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Bill Watch, March 21, 2014: Current Tax Legislation of Note - Taxation News

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Tax News


Posted on: Mar 21, 2014

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 Mindy Westrick at mindy.westrick@faegrebd.

Click here to view the full Bill Watch reports.

HB1003 ECONOMIC DEVELOPMENT (BRAUN S)
Provides for grants to eligible school corporations and charter schools to support cooperative arrangements with businesses for training students. Provides that, for taxable years beginning after December 31, 2014, and before January 1, 2019, an economic development for a growing economy (EDGE) tax credit may be awarded to a business that employs students who have participated in a course of study that includes a cooperative arrangement between the business and an educational institution for the training of students in high wage, high demand jobs that require industry certifications. Caps the aggregate amount of EDGE tax credits awarded for this purpose in a state fiscal year at $2.5 million. Renames the Indiana workforce intelligence system the Indiana network of knowledge (INK). Repeals provisions that assign to the Indiana career council responsibility for the INK, and transfers administration and oversight of the INK to the INK governance committee and the INK executive director appointed by the governor. Establishes an INK governance committee consisting of: (1) the commissioner of the department of workforce development; (2) the commissioner of the commission for higher education; (3) the superintendent of public instruction; (4) a member representing private colleges and universities appointed by the governor; (5) a member representing the business community appointed by the governor; and (6) the INK executive director, who serves in an advisory capacity. Authorizes the governor to appoint additional members of the INK governance committee as necessary. Requires the governor to appoint the INK executive director from a list of three candidates submitted by the INK governance committee. Requires agencies of the state to submit data to the INK as requested by the executive director. Allows private sector business or commercial employers, groups, associations, agencies and other entities, and private institutions of higher education to submit data to the INK by working with the executive director. Provides that the data submitted to Indiana network of knowledge (INK): (1) remains under the ownership and control of the agency submitting the data; and (2) may be used only for the purposes described in the INK statute (IC 22-4.5-10), unless the agency that submitted data consents to the additional use. Provides that, to the extent permitted by applicable federal law, regulation, or executive order, the policies established by the INK governance committee must provide for access to INK data requested by the legislative department of state government. Provides that the INK may not obtain or store student disciplinary, juvenile delinquency, criminal, or medical and health records.
Current Status: 3/20/2014 - Received by the Governor

HB1020 STUDY OF ECONOMIC DEVELOPMENT INCENTIVES (KOCH E)
Requires the commission on state tax and financing policy to review, analyze, and evaluate state and local tax incentives that are provided to encourage economic development or to alter, reward, or subsidize a particular action or behavior by a tax incentive recipient.
Current Status: 3/20/2014 - Received by the Governor

HB1027 PROPERTY TAX EXEMPTIONS (DEVON D)
Provides that a nonprofit youth baseball and softball association may submit an exemption application before July 1, 2014, for property tax exemptions for an eligible property with respect to one or more of the 2008, 2009, and 2010 assessment dates. Provides that the association is entitled to a property tax exemption if the county assessor finds that the parcel would have qualified for an exemption if an exemption application had been filed in a timely manner. Provides that certain eligible taxpayers in Marion County may submit exemption applications before September 1, 2014, for property tax exemptions for eligible properties with respect to the 2011 assessment date, the 2012 assessment date, or both the 2011 and 2012 assessment dates. Provides that a youth baseball association may before July 1, 2014, submit exemption applications for an eligible property with respect to certain assessment dates. Provides that the association is entitled to a property tax exemption if the county assessor finds that the property would have qualified for an exemption if an exemption application had been filed in a timely manner. Provides that eligible taxpayers are entitled to a refund for any back taxes, penalties, and interest paid with respect to an eligible property. Allows a county auditor to determine that a refund must be paid in two annual installments.
Current Status: 3/20/2014 - Received by the Governor

HB1046 HERITAGE BARNS (CHERRY R)
Permits a person to receive a 100% property tax deduction against the assessed value of a barn that qualifies as a heritage barn. Requires the office of tourism development to promote heritage barns. Permits a county to impose a public safety fee up to $50 for each heritage barn receiving a deduction.
Current Status: 3/20/2014 - Received by the Governor

HB1062 LOCAL GOVERNMENT FINANCE (HUSTON T)
Provides that for all political subdivisions, the maximum amount allowed for an operating balance for a debt service fund is 50% of the budget estimate for annual debt service payments from the fund for debt originally incurred before July 1, 2014, including refinanced debt, and 15% on debt originally incurred after June 30, 2014. Permits a school corporation that experiences at least a 10% loss to the school corporation's transportation fund due to circuit breaker credits in 2014, 2015, or 2016 to use a proportional circuit breaker credit allocation for that year. Permits a school corporation that experiences at least a 20% loss to the school corporation's levies due to circuit breaker credits to use debt restructuring by adopting a resolution before January 1, 2019. Specifies that if a taxpayer appearing at the public hearing files a written objection to the proposed restructuring and a sufficient number of people request a petition and remonstrance process, the bonds may not be issued unless more petitioners than remonstrators sign the petition.
Current Status: 3/20/2014 - Received by the Governor

