Indiana 2024 Regular Session

Indiana House Bill HB1271 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1271
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1.
7	7	Synopsis: Tax sale deeds. Provides that a tax sale purchaser may file
8	8	a petition with the court not later than 30 days after the date of the sale
9	9	to seek a determination that the real property is vacant or abandoned.
10	10	Specifies that the effect of a court's determination that the real property
11	11	is vacant or abandoned is that: (1) the owner has no right to redeem the
12	12	real property; and (2) the county auditor shall issue a deed to the real
13	13	property that conveys a fee simple interest to the purchaser. Sets forth
14	14	the: (1) contents of notices required to be given before the court
15	15	hearing on vacancy or abandonment; and (2) standards to be used in
16	16	determining vacancy or abandonment. Provides that the procedure to
17	17	seek a post-sale petition to determine vacancy or abandonment does not
18	18	apply to vacant or abandoned real property that is on the list prepared
19	19	by the county auditor under current law.
20	20	Effective: July 1, 2024.
21	21	Hatcher
22	22	January 9, 2024, read first time and referred to Committee on Ways and Means.
23	23	2024 IN 1271—LS 6499/DI 129 Introduced
24	24	Second Regular Session of the 123rd General Assembly (2024)
25	25	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
26	26	Constitution) is being amended, the text of the existing provision will appear in this style type,
27	27	additions will appear in this style type, and deletions will appear in this style type.
28	28	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
29	29	provision adopted), the text of the new provision will appear in this style type. Also, the
30	30	word NEW will appear in that style type in the introductory clause of each SECTION that adds
31	31	a new provision to the Indiana Code or the Indiana Constitution.
32	32	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
33	33	between statutes enacted by the 2023 Regular Session of the General Assembly.
34	34	HOUSE BILL No. 1271
35	35	A BILL FOR AN ACT to amend the Indiana Code concerning
36	36	taxation.
37	37	Be it enacted by the General Assembly of the State of Indiana:
38	38	1 SECTION 1. IC 6-1.1-24-2, AS AMENDED BY P.L.236-2023,
39	39	2 SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40	40	3 JULY 1, 2024]: Sec. 2. (a) This section does not apply to vacant or
41	41	4 abandoned real property that is on the list prepared by the county
42	42	5 auditor under section 1.5 of this chapter.
43	43	6 (b) In addition to the delinquency list required under section 1 of
44	44	7 this chapter, each county auditor shall prepare a notice. The notice shall
45	45	8 contain the following:
46	46	9 (1) A list of tracts or real property eligible for sale under this
47	47	10 chapter.
48	48	11 (2) A statement that the tracts or real property included in the list
49	49	12 will be sold at public auction to the highest bidder, subject to the
50	50	13 right of redemption.
51	51	14 (3) A statement that the tracts or real property will not be sold for
52	52	15 an amount which is less than the sum of:
53	53	16 (A) the delinquent taxes and special assessments on each tract
54	54	17 or item of real property;
55	55	2024 IN 1271—LS 6499/DI 129 2
56	56	1 (B) the taxes and special assessments on each tract or item of
57	57	2 real property that are due and payable in the year of the sale,
58	58	3 whether or not they are delinquent;
59	59	4 (C) all penalties due on the delinquencies;
60	60	5 (D) an amount prescribed by the county auditor that equals the
61	61	6 sum of:
62	62	7 (i) the greater of twenty-five dollars ($25) or postage and
63	63	8 publication costs; and
64	64	9 (ii) any other actual costs incurred by the county that are
65	65	10 directly attributable to the tax sale; and
66	66	11 (E) any unpaid costs due under subsection (c) from a prior tax
67	67	12 sale.
