CHAPTER 23. PROVISIONS FOR COLLECTION OF DELINQUENT PERSONAL PROPERTY TAXES
IC 6-1.1-23
Chapter 23. Provisions for Collection of Delinquent PersonalProperty Taxes
IC 6-1.1-23-1
Written demand; service; content
Sec. 1. (a) Annually, after November 10th but before August 1stof the succeeding year, each county treasurer shall serve a writtendemand upon each county resident who is delinquent in the paymentof personal property taxes. Annually, after May 10 but beforeOctober 31 of the same year, each county treasurer may serve awritten demand upon a county resident who is delinquent in thepayment of personal property taxes. The written demand may beserved upon the taxpayer:
(1) by registered or certified mail;
(2) in person by the county treasurer or the county treasurer'sagent; or
(3) by proof of certificate of mailing.
(b) The written demand required by this section shall contain:
(1) a statement that the taxpayer is delinquent in the payment ofpersonal property taxes;
(2) the amount of the delinquent taxes;
(3) the penalties due on the delinquent taxes;
(4) the collection expenses which the taxpayer owes; and
(5) a statement that if the sum of the delinquent taxes, penalties,and collection expenses are not paid within thirty (30) daysfrom the date the demand is made then:
(A) sufficient personal property of the taxpayer shall be soldto satisfy the total amount due plus the additional collectionexpenses incurred; or
(B) a judgment may be entered against the taxpayer in thecircuit court of the county.
(c) Subsections (d) through (g) apply only to personal propertythat:
(1) is subject to a lien of a creditor imposed under an agreemententered into between the debtor and the creditor after June 30,2005;
(2) comes into the possession of the creditor or the creditor'sagent after May 10, 2006, to satisfy all or part of the debtarising from the agreement described in subdivision (1); and
(3) has an assessed value of at least three thousand two hundreddollars ($3,200).
(d) For the purpose of satisfying a creditor's lien on personalproperty, the creditor of a taxpayer that comes into possession ofpersonal property on which the taxpayer is adjudicated delinquent inthe payment of personal property taxes must pay in full to the countytreasurer the amount of the delinquent personal property taxesdetermined under STEP SEVEN of the following formula from theproceeds of any transfer of the personal property made by thecreditor or the creditor's agent before applying the proceeds to the
creditor's lien on the personal property:
STEP ONE: Determine the amount realized from any transferof the personal property made by the creditor or the creditor'sagent after the payment of the direct costs of the transfer.
STEP TWO: Determine the amount of the delinquent taxes,including penalties and interest accrued on the delinquent taxesas identified on the form described in subsection (f) by thecounty treasurer.
STEP THREE: Determine the amount of the total of the unpaiddebt that is a lien on the transferred property that was perfectedbefore the assessment date on which the delinquent taxesbecame a lien on the transferred property.
STEP FOUR: Determine the sum of the STEP TWO amountand the STEP THREE amount.
STEP FIVE: Determine the result of dividing the STEP TWOamount by the STEP FOUR amount.
STEP SIX: Multiply the STEP ONE amount by the STEP FIVEamount.
STEP SEVEN: Determine the lesser of the following:
(A) The STEP TWO amount.
(B) The STEP SIX amount.
(e) This subsection applies to transfers made by a creditor afterMay 10, 2006. As soon as practicable after a creditor comes intopossession of the personal property described in subsection (c), thecreditor shall request the form described in subsection (f) from thecounty treasurer. Before a creditor transfers personal propertydescribed in subsection (d) on which delinquent personal propertytaxes are owed, the creditor must obtain from the county treasurer adelinquent personal property tax form and file the delinquentpersonal property tax form with the county treasurer. The creditorshall provide the county treasurer with:
(1) the name and address of the debtor; and
(2) a specific description of the personal property described insubsection (d);
when requesting a delinquent personal property tax form.
(f) The delinquent personal property tax form must be in a formprescribed by the state board of accounts under IC 5-11 and mustrequire the following information:
(1) The name and address of the debtor as identified by thecreditor.
(2) A description of the personal property identified by thecreditor and now in the creditor's possession.