HB1180 VARIOUS COMMERCIAL VEHICLE MATTERS (FRYE R)
Makes various changes concerning the administration of the tax credit for natural gas powered vehicles. Excludes natural gas products from the definition of alternative fuel. Excludes alternative fuels from the definition of special fuel. Specifies that propane and butane are alternative fuels. Establishes an alternative fuel decal system. Provides that the road tax credit for motor carriers consuming compressed natural gas must be claimed on a quarterly basis. Makes numerous changes to the registration requirements for owners of commercial vehicles who register at least 25 vehicles that all have declared gross vehicle weights exceeding 26,000 pounds. Provides that the operator of a motor vehicle using compressed gas as a motor fuel is subject to the same nighttime operating requirements outside the corporate limits of a municipality as other vehicles and is permitted to carry flares or red-burning fuses.
Current Status: 3/20/2014 - Received by the Governor

HB1181 CAREER AND TECHNICAL EDUCATION CENTERS (FRYE R)
Provides that a school corporation career and technical education center may receive a grant from the Indiana safe schools fund. Provides that a school corporation career and technical education school may apply for a matching grant from the Indiana secured school fund. Provides that a school corporation career and technical education center may receive an advance from the common school fund. Specifies that each member school corporation is considered to receive a proportionate share of the advance and is responsible for its proportionate share of the repayment based on the number of pupils the school corporation has attending the career and technical education center in the school year when the advance is made. Allows a school corporation career and technical education center to receive an advance even if the school corporation has an outstanding advance. Specifies, for purposes of the law relating to controlled project financing, that the project cost is not the total project cost but is to be allocated among the member school corporations based on pupils.
Current Status: 3/20/2014 - Received by the Governor

HB1215 HISTORIC PRESERVATION (CLERE E)
Requires the commission on state tax and financing policy to compare the effectiveness of tax credits to the effectiveness of grant programs in encouraging the preservation and commercial redevelopment of historic properties.
Current Status: 3/13/2014 - Signed by the Governor

HB1219 FARM PRODUCTS AND VEHICLES (CHERRY R)
Amends the definitions of "farm product" and "farm vehicles" for purposes of the motor vehicle law. Makes conforming changes.
Current Status: 3/20/2014 - Received by the Governor

HB1222 ADOPTION COMMITTEE AND TAX CREDIT (KUBACKI R)
Provides an adjusted gross income tax credit for an individual who is eligible to claim the federal adoption credit. Establishes the interim committee on adoption to: (1) study how other states provide services under public adoption programs and study legal and regulatory costs associated with foster care and private adoption; (2) make recommendations concerning improving adoption programs; and (3) report the committee's findings and recommendations.
Current Status: 3/20/2014 - Received by the Governor

HB1234 PROPERTY TAX MATTERS (THOMPSON J)
Requires county treasurers to mail property tax statements at least 15 business days, instead of 15 calendar days, before the first payment is due. Provides that an employee of an assessor's office or an appraiser may not serve as a voting member of the property tax assessment board of appeals (PTABOA) in the county where the individual is employed. Allows a county fiscal body to waive certification requirements for certain members of the PTABOA appointed by the fiscal body. Provides that a school corporation with a majority of its property tax levies imposed in LaPorte County may, before September 1, 2014, transfer from the school corporation's debt service fund to the school corporation's rainy day fund a total amount equal to not more than 20% of the school corporation's 2014 certified debt service fund budget. Establishes assessor, appraiser, and tax representative standards of conduct. Establishes a certification appeal board to conduct appeals brought by assessors and employees of assessors whose certifications are revoked by the department of local government finance.
Current Status: 3/20/2014 - Received by the Governor