68	68	13 (4) A statement that a person redeeming each tract or item of real
69	69	14 property after the sale must pay:
70	70	15 (A) one hundred ten percent (110%) of the amount of the
71	71	16 minimum bid for which the tract or item of real property was
72	72	17 offered at the time of sale if the tract or item of real property
73	73	18 is redeemed not more than six (6) months after the date of
74	74	19 sale;
75	75	20 (B) one hundred fifteen percent (115%) of the amount of the
76	76	21 minimum bid for which the tract or item of real property was
77	77	22 offered at the time of sale if the tract or item of real property
78	78	23 is redeemed more than six (6) months after the date of sale;
79	79	24 (C) the amount by which the purchase price exceeds the
80	80	25 minimum bid on the tract or item of real property plus five
81	81	26 percent (5%) interest per annum, on the amount by which the
82	82	27 purchase price exceeds the minimum bid; and
83	83	28 (D) all taxes and special assessments on the tract or item of
84	84	29 real property paid by the purchaser after the tax sale plus
85	85	30 interest at the rate of five percent (5%) per annum, on the
86	86	31 amount of taxes and special assessments paid by the purchaser
87	87	32 on the redeemed property.
88	88	33 (5) A statement for informational purposes only, of the location
89	89	34 of each tract or item of real property by key number, if any, and
90	90	35 street address, if any, or a common description of the property
91	91	36 other than a legal description. The township assessor, or the
92	92	37 county assessor if there is no township assessor for the township,
93	93	38 upon written request from the county auditor, shall provide the
94	94	39 information to be in the notice required by this subsection. A
95	95	40 misstatement in the key number or street address does not
96	96	41 invalidate an otherwise valid sale.
97	97	42 (6) A statement that the county does not warrant the accuracy of
98	98	2024 IN 1271—LS 6499/DI 129 3
99	99	1 the street address or common description of the property.
100	100	2 (7) A statement indicating:
101	101	3 (A) the name of the owner of each tract or item of real
102	102	4 property with a single owner; or
103	103	5 (B) the name of at least one (1) of the owners of each tract or
104	104	6 item of real property with multiple owners.
105	105	7 (8) A statement of the procedure to be followed for obtaining or
106	106	8 objecting to a judgment and order of sale, that must include the
107	107	9 following:
108	108	10 (A) A statement:
109	109	11 (i) that the county auditor and county treasurer will apply on
110	110	12 or after a date designated in the notice for a court judgment
111	111	13 against the tracts or real property for an amount that is not
112	112	14 less than the amount set under subdivision (3), and for an
113	113	15 order to sell the tracts or real property at public auction to
114	114	16 the highest bidder, subject to the right of redemption; and
115	115	17 (ii) indicating the date when the period of redemption
116	116	18 specified in IC 6-1.1-25-4 will expire.
117	117	19 (B) A statement that any defense to the application for
118	118	20 judgment must be:
119	119	21 (i) filed with the court; and
120	120	22 (ii) served on the county auditor and the county treasurer;
121	121	23 before the date designated as the earliest date on which the
122	122	24 application for judgment may be filed.
123	123	25 (C) A statement that the county auditor and the county
124	124	26 treasurer are entitled to receive all pleadings, motions,
125	125	27 petitions, and other filings related to the defense to the
126	126	28 application for judgment.
127	127	29 (D) A statement that the court will set a date for a hearing at
128	128	30 least seven (7) days before the advertised date and that the
129	129	31 court will determine any defenses to the application for
130	130	32 judgment at the hearing.
131	131	33 (9) A statement that the sale will be conducted at a place
132	132	34 designated in the notice and that the sale will continue until all
133	133	35 tracts and real property have been offered for sale.
134	134	36 (10) A statement that the sale will take place at the times and
135	135	37 dates designated in the notice. Whenever the public auction is to
136	136	38 be conducted as an electronic sale, the notice must include a
137	137	39 statement indicating that the public auction will be conducted as
138	138	40 an electronic sale and a description of the procedures that must be
139	139	41 followed to participate in the electronic sale.
140	140	42 (11) A statement that a person redeeming each tract or item after
141	141	2024 IN 1271—LS 6499/DI 129 4
142	142	1 the sale must pay the costs described in IC 6-1.1-25-2(e).
