§ 6-1.1-37-10 — Penalties for delinquent taxes; amount; application of amounts paid; when payments considered to be made; initial penalty period

Indiana § 6-1.1-37-10

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 37: Miscellaneous Penalty and Interest Provisions

Text

(a) If property taxes due and payable are not
completely paid on or before the due date, a penalty shall be added to
the unpaid portion in the year of the initial delinquency. The penalty is
equal to an amount determined as follows:
(1) If:
(A) subject to subsection (g), the real property taxes due and
payable are completely paid on or before the date thirty (30)
days after the due date; and
(B) the taxpayer is not liable for:
(i) delinquent property taxes first due and payable in a
previous tax payment for the same parcel; or
(ii) a penalty that is owed from a previous tax payment for the
same parcel;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(2) If:
(A) subject to subsection (g), personal property taxes due and
payable are not completely paid on or before the date thirty (30)
days after the due date; and
(B) the taxpayer is not liable for:
(i) delinquent property taxes first due and payable in a
previous tax payment for a personal property tax return for
property in the same taxing district; or
(ii) a penalty that is owed from a previous tax payment;
the amount of the penalty is equal to five percent (5%) of the
amount of delinquent taxes.
(3) If subdivision (1) or (2) does not apply, the amount of the
penalty is equal to ten percent (10%) of the amount due and
payable as of the tax date.
A payment received under this subsection shall be applied first to the
delinquent tax amount and then to any associated penalties.
(b) With respect to property taxes due in two (2) equal installments
under IC 6-1.1-22-9(a), on the day immediately following the due dates
of the first and second installments in each year following the year of
the initial delinquency, an additional penalty equal to ten percent (10%)
of any taxes remaining unpaid shall be added. With respect to property
taxes due in installments under IC 6-1.1-22-9.5, an additional penalty
equal to ten percent (10%) of any taxes remaining unpaid shall be
added on the day immediately following each date that succeeds the
last installment due date by:
(1) six (6) months; or
(2) a multiple of six (6) months.
(c) The penalties under subsection (b) are imposed only on the
principal amount of the delinquent taxes.
(d) If the department of local government finance determines that
an emergency has occurred which precludes the mailing of the tax
statement in any county at the time set forth in IC 6-1.1-22-8.1, the
department shall establish by order a new date on which the installment
of taxes in that county is due and no installment is delinquent if paid by
the date so established.
(e) If any due date falls on a Saturday, a Sunday, a national legal
holiday recognized by the federal government, or a statewide holiday,
the act that must be performed by that date is timely if performed by
the next succeeding day that is not a Saturday, a Sunday, or one (1) of
those holidays.
(f) Subject to subsections (h) and (i), a payment to the county
treasurer is considered to have been paid by the due date if the payment
is:
(1) received on or before the due date by the county treasurer or
a collecting agent appointed by the county treasurer;
(2) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) postmarked by the United States Postal Service as mailed
on or before the due date;
(3) deposited with a nationally recognized express parcel carrier
and is:
(A) properly addressed to the principal office of the county
treasurer; and
(B) verified by the express parcel carrier as:
(i) paid in full for final delivery; and
(ii) received by the express parcel carrier on or before the due
date;
(4) deposited to be mailed through United States registered mail,
United States certified mail, or United States certificate of
mailing:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) with a date of registration, certification, or certificate, as
evidenced by any record authenticated by the United States
Postal Service, on or before the due date;
(5) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient metered postage from a meter postage
provider approved by the United States Postal Service; and
(C) with a postage meter stamp affixed to the envelope that
must bear the actual date the postage meter stamp was affixed
to the envelope, which must be on or before the due date;
and the payment is received by the county treasurer not later than
five (5) business days after the due date;
(6) made by an electronic funds transfer and the taxpayer's bank
account is charged on or before the due date; or
(7) made by a check processing company without:
(A) a postmark; or
