(a) If, before the court issues an order directing the county auditor to issue a tax deed to a tract or item of real property sold under IC 6-1.1-24 , it is found by the county auditor and the county treasurer that the sale was invalid, the county auditor shall refund:

1. (1) the purchase money and all taxes and special assessments on the property paid by the purchaser, the purchaser's assigns, or the purchaser of the certificate of sale under IC 6-1.1-24 after the tax sale plus five percent (5%) interest per annum; and

2. (2) the costs described in section 2(e) of this chapter, subject to section 2.5 of this chapter;

   from the county treasury to the purchaser, the purchaser's successors or assigns, or the purchaser of the certificate of sale under IC 6-1.1-24 . The tract or item of real property, if it is then eligible for sale under IC 6-1.1-24 , shall be placed on the delinquent list as an initial offering under IC 6-1.1-24-6 .

(b) A political subdivision shall reimburse the county for interest paid by the county under subsection (a) if:

1. (1) the invalidity of the sale under IC 6-1.1-24 resulted from the failure of the political subdivision to give adequate notice of a lien to property owners; and

2. (2) the existence of the lien resulted in the sale of the property under IC 6-1.1-24 .

   [Pre-1975 Property Tax Recodification Citation: 6-1-57-9.]

   Formerly: Acts 1975, P.L.47, SEC.1. As amended by P.L.50-1990, SEC.13; P.L.39-1994, SEC.22; P.L.139-2001, SEC.21; P.L.170-2003, SEC.15; P.L.66-2014, SEC.16; P.L.251-2015, SEC.26.