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Bill Watch Feb. 28, 2017: Tax Legislation of Note - Taxation News

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Tax News


Posted on: Feb 28, 2017

The IndyBar Legislative Committee is currently monitoring the following tax law 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%.

HB1175    LOCAL INCOME TAX COLLECTION. (CULVER W) Provides that for taxable years beginning after December 31, 2017, the fiscal body of a county imposing a local income tax may adopt an ordinance providing that the county, rather than the department of state revenue, has the authority and responsibility for the administration, collection, and enforcement of the local income tax. Specifies that in such a county: (1) taxpayers must file local income tax returns with the county treasurer of the county that imposed the tax and must pay the local income tax to the county treasurer of the county that imposed the tax; and (2) employers must remit withholdings of local income taxes to the county treasurer of the county that imposed the tax.

HB1247    PROPERTY TAX REPLACEMENT FEE. (KARICKHOFF M) Permits a county council or a local income tax adopting body 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 if a county adopts the property tax replacement fee.

HB1257    VETERANS PROPERTY TAX DEDUCTION. (VANNATTER H) Eliminates the assessed value cap of $175,000 that applies to the property tax deduction for a veteran who: (1) has a total disability; or (2) is at least 62 years of age and has at least a 10% disability.

HB1299    PROPERTY TAX ASSESSMENT APPEALS. (PRYOR C) Provides that costs that may be reimbursed to a county assessor in defending an assessment appeal include legal fees.

HB1311    STATE AND LOCAL TAXATION. (LEONARD D) Provides that the minimum valuation applicable to the total amount of a taxpayer's assessable depreciable personal property in a taxing district is reduced incrementally from 30% of the assessed value of the depreciable personal property in the taxing district to 20% over 10 years beginning with the January 1, 2018, assessment date. Eliminates the addbacks of a taxpayer's federal income tax deduction for income attributable to domestic production activities in the definitions of "adjusted gross income" under the adjusted gross income tax law and the financial institutions tax law.

HB1368    PROPERTY TAX EXEMPTIONS. (SMITH M) Specifies that for purposes of the property tax exemption for property owned by or leased to state agencies, the term "state agency" also includes Ball State University, Indiana State University, Indiana University, Ivy Tech Community College, Purdue University, the University of Southern Indiana, and Vincennes University. Specifies that the exemption is also available for property leased to a state agency if the lease requires the state agency to pay the property taxes on the property. (Under current law, the exemption for property leased to a state agency applies if the lease requires the state agency to reimburse the owner for property taxes.)

HB1371    PROPERTY TAX ASSESSMENT. (SMITH M) Provides that: (1) the true tax value of real property improvements shall be determined by using the cost approach, in which the value of real property improvements is equal to the estimated replacement cost (new) of the real property improvements, less any depreciation; and (2) the true tax value of the land on which the real property improvements are located is equal to the value of vacant land as specified in the land values determined by the county assessor. Requires that the same value of vacant land as specified in the land values must be used for all land within the same geographic neighborhood or geographic territory defined by the county assessor. Provides that this valuation method does not apply to certain real property for which a different method is specified by statute (including real property that has more than four rental units and is regularly used to rent furnish residential accommodations, real property used as a golf course, utility property, and agricultural land). Specifies that the general assembly finds that such a valuation method will achieve the uniform and equal valuation of property required under the Constitution of the state of Indiana. Specifies for purposes of the real property assessment statutes that the determination of whether properties are comparable shall be made using generally accepted appraisal and assessment practices. Lists certain factors that must be considered in the determination. Provides that an assessing official's failure to comply with the procedures of a specific assessing method, the property tax statutes, or any rule of the department of local government finance shall be treated as an incorrect valuation. Requires that sales disclosure forms must include information on: (1) whether the transfer of property includes intangible assets (including goodwill) or leases; and (2) the estimate of the value of any intangible assets (including goodwill) and leases included in the transfer of property. Specifies that if the total price to be paid in exchange for the conveyance, as reported on the sales disclosure form, exceeds the most recent assessed valuation for the property conveyed by more than twenty-five percent (25%), the county assessor shall contact the parties to ensure that the total amount of personal property, intangible assets (including goodwill), or leases included in the transfer was properly reported on the sales disclosure form. Provides that upon request by a taxpayer, an employee of the Indiana board of tax review may assist taxpayers and local officials in their attempts to voluntarily resolve disputes. (Under current law, only county assessors may request such assistance.)

