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.
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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.
HB1111 SALES AND USE TAX. (MILLER D) Provides that if a purchaser is physically present at a retail merchant's location when a product is purchased and the purchaser requests delivery of the product to a location outside Indiana, the sale is considered to be made at the business location of the sale, unless the purchaser presents proof during the consummation of the sale that the purchaser resides outside Indiana.
HB1147 PROPERTY TAX COLLECTION. (SMITH V) Requires a vehicle registration applicant to furnish proof, as a condition of registering a vehicle, that the vehicle registration applicant (applicant) has paid all relevant property taxes, special assessments, interest, and penalties for which the applicant is liable. Provides that county auditors shall issue certifications to eligible registrants of motor vehicles in their respective counties that: (1) the registrant's liability for all relevant property taxes, special assessments, penalties, and interest is paid in full; or (2) the registrant is not liable for any property taxes, special assessments, penalties, and interest. Requires the bureau of motor vehicles, in cooperation with the department of local government finance, the county auditors, and the county treasurers, to produce a computerized information system for verifying whether an applicant has paid all the relevant property taxes, special assessments, interest, and penalties for which the applicant is liable.
HB1169 BUSINESS PERSONAL PROPERTY TAX EXEMPTION. (SAUNDERS T) Replaces the requirement that a taxpayer that is eligible for the business personal property tax exemption (exemption) submit to the county assessor a notarized statement each year affirming the taxpayer's eligibility for the exemption, subject to penalties for perjury, with a requirement that the taxpayer indicate on the taxpayer's personal property return that the taxpayer is eligible for the
exemption for the assessment date. Reduces the maximum local service fee that may be imposed on a taxpayer each year that qualifies for the exemption from $50 per year to $25 per year. Eliminates the $25 penalty applicable to a taxpayer that fails to file a notarized statement with the county assessor affirming the taxpayer's eligibility for the exemption. Changes the basis for valuing personal property for the exemption from acquisition cost to assessed value.
HB1174 CREDIT FOR INCOME TAXES PAID TO ANOTHER STATE. (FINE B) Provides that the maximum income tax credit that an Indiana resident may take for income taxes paid to another state includes the Indiana local income tax rate in addition to the Indiana state adjusted gross income tax rate (applies when the state of employment does not have a reciprocity agreement with Indiana).
HB1182 SALES AND USE TAX DEDUCTION. (FRIZZELL D) Provides a method for determining the amount of a retail merchant's state sales and use tax deduction or refund when it is bad debt related to a private label credit of the retail merchant.
HB1190 PROPERTY TAX DEDUCTIONS FOR VETERANS. (MOSELEY C) Authorizes the fiscal body of a county to adopt an ordinance to allow a property tax deduction to veterans of World War II, the Korean Conflict, and the Vietnam Conflict. Provides that the deduction is subject to the same procedures and eligibility limits as the expiring deduction for World War I veterans. Authorizes the fiscal body of a county to adopt an ordinance to provide a property tax deduction to the surviving spouses of veterans of World War II, the Korean Conflict, and the Vietnam Conflict that is equivalent to the current property tax deduction for surviving spouses of World War I veterans. Provides that properties remain subject to the deduction following the repeal of a deduction ordinance as long as the owner and the property remain otherwise eligible for the deduction.
HB1193 SALE OF CERTAIN PROPERTY BY A COUNTY. (GUTWEIN D) Provides that if a county executive acquires a tax deed for a property and later sells the property, the proceeds of any sale of the property must be applied to any special assessments that were removed from the tax duplicate at the time the tax deed was issued, if any part of proceeds of the sale remains after applying the proceeds to the costs of the sale and the taxes that were removed from the tax duplicate at the time the tax deed was issued.
HB1204 PROPERTY TAX REPLACEMENT FEE. (KARICKHOFF M) Permits a county council or county income tax council to establish an annual property tax replacement fee on any parcel receiving assessed value deductions or property tax credits that reduce the annual property tax liability on the parcel to less than the fee amount set by the county. Provides that the fee must be at least $100 and not more than $400. Specifies that the property taxes paid on the parcel are a credit against the fee. Changes the county option amount from $25 to $100 for requiring the payment of property taxes and the property tax replacement fee, if any, in the May installment. Eliminates the $5 minimum property tax statement processing fee in counties that have adopted the property tax replacement fee.
