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Bill Watch, Feb. 12, 2019: Current Tax Law Legislation of Note - Taxation News

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Tax News


Posted on: Feb 12, 2019

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 Mindy Westrick at mindy.westrick@faegrebd.com.

Click here to view the full Bill Watch reports.

HB1056    PROPERTY TAX DEDUCTION APPEALS. (MANNING E) Changes the process concerning a taxpayer's appeal of an error related to the approval, denial, or omission of a deduction concerning real property or a mobile home. Requires the county assessor to notify the county auditor when an appeal regarding the approval, denial, or omission of a deduction concerning real property or a mobile home is filed with the county assessor. Provides that the county auditor is the party representing the county before the county property tax assessment board of appeals and any appeal of the board's decision in an appeal related to the approval, denial, or omission of a deduction concerning real property or a mobile home. Authorizes the county auditor to use the ineligible homestead fund to pay the costs of defending an appeal related to the approval, denial, or omission of a deduction concerning real property or a mobile home.

HB1153    AGE 65 AND OLDER PROPERTY TAX DEDUCTION. (HARRIS JR. E) Provides for a property tax deduction for individuals at least 65 years of age on real property, mobile homes not assessed as real property, and manufactured homes not assessed as real property in an amount equal to one-half of the assessed value of the real property, mobile home, or manufactured home. (Current law provides for a deduction equal to the lesser of one-half of the assessed value or $12,480.)

HB1310    AGE 65 AND OLDER PROPERTY TAX DEDUCTION. (HARRIS JR. E) Provides for a property tax deduction for individuals at least 65 years of age on real property, mobile homes not assessed as real property, and manufactured homes not assessed as real property in an amount equal to one-half of the assessed value of the real property, mobile home, or manufactured home. (Current law provides for a deduction equal to the lesser of one-half of the assessed value or $12,480.)

HB1352    SALES TAX ADMINISTRATION. (PORTER G) Provides that a marketplace facilitator is required to collect and remit state sales tax as a retail merchant when it facilitates a retail transaction for sellers on the marketplace facilitator's marketplace. Specifies circumstances in which a marketplace facilitator or a seller would not be required to collect and remit the state sales tax on the retail sale. Retains provisions that go into effect on July 1, 2019, for state sales tax collection and remittance requirements of an accommodations facilitator that facilitates a retail transaction for sellers that rent or furnish rooms, lodgings, or accommodations in Indiana.

HB1373    ASSESSMENTS FOLLOWING SUCCESSFUL APPEALS. (ABBOTT D) Provides for a three year cap on the assessment of real property that was the subject of a successful appeal or review that reduced the gross assessed value by more than 5%. Provides that the assessment cap does not follow the real property and is subject to a change in ownership. Provides that the assessed value is determined by standard appraisal methods when a change in ownership occurs within the three years following the successful appeal. Provides that the assessment cap does not apply to assessments determined using the income capitalization approach, determined through the correction of an error or omission, or based upon a change in structural improvements, zoning, or use. Provides that a person has the option of applying the assessed value limitations or filing a claim for refund, but not both.

HB1502    VARIOUS PROPERTY TAX MATTERS. (SMITH V) Provides that costs directly attributable to the sale of a property tax certificate of sale include all costs of any county office or department, regardless of whether they are incurred before, during, or after the sale. Allows an immediate family member to be a tax representative for a property owner at a property tax assessment board of appeals 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.

SB179    ENTERTAINMENT. (ALTING R) Amends the definition of "entertainment" for purposes of alcohol regulation to include meals and entertainment that were deductible as business expenses before the enactment of the federal Tax Cuts and Jobs Act of 2017.

SB209    TAX DEDUCTION FOR HEALTH CARE SHARING EXPENSES. (CRANE J) Provides that an individual who is an Indiana resident and a member of a health care sharing ministry is entitled to an adjusted gross income tax deduction for a taxable year equal to the total amount of qualified health care sharing expenses paid by the taxpayer during the taxable year.

SB233    BUSINESS PERSONAL PROPERTY TAX EXEMPTION. (FREEMAN A) Increases, from $20,000 to $40,000, the acquisition cost threshold for the business personal property tax exemption. Specifies that a taxpayer who is eligible for a personal property tax 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 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. Repeals provisions in current law that allow a county council to impose a local service fee on each person that has exempt business personal property because the business personal property does not exceed the acquisition threshold. Repeals provisions in current law that impose a $25 penalty for failure to timely indicate on a taxpayer's personal property tax return that the taxpayer's business personal property is exempt. Removes outdated provisions.

SB239    PROPERTY TAX ASSESSMENT APPEALS. (FREEMAN A) Repeals a statute requiring the Indiana board of tax review (board) to recommend that parties settle or mediate any case pending before the board if certain conditions are met. Provides that certain burden shifting requirements do not apply if the assessment that is the subject of the review or appeal is based on substantial renovations or new improvements. Provides that "small claim" means an appeal where the parties have elected to proceed under the board's small claims rules. (Current law defines the term as an appeal of a final determination of assessed valuation that does not exceed $1,000,000.) Provides that a party must be able to elect out of the small claims rules.

SB623    PROPERTY TAX MATTERS. (BUCHANAN B) Provides that a county assessor or township assessor (if any) may request the department of local government finance (department) to perform a state conducted assessment of a particular commercial building or structure used for retail purposes. Specifies the procedures for the state conducted assessment. Requires assessing officials to apply a cost approach to assessments of commercial real property used for retail purposes if the property is occupied by the original owner or by a tenant for which the improvement was built. Provides that, when using a sales comparison approach in assessments of a commercial building or structure used for retail purposes, assessing officials may not use second generation property as a comparable sale property for purposes of a sales comparison analysis of a first generation property or in establishing obsolescence. Defines "first generation property" as a building or structure designed to be functionally and economically efficient for use for retail purposes by the original tenant, or a similar class of tenants, over a period of time during which the building or structure retains its original utility and desirability. Defines "second generation property" as a building or structure whose design for use for retail purposes by the original tenant, or similar class of tenants, is no longer functionally and economically efficient for that use, which no longer retains its original utility and desirability, and may be used only by a tenant other than the original tenant, or similar class of tenants, for which it was designed. Provides that a county fiscal body may adopt an ordinance to provide that the county assessor be reimbursed for legal costs (in addition to other specified costs under current law) incurred by the county assessor in defending an appeal that is uncommon and infrequent in the normal course of defending appeals.

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