143	143	2 (12) If a county auditor and county treasurer have entered into an
144	144	3 agreement under IC 6-1.1-25-4.7, a statement that the county
145	145	4 auditor will perform the duties of the notification and title search
146	146	5 under IC 6-1.1-25-4.5 and the notification and petition to the
147	147	6 court for the tax deed under IC 6-1.1-25-4.6.
148	148	7 (13) A statement that, if the tract or item of real property is sold
149	149	8 for an amount more than the minimum bid and the property is not
150	150	9 redeemed, the owner of record of the tract or item of real property
151	151	10 who is divested of ownership at the time the tax deed is issued
152	152	11 may have a right to the tax sale surplus.
153	153	12 (14) If a determination has been made under subsection (e), a
154	154	13 statement that tracts or items will be sold together.
155	155	14 (15) A statement that if a tract or item of real property has been
156	156	15 offered for sale at a county treasurer's tax sale in accordance with
157	157	16 section 5 of this chapter and a county executive's tax sale in
158	158	17 accordance with section 6.1 of this chapter on two (2) or more
159	159	18 occasions without a bid, the tract or item of real property may be
160	160	19 subject to an ordinance adopted under IC 6-1.1-25-4.9.
161	161	20 (16) With respect to a tract or an item of real property that is
162	162	21 subject to sale under this chapter after October 31, 2023, and
163	163	22 before November 1, 2024, a statement declaring whether an
164	164	23 ordinance adopted under IC 6-1.1-37-16 is in effect in the county
165	165	24 and, if applicable, an explanation of the circumstances in which
166	166	25 interest and penalties on the delinquent taxes and special
167	167	26 assessments will be waived.
168	168	27 (17) A statement indicating that the owner will have no right
169	169	28 to redeem the real property if the real property is determined
170	170	29 to be vacant or abandoned under section 7.1 of this chapter.
171	171	30 (c) If within sixty (60) days before the date of the tax sale the county
172	172	31 incurs costs set under subsection (b)(3)(D) and those costs are not paid,
173	173	32 the county auditor shall enter the amount of costs that remain unpaid
174	174	33 upon the tax duplicate of the property for which the costs were set. The
175	175	34 county treasurer shall mail notice of unpaid costs entered upon a tax
176	176	35 duplicate under this subsection to the owner of the property identified
177	177	36 in the tax duplicate.
178	178	37 (d) The amount of unpaid costs entered upon a tax duplicate under
179	179	38 subsection (c) must be paid no later than the date upon which the next
180	180	39 installment of real estate taxes for the property is due. Unpaid costs
181	181	40 entered upon a tax duplicate under subsection (c) are a lien against the
182	182	41 property described in the tax duplicate, and amounts remaining unpaid
183	183	42 on the date the next installment of real estate taxes is due may be
184	184	2024 IN 1271—LS 6499/DI 129 5
185	185	1 collected in the same manner that delinquent property taxes are
186	186	2 collected.
187	187	3 (e) The county auditor and county treasurer may establish the
188	188	4 condition that a tract or item will be sold and may be redeemed under
189	189	5 this chapter only if the tract or item is sold or redeemed together with
190	190	6 one (1) or more other tracts or items. Property may be sold together
191	191	7 only if the tract or item is owned by the same person.
192	192	8 SECTION 2. IC 6-1.1-24-7.1 IS ADDED TO THE INDIANA
193	193	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
194	194	10 [EFFECTIVE JULY 1, 2024]: Sec. 7.1. (a) This section does not
195	195	11 apply to vacant or abandoned real property that is on the list
196	196	12 prepared by the county auditor under section 1.5 of this chapter.
197	197	13 (b) This section applies to real property listed in the notice
198	198	14 required by section 2 of this chapter.