HB1205 PROPERTY TAX ASSESSMENT. (GIAQUINTA P) Specifies that a petition for a review of or a rehearing for a property tax assessment must be filed within 45 days after the maximum time elapses for the county property tax assessment board of appeals (PTABOA) or the Indiana board of tax review to make a decision on a property tax assessment appeal. Specifies that the deadline for making a change in a personal property tax assessment applies when the PTABOA is acting as the assessor and that it covers the board's pre-appeal modification of an assessment changed by an assessing official.
HB1212 STANDARD DEDUCTION FOR HOMESTEADS (CULVER W) Provides that an individual and an eligible child are both entitled to a standard deduction from the assessed value of property for an assessment date if: (1) the individual is at least 65 years of age on the assessment date; (2) the individual qualifies a dwelling on the property as a homestead for the assessment date; and (3) the eligible child qualifies a separate dwelling on the property as a homestead for the assessment date.
HB1215 STATE AND LOCAL MATTERS. (CHERRY R) Permits an historic preservation or rehabilitation grant to be awarded at the time plans are approved. Provides that the grant may be up to 35%, instead of 20%, of the qualified expenditures, but the grant may not exceed $100,000. Replaces a certification that the work substantially complies with the proposed plan with a finding that the plan complies with the program guidelines. Eliminates the deadlines for completing the work. Provides that if the grant applicant is a nonprofit organization facilitating a qualified affordable housing project, the organization does not have to be the owner of the historic property to receive a grant. Provides that a heritage barn must be at least 50 years old as of the assessment date for which the deduction is claimed. Provides that a heritage barn may not be used for a business purpose unless the heritage barn was constructed at least one hundred years before the assessment date. Allows a city or town with a law enforcement agency that prosecutes at least one ordinance violation in a circuit or superior court of the county to collect a share of the semiannual distribution of certain court fees. (Current law requires a city or town to prosecute at least 50% of the city's or town's ordinance violations in the circuit or superior court to receive a share of the semiannual distribution of court fees.) Urges the legislative council to assign the study of the personal property audit process to the interim study committee on fiscal policy during the 2016 interim.
HB1217 INCOME TAX CREDIT FOR FIREARMS INSTRUCTION. (LUCAS J) Provides a state income tax credit to taxpayers (individuals filing single tax returns or married couples filing joint tax returns) who incur expenses in receiving qualified firearms instruction. Provides that the credit is equal to the amount of the incurred expenses. Provides that the maximum amount allowed as a credit is $100 for individuals filing single returns or $200 for married couples filing joint returns. Provides that a tax credit may not exceed the taxpayer's state income tax liability. Provides that a taxpayer is not entitled to a carryover, carryback, or refund of any unused tax credit.
HB1230 STATE PAYMENTS IN LIEU OF PROPERTY TAXES. (ARNOLD L) Requires the state to make payments in lieu of property taxes (PILOT) for qualified parcels in counties in which at least 15% of all land in the county is: (1) owned or leased by a combination of both the state of Indiana and the federal government; and (2) subject to an exemption from property taxes. Defines "qualified parcel" as a parcel that is: (1) owned or leased by the state of Indiana; (2) subject to an exemption from property taxes; and (3) located in a county to which this act applies. Provides that a county containing qualified parcels is entitled to receive PILOTs from the state. Provides that for purposes of calculating a PILOT, each acre of the qualified parcel is considered to have an assessed value of one-fourth of the statewide agricultural land base rate value. Annually appropriates from the state general fund the amount necessary to pay the required PILOTs.
HB1245 VETERANS' PROPERTY TAX DEDUCTIONS. (KLINKER S) Provides that after December 31, 2016, the assessed value of an individual's tangible property may not be considered when determining whether the individual is eligible for the property tax deduction for: (1) totally disabled veterans; or (2) veterans who are at least 62 years of age and have a disability of at least 10%.