(3) The assessed value of the personal property identified by thecreditor and now in the creditor's possession, as determinedunder subsection (g).
(4) The amount of delinquent personal property taxes owed onthe personal property identified by the creditor and now in thecreditor's possession, as determined under subsection (g).
(5) A statement notifying the creditor that this section requiresthat a creditor, upon the liquidation of personal property for the
satisfaction of the creditor's lien, must pay in full the amount ofdelinquent personal property taxes owed as determined undersubsection (d) on the personal property in the amount identifiedon this form from the proceeds of the liquidation before theproceeds of the liquidation may be applied to the creditor's lienon the personal property.
(g) The county treasurer shall provide the delinquent personalproperty tax form described in subsection (f) to the creditor not laterthan fourteen (14) days after the date the creditor requests thedelinquent personal property tax form. The county assessor and thetownship assessors (if any) shall assist the county treasurer indetermining the appropriate assessed value of the personal propertyand the amount of delinquent personal property taxes owed on thepersonal property. Assistance provided by the county assessor andthe township assessors (if any) must include providing the countytreasurer with relevant personal property forms filed with theassessor or assessors and providing the county treasurer with anyother assistance necessary to accomplish the purposes of this section.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.71, SEC.1; P.L.38-1998, SEC.3; P.L.173-2003, SEC.9;P.L.214-2005, SEC.14; P.L.146-2008, SEC.257.
IC 6-1.1-23-1.2
Documents to be signed; official documents
Sec. 1.2. (a) The following documents must be signed by thecounty treasurer or a designee of the county treasurer:
(1) A notice or demand issued under this chapter.
(2) Any other document issued under this chapter that requiresan authorizing signature.
(b) A document signed under this section is an official documentof the county treasurer.
As added by P.L.46-1991, SEC.3.
IC 6-1.1-23-1.5
Contracts; collection fees
Sec. 1.5. (a) A county treasurer may enter into a contract, subjectto the approval of the county executive, for services that the countytreasurer considers necessary for:
(1) the administration of this chapter; or
(2) the collection of delinquent personal property taxes.
(b) If delinquent personal property taxes are collected under acontract entered into under this section, the county treasurer maycollect from the person owing the delinquent taxes a reasonablecollection fee.
As added by P.L.46-1991, SEC.4. Amended by P.L.56-1996, SEC.2.
IC 6-1.1-23-2
Levy and sale of property for delinquent taxes
Sec. 2. (a) If a taxpayer does not pay the total amount due withinthirty (30) days after the date a written demand is made under section
1 of this chapter, the county treasurer shall levy upon and sellpersonal property of the taxpayer which is of sufficient value to paythe delinquent taxes, penalties, and anticipated collection expenses.
(b) The county treasurer shall levy upon personal property bycalling upon the delinquent taxpayer at his residence or place ofbusiness and making a list in duplicate of all of his personal property.The county treasurer shall retain one (1) copy of the list and deliverthe other copy to the delinquent taxpayer. The county treasurer mayrequire the delinquent taxpayer to give a list under oath of all thepersonal property owned by him, and the names of the owners ofother personal property which is in the delinquent taxpayer'spossession. If the delinquent taxpayer fails to provide the list, thecounty treasurer shall file a petition which states that fact in thecircuit court of the county, and the circuit court shall order thedelinquent taxpayer to provide the list.
(c) The county treasurer shall appraise the personal propertyincluded in a levy. The personal property included in a levy issubject to sale for the payment of the delinquent taxes, penalties, andcollection expenses without further notice to the delinquent taxpayer.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-3
Levy procedure; taxpayer's bond
Sec. 3. (a) When a county treasurer levies upon personal property,he may:
(1) take immediate possession of the property and store it in asecure place; or
(2) leave the property in the custody of the delinquent taxpayeruntil the day of the sale.
(b) If the personal property is left in the custody of the delinquenttaxpayer, he shall give the county treasurer a joint and severaldelivery bond, with a surety acceptable to the county treasurer. Thebond must be payable to this state in an amount at least equal to thesum of the delinquent taxes, penalties, and anticipated collectionexpenses. The state may not initiate an action on the bond if:
(1) the personal property is delivered for sale at the time and placedesignated by the county treasurer; or
(2) the obligor, before the time of the sale, pays to the countytreasurer the amount of the delinquent taxes, penalties, and collectionexpenses.
