§ 6-1.1-25-4.9 — Real property parcels considered public hazards

Indiana § 6-1.1-25-4.9

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 25: Redemption of and Tax Deeds for Real Property Sold

Text

9. (a) This section applies only to:
(1) a parcel of real property that has been offered for sale at a
county treasurer's tax sale in accordance with IC 6-1.1-24-5 and
a county executive's tax sale in accordance with IC 6-1.1-24-6.1
on two (2) or more occasions without a bid; and
(2) a county in which the county legislative body adopts this
section by ordinance.
(b) A county legislative body may adopt the provisions of this
section by ordinance. A parcel of real property subject to this section
may be determined to be a public hazard, and this section is the
statutory procedure for a county or municipality that adopts an
ordinance under this section to obtain title to the parcel subject to the
rights of parties with a substantial property interest of record.
(c) A parcel of real property must meet the following criteria to be
eligible for the procedure established by this section:
(1) The parcel must be included on the certified list prepared
under subsection (e).
(2) The assessed value of the parcel exceeds the opening bid for
the property at the last county executive's tax sale under IC 6-1.1-24-6.1.
(3) The parcel is not in bankruptcy.
(4) The tax sale certificate for the parcel is either:
(A) transferred to a municipality; or
(B) retained by the county executive;
in accordance with subsection (h).
(d) A parcel of real property is considered a public hazard if all of
the following criteria apply:
(1) Real estate taxes have not been paid for two (2) or more years
and the property is on the delinquent tax list prepared under IC 6-1.1-24-1.
(2) No appeal of any property tax assessment notice received in
the last two (2) years has been filed.
(3) No appeal of any change in any property assessment filed in
the last two (2) years has been filed.
(4) No permit to construct improvements or to improve the
property has been filed in the last two (2) years with the county or
municipality (as applicable).
(5) No objection was filed by any party in accordance with IC 6-1.1-24-4.7(b) to the last county treasurer's tax sale under IC 6-1.1-24-5.
(6) There is no existing statutory agreement with the county
treasurer to pay the amount due over time in accordance with IC 6-1.1-24-1.2.
(7) No party has redeemed the parcel after the last immediately
preceding county treasurer's tax sale under IC 6-1.1-24-5.
(8) No party has redeemed the parcel after the last immediately
preceding county executive's tax sale under IC 6-1.1-24-6.1.
(9) There is no improvement on the property that is occupied.
(e) The auctioneer employed to conduct the county treasurer's tax
sale in accordance with IC 6-1.1-24-5 and the auctioneer employed to
conduct the county executive's tax sale in accordance with IC 6-1.1-24-6.1 shall, after each respective sale is closed, prepare a
certified list of the parcels that have gone through each sale on two (2)
or more occasions without a bid and submit the certified list to the
county treasurer, county auditor, and county executive. If the sales were
conducted by the county auditor without employing a licensed
auctioneer, the county auditor shall prepare the certified list.
(f) The certified list shall be made available to the municipality's
executive that submits a written request for the certified list prepared
under subsection (e). The county auditor shall provide the list in either
paper format or in data format at the preference of the municipality's
executive.
(g) The municipality's executive shall review the certified list of
parcels prepared in accordance with subsection (e) and submit this list
to the municipality's legislative body for approval before submission of
the list to the county executive. The municipality's legislative body may
by ordinance authorize the municipality's executive to prepare and
submit a request to the county executive to acquire the tax sale
certificates that are eligible in accordance with subsections (c) and (d).
(h) The county executive shall, within twenty (20) days after receipt
of the municipality's request for a tax sale certificate under subsection
(g), place the request on the county executive's agenda for action, and
if approved shall transfer title to the tax sale certificates to the
municipality in accordance with IC 6-1.1-24-6.2. The county executive
may retain any tax sale certificates that are not transferred to the
municipality under this subsection.
(i) If any tax sale certificates are:
(1) transferred to a municipality under subsection (h); or
(2) retained by the county executive under subsection (h);
the county or municipality may file a petition with the circuit court
requesting the issuance of a deed for the property to the requesting
county or municipality transferring the title in fee simple absolute to
that county or municipality subject to the rights of any party with a
