofit corporation under IC 23-17;
7 as an independent instrumentality exercising essential governmental
8 functions.
9 (b) The legislative bodies of two (2) or more eligible units within a
10 single county or within two (2) or more contiguous counties may enter
11 into an interlocal agreement under IC 36-1-7:
12 (1) establishing a body corporate and politic; or
13 (2) directing the executive of one (1) of the eligible units entering
14 into the interlocal agreement to organize a nonprofit corporation
15 under IC 23-17;
16 as an independent instrumentality exercising essential governmental
17 functions.
18 (c) The primary purpose of a land bank established under subsection
19 (a) or (b) is to manage and improve the marketability of vacant real
20 property and distressed real property located in the territory of the
21 land bank.
22 (d) An ordinance or interlocal agreement establishing a land bank
23 must specify the following information:
24 (1) The name of the land bank.
25 (2) The number of board members and requirements for
26 appointment to the board, subject to section 4 of this chapter.
27 (e) The territory of a land bank established under subsection (a) is:
28 (1) in the case of an eligible unit that is a municipality, the
29 territory of the municipality; or
30 (2) in the case of an eligible unit that is a county, all the territory
31 of the county, except for the territory of any municipality in the
32 county that has established another land bank.
33 (f) The territory of a land bank established under subsection (b) is
34 the territory of all the eligible units that have established the land bank,
35 except for the territory of any municipality that has established another
36 land bank under subsection (a) or (b).
37 SECTION 9. IC 36-7-38-4, AS ADDED BY P.L.211-2016,
38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2023]: Sec. 4. (a) A land bank is governed by a board of at
40 least seven (7) and at most nine (9) directors.
41 (b) A director At least a majority of the directors of a land bank
42 appointed under this section chapter must have demonstrated
2023 IN 1147—LS 6884/DI 129 18
1 competency in an occupation or discipline that is relevant to the
2 primary purpose of a land bank.
3 (c) Except as provided in this chapter, the term of a director of a
4 land bank is for three (3) consecutive calendar years.
5 (d) If a director of a land bank is unable to complete the director's
6 term, the authority that appointed the director shall appoint a successor
7 to serve for the remainder of the incomplete term.
8 SECTION 10. IC 36-7-38-4.5, AS ADDED BY P.L.26-2020,
9 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 4.5. (a) This section applies to the board of a land
11 bank established under section 2(b) of this chapter.
12 (b) The interlocal agreement providing for the establishment of the
13 land bank must specify:
14 (1) subject to section 4(a) of this chapter, the number of directors
15 of the board of the land bank;
16 (2) any directors that are to serve as ex officio directors of the
17 board; and
18 (3) for each director of the board that is to be appointed, the
19 appointing authority.
20 (c) The interlocal agreement must also specify that the
21 requirement established by section 4(b) of this chapter applies to
22 the appointment of a director to the board of a land bank created
23 under this section.
24 SECTION 11. IC 36-7-38-7.7 IS ADDED TO THE INDIANA
25 CODE AS A NEW SECTION TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2023]: Sec. 7.7. (a) A land bank may establish
27 one (1) or more advisory committees to consult with and advise the
28 land bank on:
29 (1) properties within the territory of the land bank that are
30 imposing the greatest harm on residents and neighborhoods;
31 (2) resident and neighborhood priorities for new uses of land
32 bank properties; and
33 (3) options for potential transferees of land bank properties.
34 (b) As appropriate to the location of the real property of the
35 land bank and if a land bank elects to establish an advisory
36 committee under this section, the membership of the advisory
37 community shall include but is not limited to individuals from
38 formal and informal neighborhood specific community
39 associations, residents' associations, faith communities, community
40 development corporations, and anchor institutions.
41 SECTION 12. IC 36-7-38-8, AS ADDED BY P.L.211-2016,
42 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2023 IN 1147—LS 6884/DI 129 19
1 JULY 1, 2023]: Sec. 8. Except as otherwise provided in this chapter,
2 a land bank is granted all powers necessary, convenient, or appropriate
3 to carry out and effectuate the land bank's public and corporate
4 purposes, which include the power to do the following:
5 (1) Sue or be sued in the land bank's own name.
6 (2) Enter into contracts.
7 (3) Establish accounts with financial institutions.
8 (4) Acquire by:
9 (A) purchase;
10 (B) exchange;
11 (C) gift;
12 (D) donation;
13 (E) grant;
14 (F) lease; or
15 (G) any combination of the methods listed in clauses (A)
16 through (F);
17 any real or personal property or interest in property needed
18 to carry out the mission of the land bank.
19 (4) (5) Acquire, lease, improve, repair, renovate, and dispose of
20 property.
21 (5) (6) Borrow money, including the ability to issue bonds.
22 (6) (7) Pledge collateral.
23 (7) (8) Make investments.
24 (8) (9) Hire employees and other appropriate staff, including an
25 executive director. In accordance with section 18 of this
26 chapter, a land bank may determine the qualifications and fix
27 the compensation and benefits provided for employees, other
28 staff, and the executive director.
29 (9) (10) Procure insurance.
30 SECTION 13. IC 36-7-38-9, AS ADDED BY P.L.211-2016,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2023]: Sec. 9. (a) A land bank shall endeavor to acquire a
33 diverse portfolio of properties to enable the land bank to dispose of
34 diverse properties in diverse real estate markets in the county or
35 municipal territory that the land bank serves and, thereby, generate
36 revenue for the land bank in a sustainable manner. put the properties
37 back to productive use, improve property conditions, contribute to
38 local and regional neighborhood stabilization efforts, expand
39 opportunities for development, and have a positive impact on the
40 local tax base. A land bank shall acquire property for the purpose of
41 supporting the mission of the land bank.