HB1380    LOCAL OPTION INCOME TAXES. (KARICKHOFF M) Provides that an individual who has a principal place of employment or business in a county other than the individual's county of residence shall pay a local income tax imposed by the county where the individual maintains the principal place of employment or business at a rate that is 25% of the sum of certain tax rates imposed on residents of the county under those taxes. Provides a credit against any tax liability imposed by the individual's county of residence equal to the amount of the tax paid to the county where the individual has the individual's principal place of employment or business.

HB1402    CLASSIFICATION OF LAND WITH OUTDOOR SIGNS. (CHERRY R) Provides that certain outdoor signs shall be disregarded for the purpose of determining an assessment of the land on which the outdoor sign is located.

HB1403    ASSESSMENT OF OUTDOOR ADVERTISING SIGNS. (CHERRY R) Eliminates the expiration date of the law specifying the assessed values of outdoor signs. Provides that, beginning with the 2018 assessment date, the assessed values of outdoor signs specified in the statute shall be adjusted on a quadrennial basis by an amount equal to the average of the annual percentage changes in the Core Personal Consumption Expenditures Price Index using the four most recent calendar years for which data is available. Provides that the adjustment may not exceed 3%.


HB1410    PROPERTY TAX DEDUCTIONS. (WESCO T) Provides that the property tax mortgage deduction applies only if: (1) the mortgage loan or installment loan is made and recorded before January 1, 2018, or the purchase contract under which the person owes the contract indebtedness is entered into before January 1, 2018, and the purchase contract or a memorandum of the contract is recorded before January 1, 2018; and (2) the statement applying for the deduction is filed for the first time on or before January 5, 2018. Increases the homestead deduction to the lesser of: (1) 65% of the assessed value of the homestead; or (2) $48,000; in the case of a homestead for which the mortgage deduction is not claimed for the same assessment date. (For homesteads for which the mortgage deduction is claimed for the same assessment date, the amount of the homestead deduction would remain at the lesser of: (1) 60% of the assessed value of the homestead; or (2) $45,000.)


HB1410    PROPERTY TAX DEDUCTIONS. (WESCO T) Provides that the property tax mortgage deduction applies only if: (1) the mortgage loan or installment loan is made and recorded before January 1, 2018, or the purchase contract under which the person owes the contract indebtedness is entered into before January 1, 2018, and the purchase contract or a memorandum of the contract is recorded before January 1, 2018; and (2) the statement applying for the deduction is filed for the first time on or before January 5, 2018. Increases the homestead deduction to the lesser of: (1) 65% of the assessed value of the homestead; or (2) $48,000; in the case of a homestead for which the mortgage deduction is not claimed for the same assessment date. (For homesteads for which the mortgage deduction is claimed for the same assessment date, the amount of the homestead deduction would remain at the lesser of: (1) 60% of the assessed value of the homestead; or (2) $45,000.)

HB1414    LOCAL INCOME TAXES. (THOMPSON J) Expires the existing local income tax law on December 31, 2021, and adds a new local income tax law effective in 2022 and thereafter. Does the following under the new local income tax law: (1) Authorizes counties, municipalities, and school corporations to each enact a property tax relief tax rate of not more than 0.5%. Provides that in Marion County, municipalities may not enact a property tax relief rate, but the Marion County city-county council may adopt a 1% property tax relief rate. (2) Authorizes counties (other than Marion County), municipalities (other than municipalities in Marion County), and school corporations to each enact an expenditure rate of not more than 0.5%. (3) Provides that if an expenditure rate is imposed by a municipality or school corporation, the municipality or school corporation shall receive the revenue from the tax, and specifies that the revenue may be used for any legal purpose of the municipality or school corporation (including providing additional property tax credits). (4) Provides that if an expenditure rate is imposed by a county other than Marion County, the revenue shall be distributed as certified shares to civil taxing units in the county (other than municipalities and school corporations) on the basis of property tax levies. (5) Authorizes Marion County to enact an expenditure rate of not more than 0.5%, to be distributed as certified shares to the county and to excluded cities in the county on the basis of property tax levies, and provides that the revenue may be used for any legal purpose of the county or excluded cities. (6) Authorizes Marion County to enact an expenditure rate of not more than 0.5%, to be distributed as certified shares to the county and to townships in the county on the basis of property tax levies, and provides that the revenue may be used for any legal purpose of the county or townships. (7) Specifies that in counties other than Marion County, the revenue from the county's expenditure rate may be allocated to a public safety answering point (PSAP) before the remaining revenue is distributed as certified shares, and provides that the revenue also may be used to provide additional property tax credits. (8) Specifies that in Marion County, the revenue from the county's expenditure rate may be allocated to a public communications system and computer facilities district, a public library, or a public transportation corporation before the remaining revenue is distributed as certified shares, and provides that the revenue also may be used to provide additional property tax credits. (9) Provides that, after May 31, 2017, a political subdivision may not pledge for the payment of bonds, leases, or other obligations any tax revenue received under the current local income tax law. (10) For property taxes due and payable in 2022 and thereafter, requires the department of local government finance to adjust each maximum property tax levy for which a levy freeze amount was applied under the existing local income tax law in 2021. Specifies that the legislative council shall provide for the preparation and introduction of legislation in the 2018 session of the general assembly to correct cross references and make other changes to the Indiana Code, as necessary, to bring other provisions of the Indiana Code into conformity with this act.

