2023 Indiana Code › Title 6. Taxation › Article 1.1. Property Taxes › Chapter 24. Sale of Real Property When Taxes or Special Assessments Become Delinquent › 6-1.1-24-6.8. Transfer of Parcels and Certificates of Sale to Adjacent Homeowners

Sec. 6.8. (a) For purposes of this section, in a county containing a consolidated city "county executive" refers to the board of commissioners of the county as provided in IC 36-3-3-10.
(b) As used in this section, "vacant parcel" refers to a parcel that satisfies the following:
(1) A lien has been acquired on the parcel under section 6(a) of this chapter.
(2) If the parcel is improved on the date the certificate of sale for the parcel or the vacant parcel is offered for sale under this chapter, the following apply:
(A) One (1) or more of the following are located on the parcel:
(i) A structure that may be lawfully occupied for residential use.
(ii) A structure used in conjunction with a structure that may be lawfully occupied for residential use.
(B) The parcel is:
(i) on the list of vacant or abandoned properties designated under section 1.5 of this chapter; or
(ii) not occupied by a tenant or a person having a substantial property interest of public record in the parcel.
(3) On the date the certificate of sale for the parcel or the vacant parcel is offered for sale under this chapter, the parcel is contiguous to one (1) or more parcels that satisfy the following:
(A) One (1) or more of the following are located on the contiguous parcel:
(i) A structure occupied for residential use.
(ii) A structure used in conjunction with a structure occupied for residential use.
(B) The contiguous parcel is eligible for the standard deduction under IC 6-1.1-12-37.
(c) A county legislative body may adopt an ordinance authorizing the sale of vacant parcels and certificates of sale for vacant parcels in the county under this section. The ordinance may establish criteria for the identification of vacant parcels and certificates of sale for vacant parcels to be offered for sale under this section. The criteria may include the following:
(1) Limitations on the use of the parcel under local zoning and land use requirements.
(2) If the parcel is unimproved, the minimum parcel area sufficient for construction of improvements.
(3) Any other factor considered appropriate by the county legislative body.
In a county containing a consolidated city, the county legislative body may adopt an ordinance under this subsection only upon recommendation by the board of commissioners provided in IC 36-3-3-10.
(d) If the county legislative body adopts an ordinance under subsection (c), the county executive shall for each sale under this section:
(1) by resolution, and subject to the criteria adopted by the county legislative body under subsection (c), identify each vacant parcel for which the county executive desires to sell the vacant parcel or the certificate of sale for the vacant parcel under this section; and
(2) subject to subsection (e), give written notice to the owner of record of each parcel referred to in subsection (b)(3) that is contiguous to the vacant parcel.
(e) The notice under subsection (d)(2) with respect to each vacant parcel must include at least the following:
(1) A description of the vacant parcel by:
(A) legal description; and
(B) parcel number or street address, or both.
(2) Notice that the county executive will accept written applications from owners of parcels described in subsection (b)(3) as provided in subsection (f).
(3) Notice of the deadline for applications referred to in subdivision (2) and of the information to be included in the applications.
(4) Notice that the vacant parcel or certificate of sale for the vacant parcel will be sold to the successful applicant for:
(A) one dollar ($1); plus
(B) the amounts described in section 5(e)(4) through 5(e)(6) of this chapter.
(f) To be eligible to purchase a vacant parcel or the certificate of sale for a vacant parcel under this section, the owner of a contiguous parcel referred to in subsection (b)(3) must file a written application with the county executive. The application must:
(1) identify the vacant parcel or certificate of sale that the applicant desires to purchase; and
(2) include any other information required by the county executive.
(g) If more than one (1) application to purchase a single vacant parcel or the certificate of sale for a single vacant parcel is filed with the county executive, the county executive shall conduct a drawing between or among the applicants in which each applicant has an equal chance to be selected as the transferee of the vacant parcel or certificate of sale for the vacant parcel.
(h) The county executive shall by resolution make a final determination concerning the vacant parcels or certificates of sale for vacant parcels that are to be sold under this section.
(i) After the final determination of the vacant parcels and certificates of sale for vacant parcels to be sold under subsection (h), the county executive shall:
(1) on behalf of the county, cause all delinquent taxes, special assessments, penalties, and interest with respect to the vacant parcels to be removed from the tax duplicate; and
(2) give notice of the final determination to:
(A) the successful applicant;
(B) the county auditor; and
(C) the township assessor, or the county assessor if there is no township assessor for the township.
(j) Upon receipt of notice under subsection (i)(2):
(1) the county auditor shall:
(A) collect the purchase price from each successful applicant; and
(B) subject to subsection (k), prepare a tax deed transferring each vacant parcel to the successful applicant, if the conditions of IC 6-1.1-25-4.5 and IC 6-1.1-25-4.6 are satisfied; and
(2) if the vacant parcel is unimproved, the township assessor or county assessor shall consolidate each unimproved parcel sold and the contiguous parcel owned by the successful applicant into a single parcel.
(k) For a deed issued under subsection (j)(1)(B) before July 1, 2013, a county auditor shall include in the deed prepared under subsection (j)(1)(B) reference to the exemption under subsection (l).
(l) This subsection applies only to a vacant parcel consolidated with a successful applicant's contiguous parcel under this section before July 1, 2013. Subject to subsection (m), each consolidated parcel to which this subsection applies is exempt from property taxation for the period beginning on the assessment date that next succeeds the consolidation in the amount of the assessed value at the time of consolidation of the vacant parcel that was subject to the consolidation.
(m) This subsection applies only to a vacant parcel consolidated with a successful applicant's contiguous parcel under this section before July 1, 2013. The exemption under subsection (l) is terminated as of the assessment date that next succeeds the earlier of the following:
(1) Five (5) years after the transfer of title to the successful applicant.
(2) The first transfer of title to the consolidated parcel that occurs after the consolidation.
(n) If a tax deed is issued for an improved vacant parcel after June 30, 2013, under this section or under IC 6-1.1-25-4.6 following the purchase of a certificate of sale under this section, the successful applicant may not sell the improved vacant parcel until after the first anniversary of the date on which the tax deed for the improved vacant parcel is issued to the successful applicant.
As added by P.L.98-2010, SEC.2. Amended by P.L.118-2013, SEC.6; P.L.203-2013, SEC.11; P.L.5-2015, SEC.18; P.L.247-2015, SEC.20; P.L.251-2015, SEC.15.