Interest; penalties
Sec. 9. (a) This section applies when:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were originally due;
(2) the assessment upon which a taxpayer has been paying taxes
under IC 6-1.1-15-10(a)(1) or (a)(2) while a petition for review
or a judicial proceeding has been pending is less than the
assessment that results from the final determination of the
petition for review or judicial proceeding; or
(3) the collection of certain ad valorem property taxes has been
stayed under IC 4-21.5-5-9, and under the final determination
of the petition for judicial review the taxpayer is liable for at
least part of those taxes.
(b) Except as provided in subsections (c) and (g), a taxpayer shall
pay interest on the taxes the taxpayer is required to pay as a result of
an action or a determination described in subsection (a) at the rate of
ten percent (10%) per year from the original due date or dates for
those taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(c) Except as provided in subsection (g), a taxpayer shall pay
interest on the taxes the taxpayer is ultimately required to pay in
excess of the amount that the taxpayer is required to pay under
IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
proceeding has been pending at the overpayment rate established
under Section 6621(c)(1) of the Internal Revenue Code in effect on
the original due date or dates for those taxes from the original due
date or dates for those taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(d) With respect to an action or determination described in
subsection (a), the taxpayer shall pay the taxes resulting from that
action or determination and the interest prescribed under subsection
(b) or (c) on or before:
(1) the next May 10; or
(2) the next November 10;
whichever occurs first.
(e) A taxpayer shall, to the extent that the penalty is not waived
under section 10.5 of this chapter, begin paying the penalty
prescribed in section 10 of this chapter on the day after the date for
payment prescribed in subsection (d) if:
(1) the taxpayer has not paid the amount of taxes resulting from
the action or determination; and
(2) the taxpayer either:
(A) received notice of the taxes the taxpayer is required to
pay as a result of the action or determination at least thirty
(30) days before the date for payment; or
(B) voluntarily signed and filed an assessment return for the
taxes.
(f) If subsection (e) does not apply, a taxpayer who has not paid
the amount of taxes resulting from the action or determination shall,
to the extent that the penalty is not waived under section 10.5 of this
chapter, begin paying the penalty prescribed in section 10 of this
chapter on:
(1) the next May 10 which follows the date for payment
prescribed in subsection (d); or
(2) the next November 10 which follows the date for payment
prescribed in subsection (d);
whichever occurs first.
(g) A taxpayer is not subject to the payment of interest on real
property assessments under subsection (b) or (c) if:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were due;
(2) the assessment or the assessment increase is made as the
result of error or neglect by the assessor or by any other official
involved with the assessment of property or the collection of
property taxes; and
(3) the assessment:
(A) would have been made on the normal assessment date if
the error or neglect had not occurred; or
(B) increase would have been included in the assessment on
the normal annual assessment date if the error or neglect had
not occurred.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.76, SEC.1; P.L.63-1986, SEC.2; P.L.90-1987, SEC.1;
P.L.198-2001, SEC.92; P.L.1-2004, SEC.45 and P.L.23-2004,
SEC.48.
Last modified: May 28, 2006