Version b
Written demand; service; content
Note: This version of section effective 1-1-2006. See also
preceding version of this section, effective until 1-1-2006.
Sec. 1. (a) Annually, after November 10th but before August 1st
of the succeeding year, each county treasurer shall serve a written
demand upon each county resident who is delinquent in the payment
of personal property taxes. Annually, after May 10 but before
October 31 of the same year, each county treasurer may serve a
written demand upon a county resident who is delinquent in the
payment of personal property taxes. The written demand may be
served upon the taxpayer:
(1) by registered or certified mail;
(2) in person by the county treasurer or the county treasurer's
agent; 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 of
personal 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) days
from the date the demand is made then:
(A) sufficient personal property of the taxpayer shall be sold
to satisfy the total amount due plus the additional collection
expenses incurred; or
(B) a judgment may be entered against the taxpayer in the
circuit court of the county.
(c) Subsections (d) through (g) apply only to personal property
that:
(1) is subject to a lien of a creditor imposed under an agreement
entered into between the debtor and the creditor after June 30,
2005;
(2) comes into the possession of the creditor or the creditor's
agent after May 10, 2006, to satisfy all or part of the debt
arising from the agreement described in subdivision (1); and
(3) has an assessed value of at least three thousand two hundred
dollars ($3,200).
(d) For the purpose of satisfying a creditor's lien on personal
property, the creditor of a taxpayer that comes into possession of
personal property on which the taxpayer is adjudicated delinquent in
the payment of personal property taxes must pay in full to the county
treasurer the amount of the delinquent personal property taxes
determined under STEP SEVEN of the following formula from the
proceeds of any transfer of the personal property made by the
creditor 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 transfer
of the personal property made by the creditor or the creditor's
agent 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 taxes
as identified on the form described in subsection (f) by the
county treasurer.
STEP THREE: Determine the amount of the total of the unpaid
debt that is a lien on the transferred property that was perfected
before the assessment date on which the delinquent taxes
became a lien on the transferred property.
STEP FOUR: Determine the sum of the STEP TWO amount
and the STEP THREE amount.
STEP FIVE: Determine the result of dividing the STEP TWO
amount by the STEP FOUR amount.
STEP SIX: Multiply the STEP ONE amount by the STEP FIVE
amount.
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 after
May 10, 2006. As soon as practicable after a creditor comes into
possession of the personal property described in subsection (c), the
creditor shall request the form described in subsection (f) from the
county treasurer. Before a creditor transfers personal property
described in subsection (d) on which delinquent personal property
taxes are owed, the creditor must obtain from the county treasurer a
delinquent personal property tax form and file the delinquent
personal property tax form with the county treasurer. The creditor
shall provide the county treasurer with:
(1) the name and address of the debtor; and
(2) a specific description of the personal property described in
subsection (d);
when requesting a delinquent personal property tax form.
(f) The delinquent personal property tax form must be in a form
prescribed by the state board of accounts under IC 5-11 and must
require the following information:
(1) The name and address of the debtor as identified by the
creditor.
(2) A description of the personal property identified by the
creditor and now in the creditor's possession.
(3) The assessed value of the personal property identified by the
creditor and now in the creditor's possession, as determined
under subsection (g).
(4) The amount of delinquent personal property taxes owed on
the personal property identified by the creditor and now in the
creditor's possession, as determined under subsection (g).
(5) A statement notifying the creditor that IC 6-1.1-23-1
requires that a creditor, upon the liquidation of personal
property for the satisfaction of the creditor's lien, must pay in
full the amount of delinquent personal property taxes owed as
determined under subsection (d) on the personal property in the
amount identified on this form from the proceeds of the
liquidation before the proceeds of the liquidation may be
applied to the creditor's lien on the personal property.
(g) The county treasurer shall provide the delinquent personal
property tax form described in subsection (f) to the creditor not later
than fourteen (14) days after the date the creditor requests the
delinquent personal property tax form. The county and township
assessors shall assist the county treasurer in determining the
appropriate assessed value of the personal property and the amount
of delinquent personal property taxes owed on the personal property.
Assistance provided by the county and township assessors must
include providing the county treasurer with relevant personal
property forms filed with the assessors and providing the county
treasurer with any other 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.
Last modified: May 28, 2006