[R23] Friend Report: Property tax relief progresses through the Senate (2/14/2012)

Tuesday, February 14, 2012

Start Date: 2/14/2012
End Date: 2/14/2012

The second half of the session is under way and the pace, though still hectic, is much more normal.  Bills are being heard in committee, amendments are offered, and votes are taken.  It’s good to be able to consider and discuss the varied concerns of Hoosiers.

A serious problem across the state involves thousands of Hoosiers who have had trouble keeping up with their property taxes.  I authored House Bill (HB) 1090 to help relieve individuals from the hardships brought on by the poor economic conditions of the last few years.  By making an agreement with the county treasurer, people would be able to stay in their homes or keep their business while paying off their delinquent property taxes.  This legislation unanimously passed the House, as well as the Senate Appropriations Committee.

I’ve spoken to people in the district and across the state and I know how difficult it’s been for many Hoosier families to make ends meet.  HB 1090 would allow people with overdue property taxes to work out a payment plan for delinquent property taxes with their county treasurer.  If the taxpayer sticks to the payment plan, the county auditor would remove their home or other property from the tax sale.

I’ve also heard from many Hoosiers who had a bad year or two and missed paying their property taxes, but now they’re back on their feet and can make those payments up.  However, in the meantime they have racked up thousands of dollars in penalties that make it close to impossible for them to catch up.  HB 1090 would allow county councils to institute an amnesty period to forgive the penalties if the delinquent taxes occurred before 2010 when the recession was at its worst.  From June 30, 2012, to July 1, 2013, taxpayers that pay off all overdue property taxes would be exempt from any additional penalties.  The plan allows the state to collect funds vital to the function of government, but more importantly it gives Hoosiers a badly needed second chance to keep from losing their homes or businesses.

The last part of this bill would help county governments dispose of properties in tax sales.  Counties have dozens or even hundreds of vacant properties up for tax sale that can’t be sold because their value is less than what is owed in taxes.  Under HB 1090, counties could sell properties once a bid reaches 75 percent of the property’s assessed value.  At the very least, the government would recover a portion of the taxes owed on the properties and counties would no longer have to pay for maintenance and upkeep costs.

My hope is this bill will provide some desperately needed relief to Hoosier families.  As the session moves towards its conclusion, I will continue to send updates on this issue and other pending legislation.

More later,

Bill

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Friend Report, Property tax relief progresses through the Senate.docx