HB1266 LOCAL GOVERNMENT FINANCE ISSUES (LEONARD D)
Provides that public utility property tax returns shall be filed in the manner prescribed by the department of local government finance (DLGF). Allows a railroad car company to file its return by July 1 (rather than May 1). Authorizes a public utility company to file an amended return. Provides that the penalty assessed on a public utility company for filing a late return may not exceed $1,000. Deletes from current law the authority of the DLGF to extend the due date for a public utility company to file a return with the DLGF. Provides that if the DLGF assesses the property of a public utility company because the public utility company does not file a return, the public utility company may file a return with the DLGF and the DLGF may amend its assessment. Provides that if, after an assessment date, an exempt property is transferred or its use is changed resulting in its ineligibility for an exemption, the county assessor shall terminate the exemption for that assessment date. Specifies that if the property remains eligible for an exemption following the transfer or change in use, the exemption shall be left in place for that assessment date. Provides that for the following assessment date, the person that obtained the exemption or the current owner of the property shall file an application with the county assessor. Requires applications for certain property tax deductions to be completed and dated in the calendar year for which the taxpayer wishes to obtain the deduction and to be filed with the county auditor on or before January 5 of the immediately succeeding calendar year. Provides that a petition to correct an error must be filed within three years after the taxes were first due. Requires a political subdivision to submit to the DLGF information concerning the adoption of budgets and tax levies using the DLGF's computer gateway. Provides that publication requirements in current law continue in 2014 for 2015 budgets (along with the new requirements added in the bill concerning submission of budget and levy information to the DLGF's computer gateway). Requires the DLGF to make this information available to taxpayers through its computer gateway and provide a telephone number through which taxpayers may request copies of a political subdivision's information. Specifies that for taxes due and payable in 2015 and 2016, each county shall publish a notice stating the Internet address at which the budget information is available and the telephone number through which taxpayers may request copies of a political subdivision's budget information. Allows counties to seek reimbursement from the political subdivisions in the county for the cost of the notice. Provides that if a political subdivision timely submits the budget information to the DLGF's computer gateway but subsequently discovers the information contains a typographical error, the political subdivision may request permission from the DLGF to submit amended information. Specifies the conditions under which the DLGF shall increase a political subdivision's tax levy to an amount that exceeds the amount originally advertised or adopted by the political subdivision. Provides that if the DLGF increases a tax levy under this provision, the DLGF shall (unless the department finds extenuating circumstances) reduce the levy below the maximum allowable levy by the lesser of: (1) 5% of the difference between the advertised or adopted levy and the increased levy; or (2) $100,000. Allows DeKalb County and the towns of Middlebury, Lewisville, and Mooreland to borrow money to offset levy reductions made by the DLGF because budget and property tax levy information were not properly advertised. Eliminates the provision added in 2013 that specifies that the exemption from the property tax levy limits for property taxes to pay debt does not apply to property taxes imposed by a township to repay money borrowed under the emergency loan provisions. Specifies that the balance maintained by the provider unit of a fire protection territory may not exceed 120% of the budgeted expenses of the territory. Deletes current law requiring certain specified reporting of other post employment benefits (OPEB) information, and adds a provision requiring a political subdivision to annually report information and data on its retiree benefits and expenditures.
Current Status: 3/20/2014 - Received by the Governor

HB1307 VARIOUS NATURAL RESOURCE MATTERS (EBERHART S)
Defines "geo-referenced". Allows a professional surveyor to use a geo-referenced aerial photograph in order to prepare a description of a parcel. Provides that any natural resources commission rules concerning other means to describe classified lands may not result in a real property description. Exempts from the boat excise tax a motorboat registered outside Indiana and docked on the Indiana part of Lake Michigan for a combined total of not more than 180 consecutive days. Amends certain definitions. Allows money in the counties with special boat patrol needs fund to be used to enforce laws pertaining to watercraft on boundary waters located in counties with special boat patrol needs. Creates the recreational trails maintenance fund. Allows the director of the department of natural resources (DNR) to adopt rules that would authorize the taking of a wild animal in a state park under certain circumstances. Makes certain changes to the program to contain and reduce invasive animal species in the Wabash River. Allows the director of DNR to consider certain factors when determining damages caused by a person releasing certain substances that kill wild animals. Changes procedures to settle a claim for damages that resulted in a kill to wild animals. Removes a provision requiring the boundaries of a shooting preserve to be defined by fences of at least one strand of wire. Allows the department to issue lifetime licenses to hunt, fish, or trap. Allows the department of natural resources to issue a dog training ground permit. Allows the director of the DNR to issue a permit to take a wild animal to a person that owns or has an interest in property: (1) being damaged; (2) threatened with damage; or (3) on which a health or safety threat to persons or domestic animals is posed; by a wild animal. Allows for the permit to take a wild animal to be denied to a person, after an investigation of a complaint, if the complaint is unfounded or the applicant has not complied with certain requirements. Removes a provision requiring the boundaries of a shooting preserve to be defined by fences of at least one strand of wire. Provides penalties for a person who provides fishing or hunting guide services to take wild animals that are protected by law. Repeals the pest control compact. Provides for a project permit under the flood control act to be issued for two years for most projects and five years for the department of transportation, federally funded county highway projects, and power generation facilities. Allows for a project permit issued under the flood control act to be renewed one time for a period of two years. Provides that certain duties imposed on the Lake Michigan marina and shoreline development commission under current law are discretionary powers rather than duties. Provides that, instead of being required to report on its activities to the governor and the legislative council at least once every two years, the Lake Michigan marina and shoreline development commission may report to the governor and the legislative council. Exempts from the definition of the practice of surveying classified parcels developed according to certain natural resources commission rules. Makes conforming changes. Makes a technical correction. Urges the legislative council to require an appropriate study committee to study: (1) the development of a statewide policy for recreational trails and their maintenance; and (2) a method to distribute money deposited into the recreational trail maintenance fund.
Current Status: 3/20/2014 - Received by the Governor

