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Bill Watch, Jan. 7, 2016: Current Tax Legislation of Note - Taxation News

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Tax News


Posted on: Jan 7, 2016

The IndyBar Legislative Committee is currently monitoring the following tax-related legislation. IndyBar members can request that the Legislative Committee track specific legislation by contacting committee chair Lawren Mills at Lawren.Mills@icemiller.com.

Click here to view the full Bill Watch reports.

HB1026    PROPERTY TAX RELIEF. (PRYOR C) Permits a board of county commissioners, a county council, a city-county council, or a city common council to establish a neighborhood enhancement property tax relief program. Specifies that under the program a property tax assessed value deduction is provided that reduces real property taxes on some longtime owner-occupants of residences. Provides that the residences must be located in designated distressed areas where real property values have risen markedly as a consequence of the renovation of other residences or the construction of new residences in the area. Specifies that the deduction is 90% of the increased value. Permits the adopting body to include a recapture requirement when the homestead is sold.

HB1037    TAX INCENTIVES AND REPORTING. (KOCH E) Authorizes the department of local government finance to incorporate by reference in an administrative rule certain formatting, coding, and transmission requirements for data that must be submitted by counties. Provides that a property owner is not entitled to the residential rehabilitation deduction for an increase in assessed value attributable to rehabilitation occurring after December 31, 2016. Provides that a property owner is not entitled to the rehabilitated property deduction for an increase in assessed value attributable to rehabilitation occurring after December 31, 2016. Provides that the state tax credit for contributions to the twenty-first century scholars program support fund may not be claimed for contributions made after December 31, 2016. Provides that for purposes of the residential historic rehabilitation tax credit: (1) qualified expenditures do not include expenditures made after December 31, 2016; and (2) a taxpayer may not claim the credit for an expenditure made after December 31, 2016. Specifies additional information that must be reported by each redevelopment commission to the unit's executive and fiscal body and to the department of local government finance.

        
HB1050    SALES TAX HOLIDAY. (STEUERWALD G) Provides a sales and use tax exemption each year beginning on the second Friday of August 2016 and August 2017 through the following Sundays (sales tax holiday) for the following items: (1) Clothing, if the sales price does not exceed $100. (2) A school supply, school art supply, or school instructional material, if the sales price does not exceed $15. Incorporates the definitions of these items as set forth in the Streamlined Sales and Use Tax Agreement.

HB1054    GARNISHMENT OF STATE TAX REFUNDS. (COX C) Provides that if a debt has been reduced to a judgment in Indiana and the judgment has not been satisfied, set aside, or discharged in bankruptcy, the judgment creditor may garnish a state tax refund otherwise due to the debtor. Specifies the procedures that the judgment creditor must follow in obtaining the garnishment from the department of state revenue. Allows a writ of garnishment to be electronically filed with the department of state revenue. Excludes from garnishment debt subject to a repayment plan if the repayment plan has not been breached. Exempts 50% of a joint tax refund from garnishment if there is no objection to the garnishment, and permits exclusion from garnishment the part of a tax refund attributable to a spouse of the debtor who is not obligated to pay the debt.

HB1067    INCOME TAX CREDIT FOR COLLEGE CHOICE 529 PLAN. (CULVER W) Increases the income tax credit to up to $1,500 for contributions to a college choice 529 education savings plan.

HB1068    ASSESSMENT APPEALS. (CULVER W) Provides that, if the county property tax assessment board of appeals (PTABOA) fails to issue a determination concerning a petition to correct errors within 180 days after the petition is filed with the county auditor, the taxpayer may petition the Indiana board of tax review (Indiana board) to correct errors in a final administrative determination. Provides that, if the PTABOA fails to approve or disapprove an exemption application within 180 days after an owner files the exemption application, the owner may petition the Indiana board to approve or disapprove the exemption application. Provides that the Indiana board is authorized to approve or disapprove an exemption application: (1) previously submitted to a PTABOA; and (2) that is not approved or disapproved by the PTABOA within 180 days after the owner filed the application for exemption. Provides that the county assessor is a party to a petition to the Indiana board to approve or disapprove an exemption application.

