Judgments arising from tax warrants; collection
Sec. 3. (a) The county sheriff of a county shall attempt to levy on
and collect a judgment arising from a tax warrant in that county for
a period of one hundred twenty (120) days from the date the
judgment lien is entered, unless the sheriff is relieved of that duty at
an earlier time by the department. The sheriff's authority to collect
the warrant exists only while the sheriff holds the tax warrant, and if
the sheriff surrenders the warrant to the department for any reason
the sheriff's authority to collect that tax warrant ceases. During the
period that the sheriff has the duty to collect a tax warrant, the sheriff
shall collect from the person owing the tax, an amount equal to the
amount of the judgment lien plus the accrued interest to the date of
the payment. Subject to subsection (b), the sheriff shall make the
collection by garnisheeing the person's wages and by levying on and
selling any interest in property or rights in any chose in action that
the person has in the county. The Indiana laws which provide relief
for debtors by exempting certain property from levy by creditors do
not apply to levy and sale proceedings for judgments arising from tax
warrants.
(b) A sheriff shall sell property to satisfy a tax warrant in a
manner that is reasonably likely to bring the highest net proceeds
from the sale after deducting the expenses of the offer to sell and
sale. A sheriff may engage an auctioneer to advertise a sale and to
conduct a public auction, unless the person being levied files an
objection with the clerk of the circuit or superior court having the tax
warrant within five (5) days of the day that the sheriff informs the
person of the person's right to object. The advertising conducted by
the auctioneer is in addition to any other notice required by law, and
shall include a detailed description of the property to be sold. When
an auctioneer is engaged under this subsection and the auctioneer
files a verified claim with the clerk of the circuit or superior court
with whom the tax warrant is filed, the sheriff may pay the
reasonable fee and reasonable expenses of the auctioneer from the
gross proceeds of the sale before other expenses and the judgment
arising from the tax warrant are paid. As used in this section,
"auctioneer" means an auctioneer licensed under IC 25-6.1.
(c) The sheriff shall deposit all amounts that the sheriff collects
under this section, including partial payments, into a special trust
account for judgments collected that arose from tax warrants. On or
before the fifth day of each month the sheriff shall disburse the
money in the tax warrant judgment lien trust account in the following
order:
(1) The sheriff shall pay the department the part of the
collections that represents taxes, interest, and penalties.
(2) The sheriff shall pay the county treasurer and the clerk of
the circuit or superior court the part of the collections that
represents their assessed costs.
(3) Except as provided in subdivision (4), the sheriff shall keep
the part of the collections that represents the ten percent (10%)
collection fee added under section 2(b) of this chapter.
(4) If the sheriff has entered a salary contract under
IC 36-2-13-2.5, the sheriff shall deposit in the county general
fund the part of the collections that represents the ten percent
(10%) collection fee added under section 2(b) of this chapter.
The department shall establish the procedure for the disbursement of
partial payments so that the intent of this section is carried out.
(d) After the period described in subsection (a) has passed, the
sheriff shall return the tax warrant to the department. However, if at
the end of this period the sheriff is in the process of collecting the
judgment arising from a tax warrant in periodic payments of
sufficient size that the judgment will be fully paid within one (1) year
after the date the judgment was filed, the sheriff may keep the tax
warrant and continue collections. When the tax warrant is returned,
the department may exercise its collection powers alone, or it may
allow the sheriff to continue collections in conjunction with the
department. If the department and the sheriff engage in simultaneous
collection efforts, the sheriff may retain for disbursement under
subsection (c) only the part of the ten percent (10%) collection fee
that is applicable to the part of the collections for which the sheriff
is responsible. The department shall retain the rest of the collection
fee.
(e) Notwithstanding any other provision of this chapter, the
department may order a sheriff to return a tax warrant at any time, if
the department feels that action is necessary to protect the interests
of the state.
(f) This subsection applies only to the sheriff of a county having
a consolidated city or a second class city. In such a county, the ten
percent (10%) collection fee added under section 2(b) of this chapter
shall be divided as follows:
(1) The sheriff may retain for disbursement under subsection (c)
forty thousand dollars ($40,000), plus one-fifth (1/5) of any fees
exceeding that forty thousand dollar ($40,000) amount.
(2) Two-fifths (2/5) of any fees exceeding that forty thousand
dollar ($40,000) amount shall be deposited in the sheriff's
department's pension trust fund.
(3) Two-fifths (2/5) of any fees exceeding that forty thousand
dollar ($40,000) amount shall be deposited in the county
general fund.
As added by Acts 1980, P.L.61, SEC.1. Amended by Acts 1982,
P.L.65, SEC.1; P.L.32-1983, SEC.3; P.L.46-1991, SEC.8;
P.L.1-1993, SEC.44; P.L.83-1993, SEC.1; P.L.1-1994, SEC.32;
P.L.129-2001, SEC.23.
Last modified: May 28, 2006