HB1261 PROPERTY TAX EXEMPTIONS. (SPEEDY M) Provides that the property tax exemption for religious purposes applies to a building that is leased (including land and leased personal property) if the person using the building for religious purposes would otherwise be liable for property taxes. Specifies conditions that must be satisfied to obtain the exemption. Specifies that if an exempt use has not changed, the person receiving the exemption can satisfy the filing requirement to maintain the exemption by filing a statement in each even-numbered year. (Current law provides that an annual filing of a complete application is required unless it is a nonprofit corporation.) Makes no change to the exclusion from the requirement to make any subsequent filing for property used for educational, literary, scientific, religious, or charitable purposes or owned by a fraternity or sorority.
HB1273 VARIOUS PROPERTY TAX MATTERS. (LEONARD D) Changes the calculation of the statewide agricultural base rate value per acre for the 2016 assessment date and each assessment date thereafter to use the assessed value growth quotient from the year preceding the assessment year. Requires assessing officials to maintain geographic information system characteristics of real property parcels and to transmit that data annually to the geographic information office of the office of technology. Defines the term "mortgage" for purposes of the property tax mortgage deduction. Restates the maximum assessed value limit for determining eligibility for the disabled veteran property tax deduction to require the assessed value of the certain property to be less than or equal to $143,160. Provides that a county auditor may accept a deduction application for a property tax abatement deduction only if the designating body has specified an abatement schedule for the deduction. Prohibits a taxing unit from transferring property tax receipts to the property tax assessment appeals fund if the property tax receipts are: (1) held in a debt service fund; or (2) treated as levy excess. Removes phrasing to emphasize that a political subdivision may not base an excess levy appeal on normal population growth. Removes obsolete provisions concerning excess levy appeals by political subdivisions. Modifies certain responsibilities of the division of data analysis of the department of local government finance. Provides that the department of local government finance may cancel any delinquencies, fees, special assessments, and penalties, in addition to property taxes, that are owed on property that is owned by the state, a county, a city, a town, a township, or a locally established port authority. Limits the period during which a county auditor may act on information that a taxpayer is ineligible for a standard property tax deduction to three years following the date on which the property taxes for a particular year are first due. Authorizes the provider unit in a fire protection territory to negotiate for and hold debt for the equipment replacement fund of a fire protection territory. Authorizes a participating unit in a fire protection territory to acquire fire protection equipment or other property and make the property available to the provider unit. Specifies the adjustments to the maximum permissible levy for a unit that ceases participation in a fire protection territory. Specifies the minimum number of taxpayers that must object to the imposition or increase of a tax rate for an equipment replacement fund of a fire protection territory. Authorizes a library to issue library cards at no charge to college students who attend a college in the library district. Requires a library to prorate the cost of a library card that is valid for less than one year. Repeals a provision authorizing a county fiscal body to adopt an ordinance to allow local agencies to require a person applying for a property tax exemption, a property tax deduction, a zoning change or zoning variance, a building permit, or any other locally issued license or permit to submit a uniform property tax disclosure form with the person's application for the property tax exemption, property tax deduction, zoning change or zoning variance, building permit, or other locally issued license or permit.
HB1342 TAX AMNESTY. (SUMMERS V) Authorizes the commissioner of the department of state revenue (department) to direct the department to conduct a tax amnesty program whenever the commissioner determines that an amnesty program would be fiscally or administratively beneficial to the state.
HB1343 INCOME TAX DEDUCTION FOR DEPENDENTS. (DELANEY E) Provides that a taxpayer may claim the $1,500 additional dependent deduction for a dependent child for whom the taxpayer is the legal guardian. (Current law allows the additional dependent deduction to be claimed only for a child, stepchild, or foster child of the taxpayer.)
HB1375 PROPERTY TAX DEDUCTION FOR VETERANS WITH A DISABILITY. (NIEZGODSKI D) Increases the assessed value cap (from $143,160 to $195,600) 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.
HB1402 LOCAL INCOME TAX HOUSING ZONE CREDIT. (RIECKEN G) Provides a refundable tax credit against a taxpayer's local option income tax liability for a taxable year if: (1) the taxpayer resides in credit eligible housing during the taxable year; and (2) the date on which the taxpayer's residence is determined for local option income tax purposes occurs within the allowable credit period of the credit eligible housing.