HB1342 ENVIRONMENTAL FEES AND EXPENSES (WOLKINS D)
Provides that the hazardous waste disposal fee (which replaces the hazardous waste disposal tax), the fee on the disposal or incineration of solid waste, and the annual registration fee paid by owners of underground storage tanks shall be collected by the department of environmental management instead of the department of state revenue. Provides that 75% of the revenue from the hazardous waste disposal fee shall be deposited in the hazardous substance response fund and 25% shall be paid over to the county in which the hazardous waste is disposed of. Provides that: (1) 50% of the registration fees paid in connection with underground petroleum storage tanks and deposited in the petroleum trust fund shall be used to pay for corrective actions that involve releases of regulated substances from underground storage tanks that are not eligible to receive funds from the underground petroleum storage tank excess liability trust; and (2) not more than 11% of the funds expended for the corrective actions may be used to pay for administrative and personnel expenses incurred in carrying out the corrective actions. Allows the commissioner of the department of environmental management, under certain circumstances, to authorize the modification of a restrictive covenant that the owner of a property contaminated with a hazardous substance has been required to execute and record. Provides for the administrative and personnel expenses incurred by the state in evaluating a proposed modification of a restrictive covenant to be paid from the hazardous substances response trust fund, and requires the environmental rules board to adopt rules providing for the recovery of those expenses by the state. Removes references to the solid waste management board, which was abolished on January 1, 2013.
Current Status: 3/20/2014 - Received by the Governor

HB1370 ELIMINATES OBSOLETE PROVISIONS (BAIRD J)
Removes obsolete provisions from the Indiana Code. Removes provisions that required one-time studies that have already been conducted. Eliminates a provision applying only to organizations of veterans of the Spanish American War. Strikes language that prohibited certain rules from requiring the reporting of certain information before January 1, 2004.
Current Status: 3/20/2014 - Received by the Governor

HB1380 STATE AND LOCAL TAX MATTERS (TURNER P)
Provides that certain calculations concerning the capture of state revenue in a motorsports investment district are based on calendar years rather than state fiscal years. Requires the Indiana motorsports commission to establish a motorsports facility fund if a motorsports investment district is established. Provides that during the term of the written agreement the commission shall each state fiscal year deposit in the motorsports facility fund at least $2,000,000 solely from payments by the motorsports facility owners. Provides that the motorsports facility fund reverts to the state general fund on June 30 of each year. Requires the commission to request an appropriation in each state fiscal year that the written agreement is in effect equal to the amount deposited into the motorsports facility fund. Provides that the amount of the appropriation must be deposited into the motorsports investment district fund. Requires the department of state revenue to annually notify entities of the incremental tax amounts and the reversion amount from the motorsports facility fund. Provides that an entity is not considered to have Indiana income for purposes of the state income tax merely because of certain logistics activities concerning the distribution of legend drugs, medical devices, or medical supplies that are conducted in Indiana by a third-party logistics provider. Repeals the following income tax credits: (1) Prison investment credit. (2) Riverboat building credit. (3) Blended biodiesel credit. (4) Ethanol production credit. (5) Voluntary remediation tax credit. (6) Energy savings tax credit. (7) New employer tax credit. Allows a taxpayer whose qualified investment to build or refurbish a riverboat is certified by the Indiana economic development corporation before January 1, 2015, to claim a tax credit in the year that the qualified investment is made as if the riverboat building tax credit had not been repealed. Provides a credit against county economic development income taxes for taxes paid to local governments outside Indiana. Removes a reference to propane and butane in the special fuel tax law in conformance with HEA 1180-2014. Allows the department of state revenue to deny or suspend certain oversize and overweight vehicle permits if the applicant or permit holder is delinquent in paying escort fees to the state police department. Provides that all Indiana adjusted gross income tax return and financial institutions tax return due date extensions are treated the same as an extension granted because of a federal income tax due date extension. Requires the annual budget of the Lake County convention and visitor bureau to be published on the department of local government finance's gateway Internet web site. Extends the current Vanderburgh County innkeeper's tax revenue distributions through December 31, 2019. Specifies that aviation manufacturing, aviation assembly, and aviation research and development facilities are aviation related property or facilities for purposes of the airport law. Specifies the amount that shall be collected by the department of state revenue for registrations of vehicles in a commercial fleet, if the department adopts rules to implement staggered registration. Increases the maximum property tax levy for Washington Township in Hamilton County in 2015. Requires the office of the secretary of family and social services to study and report on the benefits provided to individuals whose income does not exceed 200% of the federal income poverty level. Urges the legislative council to study issues related to holding the proceeds of the sale of a major county asset in trust.
Current Status: 3/20/2014 - Received by the Governor