42 (b) A land bank's priorities concerning the disposition of properties
2023 IN 1147—LS 6884/DI 129 20
1 from the land bank must support the mission of the land bank, which
2 includes the sale or transfer of properties:
3 (1) for redevelopment that will act as a catalyst for further
4 development;
5 (2) that support a comprehensive development plan or strategic
6 plan for neighborhood revitalization;
7 (3) that reduce blight the number of blighted properties in the
8 community;
9 (4) that revitalize or stabilize neighborhoods;
10 (5) that will be returned to productive, tax paying status;
11 (6) that will be returned to productive uses, including
12 development of side lots, green spaces, and gardens;
13 (7) that are available for immediate ownership or occupancy
14 without a need for substantial rehabilitation;
15 (8) that will be used for affordable housing; or
16 (9) that will generate operating support for the functions of a land
17 bank.
18 SECTION 14. IC 36-7-38-10, AS ADDED BY P.L.211-2016,
19 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2023]: Sec. 10. (a) A land bank shall do the following:
21 (1) Maintain an inventory of real property held by the land bank.
22 (2) Develop policies, guidelines, and procedures for the
23 acquisition, redevelopment, and disposition of property by and
24 from the land bank. The policies, guidelines, and procedures
25 developed under this subdivision must be formulated in plain
26 language with the objective of being clearly understood.
27 (3) Make the information described in subdivisions (1) and (2)
28 available for inspection:
29 (A) at the offices of the land bank during regular business
30 hours; and
31 (B) on the land bank's Internet web site. website.
32 (4) Coordinate the land bank's activities with any land use plans
33 that affect real property held by the land bank.
34 (b) If real property held by a county land bank is located in the
35 territory of a municipality of the county, the county land bank shall
36 offer to convey the real property to the municipality before the county
37 land bank offers, or accepts an offer, to convey the real property to any
38 other individual or entity. An offer to convey real property made by a
39 county land bank to a municipality under this section subsection
40 expires sixty (60) days after the county land bank makes the offer,
41 unless the county land bank and the municipality agree to another
42 period.
2023 IN 1147—LS 6884/DI 129 21
1 (c) This subsection applies to a land bank created pursuant to an
2 interlocal agreement under section 2(b) of this chapter that is
3 composed of two (2) or more contiguous counties. If real property
4 held by a land bank composed of two (2) or more contiguous
5 counties is located in the territory of a municipality of a county
6 that is a party to the interlocal agreement, the land bank shall offer
7 to convey the real property to the municipality before the land
8 bank offers, or accepts an offer, to convey the real property to any
9 other individual or entity. An offer to convey real property made
10 by a land bank composed of two (2) or more counties to a
11 municipality under this subsection expires sixty (60) days after the
12 land bank makes the offer, unless the land bank and the
13 municipality agree to another period.
14 SECTION 15. IC 36-7-38-11, AS ADDED BY P.L.211-2016,
15 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2023]: Sec. 11. (a) A land bank may:
17 (1) enter into an interlocal agreement under IC 36-1-7 with
18 another governmental entity, including, subject to subsection
19 (b), the establishment of processes to improve the quality of
20 title and marketability of property the land bank owns by
21 extinguishing any liens that exist on the property; or
22 (2) otherwise contract with another governmental entity in Indiana
23 to perform services for the governmental entity.
24 (b) The following are exempt from the scope of an interlocal
25 agreement described in subsection (a)(1) to extinguish liens that
26 exist on a property the land bank owns:
27 (1) A lien granted priority under federal law.
28 (2) A lien of the state.
29 (3) Any valid easements, covenants, declarations, or deed
30 restrictions that encumber the property as shown in the
31 public record.
32 SECTION 16. IC 36-7-38-18, AS ADDED BY P.L.211-2016,
33 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2023]: Sec. 18. (a) Employees of a land bank are not
35 employees of the eligible unit that established the land bank.
36 (b) If a land bank enters into an interlocal agreement under
37 IC 36-1-7 as provided in section 11 of this chapter, any employees
38 of an eligible unit who may be contracted to provide staffing
39 services to the land bank pursuant to the interlocal agreement
40 retain their status as public employees of the eligible unit. Nothing
41 in this subsection shall be construed to alter or otherwise affect the
42 public employee's status as an employee of the eligible unit.
2023 IN 1147—LS 6884/DI 129 22
1 (b) (c) The board of a land bank may elect by resolution to provide
2 programs of group health insurance for the land bank's employees and
3 retired employees as provided under IC 5-10-8-2.6.
4 (c) (d) The board of a land bank may elect by resolution to provide
5 retirement and disability benefits for employees, which may be by
6 means of participation in the public employees' retirement fund as
7 provided under IC 5-10.3-6.
8 SECTION 17. IC 36-7-38-24 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2023]: Sec. 24. The county executive (as
11 defined in IC 6-1.1-23.9-1) must provide a land bank in the county
12 with a list of tracts in the territory of the land bank that:
13 (1) are delinquent on property taxes (as defined in
14 IC 6-1.1-37-10); and
15 (2) have been offered for sale by the county at two (2) or more
16 public sales held under IC 6-1.1-24 and remain unsold;
17 on an annual basis. The list must be provided to the land bank
18 within sixty (60) days after the end of the last tax sale held under
19 IC 6-1.1-24 for which the tracts went unsold. If a land bank
20 requests a tract on the list not later than ninety (90) days from the
21 date it receives the list, the county executive may assign the tax sale
22 certificate for the tract or convey the tract, as applicable, to the
23 land bank at no cost to the land bank.
2023 IN 1147—LS 6884/DI 129