199	199	15 (c) Following a sale conducted under section 5 or 6.1 of this
200	200	16 chapter at which a tax sale purchaser pays the bid and receives a
201	201	17 certificate of sale, the tax sale purchaser may file a petition with
202	202	18 the court not later than thirty (30) days after the date of the sale to
203	203	19 seek a determination under this section that the real property is
204	204	20 vacant or abandoned.
205	205	21 (d) The tax sale purchaser shall provide notice of the hearing on
206	206	22 the petition seeking a determination of vacancy or abandonment in
207	207	23 the manner provided by this section. The notice must contain at
208	208	24 least the following:
209	209	25 (1) A statement that a property was purchased at a tax sale
210	210	26 and the tax sale purchaser is seeking a post-sale determination
211	211	27 that the property is vacant or abandoned.
212	212	28 (2) A statement that includes evidence that one (1) or more of
213	213	29 the conditions set forth in IC 32-30-10.6-5(a), which constitute
214	214	30 prima facie evidence, apply to the real property.
215	215	31 (3) A description of the real property purchased.
216	216	32 (4) A statement that if the real property is determined to be
217	217	33 vacant or abandoned:
218	218	34 (A) the owner will have no right to redeem the real
219	219	35 property; and
220	220	36 (B) a deed will be issued to the purchaser that provides the
221	221	37 purchaser with a fee simple interest in the real property.
222	222	38 (5) The street address, if any, or a common description of the
223	223	39 real property.
224	224	40 (6) The key number or parcel number of the real property.
225	225	41 (e) The notice required by this section is considered sufficient if
226	226	42 the notice is mailed by certified mail, return receipt requested, to:
227	227	2024 IN 1271—LS 6499/DI 129 6
228	228	1 (1) all owners of record of real property at the last address of
229	229	2 the owner for the property, as indicated in the records of the
230	230	3 county auditor; and
231	231	4 (2) any person with a substantial property interest of public
232	232	5 record at the address for the person included in the public
233	233	6 record that indicates the interest;
234	234	7 as of the date that the tax sale list is certified.
235	235	8 (f) At the hearing, the court shall hear evidence and testimony
236	236	9 from the parties as to whether the real property is vacant or
237	237	10 abandoned. In making its determination, the court shall consider
238	238	11 the following:
239	239	12 (1) Evidence that one (1) or more of the conditions set forth in
240	240	13 IC 32-30-10.6-5(a) apply to the real property.
241	241	14 (2) Any other factors that the court, in the court's discretion,
242	242	15 considers pertinent to the determination of vacancy or
243	243	16 abandonment under this section.
244	244	17 (g) If a court makes a determination that the real property is
245	245	18 vacant or abandoned, the court shall issue an order stating that the
246	246	19 owner has no right to redeem the real property and directing the
247	247	20 county auditor to issue a deed to the real property that conveys a
248	248	21 fee simple interest to the purchaser.
249	249	22 (h) A deed issued under this section to the purchaser conveys the
250	250	23 same fee simple interest in the real property as a deed issued under
251	251	24 IC 6-1.1-25.
252	252	25 SECTION 3. IC 6-1.1-25-0.5, AS ADDED BY P.L.247-2015,
253	253	26 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
254	254	27 JULY 1, 2024]: Sec. 0.5. This chapter does not apply to vacant or
255	255	28 abandoned real property that is on the list prepared by the county
256	256	29 auditor under IC 6-1.1-24-1.5 unless the bid on the real property by the
257	257	30 highest bidder is not at least the minimum bid and the county auditor
258	258	31 executes and delivers a deed for the real property to the executive of a
259	259	32 county, city, or town under IC 6-1.1-24-13(c). There is no right to
260	260	33 redeem real property under this chapter after its sale under IC 6-1.1-24,
261	261	34 if the real property is on the vacant and abandoned property list
262	262	35 prepared by the county auditor under IC 6-1.1-24-1.5 or if the real
263	263	36 property is the subject of a court order issued under
264	264	37 IC 6-1.1-24-7.1.