(c) The bond required by subsection (b) of this section shall beprepared in the following form:
We, A, as principal, and B, as surety, are jointly and severallybound unto the state of Indiana in the penal sum of ___________(____) on the following condition:
Whereas, C, as treasurer of __________ County, has this daylevied upon the following personal property, (here list suchproperty), of the value of ____________ (____) to satisfy thedelinquent taxes, penalties, and anticipated collection expenses forthe year(s) ______ due from said A. Now if A shall deliver the said
personal property to C at _______ o'clock (A.M. or P.M.) of the____ day of _________ 19 __, at the place designated by C to besold to pay the delinquent taxes, penalties, and anticipated collectionexpenses, then this bond shall be void, else in full force.
Witness our hands and
seals ____________________
(date)______
_______ A _______
_______ B _______
Approved by me ___________________ (date) ______
_______ C _______
Treasurer of ___________ County
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-4
Notice of sale
Sec. 4. After a county treasurer levies upon a delinquenttaxpayer's personal property, he shall give notice of the time andplace of sale. The notice shall contain a list of the property to besold. The county treasurer shall give this notice at least ten (10) daysbefore the date of sale. The notice shall be given by publication one(1) time in the manner prescribed in IC 1971, 6-1.1-22-4(b) and byposting one (1) notice at a public place of posting in the countycourthouse.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-5
Auction of property; record; proceeds of sale
Sec. 5. (a) If the delinquent taxes, penalties, and collectionexpenses are not paid before the time set for the sale, the countytreasurer shall sell sufficient personal property of the taxpayer to paythe delinquent taxes, penalties, and collection expenses. The countytreasurer shall, at the time and place designated in the notice, sell thepersonal property at public auction to the highest bidder. The countytreasurer shall keep a record of all sales in the form prescribed by thestate board of accounts. The proceeds of the sale shall be paid intothe county treasury and applied as follows:
(1) first, to the collection expenses;
(2) second, to the payment of the delinquent taxes and penalties;
(3) third, to the payment of other tax delinquencies of the taxpayerin the order provided in subsection (b) of this section; and
(4) fourth, any balance remaining shall be paid to the delinquenttaxpayer.
(b) Any surplus funds to be applied to the other delinquent taxesof a taxpayer under subsection (a)(3) of this section or underIC 1971, 6-1.1-24-7(a)(2) shall be applied as follows:
(1) first, to the payment of delinquent personal property taxesowed in the county by the taxpayer;
(2) second, to the payment of delinquent real property taxes owedin the county by the taxpayer; and
(3) third, to the payment of delinquent personal property taxes
owed by the taxpayer and certified from another county.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-6
Scope of levy and sale provisions; exemption of household goods
Sec. 6. (a) The scope of the levy and sale provisions of thischapter is not limited to a taxpayer's personal property which issubject to assessment and taxation under this article. Thus, except asprovided in subsection (b) of this section, all of a taxpayer's personalproperty is subject to levy and sale under this chapter.
(b) The household goods of any person, not to exceed the valueof six hundred dollars ($600), are exempt from levy and sale. Thecounty treasurer shall determine the value of a person's householdgoods. If the taxpayer disputes the value, the county assessor shallview the property and fix the true cash value of it. The value so fixedis binding upon the county treasurer and the owner of the property.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-7
Collection expenses; payment; fees; disposition
Sec. 7. (a) With respect to the collection of delinquent personalproperty taxes, the county treasurer shall charge the followingcollection expenses to each delinquent taxpayer:
(1) For making a demand by:
(A) registered or certified mail, eight dollars ($8); or
(B) any other manner permitted by section 1 of this chapter,five dollars ($5).
(2) For making a levy, ten dollars ($10).
(3) For selling personal property, ten percent (10%) of the saleprice.
(4) For advertising a sale, the legal rates for advertising.
(5) For transfer and storage of personal property, the actualexpense incurred.
