Introduced Version
HOUSE BILL No. 1569
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1.
Synopsis: Tax sale deeds. Provides that a tax sale purchaser may file
a petition with the court not later than 30 days after the date of the sale
to seek a determination that the real property is vacant or abandoned.
Specifies that the effect of a court's determination that the real property
is vacant or abandoned is that: (1) the owner has no right to redeem the
real property; and (2) the county auditor shall issue a deed to the real
property that conveys a fee simple interest to the purchaser. Sets forth
the: (1) contents of notices required to be given before the court
hearing on vacancy or abandonment; and (2) standards to be used in
determining vacancy or abandonment. Provides that the procedure to
seek a post-sale petition to determine vacancy or abandonment does not
apply to vacant or abandoned real property that is on the list prepared
by the county auditor under current law.
Effective: July 1, 2025.
Hatcher
January 21, 2025, read first time and referred to Committee on Judiciary.
2025 IN 1569—LS 7744/DI 92 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1569
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-24-2, AS AMENDED BY P.L.236-2023,
2 SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 2. (a) This section does not apply to vacant or
4 abandoned real property that is on the list prepared by the county
5 auditor under section 1.5 of this chapter.
6 (b) In addition to the delinquency list required under section 1 of
7 this chapter, each county auditor shall prepare a notice. The notice shall
8 contain the following:
9 (1) A list of tracts or real property eligible for sale under this
10 chapter.
11 (2) A statement that the tracts or real property included in the list
12 will be sold at public auction to the highest bidder, subject to the
13 right of redemption.
14 (3) A statement that the tracts or real property will not be sold for
15 an amount which is less than the sum of:
16 (A) the delinquent taxes and special assessments on each tract
17 or item of real property;
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1 (B) the taxes and special assessments on each tract or item of
2 real property that are due and payable in the year of the sale,
3 whether or not they are delinquent;
4 (C) all penalties due on the delinquencies;
5 (D) an amount prescribed by the county auditor that equals the
6 sum of:
7 (i) the greater of twenty-five dollars ($25) or postage and
8 publication costs; and
9 (ii) any other actual costs incurred by the county that are
10 directly attributable to the tax sale; and
11 (E) any unpaid costs due under subsection (c) from a prior tax
12 sale.
13 (4) A statement that a person redeeming each tract or item of real
14 property after the sale must pay:
15 (A) one hundred ten percent (110%) of the amount of the
16 minimum bid for which the tract or item of real property was
17 offered at the time of sale if the tract or item of real property
18 is redeemed not more than six (6) months after the date of
19 sale;
20 (B) one hundred fifteen percent (115%) of the amount of the
21 minimum bid for which the tract or item of real property was
22 offered at the time of sale if the tract or item of real property
23 is redeemed more than six (6) months after the date of sale;
24 (C) the amount by which the purchase price exceeds the
25 minimum bid on the tract or item of real property plus five
26 percent (5%) interest per annum, on the amount by which the
27 purchase price exceeds the minimum bid; and
28 (D) all taxes and special assessments on the tract or item of
29 real property paid by the purchaser after the tax sale plus
30 interest at the rate of five percent (5%) per annum, on the
31 amount of taxes and special assessments paid by the purchaser
32 on the redeemed property.
33 (5) A statement for informational purposes only, of the location
34 of each tract or item of real property by key number, if any, and
35 street address, if any, or a common description of the property
36 other than a legal description. The township assessor, or the
37 county assessor if there is no township assessor for the township,
38 upon written request from the county auditor, shall provide the
39 information to be in the notice required by this subsection. A
40 misstatement in the key number or street address does not
41 invalidate an otherwise valid sale.
42 (6) A statement that the county does not warrant the accuracy of
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1 the street address or common description of the property.
2 (7) A statement indicating:
3 (A) the name of the owner of each tract or item of real
4 property with a single owner; or
5 (B) the name of at least one (1) of the owners of each tract or
6 item of real property with multiple owners.
7 (8) A statement of the procedure to be followed for obtaining or
8 objecting to a judgment and order of sale, that must include the
9 following:
10 (A) A statement:
11 (i) that the county auditor and county treasurer will apply on
12 or after a date designated in the notice for a court judgment
13 against the tracts or real property for an amount that is not
14 less than the amount set under subdivision (3), and for an
15 order to sell the tracts or real property at public auction to
16 the highest bidder, subject to the right of redemption; and
17 (ii) indicating the date when the period of redemption
18 specified in IC 6-1.1-25-4 will expire.
