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Bill Watch April 11, 2017: Tax Legislation of Note - Taxation News

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Tax News

Posted on: Apr 11, 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

Click here to view the full Bill Watch reports.

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.

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.

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.

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.

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.


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