(6) Other reasonable expenses of collection, including:
(A) title search expenses;
(B) uniform commercial code search expenses; and
(C) reasonable attorney's fees or court costs incurred:
(i) in the collection process;
(ii) due to a court order; or
(iii) due to an order of the treasurer;
under IC 6-1.1-23-10.
(b) The fees collected under this section are the property of thecounty and shall be deposited in the county general fund. Thecollection expenses incurred in connection with the levy upon andsale of personal property shall be paid from the county general fundwithout prior appropriation.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.72, SEC.1; Acts 1979, P.L.62, SEC.1; P.L.46-1991, SEC.5;P.L.68-1993, SEC.3; P.L.38-1998, SEC.4.
IC 6-1.1-23-8
Delinquent taxpayer about to remove property from county; levyand sale procedure
Sec. 8. When a county treasurer believes that a person who isliable for delinquent personal property taxes is about to take hisproperty from the county without paying the taxes, the treasurer may,in the manner prescribed in this chapter, levy upon and sell sufficientpersonal property of that person to pay the delinquent taxes,penalties, and collection expenses. The county treasurer is notrequired to make the demand required by section 1 of this chapterbefore a levy and sale made under this section.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-9
Record of delinquencies
Sec. 9. (a) In the year immediately following the year in whichpersonal property taxes become delinquent, each county treasurershall prepare a record of the delinquencies for which written demandhas been made under section 1 of this chapter and which remainunpaid for at least sixty (60) days after the demand is made.
(b) The county treasurer shall prepare the record required by thissection in a form prescribed or approved by the state board ofaccounts. For each delinquent taxpayer, the record shall contain:
(1) the name of the taxpayer who is personally liable for the taxesas shown by the tax duplicate;
(2) the last known address of the taxpayer;
(3) the date when the last installment of taxes included in therecord became delinquent; and
(4) the amount of all delinquent taxes, penalties, and collectionexpenses for which such a demand has been made and which remainunpaid.
(c) The county treasurer shall swear to the accuracy of the recordbefore the clerk of the circuit court and shall file the record with theclerk. When the record is so filed, the amount of delinquent taxes,penalties, and collection expenses stated in the record constitute adebt of the named taxpayer. This debt in all respects has the sameforce and effect as a judgment. The judgment so entered shall be infavor of the county for the benefit of all taxing units having aninterest in it. Beginning the day the record is filed, the delinquenttaxpayer shall, instead of the penalties prescribed in IC 1971,6-1.1-37-10, pay interest on the amount of the judgment at the samerate imposed on other judgments.
(d) On the date the county treasurer files the record in the officeof the clerk of the circuit court, the county treasurer shall make anentry on the tax duplicate in a column headed "Certified to Clerk ofCircuit Court."
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-23-10
Notice of judgment and execution; restraining orders; remedies;
attorney's fees
Sec. 10. (a) If a judgment entered under section 9 of this chapteris not paid, the county treasurer may notify the delinquent taxpayerby certified mail that a judgment has been entered against him andthat the treasurer is going to file a praecipe for execution. If thejudgment is not paid within ten (10) days after the date the notice isgiven, the county treasurer shall file the praecipe for execution. Ifthis notice is not given, an execution upon the judgment is invalid.
(b) If a judgment has been entered against a taxpayer undersection 9 of this chapter, the county treasurer may obtain a courtorder restraining the taxpayer from transacting business in thecounty. However, the restraining order may be dissolved if the courtbelieves that dissolution of the restraining order will make collectionof the judgment more likely.
(c) If a judgment against a taxpayer under section 9 of this chapterhas not been satisfied within sixty (60) days after the judgment isentered, the county treasurer may do the following without judicialproceedings:
(1) Levy upon property of the taxpayer that is held by afinancial institution. The county treasurer shall make a levy inthe same manner as the department of state revenue underIC 6-8.1-8-8. A financial institution that receives a claim underthis subdivision shall transfer to the county treasurer propertyof the taxpayer that is held by the financial institution.However, if the value of the taxpayer's property held by thefinancial institution is greater than the amount of the judgment,the financial institution shall transfer property of the taxpayerin an amount equal to the amount of the judgment.