HB1403 PROPERTY TAX EXEMPTION FOR AIRPORT PROPERTY. (DERMODY T) Provides that, for purposes of the property tax exemption for real property used for airport purposes, real property is considered to be used for airport purposes if the real property was purchased with funds that include grant money from the Federal Aviation Administration or the Indiana department of transportation.
HB1405 PROPERTY TAX APPEALS. (DEVON D) Provides that an assessor has the burden of proving that an assessment is correct if it is for an assessment date for which an annual adjustment is applied and the assessor either: (1) uses an adjustment factor, method, or calculation other than the annual adjustment factor provided for by law; or (2) changes the underlying parcel characteristics from those that applied to the parcel for the preceding assessment date.
HB1406 VENTURE CAPITAL TAX CREDITS. (SMALTZ B) Provides that the venture capital investment tax credit may be applied against any retaliatory premium tax liability imposed on out-of-state insurance companies (a retaliatory tax is added in determining Indiana insurance premium tax liability when the state in which the insurance company is domiciled imposes higher taxes and fees on an Indiana domiciled insurer for the same business.) Increases the maximum amount of tax credits available under the venture capital investment tax credit for the provision of qualified investment capital to a particular qualified Indiana business to be the lesser of: (1) the total amount of qualified investment capital provided to the qualified business multiplied by: (A) 40%, in the case of a qualified business that is located within a low income community; or (B) 25%, in the case of any other qualified business (other than a qualified business located in a low income community); or (2) $1,500,000; for calendar years after 2016. Increases the total amount of tax credits that may be approved by the Indiana economic development corporation for qualified investment capital from $12,500,000 to $15,000,000. Provides that, for a taxable year beginning after December 31, 2016, the amount of credit to which a taxpayer is entitled to equals the product of: (1) 40%, in the case of a qualified Indiana business that is located within a low income community; or (2) 25%, in the case of any other qualified Indiana business; multiplied by the amount of the qualified investment capital. Incorporates the definition of "low income community" used in the federal new markets tax credit for purposes of determining a low income community in Indiana. Provides that the credit is assignable.
SB87 MULTIPLE COUNTY PTABOAS (KENLEY L) Provides that the legislative bodies of two or more counties may adopt substantially similar ordinances to establish a multiple county property tax assessment board of appeals (PTABOA). Provides that a multiple county PTABOA consists of three members appointed by the governor, not more than two of whom may be from the same political party. Requires the assessor's office for the county with the greatest population in a multiple county PTABOA to provide administrative support to the board. Provides that the county council and the board of county commissioners of each county participating in a multiple county PTABOA may jointly recommend qualified individuals to the governor for consideration for appointment to the board. Provides that the compensation of members of a multiple county PTABOA shall be determined jointly by the fiscal bodies of the participating counties. Makes conforming amendments.
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.
SB225 PROPERTY TAX EXEMPTION FOR AFFORDABLE HOUSING. (ECKERTY D) Establishes standards for affordable rental housing property to be exempt from property taxation when the property does not otherwise qualify for a property tax exemption. Specifies that the exemption applies to properties owned by a 501(c)(3) organization (or a disregarded entity of such an organization) that are 100% occupied by residents who qualify as low income.
SB233 STATE TAX RETURN CHECK OFF FOR MILITARY FAMILY RELIEF FUND. (LANANE T) Provides for space on state income tax forms to enable a taxpayer to donate all or part of the taxpayer's tax refund to the military family relief fund. Provides that if a taxpayer is not entitled to a refund or has designated all of the taxpayer's refund be directed to one of the allowable funds, the taxpayer may make an additional contribution on the taxpayer's income tax return to the military family relief fund.