SB1 STATE AND LOCAL TAXATION (HERSHMAN B)
Specifies that the county income tax council of a county may adopt an ordinance providing that if for a particular assessment date the acquisition cost of a taxpayer's business personal property in a county is less than $20,000: (1) the taxpayer is not required to file a personal property return for the taxpayer's business personal property in the county for that assessment date; and (2) the taxpayer's business personal property in the county for that assessment date is exempt from taxation. Specifies that such an exemption ordinance may apply to assessment dates after December 31, 2015. Specifies that this exemption does not apply to mobile homes assessed as personal property, personal property held as an investment, or personal property that is owned by certain utilities subject to regulation by the utility regulatory commission and is assessed as utility property. Requires the taxpayer to file a certification with the county assessor before May 15 of the year in which the assessment date occurs, and imposes a penalty if the annual certification is not timely filed. Provides that the tax rate for certain tax increment financing areas shall be calculated as if this exemption were not in effect. Provides that a county income tax council may adopt an ordinance to exempt from property taxation any new business personal property that is located in the county. Specifies that this exemption does not apply to mobile homes assessed as personal property, personal property held as an investment, or personal property that is owned by certain utilities subject to regulation by the utility regulatory commission and is assessed as utility property. Provides that a designating body may establish an enhanced abatement schedule for personal property that may not exceed 20 years. Provides that if a county or municipality receives a reimbursement, repayment, or penalty from a taxpayer on account of the taxpayer's failure to comply with the statement of benefits provided by the taxpayer as part of a property tax abatement or on account of the taxpayer's failure to comply with any other requirement to receive a property tax abatement, the county or municipal fiscal officer shall distribute the amount of the reimbursement, repayment, or penalty on a pro rata basis to each taxing unit that contains the property that was subject to the abatement deduction. Phases down the corporate income tax rate from 6.5% in 2015 to 4.9% after June 30, 2021. Phases down the financial institutions tax rate to 4.9% in calendar year 2023. Provides that a retail merchant engaged in selling bulk propane at retail in Indiana shall claim a credit before June 30, 2014, equal to the sales tax paid by the retail merchant's customers after December 31, 2013, and before April 1, 2014, on that part of the price of bulk propane that exceeded $2.50 per gallon. Requires such a retail merchant to provide a credit to customers of the retail merchant on their next purchase of bulk propane occurring after the retail merchant claims the credit. Specifies that retail merchants are entitled to a collection allowance for administering the credits provided to customers. Establishes the commission on business personal property and business taxation to study certain issues during 2014.
Current Status: 3/20/2014 - Received by the Governor

SB80 INTERIM STUDY COMMITTEE STRUCTURE (LONG D)
Establishes 17 interim study committees with authority to study legislative topics. Permits the legislative council to establish additional interim study committees. Provides for the appointment of chairs, vice-chairs, legislative members, and lay members of interim study committees. Specifies uniform policies to govern interim study committees. Permits the chair of a standing interim study committee to establish subcommittees. Eliminates various study and advisory committees. Eliminates obsolete provisions governing legislative evaluation and oversight. Reduces the number of members of the advisory council to the office of the utility consumer counselor and the political subdivision risk management commission to reflect the reduction of the number of congressional districts in Indiana from 10 to nine. Makes conforming amendments. Repeals laws that: (1) establish committees eliminated by this act; and (2) require quadrennial fiscal analysis of statutes regarding redevelopment areas and property tax deductions for redevelopment of real property in economic revitalization areas.
Current Status: 3/20/2014 - Received by the Governor

SB85 SCHOOL RESOURCE OFFICERS (MILLER P)
Permits the secured school safety board to award a matching grant for school resource officer training. Requires a school resource officer to be: (1) employed by a law enforcement agency; (2) appointed as a police reserve officer or special deputy; or employed as a school corporation police officer. Permits the Indiana law enforcement training board to approve school resource officer training programs.
Current Status: 3/20/2014 - Received by the Governor

SB111 SOIL PRODUCTIVITY FACTORS (LEISING J)
Provides that the soil productivity factors used for the March 1, 2011, assessment of agricultural land must be used for the March 1, 2014, assessment date. Specifies that new soil productivity factors shall be used for assessment dates occurring after March 1, 2014.
Current Status: 3/20/2014 - Received by the Governor

SB118 REDEVELOPMENT COMMISSIONS AND AUTHORITIES (MILLER P)
Provides that a redevelopment commission may not enter into any obligation payable from public funds without first obtaining the approval of the legislative or fiscal body of the unit that established the commission. Provides an exception if the obligation is for the acquisition of real property and the payments are for three years or less or the purchase price is less than $5,000,000. Specifies that the approving ordinance or resolution must include certain items. Provides that a redevelopment commission and a department of redevelopment are subject to oversight by the legislative body of the unit, including review by the legislative body of annual budgets. Specifies that a redevelopment commission and a department of redevelopment are subject to the same laws, rules, and ordinances of a general nature that apply to all other commissions or departments of the unit. Specifies that a redevelopment commission, a department of redevelopment, and a redevelopment authority are subject to audit by the state board of accounts and covered by the public meetings and public records laws. Requires a redevelopment commission to provide to the legislative body of the unit at a public meeting all the information supporting the action the redevelopment commission proposes to take regarding the sale, transfer, or other disposition of property. Provides that if the amount of excess assessed value determined by the commission is expected to generate more than 200% of the amount of allocated tax proceeds necessary to carry out the commission's plan, a determination of the amount of the excess available to other taxing units by the commission must be approved by the legislative body of the unit. Permits the legislative body of the unit to modify the commission's determination with respect to the amount of excess assessed value. Requires the treasurer of a redevelopment commission outside Indianapolis and the secretary-treasurer of a redevelopment authority outside Indianapolis to report annually to the fiscal body of the unit that established the commission or authority. Provides that the Indianapolis controller is the fiscal officer of the redevelopment commission and redevelopment authority in Indianapolis. Authorizes the Indianapolis controller to obtain financial services on a contractual basis. Prohibits redevelopment commissions and certain other redevelopment entities from owning, leasing, or holding a single family dwelling or condominium unit that is leased for purposes of leasing for the use by individuals as a dwelling. Requires the department of local government finance, with the assistance of the state board of accounts, to prepare a report on redevelopment by redevelopment commissions, authorities, and departments and to submit and present the report to the commission on state tax and financing policy during the 2014 legislative interim. Provides that the power of eminent domain for redevelopment purposes belongs to the legislative body in counties other than Marion County. Requires legislative body approval of any amendment of a plan or of a resolution establishing an allocation area. Requires a declaratory resolution or amendment that establishes an allocation provision to include a specific finding of fact that the adoption of the allocation provision will result in new property taxes in the area that would not have been generated but for the adoption of the allocation provision. Provides, in the case of an allocation area that was initially established before July 1, 1995, that the expiration date of any allocation provisions for the allocation area is June 30, 2025, or the last date of any obligations outstanding on July 1, 2015, whichever is later. Provides that the consolidated allocation area in downtown Indianapolis is exempt from the expiration date.
Current Status: 3/20/2014 - Received by the Governor