HB1450    PROPERTY TAX MATTERS. (LEONARD D) Provides that a political subdivision must upload a copy of a contract to the department of local government finance's (DLGF) computer gateway if the total cost of the contract exceeds $50,000. Allows the DLGF to use estimated data to compute six year rolling averages for the purpose of determining the annual adjustments of assessed values between reassessments. Provides that a public utility that fails to timely file a statement concerning the property owned or used by the public utility on an assessment date shall remit the penalty to the department of state revenue. Defines the terms "installment loan" and "mortgage" for purposes of the mortgage deduction. Provides that, for purposes of claiming the mortgage deduction, the associated mortgage instrument that is recorded must include the terms of payment or other performance. Restates the conditions for when a taxpayer must reapply for various property tax deductions. Restates the requirement that a taxpayer file a certified statement with the county auditor when the taxpayer ceases to be eligible for the standard deduction for a property. Restates the provisions concerning the prohibition against dividing a controlled project in order to avoid the petition and remonstrance and referendum processes. Provides that both the executive of a political subdivision and a majority of the members of the fiscal body of a political subdivision may independently request technical assistance from the distressed unit appeal board in helping prevent the political subdivision from becoming a distressed political subdivision. Provides that a multiple county property tax assessment board of appeals shall submit to the DLGF, the Indiana board of tax review, and the legislative services agency separate reports for each county participating in the multiple county property tax assessment board of appeals. Authorizes, but does not require, the DLGF to adopt rules to limit the basis of payment for services provided by professionals who work on capital projects to a fee for service agreement. Provides that the DLGF may adopt a rule after June 30, 2016, and before April 1, 2017, that concerns or includes market segmentation and affects assessments for the January 1, 2018, assessment date. Provides that interest on a refund or credit owed to a taxpayer is computed until the date the county auditor determines the amount of the refund or credit. Allows a county auditor, with the approval of the county treasurer, to waive, negotiate, or settle penalties that have accrued on delinquent property taxes. Eliminates the requirement in current law that the DLGF review a loan contract entered into by an airport authority. Provides that a conservancy district is not required to go through the budget review process unless the conservancy district imposes a property tax. Provides that a redevelopment commission's annual report to the unit that created the redevelopment commission must include both a list of parcels of real property and the personal property records for the property in the redevelopment area. Provides that a resolution by a provider unit to withdraw from a fire protection territory is effective on January 1 of the year following the year in which the resolution is adopted. Provides that if the provider unit of a fire protection territory withdraws, the remaining units must unanimously agree on which unit is to become the successor provider unit. Permits a school corporation located in Vanderburgh County to impose a property tax at a rate of up to $0.005 to provide money to a historical society for restoration and maintenance of Bosse Field. Repeals the requirements that the budget agency publish by May 1 each year an estimate of the total amount of statewide distributions of local income tax revenue for: (1) the following two years, in an odd-numbered year; and (2) the following year, in an even-numbered year.

HB1462    TAX SALE SPECIFICATIONS OF REAL PROPERTY. (ELLINGTON J) Requires tax sale documents, such as notices and court filings, to specify real property by parcel number, if any, key number, if any, and street address, if any. Requires the full legal description of real property that is sold at a tax sale to be entered on the tax deed. Makes technical corrections.

HB1506    LIMIT ON ASSESSED VALUE DEDUCTIONS. (FRIEND W) Provides that the sum of assessed value deductions for a homestead may not exceed 75% of the gross assessed value of the homestead.

