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Bill Watch, Feb. 6, 2018: Current Tax Legislation of Note - Taxation News

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Tax News


Posted on: Feb 6, 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 lawren.mills@icemiller.com.

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.

HB1104    PROPERTY TAX MATTERS. (LEONARD D) Excludes political subdivisions that do not have the power to impose ad valorem property taxes from the requirement to upload a digital copy of certain contracts on the Indiana transparency Internet web site. 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. Eliminates (effective retroactive to July 1, 2017) several property tax deduction and credit reapplication requirements that were added by HEA 1450-2017 pertaining to unmarried taxpayers who married, married taxpayers who divorced, and taxpayers who came to own their property jointly or as tenants in common with another individual. 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 DLGF not later than five business 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. Allows Green Township in Hancock County to increase its maximum permissible ad valorem property tax levy for the township's general fund to offset the reduction in the maximum levy that occurred beginning in 2003 that was based on the township's actual levy (levy banked amount). Provides for an alternative distribution of the certified share part of local income tax revenue in certain counties based on revenue and population of municipalities and townships in the county. Provides that the Jasper County local income tax (LIT) adopting body may adopt an ordinance to provide that property taxes imposed due to a referendum, adopted before July 1, 2015, are eligible for the property tax relief rate credit for distributing LIT revenue. Authorizes a county fiscal body to establish a salary schedule that includes greater compensation for the presiding officer or secretary of the county fiscal body or county executive if certain conditions are satisfied. Provides that a redevelopment commission may issue bonds or enter into leases with a term of up to 50 years to finance a project that includes, as part of the project, the use and repurposing of two or more buildings and structures that are: (1) at least 75 years old; and (2) located at a site at which manufacturing previously occurred over a period of at least 75 years. Specifies that in the case of an allocation area that is established after June 30, 2018, for such a project, the expiration date of the allocation provision may not be more than 50 years after the date on which the allocation provision is established. 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. Provides the following with regard to a waiver of remonstrance of annexation executed before, on, or after June 30, 2018: (1) The waiver is void if the waiver is recorded more than 90 business days after the date the waiver was executed. (2) The waiver expires not later than 15 years after the date the waiver was executed. (3) A void or expired waiver does not invalidate an annexation that was effective on or before July 1, 2018. Provides a property tax exemption for certain continuing care retirement communities and provides for certain exceptions to the exemption filing deadlines for taxpayers who otherwise qualify for an exemption under current law. Urges the legislative council to assign to the fiscal policy

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.

HB1323    MOTORIZED EQUIPMENT VEHICLE RENTAL EXCISE TAX. (HUSTON T) Excludes certain motorized equipment vehicles from the assessment of the personal property tax. Imposes an excise tax on the rental of motorized equipment vehicles (excise tax). Provides procedures for the sourcing, collection, and distribution of the excise tax. Provides that the excise tax is apportioned and distributed to local governmental units in the same manner that property taxes are apportioned and distributed.

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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