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Bill Watch, Jan. 10, 2017: Current Tax Legislation of Note - Taxation News

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Tax News


Posted on: Jan 10, 2017

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.

HB1046    PROPERTY TAX LIABILITY. (CULVER W) 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 3% per year for the next three years after the assessment date in which the reduction was applied. Specifies that the 3% 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.

HB1056    PROPERTY TAX RELIEF. (PRYOR C) Permits a board of county commissioners (outside Marion County), a county council, a city-county council, a city common council, or a town council to establish a neighborhood enhancement property tax relief program. Provides an assessed value deduction for longtime owner-occupants of homesteads having an assessed value of less than $100,000. Provides that the homesteads 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 applies only to the extent the assessed value of a homestead has increased by more than 3% from the previous year. Provides that only homesteads and owners that qualify for the program on the first assessment date under the program are granted a deduction unless the local unit allows others to qualify. Specifies that there must be at least five homesteads in a designated area. Specifies that not more than 5% of the territory of the unit may be included in designated areas. Allows a local unit to include additional requirements in the ordinance establishing the program. Prohibits income of the owner of a homestead from being a consideration. Adds the same penalty provision for wrongly receiving the deduction that applies to the homestead standard deduction.

HB1075    TAX CREDIT FOR IMPROVING RESIDENCE ACCESSIBILITY. (MACER K) Provides a credit against the adjusted gross income tax to a taxpayer who: (1) purchases a new residence that has improved accessibility or universal visibility; or (2) retrofits an existing residence to improve accessibility or provide universal visibility.

HB1076    PROPERTY TAX EXEMPTIONS. (BARTLETT J) Provides that an Indiana domestic nonprofit corporation that meets certain conditions may submit an exemption application before September 1, 2017, for property tax exemptions for property used as a church with respect to the 2010 through 2016 assessment dates if the property would have qualified for the exemption if an exemption application had been properly and timely filed for the property. Provides that an eligible taxpayer is entitled to a refund for any taxes, penalties, and interest paid with respect to the property, and specifies that a tax deed may not be issued for the property.

HB1115    VETERANS' PROPERTY TAX DEDUCTIONS. (KLINKER S) Provides that beginning with the January 1, 2018, assessment date, the assessed value of an individual's Indiana real property, Indiana mobile home not assessed as real property, and Indiana manufactured home not assessed as real property may not be considered when determining whether the individual is eligible for the property tax deduction for: (1) totally disabled veterans; and (2) veterans who are at least 62 years of age and have a disability of at least 10%.

SB122    STATE PAYMENTS IN LIEU OF PROPERTY TAXES. (KOCH E) Requires the state to make payments in lieu of property taxes (PILOTs) for qualified parcels in counties in which at least 15% of all land in the county is: (1) in the aggregate, owned or leased by the state of Indiana or 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-half of the statewide agricultural land base rate value. Annually appropriates from the state general fund the amount necessary to pay the required PILOTs.

SB164    ELIMINATION OF ANNUAL ADJUSTMENTS OF ASSESSED VALUES. (NIEMEYER R) Eliminates the annual adjustments (or "trending") to assessed values of real property for assessment dates beginning after December 31, 2017. Retains the provisions in current law that require four year cyclical reassessments. Makes conforming changes.

SB331    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 for property tax purposes: (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.

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