HB1536    TAX SALES. (ENGLEMAN K) Specifies deadlines related to acquiring a tax deed for real property if a county assigns a certificate of sale for the real property to a political subdivision. Eliminates a conflict with an administrative order of the Indiana supreme court concerning cause numbers. Provides that a person who wishes to challenge the validity of a tax sale or a tax deed ordered by a court must show by clear and convincing evidence that an error or other irregularity affected the substantial justice of the tax sale or violated the due process of law.

HB1629    VARIOUS PROPERTY TAX MATTERS. (SMITH V) Requires an exchange of evidence between a property taxpayer and an assessing official before a preliminary informal meeting and before any county property tax assessment board of appeals (PTABOA) hearing. Provides that costs directly attributable to the sale of a property tax certificate of sale include all costs of all county offices and not only the costs of the county executive. Allows an immediate family member to be a tax representative for a property owner at a PTABOA hearing. Provides that, when a local unit obtains real property from a person on which taxes are owed, the lien for the taxes shall be released (the taxes are canceled under current law) and for such a property requires the cancellation of the personal liability of the grantor for taxes owed if the assessed value of the property is less than the amount of the taxes owed on the property. Permits the department of local government finance under certain circumstances to cancel property taxes imposed on: (1) a nonprofit corporation organized for educational, literary, scientific, religious, or charitable purposes; or (2) any other entity organized as a church or religious entity.

HB1631    PROPERTY TAX ASSESSMENT APPEALS. (SMITH V) Requires an exchange of evidence between a property taxpayer and an assessing official before a preliminary informal meeting and before any county property tax assessment board of appeals (PTABOA) hearing. Allows an immediate family member to be a tax representative for a property owner at a PTABOA hearing.

HB1636    PROPERTY TAX COLLECTION. (SMITH V) Requires a person that applies to register a vehicle (applicant) to furnish proof, as a condition of registering a vehicle, that the 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, or 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.

HB1637    CANCELLATION OF PROPERTY TAXES. (SMITH V) Eliminates the provision in current law that maintains a taxpayer's personal liability for property taxes, special assessments, fees, penalties, or other delinquencies after the department of local government finance has canceled and removed the liens for those property taxes, special assessments, fees, penalties, or other delinquencies with respect to property that is acquired by the state, a county, a city, a town, a township, or a local port authority.

HB1639    SCHOOL FACILITY ADA COMPLIANCE. (CANDELARIA REARDON M) Requires charter schools and eligible schools, jointly in consultation with the department of education (department), before July 1, 2018, to establish standards of compliance (standards) with the Americans with Disabilities Act (ADA). Requires the department to post the standards on the department's Internet web site. Allows the department to conduct an assessment of the school buildings, educational programs, and student activities of each charter school and eligible school to determine the school's compliance with the standards. Provides that, notwithstanding any other law, each charter school or eligible school that receives public funds must meet the standards not later than July 1, 2022. Requires that if, after June 30, 2022, a charter school or eligible school that receives public funds fails to meet the standards, the noncompliant school is ineligible to receive public funds.

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.

SB350    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 for the deposit of 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; or (3) violates any of the other general assessment provisions to include a knowing or intentional violation. Permits a taxpayer to file a complaint with the DLGF. Permits the DLGF to revoke a township or county assessor certification. 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. Provides that if a taxing official causes a lien to be placed against a property without obtaining the department's approval, the taxing official commits a Class C infraction. 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.

SB386    REVIEW OF ASSESSMENTS AND DEDUCTIONS. (NIEMEYER R) Provides that before a hearing to be held by a county property tax assessment board of appeals (PTABOA) to review an action taken by a county or township official with respect to an assessment of a taxpayer's property or a reviewable deduction claimed by a taxpayer, the county or township official and the taxpayer must exchange the information that each party is relying on to support each party's respective position on each disputed issue concerning the assessment or deduction.