19 (B) A statement that any defense to the application for
20 judgment must be:
21 (i) filed with the court; and
22 (ii) served on the county auditor and the county treasurer;
23 before the date designated as the earliest date on which the
24 application for judgment may be filed.
25 (C) A statement that the county auditor and the county
26 treasurer are entitled to receive all pleadings, motions,
27 petitions, and other filings related to the defense to the
28 application for judgment.
29 (D) A statement that the court will set a date for a hearing at
30 least seven (7) days before the advertised date and that the
31 court will determine any defenses to the application for
32 judgment at the hearing.
33 (9) A statement that the sale will be conducted at a place
34 designated in the notice and that the sale will continue until all
35 tracts and real property have been offered for sale.
36 (10) A statement that the sale will take place at the times and
37 dates designated in the notice. Whenever the public auction is to
38 be conducted as an electronic sale, the notice must include a
39 statement indicating that the public auction will be conducted as
40 an electronic sale and a description of the procedures that must be
41 followed to participate in the electronic sale.
42 (11) A statement that a person redeeming each tract or item after
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1 the sale must pay the costs described in IC 6-1.1-25-2(e).
2 (12) If a county auditor and county treasurer have entered into an
3 agreement under IC 6-1.1-25-4.7, a statement that the county
4 auditor will perform the duties of the notification and title search
5 under IC 6-1.1-25-4.5 and the notification and petition to the
6 court for the tax deed under IC 6-1.1-25-4.6.
7 (13) A statement that, if the tract or item of real property is sold
8 for an amount more than the minimum bid and the property is not
9 redeemed, the owner of record of the tract or item of real property
10 who is divested of ownership at the time the tax deed is issued
11 may have a right to the tax sale surplus.
12 (14) If a determination has been made under subsection (e), a
13 statement that tracts or items will be sold together.
14 (15) A statement that if a tract or item of real property has been
15 offered for sale at a county treasurer's tax sale in accordance with
16 section 5 of this chapter and a county executive's tax sale in
17 accordance with section 6.1 of this chapter on two (2) or more
18 occasions without a bid, the tract or item of real property may be
19 subject to an ordinance adopted under IC 6-1.1-25-4.9.
20 (16) With respect to a tract or an item of real property that is
21 subject to sale under this chapter after October 31, 2023, and
22 before November 1, 2024, a statement declaring whether an
23 ordinance adopted under IC 6-1.1-37-16 is in effect in the county
24 and, if applicable, an explanation of the circumstances in which
25 interest and penalties on the delinquent taxes and special
26 assessments will be waived.
27 (17) A statement indicating that the owner will have no right
28 to redeem the real property if the real property is determined
29 to be vacant or abandoned under section 7.1 of this chapter.
30 (c) If within sixty (60) days before the date of the tax sale the county
31 incurs costs set under subsection (b)(3)(D) and those costs are not paid,
32 the county auditor shall enter the amount of costs that remain unpaid
33 upon the tax duplicate of the property for which the costs were set. The
34 county treasurer shall mail notice of unpaid costs entered upon a tax
35 duplicate under this subsection to the owner of the property identified
36 in the tax duplicate.
37 (d) The amount of unpaid costs entered upon a tax duplicate under
38 subsection (c) must be paid no later than the date upon which the next
39 installment of real estate taxes for the property is due. Unpaid costs
40 entered upon a tax duplicate under subsection (c) are a lien against the
41 property described in the tax duplicate, and amounts remaining unpaid
42 on the date the next installment of real estate taxes is due may be
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1 collected in the same manner that delinquent property taxes are
2 collected.
3 (e) The county auditor and county treasurer may establish the
4 condition that a tract or item will be sold and may be redeemed under
5 this chapter only if the tract or item is sold or redeemed together with
6 one (1) or more other tracts or items. Property may be sold together
7 only if the tract or item is owned by the same person.
8 SECTION 2. IC 6-1.1-24-7.1 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2025]: Sec. 7.1. (a) This section does not
11 apply to vacant or abandoned real property that is on the list
12 prepared by the county auditor under section 1.5 of this chapter.
13 (b) This section applies to real property listed in the notice
14 required by section 2 of this chapter.
15 (c) Following a sale conducted under section 5 or 6.1 of this
16 chapter at which a tax sale purchaser pays the bid and receives a
17 certificate of sale, the tax sale purchaser may file a petition with
18 the court not later than thirty (30) days after the date of the sale to
19 seek a determination under this section that the real property is
20 vacant or abandoned.
21 (d) The tax sale purchaser shall provide notice of the hearing on
22 the petition seeking a determination of vacancy or abandonment in
23 the manner provided by this section. The notice must contain at
24 least the following:
25 (1) A statement that a property was purchased at a tax sale
26 and the tax sale purchaser is seeking a post-sale determination
27 that the property is vacant or abandoned.