265	265	38 SECTION 4. IC 6-1.1-25-4, AS AMENDED BY P.L.26-2023,
266	266	39 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
267	267	40 JULY 1, 2024]: Sec. 4. (a) There is no right to redeem real property
268	268	41 under this chapter after its sale under IC 6-1.1-24 if the real property is
269	269	42 on the vacant and abandoned property list prepared by the county
270	270	2024 IN 1271—LS 6499/DI 129 7
271	271	1 auditor under IC 6-1.1-24-1.5 or if the real property is the subject of
272	272	2 a court order issued under IC 6-1.1-24-7.1. The period for
273	273	3 redemption of any other real property sold under IC 6-1.1-24 is:
274	274	4 (1) one (1) year after the date of sale; or
275	275	5 (2) one hundred twenty (120) days after the date of sale to a
276	276	6 purchasing agency qualified under IC 36-7-17 or IC 36-7-17.1.
277	277	7 (b) Subject to subsection (k) and IC 6-1.1-24-9(e), the period for
278	278	8 redemption of real property:
279	279	9 (1) on which the county executive acquires a lien under
280	280	10 IC 6-1.1-24-6; and
281	281	11 (2) for which the certificate of sale is not sold under
282	282	12 IC 6-1.1-24-6.1;
283	283	13 is one hundred twenty (120) days after the date the county executive
284	284	14 acquires the lien under IC 6-1.1-24-6.
285	285	15 (c) The period for redemption of real property:
286	286	16 (1) on which the county executive acquires a lien under
287	287	17 IC 6-1.1-24-6; and
288	288	18 (2) for which the certificate of sale is sold under IC 6-1.1-24;
289	289	19 is one hundred twenty (120) days after the date of sale of the certificate
290	290	20 of sale under IC 6-1.1-24.
291	291	21 (d) When a deed for real property is executed under this chapter, the
292	292	22 county auditor shall cancel the certificate of sale and file the canceled
293	293	23 certificate in the office of the county auditor.
294	294	24 (e) When a deed is issued to a county executive or other political
295	295	25 subdivision under this chapter, the taxes and special assessments for
296	296	26 which the real property was offered for sale and all subsequent taxes,
297	297	27 special assessments, interest, penalties, and cost of sale shall be
298	298	28 removed from the tax duplicate in the same manner that taxes are
299	299	29 removed by certificate of error.
300	300	30 (f) A tax deed executed under this chapter vests in the grantee an
301	301	31 estate in fee simple absolute, free and clear of all liens and
302	302	32 encumbrances created or suffered before or after the tax sale except
303	303	33 those liens granted priority under federal law and the lien of the state
304	304	34 or a political subdivision for taxes and special assessments which
305	305	35 accrue subsequent to the sale and which are not removed under
306	306	36 subsection (e). However, subject to subsection (g), the estate is subject
307	307	37 to:
308	308	38 (1) all easements, covenants, declarations, and other deed
309	309	39 restrictions shown by public records;
310	310	40 (2) laws, ordinances, and regulations concerning governmental
311	311	41 police powers, including zoning, building, land use,
312	312	42 improvements on the land, land division, and environmental
313	313	2024 IN 1271—LS 6499/DI 129 8
314	314	1 protection;
315	315	2 (3) liens and encumbrances created or suffered by the grantee;
316	316	3 and
317	317	4 (4) leases shown by public record if the tax deed executed under
318	318	5 this chapter conveys only a severed interest located in, on, under,
319	319	6 or above the land.
320	320	7 The rights that an owner of land has in, on, under, or above the land, in
321	321	8 a lease described in subdivision (4), or in a memorandum of a lease
322	322	9 described in subdivision (4) are not limited or abrogated by a tax deed
323	323	10 conveying an interest in one (1) or more severed interests described in
324	324	11 subdivision (4).