substantial property interest of record in the property. The county or
municipality shall designate an attorney to represent the county or
municipality at the hearings conducted by the circuit court for the
issuance of the tax title deed.
(j) At the request of a municipality, the county auditor and county
treasurer, if there is an appropriation in the county auditor's budget to
cover the cost of the services to be provided, shall enter into a mutual
agreement for the county auditor to perform the following duties
instead of the municipality with respect to the tax sale certificates:
(1) Provide notification to the owner, a mortgagee, a person
purchasing the parcel under a land contract, and any person filing
a request under IC 6-1.1-24-3(c) of the party's right to redeem the
parcel under this chapter. The notice shall be sent in accordance
with the procedures set forth in section 4.5 of this chapter.
(2) Provide for notification and petition to the court for the tax
deed under section 4.6 of this chapter. A single petition that
includes all of the parcels owned by one (1) or more owners may
be prepared and submitted or the county auditor and county
treasurer may submit multiple petitions.
(3) If the county treasurer and county auditor perform the
procedures described in this subsection for the municipality, any
cost incurred by the county in preparing and sending all notices
required by sections 4.5 and 4.6 of this chapter and for filing the
petition with the court shall be paid for out of funds in the county
general fund appropriated for this purpose. In the first year of the
program to carry out the procedures described in this subsection,
the county fiscal body may appropriate one million dollars
($1,000,000) in the budget of the county auditor to defray the cost
of the program. The amount of the appropriation in the initial year
of the program may be approved in the annual budget or through
an additional appropriation. The fiscal body may increase this
amount in subsequent budget years for the cost of the program.
The agreement described in this subsection shall be for a calendar year
and shall be structured so that the cost to process the number of parcels
transferred to the county shall not exceed the amount of the money
appropriated by the fiscal body for the services provided through the
county auditor in accordance with subdivision (3).
(k) The court shall hold a hearing to determine if the court will order
the auditor to issue a deed to the county or municipality. Following the
hearing, if the proper procedure has been followed and the parcel meets
the criteria of a public hazard, the court shall issue an order that does
the following:
(1) Declares the parcel to be a public hazard and orders the
county auditor to issue a deed to the county or municipality.
(2) Acknowledges in the deed that the order does not change or
affect any substantial property interest of record other than the
ownership interest of the current owner or owners.
(3) Cancels the personal tax liability of the owner or owners.
(4) Provides that the taxes that are a lien on the property since the
date of the county treasurer's tax sale will be canceled and the
county or municipality will not have to pay these taxes prior to the
county auditor issuing the deed.
(5) Provides that no fee will be charged by the county auditor or
the county recorder for processing the deed issued by the county
auditor and then recording the deed with the county recorder.
(l) If the county or municipality files a quiet title action for a parcel
placed into its name, the following apply to the quiet title action:
(1) Any party of record with a substantial property interest of
record including any mortgagee and any purchaser under an
installment land contract recorded in the office of the county
recorder shall be made a party.
(2) Except for a party identified in subdivision (3), any party
joined as a defendant to the quiet title action or entering the quiet
title action as a party defendant shall have the right to redeem the
property and have the court order the issuance of a deed in that
party's name if the party pays the following:
(A) Any and all costs, interest, and taxes due and owing at the
time that the tax sale certificate was acquired by the county or
municipality.
(B) All taxes that would have been paid by the party had the
party redeemed the property at the time the county or
municipality took title to the tax sale certificate.
(3) A person is not eligible to take title in the quiet title action if
the person is ineligible or is associated with any person in a real
property or business venture manner who is ineligible to purchase
a property in accordance with IC 6-1.1-24-5.1, IC 6-1.1-24-5.3, or
IC 6-1.1-24-5.4.
(4) If no party redeems and takes title to the parcel in the quiet
title action, then all substantial property interests of record in the
parcel are extinguished and the county or municipality takes title
free and clear of any such encumbrance.

Legislative History

As added by P.L.27-2023, SEC.4.