28 (2) A statement that includes evidence that one (1) or more of
29 the conditions set forth in IC 32-30-10.6-5(a), which constitute
30 prima facie evidence, apply to the real property.
31 (3) A description of the real property purchased.
32 (4) A statement that if the real property is determined to be
33 vacant or abandoned:
34 (A) the owner will have no right to redeem the real
35 property; and
36 (B) a deed will be issued to the purchaser that provides the
37 purchaser with a fee simple interest in the real property.
38 (5) The street address, if any, or a common description of the
39 real property.
40 (6) The key number or parcel number of the real property.
41 (e) The notice required by this section is considered sufficient if
42 the notice is mailed by certified mail, return receipt requested, to:
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1 (1) all owners of record of real property at the last address of
2 the owner for the property, as indicated in the records of the
3 county auditor; and
4 (2) any person with a substantial property interest of public
5 record at the address for the person included in the public
6 record that indicates the interest;
7 as of the date that the tax sale list is certified.
8 (f) At the hearing, the court shall hear evidence and testimony
9 from the parties as to whether the real property is vacant or
10 abandoned. In making its determination, the court shall consider
11 the following:
12 (1) Evidence that one (1) or more of the conditions set forth in
13 IC 32-30-10.6-5(a) apply to the real property.
14 (2) Any other factors that the court, in the court's discretion,
15 considers pertinent to the determination of vacancy or
16 abandonment under this section.
17 (g) If a court makes a determination that the real property is
18 vacant or abandoned, the court shall issue an order stating that the
19 owner has no right to redeem the real property and directing the
20 county auditor to issue a deed to the real property that conveys a
21 fee simple interest to the purchaser.
22 (h) A deed issued under this section to the purchaser conveys the
23 same fee simple interest in the real property as a deed issued under
24 IC 6-1.1-25.
25 SECTION 3. IC 6-1.1-25-0.5, AS ADDED BY P.L.247-2015,
26 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 0.5. This chapter does not apply to vacant or
28 abandoned real property that is on the list prepared by the county
29 auditor under IC 6-1.1-24-1.5 unless the bid on the real property by the
30 highest bidder is not at least the minimum bid and the county auditor
31 executes and delivers a deed for the real property to the executive of a
32 county, city, or town under IC 6-1.1-24-13(c). There is no right to
33 redeem real property under this chapter after its sale under IC 6-1.1-24,
34 if the real property is on the vacant and abandoned property list
35 prepared by the county auditor under IC 6-1.1-24-1.5 or if the real
36 property is the subject of a court order issued under
37 IC 6-1.1-24-7.1.
38 SECTION 4. IC 6-1.1-25-4, AS AMENDED BY P.L.26-2023,
39 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2025]: Sec. 4. (a) There is no right to redeem real property
41 under this chapter after its sale under IC 6-1.1-24 if the real property is
42 on the vacant and abandoned property list prepared by the county
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1 auditor under IC 6-1.1-24-1.5 or if the real property is the subject of
2 a court order issued under IC 6-1.1-24-7.1. The period for
3 redemption of any other real property sold under IC 6-1.1-24 is:
4 (1) one (1) year after the date of sale; or
5 (2) one hundred twenty (120) days after the date of sale to a
6 purchasing agency qualified under IC 36-7-17 or IC 36-7-17.1.
7 (b) Subject to subsection (k) and IC 6-1.1-24-9(e), the period for
8 redemption of real property:
9 (1) on which the county executive acquires a lien under
10 IC 6-1.1-24-6; and
11 (2) for which the certificate of sale is not sold under
12 IC 6-1.1-24-6.1;
13 is one hundred twenty (120) days after the date the county executive
14 acquires the lien under IC 6-1.1-24-6.
15 (c) The period for redemption of real property:
16 (1) on which the county executive acquires a lien under
17 IC 6-1.1-24-6; and
18 (2) for which the certificate of sale is sold under IC 6-1.1-24;
19 is one hundred twenty (120) days after the date of sale of the certificate
20 of sale under IC 6-1.1-24.
21 (d) When a deed for real property is executed under this chapter, the
22 county auditor shall cancel the certificate of sale and file the canceled
23 certificate in the office of the county auditor.
24 (e) When a deed is issued to a county executive or other political
25 subdivision under this chapter, the taxes and special assessments for
26 which the real property was offered for sale and all subsequent taxes,
27 special assessments, interest, penalties, and cost of sale shall be
28 removed from the tax duplicate in the same manner that taxes are
29 removed by certificate of error.