SB158 PROPERTY TAXES (KENLEY L)
Specifies requirements that a for profit early childhood education provider must meet to obtain a property tax exemption for educating children who are four or five years of age. Prorates the exemption based on the number of children who are four or five years of age.
Current Status: 3/20/2014 - Received by the Governor

SB161 TAX ISSUES (KENLEY L)
Specifies that for purposes of computing sales tax, a seller may elect to round the tax on an item basis or an invoice basis. Removes blood glucose monitoring meters from the separate sales tax exemption for blood glucose supplies to comply with the Streamlined Sales and Use Tax Agreement. Provides that blood glucose meters and the packaging or literature for a blood glucose meter furnished without charge by a diabetic supply distributor are exempt from sales tax. (Blood glucose meters would also be exempt from sales tax as durable medical equipment if sold or rented under a prescription.) Provides that the sales tax exemption for blood glucose monitoring supplies applies only to supplies furnished without charge. Provides that the value of an Olympic medal and prize money paid by the United States Olympic Committee to the winner of an Olympic medal are exempt from the Indiana adjusted gross income tax.
Current Status: 3/20/2014 - Received by the Governor

SB176 CENTRAL INDIANA TRANSIT (MILLER P)
Provides for the establishment or expansion of public transportation services other than light rail in an eligible county through a local public question placed on the ballot under an ordinance adopted by the fiscal body of the eligible county. Requires the department of local government finance to review and approve the language of a local public question. Provides that Delaware County, Hamilton County, Hancock County, Johnson County, Madison County, and Marion County are eligible counties. Authorizes eligible counties to fund approved public transportation projects through various parts of the local option income tax rates that are available under current law for other purposes. Requires that fares must cover at least 25% of the operating costs of a transportation system established or expanded under the bill. Requires that revenue raised from sources other than taxes and fares must: (1) equal at least 10% of the local option income tax revenue that the budget agency certifies that an eligible county will receive in the first year of operations of a public transportation project; and (2) cover at least 10% of the operating costs of a transportation system established or expanded under the bill in the second year and thereafter. Provides that eligible counties are responsible for covering any shortfalls in raising alternative revenues. Requires foundations to be established in eligible counties for the purpose of meeting the alternative revenue requirements. Authorizes interlocal agreements, public-private partnerships, and bonding with respect to a public transportation project. Prohibits a political subdivision from using public funds to promote a position on a local public question regarding transit. Provides that the provisions in the bill do not create a moral obligation of the state. Specifies that no general revenues of the state may be used to pay for a transportation project or service under the provisions in the bill (but that this restriction does not apply to distributions from the public mass transportation fund). Requires goals for participation by minority business enterprises, veteran business enterprises, and women's business enterprises in the development of a public transportation project. Provides that the public mass transportation fund distribution formula is subject to annual review by the budget committee and approval of the budget director. Authorizes the fiscal body of a township that is: (1) located in an eligible county in which the county fiscal body does not adopt an ordinance to place a local public question on the ballot; and (2) adjacent to either an eligible county in which a public transportation project has been approved or a township in which a public transportation project has been approved; to adopt a resolution placing a local public question on the next general election ballot in the township concerning the establishment of a public transportation public project in the township. Requires the county fiscal body to carry out a public transportation project approved by the voters of the township and fund it through local option income taxes imposed only upon the county taxpayers who reside in the township.
Current Status: 3/20/2014 - Received by the Governor