(2) Garnish the accrued earnings and wages of the taxpayer bygiving notice to the taxpayer's employer. An employer whoreceives a notice under this subdivision shall garnish theaccrued earnings and wages of the taxpayer in an amount equalto the full amount subject to garnishment underIC 24-4.5-5-105. The employer:
(A) shall remit the amount garnished under this subdivisionto the county treasurer; and
(B) is entitled to a fee equal to the amount of the fee thatmay be collected under IC 24-4.5-5-105(5) in a garnishmentaction. However, the taxpayer shall pay the entire feecollected under this clause.
(3) Withhold the amount of the judgment in full or in part fromany payment that:
(A) is due to the taxpayer from the county; and
(B) requires the signature of the county treasurer.
(d) The treasurer of a county may use any combination ofremedies provided under this section to collect the following:
(1) Delinquent taxes.
(2) Expenses incurred under IC 6-1.1-23-7(a)(1) throughIC 6-1.1-23-7(a)(6).
(e) A county treasurer that incurs attorney's fee expenses for legal
services not related to formal judicial proceedings shall petition acircuit or superior court in the county for approval to pay theexpenses. The court may conduct a hearing on the petition and mayauthorize the auditor of the county to issue a warrant for the amountof the reasonable expenses. The county treasurer shall pay thewarrant without an appropriation for the disbursement.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.46-1991,SEC.6; P.L.44-1992, SEC.1; P.L.68-1993, SEC.4.
IC 6-1.1-23-11
Certificate of judgment to treasurers of other counties; indexing;execution; audits
Sec. 11. (a) The treasurer of a county in which a judgment isentered under section 9 of this chapter shall send a certificate of thejudgment to the treasurer of another county and to the department oflocal government finance if the county treasurer determines that:
(1) the delinquent taxpayer does not have, in the county inwhich the judgment is entered, property of sufficient value tosatisfy the judgment; and
(2) the delinquent taxpayer does have property in the othercounty.
(b) A county treasurer who receives a certificate of judgment shallhave the judgment indexed in the judgment docket by the clerk of thecircuit court of the county the treasurer serves. The county treasurershall proceed to have execution issued upon the judgment in thesame manner as if the judgment had been originally entered in thecounty he serves.
(c) The department of local government finance shall makeperiodic audits of the records of the county treasurers to insurecompliance with the provisions of this section.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.212.
IC 6-1.1-23-12
Setting aside judgment; grounds
Sec. 12. (a) A judgment entered under section 9 or section 11 ofthis chapter may be set aside only for one (1) of the followingreasons:
(1) The person against whom the judgment was entered was notliable for the delinquent taxes, penalties, and collectionexpenses for which the judgment was entered.
(2) The delinquent taxes, penalties, and collection expenseshave been paid either in whole or in part.
(3) The required written demand was not given in the mannerprescribed in section 1 of this chapter.
(4) The person against whom the judgment was entered isdeceased, as evidenced by a certificate of death.
(5) The corporation against whom the judgment was entered hasbeen formally dissolved or is no longer in business.
(6) The judgment is uncollectible as a result of bankruptcy. (7) The county treasurer has exhausted all reasonable efforts tocollect the delinquent taxes, penalties, and collection expensesfor the period specified in IC 6-8.1-8-2(f) without success.
For purposes of subdivision (2), if only part of the items have beenpaid, the judgment may be set aside only in the amount of thepayment.
(b) A judgment may be set aside under this section only under afinding entered of record by a court which has jurisdiction.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.56-1996,SEC.3.
IC 6-1.1-23-13
Satisfaction of judgments
Sec. 13. Payment of delinquent tax judgments and interest shallbe made to the county treasurer. On a daily basis the county treasurershall enter a satisfaction of all judgments paid in the delinquent taxjudgment record maintained in the office of the clerk of the circuitcourt. The county treasurer shall apply the amount so paid to thedelinquent taxes, penalties, and collection expenses for which thejudgment was entered.
(Formerly: Acts 1975, P.L.47, SEC.1.)