30 (f) A tax deed executed under this chapter vests in the grantee an
31 estate in fee simple absolute, free and clear of all liens and
32 encumbrances created or suffered before or after the tax sale except
33 those liens granted priority under federal law and the lien of the state
34 or a political subdivision for taxes and special assessments which
35 accrue subsequent to the sale and which are not removed under
36 subsection (e). However, subject to subsection (g), the estate is subject
37 to:
38 (1) all easements, covenants, declarations, and other deed
39 restrictions shown by public records;
40 (2) laws, ordinances, and regulations concerning governmental
41 police powers, including zoning, building, land use,
42 improvements on the land, land division, and environmental
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1 protection;
2 (3) liens and encumbrances created or suffered by the grantee;
3 and
4 (4) leases shown by public record if the tax deed executed under
5 this chapter conveys only a severed interest located in, on, under,
6 or above the land.
7 The rights that an owner of land has in, on, under, or above the land, in
8 a lease described in subdivision (4), or in a memorandum of a lease
9 described in subdivision (4) are not limited or abrogated by a tax deed
10 conveying an interest in one (1) or more severed interests described in
11 subdivision (4).
12 (g) A tax deed executed under this chapter for real property sold in
13 a tax sale:
14 (1) does not operate to extinguish an easement recorded before
15 the date of the tax sale in the office of the recorder of the county
16 in which the real property is located, regardless of whether the
17 easement was taxed under this article separately from the real
18 property; and
19 (2) conveys title subject to all easements recorded before the date
20 of the tax sale in the office of the recorder of the county in which
21 the real property is located.
22 (h) A tax deed executed under this chapter is prima facie evidence
23 of:
24 (1) the regularity of the sale of the real property described in the
25 deed;
26 (2) the regularity of all proper proceedings; and
27 (3) valid title in fee simple in the grantee of the deed.
28 (i) A county auditor is not required to execute a deed to the county
29 executive under this chapter if the county executive determines that the
30 property involved contains hazardous waste or another environmental
31 hazard for which the cost of abatement or alleviation will exceed the
32 fair market value of the property. The county executive may enter the
33 property to conduct environmental investigations.
34 (j) When a deed is issued to a purchaser of a certificate of sale sold
35 under IC 6-1.1-24-6.1, the county auditor shall, in the same manner that
36 taxes are removed by certificate of error, remove from the tax duplicate
37 the taxes, special assessments, interest, penalties, and costs remaining
38 due as the difference between:
39 (1) the amount of:
40 (A) the last minimum bid under IC 6-1.1-24-5; plus
41 (B) any penalty associated with a delinquency that was not due
42 until after the date of the sale under IC 6-1.1-24-5 but is due
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1 before the issuance of the certificate of sale, with respect to
2 taxes included in the minimum bid that were not due at the
3 time of the sale under IC 6-1.1-24-5; and
4 (2) the amount paid for the certificate of sale.
5 (k) If a tract or item of real property did not sell at a tax sale or a
6 sale conducted under IC 6-1.1-24-6.1 and the county treasurer and the
7 owner of real property agree before the expiration of the period for
8 redemption under subsection (b) to a mutually satisfactory arrangement
9 for the payment of the entire amount required for redemption under
10 section 2 of this chapter before the expiration of a period for
11 redemption extended under this subsection:
12 (1) the county treasurer may extend the period for redemption;
13 and
14 (2) except as provided in subsection (l), the extended period for
15 redemption expires one (1) year after the date of the agreement.
16 (l) If the owner of real property fails to meet the terms of an
17 agreement entered into with the county treasurer under subsection (k),
18 the county treasurer may terminate the agreement after providing thirty
19 (30) days written notice to the owner. If the county treasurer gives
20 notice under this subsection, the extended period for redemption
21 established under subsection (k) expires thirty (30) days after the date
22 of the notice.
23 (m) The period of redemption for a property, which was not offered
24 for sale under IC 6-1.1-24-4.7(j), is one hundred twenty (120) days
25 after the conclusion of the tax sale at which the property was not
26 offered.
27 (n) A county auditor shall not issue or record a tax deed unless the
28 following requirements are met not later than one hundred fifty (150)
29 days after the date of the hearing at which a court grants the tax sale
30 buyer's petition for the tax deed:
31 (1) Copies of the court order to issue the tax deed and the sales
32 disclosure form are filed with the county auditor.
33 (2) The recording fees for the tax deed are paid.
34 (3) All subsequent or outstanding real property taxes on the
35 property are paid.
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