SB254 PROPERTY TAX ASSESSMENT. (ZAKAS J) Provides the following if the application of an annual adjustment factor derived by an assessing official would result in an increase of more than 10% in the assessed value of one or more homesteads: (1) The assessing official shall submit certain information to the division of data analysis (division) of the department of local government finance. (2) The division shall review the information submitted and make a determination of whether the annual adjustment factor was correctly calculated or is otherwise inappropriate. (3) If the division determines that the annual adjustment factor to be applied to the homestead was incorrectly calculated or otherwise needs to be adjusted, the division shall certify to the assessing official the information and instructions necessary for the assessing official to correct the annual adjustment factor.
SB289 PROPERTY TAX BENEFITS FOR VETERANS. (HOLDMAN T) Specifies that a county fiscal body may adopt an ordinance to authorize a total or partial property tax exemption for any of the following: (1) A homestead in the county that is owned by: (A) an individual (or surviving spouse of an individual) who served in the armed forces of the United States or in the national guard and was killed in action or died while on active duty; or (B) an individual who is receiving dependency indemnity compensation. (2) A homestead in the county that is owned by a disabled veteran, if the homestead was conveyed without charge to the owner by a tax exempt organization. (3) A homestead owned by a veteran who served during periods specified by the county fiscal body. Specifies that a county fiscal body may adopt an ordinance to do either of the following: (1) Eliminate or increase the assessed value cap on the property tax deduction for disabled veterans in the county. (2) Provide that the property tax standard deduction applies in the county to a homestead owned by a veteran serving out of state, even if that property is leased to another person.
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. Provides that any remaining amounts collected under the tax amnesty program shall be deposited in the state bicentennial capital account (rather than the state general fund, under current law). Specifies that revenue received from the rental of certain communications system infrastructure shall be deposited in the state general fund (rather than the state bicentennial capital account, under current law). 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) Provides that the deductions for veterans with a disability apply to individuals with a disability of at least 20% (rather than 10%, under current law). For the January 1, 2017, assessment date, increases the assessed value limit for the property tax deduction for certain veterans with a disability from $143,160 to $175,000. For the January 1, 2018, assessment date and each assessment date thereafter, provides that the assessed value limit is equal to: (1) the assessed value limit for the preceding assessment date; multiplied by (2) the assessed value growth quotient that is calculated in the year preceding the year in which the assessment date occurs. Provides that an individual may claim a deduction from the assessed value of the individual's homestead if: (1) the individual served in the military or naval forces of the United States; (2) the individual received an honorable discharge; (3) the individual has a disability of at least 50%; (4) the individual's disability is evidenced by a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs or by a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs; and (5) the homestead was conveyed without charge to the individual who is the owner of the homestead by an organization that is exempt from income taxation under the federal Internal Revenue Code. Specifies that a property continues to qualify as a homestead if the property is leased while the owner is away from Indiana serving on active duty in the armed forces, if the individual has lived at the property at any time during the past 10 years. (Current law specifies that a property ceases to qualify as a homestead if the property is leased while such an individual is away from Indiana.)
SB308 PROPERTY TAX MATTERS. (HERSHMAN B) Provides that when calculating the base rate for agricultural land for the January 1, 2017, assessment date and each assessment date thereafter, the department of local government finance (DLGF) shall do the following: (1) Use the six most recent years preceding the year in which the assessment date occurs (before the highest of those six years is eliminated when determining the rolling average). (2) Use a capitalization rate of at least 8%. (3) For purposes of calculating a base rate, recalculate certain prior base rates that are used in the rolling average by using a capitalization rate of at least 8%. Specifies that the adjustment of the base rate by the assessed value growth quotient applies only for the 2016 assessment date. Specifies that for purposes of the assessment of agricultural land, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the January 1, 2016, assessment date and each assessment date thereafter. (Under current law, new soil productivity factors are to be used for assessment dates occurring after March 1, 2015.) Provides that an assessed value growth quotient is determined for each county. Provides that the assessed value growth quotient for a civil taxing unit in a particular county is the lesser of: (1) the quotient determined using a six year average of statewide income growth (as