A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Plain English Breakdown

The official source material does not provide information about the impact of these changes on property values, local economies, or financial outcomes.

Changes to Tax Sale Redemption Periods

This bill shortens the time property owners have to redeem their properties after they are sold in a tax sale.

What This Bill Does

• Shortens the redemption period for real estate sold to land banks from one year to six months.
• Reduces the redemption period for properties with county liens, where no certificate of sale was made, from 120 days to 90 days.
• Sets the redemption period at 90 days instead of 120 days if a property's lien is sold or assigned to a land bank and there was no certificate of sale.
• Changes the redemption period for properties deemed unsuitable for tax sale from 120 days to 90 days.

Who It Names or Affects

• Property owners who have unpaid taxes on their property.
• Land banks that acquire properties through tax sales.
• County auditors responsible for issuing or recording tax deeds.

Terms To Know

Redemption period

The time a property owner has to pay back taxes and reclaim their property after it is sold in a tax sale.

Land bank

An organization that acquires, holds, and develops abandoned or foreclosed properties.

Limits and Unknowns

• The bill does not specify what happens if the redemption period is shortened but the owner cannot pay back taxes within this new timeframe.
• It's unclear how these changes will affect property values or local economies.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Tax sale procedures.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Tax sale procedures.

Reduces the period to redeem tax sale property as follows: (1) For real property sold to a land bank, the redemption period is six months (rather than one year). (2) For real property on which the county executive acquires a lien (including an assignment of the lien to a political subdivision or to a land bank) and the certificate of sale is not sold, the redemption period is 90 days (rather than 120 days). (3) For real property on which the county executive acquires a lien and the certificate of sale is sold or assigned to a land bank, the redemption period is 90 days (rather than 120 days). (4) For real property that a court determines is not suitable for tax sale, the redemption period is 90 days (rather than 120 days). Modifies the length of time in which notice must be provided to: (1) the owner of record; and (2) any person with a substantial interest of public record in the real property; for purposes of seeking a tax deed to account for the reductions to the redemption periods. For property that a court determines is not suitable for tax sale, provides that if the property is disposed within one year (rather than three years) after the conclusion of the tax sale at which the property would have been offered for sale, any amount received in excess of the amount of the minimum bid will be disbursed in the same manner as if the property had been sold in the tax sale. Makes a related change to the period to make a claim for any surplus in the tax sale surplus fund for properties certified as not suitable for sale. Specifies that a county auditor shall not issue or record a tax deed unless certain requirements are met not later than 90 days (rather than 150 days) after the date of the hearing at which a court grants the tax sale buyer's petition for the tax deed.