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Bill Watch, Jan. 16, 2018: Current Tax Legislation of Note - Taxation News

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Tax News

Posted on: Jan 16, 2018

The IndyBar Legislative Committee is currently monitoring the following tax related legislation. IndyBar members can request that the Legislative Committee track specific legislation by contacting committee chair Lawren Mills at

Click here to view the full Bill Watch reports.

HB1039    STUDY OF TAX TOPICS. (CULVER W) Urges the legislative council to have the interim study committee on fiscal policy study the following: (1) Whether the annual limit on the adjusted gross income tax credit for contributions to a college choice 529 savings plan should be modified in some way to allow a taxpayer to make greater contributions earlier in the taxpayer's schedule of savings. (2) The implications of changes made by the federal Tax Cuts and Jobs Act to the allowable uses of 529 plans. (3) Whether the adjusted gross income tax deduction for education expenditures should be extended to include expenditures made in connection with the enrollment, attendance, and participation in a public school elementary or high school education program.

HB1101    MINIMUM VALUATION OF PERSONAL PROPERTY. (HEINE D) Provides that the minimum valuation rules for the assessment of tangible personal property do not apply to tangible personal property that a taxpayer acquires after June 30, 2018.

HB1104    PROPERTY TAX MATTERS. (LEONARD D) Specifies the deadlines for county auditors to submit property tax settlement and distribution information to the department of local government finance (DLGF). Repeals the electronic digital signature act. Amends the definition of "owner" (for purposes of the property tax statutes) to delete the provision specifying that an owner of tangible property includes the holder of a tenancy for a term of years. Deletes obsolete language in the statutes exempting certain business personal property with an acquisition cost of less than $20,000. Specifies that a taxpayer eligible for such an exemption must include on the taxpayer's personal property tax return: (1) information concerning whether the taxpayer's business personal property within the county is in one location or multiple locations; and (2) an address for the location of the property. Provides that if a local service fee is imposed on a taxpayer claiming such an exemption, the county shall include the local service fee on a property tax bill associated with the tax district in which the majority value of the taxpayer's business personal property within the county is located. Provides that a taxpayer may be charged only one local service fee per county. Specifies that if a penalty is imposed on a taxpayer for failing to declare on the taxpayer's tax return that the taxpayer is entitled to the exemption for business personal property with an acquisition cost of less than $20,000, the county shall include the penalty on a property tax bill associated with the tax district in which the majority value of the taxpayer's business personal property within the county is located. Provides that the appropriate county officer designated by the county executive (rather than the assessor, under current law) is responsible for: (1) maintaining data files of the geographic information system characteristics of each parcel in the county as of each assessment date; and (2) submitting those files to the geographic information office of the office of technology. Provides that if an assessing official determines that the owner of a parcel of property is unable to use the property to the owner's full and complete benefit because: (1) the parcel is completely surrounded by parcels owned by other owners; and (2) the owner does not possess and cannot obtain an easement granting ingress or egress into the property or the owner is otherwise incapable of having sufficient ingress or egress to the property; the assessing official shall apply an influence factor for limited access as prescribed in the rules of the DLGF. Requires that the budget notice that political subdivisions must publish on the DLGF's computer gateway must also include information concerning the percentage change between the current and proposed tax levies of each fund. Requires county auditors to submit data on deductions applicable to the current tax year to the homestead property data base on or before March 15 of each year, in a manner prescribed by the DLGF. Repeals the statute providing for a county board of tax adjustment. Repeals provisions related to the county board of tax adjustment and the local budgeting process. Specifies that a political subdivision shall file the budget adopted by the political subdivision with the county auditor and the DLGF not later than two days after the budget is adopted. Authorizes the DLGF to adopt rules for procedures related to local government budgeting. Specifies that the adoption, amendment, or repeal of such a rule by the DLGF may not take effect before March 1 or after July 31 of a particular year. Specifies: (1) that rules adopted by the DLGF for the appraisal of real property may not apply to any appraisal contemporaneously being conducted under a county's reassessment plan; and (2) that rules adopted by the DLGF may first apply to the reassessment phase beginning in the following calendar year under a county's reassessment plan. Specifies that for purposes of attributing the amount of a property tax deduction or exemption to the gross assessed value of a property: (1) a deduction or exemption that is specific to an improvement shall be applied only to the assessed value allocation pertaining to that improvement; and (2) to the extent that a deduction or exemption is not specific to an improvement; the deduction or exemption shall be applied in the order that will maximize the benefit of the deduction or exemption to the taxpayer. Provides a property tax exemption for property owned by a continuing care retirement community when all or a part of the property does not otherwise qualify for a property tax exemption. Specifies that, in order to qualify for the exemption, the owner of the community must: (1) limit admission to senior citizens and their spouses; (2) be a nonprofit organization; (3) have an obligation to give senior citizens who are residents of the community priority, should the need arise, to be moved to a facility within the community that provides higher levels of care; and (4) have a policy of providing assistance to senior citizens who are residents of the community who become unable to make their payment obligation. Specifies that the base assessed value for tax increment financing purposes includes the net residential assessed value within the allocation area, as finally determined for the current assessment date. Makes technical corrections.

