INDIANAPOLIS, Ind. — Hoosiers may get help with delinquent property taxes if a state bill is passed into law. The bill would allow taxpayers who are facing a tax sale to negotiate a payment plan with the county treasurer.

“The tough economy has made it difficult for many people to keep up with their property taxes,” said State Rep. Bill Friend (R-Macy), who authored House Bill 1090. “This plan would allow the county treasurer and the taxpayer to make an agreement where everyone benefits. The government receives the property taxes it needs to function, and people stay in their homes.”

HB 1090 passed the Indiana House and Senate unanimously, and the bill will go to conference committee to concur on amendments.

If a taxpayer and county treasurer reach an agreement to pay delinquent property taxes, the county auditor would be able to remove the property from a tax sale.

The bill would expand statewide a pilot program that is currently available only in Lake County.

The legislation further permits an amnesty period for fees on late property taxes that were due prior to 2012. If the delinquent taxes are paid before July 1, 2013, penalties and interest may be forgiven by the county treasurer.

Friend told Farm World that any potential payment agreement is up to the county treasurer’s discretion.

“This is not mandatory. It’s a provision, another tool in the treasurer’s tool belt to collect taxes,” Friend said. “It is up to their discretion because it means more bookkeeping for them.”

He said that the taxpayer must live up to the agreement to avoid the tax sale.

Friend said that a property is listed for a tax sale once three consecutive tax deadlines have been missed and unpaid.

A pork producer in Macy, Ind., Friend said this bill would apply to farms, but he is unaware of many farms being in arrears. Friend described this legislation as a “gift” during the recession.

“Hoosiers deserve a second chance to catch up on their property taxes, especially with the pressure the poor economy has put on individuals. This bill would give people a little breathing room so that they can avoid losing their homes and other property,” Friend said.

For abandoned properties, the bill also states a county may sell the property in a tax sale for 75 percent of its assessed value. Currently, the selling price must cover the entire amount of the assessed value, including overdue taxes.

Friend said that the current law results in unsold properties which must be maintained by the county. His bill would help remove the burden on county government.

An amendment was added to forgive penalties and interest for industrial buildings and give the potential buyer one year to pay the back taxes, Friend said. “The staff and I are examining now the changes (to the bill),” Friend said.

He anticipates a concurrence vote soon.