2023 Indiana Code › Title 6. Taxation › Article 1.1. Property Taxes › Chapter 25. Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments › 6-1.1-25-4.9. Real Property Parcels Considered Public Hazards

Sec. 4.9. (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.
As added by P.L.27-2023, SEC.4.