(B) another method of verification;
allowed under subdivisions (1) through (6) but for which the
taxpayer provides the county treasurer with reasonable evidence
that the payment was made for the taxpayer on or before the due
date.
For purposes of subdivision (7), reasonable evidence includes a
statement from a ledger of payments maintained by the check
processing company showing the date the payment was made for the
taxpayer.
(g) As used in this subsection, "initial penalty period" means the
period after the due date and not later than thirty (30) days after the due
date. A person who makes a payment within the initial penalty period
is subject to a penalty equal to five percent (5%) of the amount of the
delinquent taxes as provided in subsection (a)(1) or (a)(2). A payment
to the county treasurer is considered to have been paid within the initial
penalty period and subject to the five percent (5%) penalty if the
payment is:
(1) received within the penalty period by the county treasurer or
a collecting agent appointed by the county treasurer;
(2) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) postmarked by the United States Postal Service as mailed
on or before the thirtieth day after the due date;
(3) deposited with a nationally recognized express parcel carrier
and is:
(A) properly addressed to the principal office of the county
treasurer; and
(B) verified by the express parcel carrier as:
(i) paid in full for final delivery; and
(ii) received by the express parcel carrier on or before the
thirtieth day after the due date;
(4) deposited to be mailed through United States registered mail,
United States certified mail, or United States certificate of
mailing:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient postage; and
(C) with a date of registration, certification, or certificate, as
evidenced by any record authenticated by the United States
Postal Service, on or before the thirtieth day after the due date;
or
(5) deposited in United States first class mail:
(A) properly addressed to the principal office of the county
treasurer;
(B) with sufficient metered postage from a meter postage
provider approved by the United States Postal Service; and
(C) with a postage meter stamp affixed to the envelope that
must bear the actual date the postage meter stamp was affixed
to the envelope, which must be on or before the thirtieth day
after the due date;
and the payment is received by the county treasurer not later than
five (5) business days after the thirtieth day after the due date.
(h) As used in this subsection, "initial penalty period" has the
meaning set forth in subsection (g). If a payment is mailed through the
United States mail and is physically received after the due date or after
the initial penalty period without a legible correct postmark, the person
who mailed the payment is considered to have made the payment:
(1) on or before the due date if the person can show by reasonable
evidence that the payment was deposited in the United States mail
on or before the due date; or
(2) within the initial penalty period, if the person can show by
reasonable evidence that the payment was deposited in the United
States mail on or before the thirtieth day after the due date.
(i) As used in this subsection, "initial penalty period" has the
meaning set forth in subsection (g). This section applies if a payment
is sent via the United States mail or a nationally recognized express
parcel carrier but is not received by the designated recipient, the person
who sent the payment is considered to have made the payment:
(1) on or before the due date if the person:
(A) can show by reasonable evidence that the payment was
deposited in the United States mail, or with the express parcel
carrier, on or before the due date; and
(B) makes a duplicate payment within thirty (30) days after the
date the person is notified that the payment was not received;
or
(2) within the initial penalty period, if the person:
(A) can show by reasonable evidence that the payment was
deposited in the United States mail, or with the express parcel
carrier, on or before the thirtieth day after the due date; and
(B) makes a duplicate payment within thirty (30) days after the
date the person is notified that the payment was not received.
[Pre-1975 Property Tax Recodification Citation: 6-1-52-3
part.]
Formerly: Acts 1975, P.L.47, SEC.1; Acts 1975, P.L.55, SEC.1.
As amended by Acts 1978, P.L.35, SEC.1; Acts 1981, P.L.71, SEC.4;
P.L.23-1984, SEC.9; P.L.88-1995, SEC.9; P.L.154-1999, SEC.1;
P.L.90-2002, SEC.262; P.L.1-2004, SEC.46 and P.L.23-2004, SEC.49;
P.L.154-2006, SEC.55; P.L.67-2006, SEC.11; P.L.1-2007, SEC.50;
P.L.219-2007, SEC.82; P.L.3-2008, SEC.58; P.L.56-2012, SEC.17;
P.L.149-2016, SEC.28; P.L.232-2017, SEC.39; P.L.209-2019, SEC.7;
P.L.95-2021, SEC.1; P.L.230-2025, SEC.57.