HB1155    COUNTY REPAIR OF SUBDIVISION DRAINS. (BURTON W) Authorizes the executive of a county to enter into a contract with a subdivision homeowners association providing: (1) for the county to repair subdivision drains located in the subdivision; and (2) for owners of property in the subdivision to pay assessments to pay the cost of the repairs; if a majority of the members of the homeowners association approve the contract. Requires the county treasurer of a county that enters into such contracts to establish a county subdivision drain repair fund, to create a separate account within the fund for each subdivision with which the county enters into a contract, and to deposit assessments paid by the owners of property in a subdivision into the account created for that subdivision. Provides that the assessments imposed on a subdivision's homeowners shall be set by the county treasurer at an amount not greater than reasonably necessary to meet the cost of repairing the subdivision's drains and that the charge for a homeowner's assessment may appear on the homeowner's semiannual property tax statement. Provides that unpaid assessments may be collected in the manner in which other unpaid special assessments are collected.

HB1171    STUDY CONCERNING PROPERTY TAXES. (SAUNDERS T) Urges a legislative interim study of property tax exemptions, property tax deductions, the stability of the property tax base, and providing public services that benefit property that is property tax exempt.

HB1218    EXPEDITED ASSESSMENT APPEALS. (SMITH V) Provides that the appeal process for an assessment, deduction, or other appealable item begins with a hearing before the assessing official who made the assessment. Eliminates the preliminary informal meeting with the assessing official who made the assessment. Provides that for assessment purposes the true tax value of real property is the fair market value of the property. Voids the rule of the Indiana Administrative Code that requires assessments of real property to be based on the 2011 real property assessment manual.

SB21    PROPERTY TAX ASSESSMENT. (ZAKAS J) Provides the following if the application of an annual adjustment factor derived by an assessing official would result in an increase of more than 10% in the assessed value of one or more homesteads for property tax purposes: (1) The assessing official shall submit certain information to the division of data analysis (division) of the department of local government finance. (2) The division shall review the information submitted and make a determination of whether the annual adjustment factor was correctly calculated or is otherwise inappropriate. (3) If the division determines that the annual adjustment factor to be applied to the homestead was incorrectly calculated or otherwise needs to be adjusted, the division shall certify to the assessing official the information and instructions necessary for the assessing official to correct the annual adjustment factor. Makes technical corrections.

SB196    ELIMINATION OF ANNUAL ADJUSTMENTS OF ASSESSED VALUES. (NIEMEYER R) Eliminates the annual adjustments (or "trending") to assessed values of certain real property for assessment dates beginning after December 31, 2018. Does not eliminate trending for agricultural land. Retains the provisions in current law that require four year cyclical reassessments. Makes conforming changes. Makes technical corrections.


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