current law provides); or (2) the quotient determined using a six year average of assessed value growth in the county in which the particular civil taxing unit is located. Makes conforming changes. Increases the assessed value per acre of classified forest land, classified windbreaks, and classified filter strips from $1 per acre to $13.29 per acre for the January 1, 2017, assessment date. For assessment dates after January 1, 2017, increases the assessed value by the annual percentage change in the consumer price index. Authorizes a county fiscal body to adopt an ordinance providing that the county auditor shall exclude and keep separate on the tax duplicate for taxes payable in a calendar year the net assessed value of tangible property that is necessary to enable the county to pay the expenses, as specified in the ordinance, that are likely to be incurred by the county assessor in defending appeals with respect to property located in the county. Specifies that property tax receipts that are attributable to an increase in the taxing unit's tax rate caused by such a reduction in the county's net assessed value shall be deposited in the county's property tax assessment appeals fund. Repeals provisions enacted in 2015 concerning the assessment of: (1) certain limited market or special purpose property; and (2) commercial nonincome producing real property. Provides that in addition to the factors under current law, the DLGF shall also provide for the classification of improvements on the basis of market segmentation. Specifies that the value in exchange of an improved property does not reflect the true tax value of the improved property if a market segmentation analysis indicates that purportedly comparable sale properties have a different market or submarket for the current use of the improved property. Specifies that a market segmentation analysis must be conducted in conformity with generally accepted appraisal principles and is not limited to the categories of markets and submarkets enumerated in the rules or guidance materials adopted by the DLGF. Provides that true tax value shall be determined under the rules of the DLGF (subject to the provisions of the property tax article), and that the DLGF's rules may include examples to illustrate true tax value. Specifies that true tax value does not mean the value of the property to the user. Specifies that the Indiana board of tax review (Indiana board) may, on its own motion, have a review appraisal prepared by an independent appraiser to review any appraisal submitted by a party to the hearing. Provides that for purposes of a review by the Indiana tax court or the Indiana supreme court of a final determination by the Indiana board on a petition for review of an assessment, the fact that a determination by the Indiana board that the value of the property: (1) is less than the value of the property included in the appraisal report that contains the highest proposed value of the property; and (2) is more than the value of the property included in the appraisal report that contains the lowest proposed value of the property; does not by itself constitute an arbitrary or capricious action by the Indiana board, an abuse of discretion by the Indiana board, or a determination by the Indiana board that is unsupported by substantial or reliable evidence. Specifies that when the Indiana board makes a determination on a petition for review of an assessment, the Indiana board may consider parts or elements of the evidence submitted by the parties to the proceeding and make a finding of fact that is different from a particular fact that is asserted by a party.
SB309 STATE AND LOCAL TAXATION. (HERSHMAN B) Eliminates the exemption for property taxes during the planning and construction of a residence that is conveyed upon completion to a low income individual by a nonprofit organization. Eliminates the exemption for property taxes for improvements on real property that are constructed, rehabilitated, or acquired for the purpose of providing low income housing (and also eliminates the PILOTS required from the taxpayers claiming the exemption). Eliminates the property tax deduction for residential rehabilitation of a dwelling. Eliminates the property tax deduction for rehabilitation of a structure over 50 years old. Repeals the state income tax credits for contributions to postsecondary educational institutions in Indiana and for contributions to the twenty-first century scholars program support fund. Makes conforming changes. Provides that a taxpayer may claim the $1,500 additional dependent deduction for a dependent child for whom the taxpayer is the legal guardian. (Current law allows the additional dependent deduction to be claimed only for a child, stepchild, or foster child of the taxpayer.) Provides that if a partnership, a trust, or an estate fails to withhold and pay any amount of tax required to be withheld and thereafter the tax is paid by the partners of the partnership (or the beneficiaries in the case of a trust or estate), the amount of tax paid by partners (or the beneficiaries in the case of a trust or estate) may not be collected from the partnership, trust, or estate. Specifies that the partnership, trust, or estate remains liable for interest or penalty based on the failure to withhold the tax. Provides that the use tax is imposed on a contractor's conversion of construction material into real property if that construction material was purchased by the contractor. Specifies, however, that the use tax does not apply to conversions of construction material if: (1) the sales or use tax