SB225 VARIOUS STATE AND LOCAL FINANCIAL MATTERS (KENLEY L)
Eliminates the requirement that excess state general fund reserves are to be carried over each year for purposes of determining a transfer to the pension stabilization fund and an automatic taxpayer refund. Reduces from 50 to 25 the number of hard copy documents a state agency must provide to the state library. Permits the state library foundation to choose to have its annual audit performed by an independent certified public accountant or by the state board of accounts. Changes the publisher of the annual report of the meetings of the Indiana Academy of Science from the commission on public records to the Indiana Academy of Science. Changes various copy requirements concerning the Indiana Academy of Science's reports. Repeals the annual appropriation for the printing of the proceedings and papers of the Indiana Academy of Science. Eliminates local unit participation in the state employee health plan. Repeals the requirement that the state provide a retiree health benefit plan to state employees after they become eligible for Medicare coverage. Repeals the mandatory contribution by state employees at retirement of unused vacation leave to the PERF 401(h) retirement medical benefits account. Recognizes multiparty agreements, including agreements with other states and local government units, using a transportation public-private arrangement. Modifies hearing requirements related to public-private partnership arrangements. Removes restrictions on how the state police department may use certain appropriations. Allows parties involved in a property tax appeal to agree to receive notices and other material by electronic means.
Current Status: 3/20/2014 - Received by the Governor

SB249 TRANSFERS OF REAL PROPERTY (BUCK J)
Specifies that a property tax penalty for property sold by a county executive through a certificate of sale procedure is to be removed from the tax duplicate if the penalty is associated with a delinquency that was not due until after the date of the original tax sale but is due before the issuance of the certificate of sale by the county executive. Specifies procedures for collecting unpaid taxes after the county auditor determines that a property is no longer eligible for a standard deduction. Provides that no lien attaches for any additional taxes and civil penalties resulting from the removal of the deduction with respect to a bona fide purchaser of the property who is without knowledge of the county auditor's determination. Indicates that certain defects in a lease recorded with the county recorder do not invalidate the effect of recording the lease. Provides that a person acquiring a condominium unit is not liable for unpaid assessments if the condominium association, manager, or board of directors fails to provide a statement of unpaid assessments within 10 days of the person's written request. Specifies the appraisal procedure to be used when selling property at auction in a partition action, and provides that the parties may waive appraisal and valuation. Permits any person with an interest in property being sold at a sheriff's sale in a partition action to request that the court order the sale be conducted by an auctioneer. Provides that a governmental entity may claim title by adverse possession without having paid property taxes and special assessments due on the property if the governmental entity is exempt from the payment of property taxes and special assessments. Makes a technical correction.
Current Status: 3/20/2014 - Received by the Governor

SB266 ASSESSMENT OF REAL PROPERTY (SCHNEIDER S)
Consolidates provisions relating to the burden of proof concerning assessments into one section of the Indiana Code (and repeals the existing provision that is moved to another citation in the Indiana Code). Specifies that if the assessed value of real property is increased above the amount of the assessed value as reduced by any assessing official or reviewing authority, the assessing official making the assessment has the burden of proving that the assessment is correct. (Under current law, this burden of proof applies only if the assessed value was reduced by the property tax assessment board of appeals.) Amends the existing law concerning the assessor's burden of proof when an assessment is increased by more than 5% over the prior tax year by specifying the following: (1) In calculating the change in the assessment, the assessment to be used for the prior tax year is the original assessment for that prior tax year or, if applicable, the assessment for that prior tax year as last corrected by an assessing official, as stipulated or settled by the taxpayer and the assessing official, or as determined by the reviewing authority. (2) If the assessor fails to meet the burden of proof, the taxpayer may introduce evidence to prove the correct assessment. (3) If neither the assessor nor the taxpayer meets these burdens of proof, the assessment reverts to the assessment for the prior tax year. (4) These provisions concerning the burden of proof do not apply to an assessment that is based on structural improvements, zoning, or uses that were not considered in the assessment for the prior tax year.
Current Status: 3/20/2014 - Received by the Governor