SB440    VARIOUS TAX MATTERS. (HOLDMAN T) Provides that the attorney general owes the same obligations to the state or any other party the attorney general represents in a judicial or administrative proceeding that any other attorney owes to a client under rules prescribed by the supreme court. Requires the party that petitions for equitable allocation and apportionment of state income tax to bear the burden of proof that the standard allocation and apportionment provisions do not fairly represent the taxpayer's activity in Indiana and that the proposed alternative to the standard allocation and apportionment provisions is reasonable. Specifies certain documents and records that the department of state revenue (department) must maintain for at least three years. Provides that, if a taxpayer has filed a protest of a tax assessment or a refund claim, the department shall maintain all documents and records relevant to a determination of the taxpayer's protest for a period ending not less than the last day to file an appeal. Requires the department to adopt certain procedures for department employees to follow in mailing documents that provide notice to a taxpayer. Specifies the content of a notice to a taxpayer that establishes a deadline for the taxpayer to act or respond. Allows the commissioner of the department to settle any refund dispute, in addition to the authority in current law to settle any tax liability. Repeals the provision in current law that requires that the terms of a settlement must be available for public inspection.

SB448    TAXPAYER REPRESENTATIVES. (NIEMEYER R) Requires the department of local government finance (DLGF) to prepare and make available to taxpayers a power of attorney form that allows the owner of property that is the subject of an appeal to appoint a spouse, child, sibling, parent, or grandparent of the owner to represent the owner concerning the appeal before the county property tax assessment board of appeals, the DLGF, or the Indiana board of tax review. Provides that a spouse, child, sibling, parent, or grandparent who is appointed by the owner of the property is not required to be certified as a tax representative in order to represent the owner concerning the appeal.

SB449    PROPERTY TAX AUDIT CONTRACTOR COMPENSATION. (NIEMEYER R) Extends the prohibition under current law against contracting for property tax audit services on a percentage basis to include any method that bases payments under the contract on increases of assessed value or property tax revenue that are attributable to the discovery of property that has been undervalued or omitted from assessment.

SB481    TAX DEDUCTION FOR HEALTH CARE SHARING EXPENSES. (KOCH E) Allows a taxpayer who is an Indiana resident and a member of a health care sharing ministry to deduct from the taxpayer's adjusted gross income the total amount of qualified health care sharing expenses incurred by the taxpayer in a particular taxable year.

SB501    PROPERTY TAX APPEALS. (FREEMAN A) Makes procedural changes and technical corrections to various property tax provisions in the Indiana Code that relate to property tax assessments, reviews, appeals, and refunds.

SB515    TAX ADMINISTRATION. (HERSHMAN B) Provides a sales tax exemption for certain transactions involving agricultural or industrial processing machinery, tools, and equipment. Provides a sales tax exemption for prosthetic devices, including artificial limbs, orthopedic devices, dental prosthetic devices, eyeglasses, and contact lenses. Provides an income tax deduction for certain amounts a taxpayer included as an item of income in a prior tax year, paying tax on the amount, but later returned the item in a subsequent tax year because it was established that the taxpayer did not have an unrestricted right to the item of income. Specifies that the modifications that are required to be made in determining a taxpayer's Indiana adjusted gross income include those exemptions, deductions, and add backs that are provided for in other provisions of the Indiana Code. Specifies that, in determining an Indiana net operating loss deduction, certain modifications to adjusted gross income shall not be applied. Amends the due date for a corporation to file its state tax return to coincide with the due date for the corporation's federal tax return. Provides that fees collected under the International Registration Plan for the registration or renewal of certain vehicles shall be distributed as follows: (1) The first $125,000 to the state police building account. (2) Any remaining amounts to the motor vehicle highway account. Makes technical corrections.

SB546    TAX COURT REORGANIZATION. (KENLEY L) Establishes the position of chief tax judge, who serves with two judges of the Indiana court of appeals as the tax panel of the court of appeals (tax panel). Specifies that the tax panel has jurisdiction to hear appeals from the: (1) Indiana board of tax review (Indiana board); and (2) tax court. Provides that the tax court consists of a pool of six circuit, superior, or probate court judges assigned to the tax court by the supreme court and supervised by the chief tax judge. Transfers jurisdiction to hear cases appealed from the Indiana board of tax review from the tax court to the tax panel. Specifies that the person serving as tax court judge on December 31, 2017, becomes the chief tax judge.

SB571    PROPERTY TAX EXEMPTIONS. (BREAUX J) Provides that a taxpayer may submit a property tax exemption application before July 1, 2017, for certain property owned or used by a church or religious society that would have qualified for an exemption for the 2014 assessment date if an exemption application had been filed in a timely manner for that assessment date. Provides that if a taxpayer files such an exemption application, the property tax exemption shall be allowed and granted for the 2014 assessment date, and the taxpayer is entitled to a refund for any taxes, penalties, and interest paid with respect to the property for that assessment date. Allows the county auditor to determine that such a refund must be paid in two annual installments.

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