MEMORANDUM
TO: County
Assessors, Auditors, and Treasurers
FROM: Micah G.
Vincent, Commissioner
RE: HEA 1116 –
Property Change/Installment Payments
DATE: May 17,
2013
On May 9, 2013, Governor Pence
signed House Enrolled Act No. 1116 (“HEA 1116”) which becomes effective July 1,
2013. Section 13 adds Indiana Code 6-1.1-22-9.9 which permits an owner to pay
property taxes attributable to changes in the owner's property over the same
number of years that corresponds to any delay in the proper assessment of the
owner's property, provided the owner complied with the applicable statutes
concerning filing an assessment registration notice or obtaining permits for the
changes to the real property.
If the owner of real property
makes changes to the real property and complies with IC 6-1.1-5-15(a) or
IC 6-1.1-5-15(b), as applicable; and the assessing official responsible for
assessing the real property subsequently fails to make a correct assessment of
the real property in one (1) or more years by failing to take the changes into
account, when the assessing official finally makes the correct assessment, the
owner may pay the amount attributable to the changes over the same number of
years that the assessing officials took to make the correct
assessment.
For example, a taxpayer constructed a
detached garage in June 2010, which would have first been assessable for the
March 1, 2011 assessment date. The assessing official, however, misses the
garage until 2014 and then retroactively adds the new garage to the taxpayer’s
assessment for the March 1, 2011 assessment date in 2014. Under the new statute,
the taxpayer may pay the property taxes attributable to the new construction
over three (3) years (i.e. the number of years corresponding to the delay by the
assessing official in picking up the new construction).
If you have any questions,
please contact your Assessment Division field representative or Barry Wood at
(317) 232-3762 or bwood@dlgf.in.gov .