SB367 VARIOUS TAX MATTERS (HERSHMAN B)
Specifies that the county auditor (rather than the county treasurer, under current law) makes certain requested advances to political subdivisions within the county. Specifies that an active duty military member who maintains ownership of a home in Indiana and is ordered to deploy outside of Indiana may maintain eligibility for a homestead deduction. Provides that for purposes of the circuit breaker credit, residential property: (1) includes a single family dwelling that is under construction and the land, not exceeding one acre, on which the dwelling will be located; and (2) excludes real property that consists of a commercial hotel, motel, inn, tourist camp, or tourist cabin. Requires the state board of finance to make a loan to a school corporation from the rainy day fund, if the school corporation's petition for a loan from the fund was denied in October 2013 and a general fund referendum was not passed in 2014 by the voters in the school corporation. Specifies that delinquent penalties, fees, and interest are included in the amounts due for determining whether a parcel is included on the delinquency list for purposes of the tax sale law. Makes the 2012 maximum property tax levy adjustment for Fairfield Township in Tippecanoe County permanent. Restores the requirement deleted by SEA 207-2014 that the department of local government finance (DLGF) must approve the ballot language proposed by a school corporation for a school general fund referendum and restores the related certification procedures. Removes the requirement added by SEA 207-2014 that the county election board of the county or counties in which the school corporation is located must either approve or revise the proposed ballot language and removes related changes. Provides that the sales tax rate on a motor vehicle that a purchaser intends to transport outside Indiana within 30 days and title or register for use in another state or country is the rate of that state or country. Extends the sales and use tax exemption for aircraft repair and maintenance. Authorizes a shareholder, partner, or member of a pass through entity to claim the industrial recovery tax credit. Specifies that contributions to organizations that provide services to individuals who are ex-offenders are eligible for the neighborhood assistance credit. Provides that beginning in 2015, the office of community and rural affairs administers the historic rehabilitation income tax credits. Changes the schedule of maximum property tax rates that may be imposed by an airport authority. Includes a maximum tax rate calculation that provides that the tax rate is not decreased to a level where the airport authority would initially lose tax revenue as the assessed value increases. Provides that if a taxpayer fails to make a payment under a property tax payment arrangement, the county treasurer and the taxpayer may enter into a subsequent arrangement and avoid the penalties otherwise due. Makes changes to the income tax credit for property taxes paid on homesteads in Lake County. Provides that if the cost of the credit is less than $8,500,000, riverboat admissions tax revenue equal to the difference between $8,500,000 and the cost of the credits shall be paid to the northwest Indiana regional development authority and used for public mass rail transportation in Lake County. Requires electronic filings for cigarette and alcoholic beverage taxes. Makes changes to the membership requirements for the Madison County visitor and convention commission. Requires township trustees to publish the annual abstract of receipts and expenditures within four weeks after the third Tuesday following the first Monday in February. Requires redevelopment commissions, authorities, and departments to submit certain information to the DLGF before July 1, 2014. Provides that the DLGF shall deliver the report required by SEA 118-2014 by October 1, 2014 (rather than August 1, 2014). Requires the office of management and budget to prepare certain studies.
Current Status: 3/20/2014 - Received by the Governor

SB375 BUSINESS FINANCING ARRANGEMENTS (HOLDMAN T)
Specifies that the following are not securities subject to IC 23: (1) A venture capital investment tax credit. (2) A certificate from the Indiana economic development corporation indicating that a taxpayer has fulfilled the requirements of the corporation and is entitled to a venture capital investment tax credit. Defines "accredited investor" for the purposes of the Uniform Securities Act. Adds exemptions to the Uniform Securities Act for certain transactions.
Current Status: 3/20/2014 - Received by the Governor

SB396 TELECOMMUNICATIONS SERVICE (HERSHMAN B)
Limits the authority of the utility regulatory commission (commission) with respect to interconnection, resale of telecommunications service, and unbundled access to the authority delegated to the commission under federal law. Repeals a provision authorizing the commission to establish certain rates charged by incumbent local exchange carriers to payphone service providers. Provides that the general assembly intends for the 2010 edition of the NFPA 72, National Fire Protection Association Standard for the National Fire Alarm and Signaling Code (NFPA 72) to be incorporated into the Indiana Administrative Code (IAC). Provides that not later than July 1, 2014, the fire prevention and building safety commission (commission) shall adopt rules to incorporate NFPA 72 into the IAC. Allows the commission to adopt emergency rules to meet this requirement. Allows the commission to amend NFPA 72 as the commission considers appropriate, if the rules finally adopted by the commission do the following: (1) Incorporate the definition of, and associated requirements for: (A) a managed facilities-based voice network (MFVN); and (B) a public switched telephone network (PSTN); as set forth in NFPA 72. (2) Allow digital alarm communicator systems that make use of a MFVN to transmit signals from a fire alarm system to an offsite monitoring facility, subject to NFPA 72 requirements. Provides that if the commission does not comply with these rulemaking requirements by the date specified, the following apply on July 1, 2014: (1) The definition of and associated requirements for: (A) a MFVN; and (B) a PSTN; as set forth in NFPA 72, are considered incorporated into the IAC. (2) A person that after June 30, 2014, installs or uses a digital alarm communicator system that: (A) makes use of a MFVN to transmit signals from a fire alarm system to an offsite monitoring facility; and (B) meets the applicable NFPA 72 requirements; is not required to obtain a variance from the commission for the installation or use. Provides that a communications service provider that is an eligible telecommunications carrier for purposes of the federal Lifeline Program is not exempt from: (1) the enhanced prepaid wireless charge; or (2) the monthly statewide 911 fee.
Current Status: 3/20/2014 - Received by the Governor

SB420 PROPERTY TAX DEADLINES AND PROCEDURES (HEAD R)
Changes for property taxation purposes: (1) the assessment and valuation date for property to January 1; (2) the date a reassessment of a group of parcels in a particular class of real property begins to May 1; (3) the date after which changes on an amended property tax roll over as a credit to a subsequent year to April 1; (4) the exemption filing date to April 1; and (5) various other related dates. Requires the department of local government finance to certify to each county the assessed values tentatively determined for public utilities by June 1. Changes the deadline for meeting to fix the budget for school corporations that have elected to use a fiscal year budget to April 1.
Current Status: 3/20/2014 - Received by the Governor





























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