CHAPTER 26. REFUNDS FOR ERRONEOUS OR EXCESSIVE TAX PAYMENTS
IC 6-1.1-26
Chapter 26. Refunds for Erroneous or Excessive Tax Payments
IC 6-1.1-26-1
Claim; filing; grounds
Sec. 1. A person, or his heirs, personal representative, orsuccessors, may file a claim for the refund of all or a portion of a taxinstallment which he has paid. However, the claim must be:
(1) filed with the auditor of the county in which the taxes wereoriginally paid;
(2) filed within three (3) years after the taxes were first due;
(3) filed on the form prescribed by the state board of accountsand approved by the department of local government finance;and
(4) based upon one (1) of the following grounds:
(A) Taxes on the same property have been assessed and paidmore than once for the same year.
(B) The taxes, as a matter of law, were illegal.
(C) There was a mathematical error either in thecomputation of the assessment upon which the taxes werebased or in the computation of the taxes.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.74-1987,SEC.17; P.L.90-2002, SEC.214.
IC 6-1.1-26-2
Review of claim by department of local government finance;department action; appeal
Sec. 2. (a) The county auditor shall forward a claim for refundfiled under section 1 of this chapter to the department of localgovernment finance for review by the department if:
(1) the claim is for the refund of taxes paid on an assessmentmade or determined by the state board of tax commissioners(before the board was abolished) or the department of localgovernment finance; and
(2) the claim is based upon the grounds specified in section1(4)(B) or 1(4)(C) of this chapter.
(b) The department of local government finance shall review eachrefund claim forwarded to it under this section. The department shallcertify its approval or disapproval on the claim and shall return theclaim to the county auditor.
(c) Before the department of local government financedisapproves a refund claim that is forwarded to it under this section,the department shall notify the claimant of its intention to disapprovethe claim and of the time and place fixed for a hearing on the claim.The department shall hold the hearing within thirty (30) days afterthe date of the notice. The claimant has a right to be heard at thehearing. After the hearing, the department shall give the claimantnotice of the department's final determination on the claim.
(d) If a person desires to initiate an appeal of the finaldetermination of the department of local government finance to
disapprove a claim under subsection (c), the person shall file apetition for review with the appropriate county assessor not morethan forty-five (45) days after the department gives the person noticeof the final determination.
(e) If a person desires to initiate a proceeding for judicial reviewof the Indiana board's final determination under subsection (d), theperson must petition for judicial review under IC 6-1.1-15-5 not morethan forty-five (45) days after the Indiana board gives the personnotice of the final determination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.43-1992,SEC.4; P.L.198-2001, SEC.61; P.L.178-2002, SEC.33;P.L.256-2003, SEC.27; P.L.219-2007, SEC.69.
IC 6-1.1-26-3
Review of claim by county officers; appeal to Indiana board
Sec. 3. (a) A refund claim which is filed under section 1 of thischapter and which is not subject to review by the department of localgovernment finance under section 2 of this chapter shall be eitherapproved or disapproved by the county auditor, the county treasurer,and the county assessor.
(b) If the claim for refund is disapproved by either the countyauditor, the county treasurer, or the county assessor, the claimantmay appeal that decision to the Indiana board. The claimant mustinitiate the appeal and the Indiana board shall hear the appeal in thesame manner that assessment appeals are heard by the Indiana board.
(c) If a person desires to initiate a proceeding for judicial reviewof the Indiana board's final determination under this section, theperson must petition for judicial review under IC 6-1.1-15-5 not morethan forty-five (45) days after the Indiana board gives the personnotice of the final determination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.43-1992,SEC.5; P.L.198-2001, SEC.62; P.L.219-2007, SEC.70.
IC 6-1.1-26-4
Final review by county commissioners; judicial review
Sec. 4. (a) A county auditor shall submit a refund claim filedunder section 1 of this chapter to the county board of commissionersfor final review after the appropriate county officials either approveor disapprove the claim and, if the claim is disapproved, an appeal tothe Indiana board is not initiated under section 3 of this chapter.
(b) The county board of commissioners shall disallow a refundclaim if it was disapproved by one (1) of the appropriate countyofficials and an appeal to the Indiana board was not initiated undersection 3 of this chapter.
(c) Except as provided in subsection (b) of this section, the countyboard of commissioners may either allow or disallow a refund claimwhich is submitted to it for final review. If the county boarddisallows a claim, the claimant may appeal that decision to theIndiana board.
(d) The Indiana board shall hear an appeal under subsection (c) in
the same manner that assessment appeals are heard.
