STATEHOUSE (Feb. 25, 2010) - Senate lawmakers this week approved by a 50-0 vote a measure establishing procedures for counties that mail late property tax bills.

State Sen. Ed Charbonneau (R-Valparaiso), sponsor of the measure, said House Bill 1059 will now be sent back to the House for further consideration.

“Last year, only two of 92 counties sent out property tax billing statements on time,” Charbonneau said. “If this measure becomes law, Hoosier taxpayers would make payments in the spring and fall based in large part on the previous year’s tax bills, if county officials are somehow delayed in their work. This would not only provide taxpayers with a general idea of how much they owe, but would give school corporations and local units of government more information for future budgeting.”

Currently when bills are late, counties can elect to send out provisional property tax statements. HB 1059 requires provisional billing statements to be sent to taxpayers living in counties where spring tax bills are expected to be mailed late.

Provisional billing amounts would be based on payments made the prior year, but adjustments from new deductions and credits could be included. Counties throughout the state would have two options when sending property tax billing statements to taxpayers:

• Taxpayers could receive provisional property tax bills asking them to pay the same amount they paid during the previous year. Half of the bill would be due before June 10 and the other half due before Nov. 10, normal deadlines for taxes on real property. Once actual tax liabilities are calculated, reconciliation statements would be mailed to property owners indicating actual taxes due for the year and any over- or underpayments that had occurred based on the provisional bills; or
• Taxpayers could receive provisional property tax bills for the May installment asking them to pay half of the total amount in property taxes that they paid the entire previous year. This spring bill would be payable before June 10. In the fall, taxpayers would receive reconciliation statements reflecting the actual fall installment and any over or under-payments resulting from the “provisional” spring billing.

“Property taxes fund schools, public safety and local units of government,” Charbonneau said. “Delays in property tax billing can prevent these groups from having a clear revenue picture, which can force them to take out loans with high interest rates to pay expenses. Hopefully this measure will prevent some of the guessing that goes into finalizing operating budgets.”

Sen. Charbonneau represents Senate District 5, which includes Starke County and portions of Porter, LaPorte, Marshall, Jasper, Pulaski, and St. Joseph counties.

Audio Clip