325	325	12 (g) A tax deed executed under this chapter for real property sold in
326	326	13 a tax sale:
327	327	14 (1) does not operate to extinguish an easement recorded before
328	328	15 the date of the tax sale in the office of the recorder of the county
329	329	16 in which the real property is located, regardless of whether the
330	330	17 easement was taxed under this article separately from the real
331	331	18 property; and
332	332	19 (2) conveys title subject to all easements recorded before the date
333	333	20 of the tax sale in the office of the recorder of the county in which
334	334	21 the real property is located.
335	335	22 (h) A tax deed executed under this chapter is prima facie evidence
336	336	23 of:
337	337	24 (1) the regularity of the sale of the real property described in the
338	338	25 deed;
339	339	26 (2) the regularity of all proper proceedings; and
340	340	27 (3) valid title in fee simple in the grantee of the deed.
341	341	28 (i) A county auditor is not required to execute a deed to the county
342	342	29 executive under this chapter if the county executive determines that the
343	343	30 property involved contains hazardous waste or another environmental
344	344	31 hazard for which the cost of abatement or alleviation will exceed the
345	345	32 fair market value of the property. The county executive may enter the
346	346	33 property to conduct environmental investigations.
347	347	34 (j) When a deed is issued to a purchaser of a certificate of sale sold
348	348	35 under IC 6-1.1-24-6.1, the county auditor shall, in the same manner that
349	349	36 taxes are removed by certificate of error, remove from the tax duplicate
350	350	37 the taxes, special assessments, interest, penalties, and costs remaining
351	351	38 due as the difference between:
352	352	39 (1) the amount of:
353	353	40 (A) the last minimum bid under IC 6-1.1-24-5; plus
354	354	41 (B) any penalty associated with a delinquency that was not due
355	355	42 until after the date of the sale under IC 6-1.1-24-5 but is due
356	356	2024 IN 1271—LS 6499/DI 129 9
357	357	1 before the issuance of the certificate of sale, with respect to
358	358	2 taxes included in the minimum bid that were not due at the
359	359	3 time of the sale under IC 6-1.1-24-5; and
360	360	4 (2) the amount paid for the certificate of sale.
361	361	5 (k) If a tract or item of real property did not sell at a tax sale or a
362	362	6 sale conducted under IC 6-1.1-24-6.1 and the county treasurer and the
363	363	7 owner of real property agree before the expiration of the period for
364	364	8 redemption under subsection (b) to a mutually satisfactory arrangement
365	365	9 for the payment of the entire amount required for redemption under
366	366	10 section 2 of this chapter before the expiration of a period for
367	367	11 redemption extended under this subsection:
368	368	12 (1) the county treasurer may extend the period for redemption;
369	369	13 and
370	370	14 (2) except as provided in subsection (l), the extended period for
371	371	15 redemption expires one (1) year after the date of the agreement.
372	372	16 (l) If the owner of real property fails to meet the terms of an
373	373	17 agreement entered into with the county treasurer under subsection (k),
374	374	18 the county treasurer may terminate the agreement after providing thirty
375	375	19 (30) days written notice to the owner. If the county treasurer gives
376	376	20 notice under this subsection, the extended period for redemption
377	377	21 established under subsection (k) expires thirty (30) days after the date
378	378	22 of the notice.
379	379	23 (m) The period of redemption for a property, which was not offered
380	380	24 for sale under IC 6-1.1-24-4.7(j), is one hundred twenty (120) days
381	381	25 after the conclusion of the tax sale at which the property was not
382	382	26 offered.
383	383	27 (n) A county auditor shall not issue or record a tax deed unless the
384	384	28 following requirements are met not later than one hundred fifty (150)
385	385	29 days after the date of the hearing at which a court grants the tax sale
386	386	30 buyer's petition for the tax deed:
387	387	31 (1) Copies of the court order to issue the tax deed and the sales
388	388	32 disclosure form are filed with the county auditor.
389	389	33 (2) The recording fees for the tax deed are paid.
390	390	34 (3) All subsequent or outstanding real property taxes on the
391	391	35 property are paid.
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