HB1070    INDUSTRIAL RECOVERY TAX CREDIT. (TORR J) Provides that a taxpayer is entitled each taxable year to an industrial recovery tax credit against the taxpayer's state tax liability in an amount equal to 25% of the taxpayer's qualified investment in a qualified community development entity made during the taxable year.

SB218    PROPERTY TAX ASSESSMENTS. (GLICK S) Provides that, if the assessed value of real property is reduced as a result of a property tax appeal, the subsequent assessed value of the real property may not be increased by more than 5% per year for the next four years after the assessment date in which the reduction was applied. Specifies that the 5% limitation does not apply to any part of a change in an assessment: (1) that is directly applicable to any change in an objective factor or feature relating to the property, including an improvement or enlargement of the property; or (2) that results from the correction of an error or omission, including the correction of a mathematical error.

SB223    PROPERTY TAX ASSESSMENT. (ECKERTY D) Provides, with limited exceptions, that: (1) the only factor permitted to be used in changing the assessed value of most real property from year to year is the annual adjustment factor; and (2) an assessing official may not change the real property's underlying parcel characteristics (including age, grade, or condition of the real property) until the real property has been reassessed under the county's reassessment plan, there is a change in an objective factor or feature relating to a property, or there is a need to correct an error. Provides a process that must be followed by an assessing official who wishes to apply an exception. Provides that the department of local government finance (DLGF) may impose a penalty on an assessing official who fails to follow the process or when the county property tax assessment board of appeals (PTABOA) finds that a request to apply an exception is not supported by the facts or a legal opinion. Creates the DLGF assessment supervision fund to receive penalty revenue. Changes the standards for the crime for an assessing official or the DLGF who: (1) assesses any property at more or less than the proper assessed value to include intentionally or recklessly assessing; (2) fails to perform any of the duties under the general assessment provisions to include an intentional or reckless failure; and (3) violates any of the other general assessment provisions to include a knowing or intentional violation. Permits a property owner of record to appeal a property tax assessment at any time before July 1 of the year after the assessment date. Permits a taxpayer to name an attorney in fact who may take the place of the taxpayer under the property tax laws, including appeals. Requires an assessing official to schedule a preliminary conference within normal business hours and reschedule the conference to a time convenient to the taxpayer upon request. Requires evidence in a property tax appeal to be submitted at least 10 days before the PTABOA hearing. Requires an assessing official to show cause to the DLGF before a taxpayer may be required by the assessing official to post a bond or provide other security regarding a contested assessment. Allows a taxpayer alone to stipulate to an assessed value determined by an Indiana registered appraiser. Provides that the office of the assessing official and taxpayer each pay 50% of the appraisal costs. Specifies deadlines for the PTABOA to make decisions. Makes conforming changes.

SB302    STATE AND LOCAL FINANCE. (KENLEY L) Specifies the manner in which certain excise taxes and local taxes collected under the tax amnesty program shall be distributed. Provides that after making the distributions required under the tax amnesty program, the next $42,000,000 collected under the program must be deposited into the Indiana regional cities development fund. Appropriates $42,000,000 from the Indiana regional cities development fund for the purpose of funding a third grant under the regional cities initiative.

SB303    PROPERTY TAX LEVY APPEALS. (KENLEY L) Authorizes a civil taxing unit to request an increase in its maximum property tax levy for a year, if the department of local government finance finds that the growth in the civil taxing unit's assessed value in the preceding year was at least two times the percentage growth allowed for the civil taxing unit's tax levy under the assessed value growth quotient determined for the ensuing year. Provides that the civil taxing unit may increase its maximum property tax levy by a percentage equal to the percentage growth in the civil taxing unit's assessed value for the preceding year.

SB304    PROPERTY TAX MATTERS. (KENLEY L) Increases the assessed value cap (from $143,160 to $155,000) that applies to the property tax deduction for a veteran who: (1) has a total disability; or (2) has at least a 10% disability and is at least 62 years of age. Provides that if the property tax liability due on a homestead for a particular year is less than $100, before application of the circuit breaker credits, the property tax liability on the homestead is increased to $100. Specifies that certain homesteads are exempt from this minimum property tax liability.

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