(e) If a person desires to initiate a proceeding for judicial reviewof the Indiana board's final determination under this section, theperson must petition for judicial review under IC 6-1.1-15-5 not morethan forty-five (45) days after the Indiana board gives the personnotice of the final determination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.43-1992,SEC.6; P.L.198-2001, SEC.63; P.L.219-2007, SEC.71.
IC 6-1.1-26-5
Payment of refunds
Sec. 5. (a) When a claim for refund filed under section 1 of thischapter is allowed either by the county board of commissioners, thedepartment of local government finance, the Indiana board, or theIndiana tax court on appeal, the claimant is entitled to a refund. Theamount of the refund shall equal the amount of the claim so allowedplus, with respect to claims for refund filed after December 31, 2001,interest at four percent (4%) from the date on which the taxes werepaid or payable, whichever is later, to the date of the refund. Thecounty auditor shall, without an appropriation being required, issuea warrant to the claimant payable from the county general fund forthe amount due the claimant under this section.
(b) In the June or December settlement and apportionment oftaxes, or both the June and December settlement and apportionmentof taxes, immediately following a refund made under this section thecounty auditor shall deduct the amount refunded from the gross taxcollections of the taxing units for which the refunded taxes wereoriginally paid and shall pay the amount so deducted into the generalfund of the county. However, the county auditor shall make thedeductions and payments required by this subsection not later thanthe December settlement and apportionment.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.43-1992,SEC.7; P.L.38-1998, SEC.5; P.L.198-2001, SEC.64; P.L.178-2002,SEC.34.
IC 6-1.1-26-6
Surplus tax fund; application of fund; schedule of excess payments;unclaimed excess payments
Sec. 6. (a) Notwithstanding the other provisions of this chapter,each county treasurer shall place the portion of a tax or specialassessment payment which exceeds the amount actually due, asshown by the tax duplicate or special assessment records, in a specialfund to be known as the "surplus tax fund". Amounts placed in thefund shall first be applied to the taxpayer's delinquent taxes in themanner provided in IC 6-1.1-23-5(b). The taxpayer may then file averified claim for money remaining in the surplus tax fund. Thecounty treasurer or county auditor shall require reasonable proof ofpayment by the person making the claim. If the claim is approved bythe county auditor and the county treasurer, the county auditor shallissue a warrant to the taxpayer for the amount due the taxpayer. (b) Not less frequently than at the time of each semiannualsettlement, the county treasurer shall prepare duplicate schedules ofall excess payments received. The schedules shall contain the nameon the tax duplicate, the amount of excess paid, and the taxingdistrict. The county treasurer shall deliver one (1) copy of theschedule to the county auditor. Within fifteen (15) days afterreceiving the schedule, the county auditor shall review the schedule,and if the county auditor concurs with the schedule, the countyauditor shall notify the county treasurer that the notice requiredunder subsection (d) may be sent. The county auditor shall preservethe schedule, and if a refund is subsequently made, he shall note onthe schedule and notify the county treasurer of the date and amountof the refund. In addition, when money is transferred from thesurplus tax fund to the county general fund under subsection (c), thecounty auditor shall note the date and amount of the transfer on theschedule.
(c) If an excess payment is not claimed within the three (3) yearperiod after November 10 of the year in which the payment wasmade and the county treasurer has given the written notice requiredunder subsection (d), the county auditor shall transfer the excessfrom the surplus tax fund into the general fund of the county. If thecounty treasurer has given written notice concerning the excess undersubsection (d), the excess may not be refunded under subsection (a)after the expiration of that three (3) year time period.
(d) This subsection applies only if the amount of an excesspayment is more than five dollars ($5) and exceeds the amountapplied under subsection (a) to property taxes that are delinquent atthe time that the excess payment is transferred to the surplus taxfund. Not later than forty-five (45) days after receiving thenotification from the county auditor under subsection (b), the countytreasurer shall give the taxpayer who made the excess paymentwritten notice that the taxpayer may be entitled to a refund. Thenotice shall be mailed to the last known address of the taxpayer aslisted on the tax duplicate or the most current record of the countytreasurer. The notice must contain at least the following information:
(1) A statement that the taxpayer may be entitled to a refundbecause the taxpayer made an excess payment.
(2) The amount of the refund.
(3) Instructions on how to claim the refund.
(4) The date before which the refund must be claimed undersubsection (c).
(5) An explanation that the amount of the refund will bereduced by any amount applied to property taxes that aredelinquent.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.50-1990,SEC.14; P.L.44-1992, SEC.2; P.L.38-1998, SEC.6.