has been previously imposed on the contractor's acquisition or use of that construction material; (2) the person for whom the construction material is being converted could have purchased the construction material exempt from the sales and use tax (as evidenced by an exemption certificate) if that person had directly purchased the material from a retail merchant in a retail transaction; or (3) the conversion of the construction material into real property is governed by a time and material contract. Provides that a contractor is a retail merchant making a retail transaction when the contractor disposes of tangible personal property or converts tangible personal property into real property under a time and material contract. Provides that an Indiana inheritance tax return filed after March 31, 2016, must be filed with the department of state revenue (department). Amends provisions of the Indiana inheritance tax law to allow the department to process and administer inheritance tax returns filed with the department after March 31, 2016. Makes conforming changes. Provides that if an ordinance has been adopted requiring the payment of innkeeper's tax to the county treasurer instead of the department, the county treasurer has the same rights and powers with respect to refunding the innkeeper's tax as the department. Specifies tax collection requirements for a facilitator who markets lodging accommodations located in Indiana through the Internet. Defines "accommodation" as any hotel, motel, inn, tourist camp, tourist cabin, house, or any other place in which rooms or lodgings are furnished for consideration. Defines "facilitator" as a person who: (1) contracts with a retail provider of an accommodation to market the accommodation online; and (2) accepts payment from the consumer for the accommodation. Provides that a facilitator who receives payment for an accommodation must collect and remit: (1) the state gross retail or use tax; and (2) any innkeeper's tax due. Specifies that the calculation of the tax must be based on the total amount paid by the consumer to a facilitator, including any charge or fee of the facilitator. Provides that if the department issues to a person a demand notice for the payment of a tax, the person has 20 days (rather than 10 days, under current law) to either pay the amount demanded or show reasonable cause for not paying the amount demanded. Repeals, effective January 1, 2017, the provision in current law that provides that the cutting of steel bars into billets is to be treated as processing of tangible personal property for purposes of the double direct sales tax exemption for certain manufacturing activities. Adds a provision that would apply retroactively the same sales tax exemption related to the cutting of steel bars into billets (that was enacted effective January 1, 2016) to taxable year beginning January 1, 2011. Provides, however, that a taxpayer predominantly engaged in the business of cutting steel bars owned by others into billets is not entitled to a refund of state gross retail or use taxes paid for any tax period beginning after December 31, 2010, and before January 1, 2016, based on that provision.
SB323 COMBINED REPORTING STUDY. (HERSHMAN B) Requires the legislative services agency to: (1) study the combined reporting approach to apportioning income for income tax purposes; and (2) report the results of the study before October 1, 2016, to the legislative council and to the interim study committee on fiscal policy. Requires the interim study committee on fiscal policy to hold at least one public hearing at which the legislative services agency presents the results of the study.
SB340 TIF DISTRICT BASE ASSESSED VALUE. (WALKER G) Provides that, in the case of assessed value increases attributable to the application of an abatement schedule that was adopted before the allocation area was established, the assessed value increases attributable to the application of the abatement schedule must be included in the base assessed value of the allocation area, and may not be included in the incremental assessed value of the allocation area. Provides that, in the case of assessed value increases attributable to the application of an abatement schedule that was adopted on or after the allocation area was established, assessed value increases attributable to the application of an abatement schedule may be included in the incremental assessed value of the allocation area, but only to the extent that the assessed value increase is a direct result of funding or expenditures from the allocation area as determined by the fiscal body of the unit that established the redevelopment commission. Provides that the assessed value increases that are not allocated to the incremental assessed value of the allocation area must be included in the base assessed value of the allocation area. (Under current law, assessed value increases attributable to the application of an abatement schedule may not be include in the base assessed value of an allocation area regardless of when the abatement schedule was adopted.)
SB376 PROPERTY TAX EXEMPTION FOR AFFORDABLE HOUSING. (ARNOLD J) Establishes standards for affordable housing property to be exempt from property taxation when the property does not otherwise qualify for a property tax exemption. Specifies application requirements.
SB398 VENTURE CAPITAL TAX CREDIT. (HEAD R) Provides that "state tax liability", for purposes of the venture capital investment tax credit, includes insurance premiums retaliatory taxes. Provides that a venture capital investment tax credit is assignable.