| HB1001 | STATE BIENNIAL BUDGET (BROWN T) Appropriates money for capital expenditures, the operation of the state, the delivery of Medicaid and other services, and various other distributions and purposes. Specifies higher education capital projects authorized to be constructed using bonds. Establishes a historic preservation grant program and provides that the income tax credit for historic preservation does not apply to expenditures made after June 30, 2016. Specifies that the budget report must include a list of tax expenditure items. Specifies that for financial reporting purposes, the state's combined general fund reserves include the balances of the general fund, the Medicaid contingency and reserve account, the state tuition reserve account, and the counter-cyclical revenue and economic stabilization fund (less any outstanding loans). Changes the name of the state tuition reserve fund to an account within the state general fund. Prohibits the budget agency from enforcing a policy or procedure against certain agencies and officials by refusing to allot money from the personal services/fringe benefits contingency fund to the official or agency. Establishes the securities rating settlement fund for the purpose of depositing and distributing money received under a multistate agreement related to litigation concerning securities rating agencies. Specifies that money received by the state under such an agreement shall be distributed by the auditor of state as follows: (1) 67.67% shall be transferred to the state general fund. (2) 16.165% shall be transferred to the securities division enforcement account. (3) 16.165% shall be transferred to the homeowner protection unit account. Prohibits the budget agency from withholding appropriations for a state educational institution without review by the budget committee. Establishes the state bicentennial capital account to provide funds for capital projects that commemorate the bicentennial of Indiana's statehood. Provides that the budget agency shall administer the account. Provides that money generated from the lease of communications systems infrastructure (including under a public-private partnership) shall be transferred to the account to be used for capital projects that commemorate the bicentennial of Indiana's statehood. Establishes the office of state based initiatives. Increases the fee for taxing units for state board of accounts audits from $45 per day to $175 per day. Specifies that the fee for state colleges and universities is the direct and indirect cost of an examination (now $83 per hour). Permits a state college or university to have its examination performed by an independent certified public accounting firm. Provides that fees collected for audits are to be deposited in the state board of accounts trust and agency fund. Makes the fund a dedicated fund that can be used to cover expenses of doing audits...REVIEW FULL DIGEST IN THE MISC. DOCUMENTS SECTION BELOW |
| | Current Status: | 5/7/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1001 |
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| HB1142 | TAX ISSUES. (KOCH E) Specifies that the legislative services agency (rather than the commission on state tax and financing policy or its successor committee, under current law) shall before October 1 of each year conduct the review, analysis, and evaluation of all tax incentives under House Enrolled Act 1020-2014, according to a schedule developed by the legislative services agency. Requires the legislative services agency to submit the results of the review, analysis, and evaluation to the legislative council and the interim study committee on fiscal policy. Requires the interim study committee on fiscal policy to hold an annual public hearing after September 30 and before November 1 of each year at which: (1) the legislative services agency presents its review, analysis, and evaluation of tax incentives; and (2) the interim study committee receives information concerning tax incentives. Requires the interim study committee on fiscal policy to submit to the legislative council any recommendations made by the interim study committee that are related to the legislative services agency's review, analysis, and evaluation of tax incentives prepared under this section. Requires the legislative services agency to provide information to be used by the general assembly to make certain determinations regarding tax incentives. (Current law requires the legislative services agency to make these determinations.) Requires the legislative services agency to prepare and publish a tax expenditure report before November 1 of each even numbered year. Specifies the required elements of the tax expenditure report. Repeals the home insulation deduction and the solar powered roof vent and fan deduction. |
| | Current Status: | 4/17/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1142 |
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| HB1186 | UNEMPLOYMENT INSURANCE. (LEONARD D) Provides that any part of an unemployment insurance surcharge not used to pay interest on the advances made to the state from the federal unemployment trust fund must be credited against the total amount of benefits charged to the state's unemployment insurance trust fund before determining each employer's share of those benefits. Removes language that requires the extra surcharge amount be credited to each employer's experience account in proportion to the amount of the surcharge the employer paid. Requires the department of workforce development (department) to establish an unemployment benefit overpayment not later than four years from the date of the overpayment, if the overpayment is for a reason other than an individual knowingly making a false statement or representation of a material fact, knowingly failing to disclose a material fact, or failing to report wages or the receipt of deductible income and removes language concerning certain other time frames related to overpayments. Repeals certain provisions concerning overpayments and establishes procedures for the department to require the employer to withhold amounts from the earnings of an individual for whom a benefit overpayment is established and to pay those amounts to the department to satisfy the overpayment, subject to certain conditions that apply to garnishments.
Provides that an employer may not use income withholding as the basis for refusing to hire, discharging, or taking disciplinary action against an individual, and establishes civil penalties for an employer that refuses to withhold income or knowingly misrepresents an employee's income.
Provides that an individual may contest an income withholding and request a hearing by an administrative law judge. Provides that an employer that is required to withhold income may collect a fee under certain circumstances. Requires as a condition precedent to the payment of benefits in a year immediately following a year in which benefits were paid or following a period of disqualification for failure to apply for or accept suitable work that an individual: (1) perform insured work; (2) earn remuneration in employment in at least each of eight weeks; and (3) earn remuneration at least equal to the product of the individual's weekly benefit amount multiplied by eight. Provides that, if an employer does not have a rule regarding attendance, an individual's unsatisfactory attendance is just cause for discharge, if good cause for the absences or tardiness is not established. (Currently, the individual must show good cause for the absences or tardiness.)
Establishes that a crime committed using the Internet or another computer network may be prosecuted in any county: (1) from which or to which access to the Internet or another computer network was made; or (2) in which a computer, computer data, computer software, or computer network used to access the Internet or another computer network is located. Urges the legislative council to assign to an appropriate study commission or committee during the 2015 legislative interim the task of studying fraud and benefit overpayments occurring in the unemployment insurance program in Indiana. |
| | Current Status: | 5/5/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1186 |
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| HB1349 | VARIOUS TAX MATTERS. (HUSTON T) Provides that the equipment eligible for the double direct sales tax exemption includes material handling equipment purchased for the purpose of transporting materials into production activities from an onsite location. Specifies that the double direct sales tax exemption applies to agricultural machinery, tools, and equipment that is acquired for timber harvesting. Eliminates various adjustments to income for purposes of determining Indiana adjusted gross income. Eliminates various income tax exemptions, deductions, and credits. Specifies that certain tax credits for the preservation or rehabilitation of historic property certified before 2016 may be claimed or carried forward in future taxable years notwithstanding the elimination of the tax credit in 2016. Provides that business income is all income apportionable to the state under the Constitution of the United States. Provides that, for purposes of the sales factor, sales of tangible personal property are not considered to be made in this state if the property is shipped from the location of a third-party logistics services provider in this state. Broadens the addback to Indiana adjusted gross income related to intercompany interest expenses. Provides for a tax amnesty program. Makes technical corrections and conforming amendments. |
| | Current Status: | 4/20/2015 - Senate Conferees appointed Hershman and Broden
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| | State Bill Page: | HB1349 |
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| HB1472 | SPECIFIES THAT AN ATTORNEY EMPLOYED BY A STATE AGENCY IS SUBJECT TO THE ATTORNEY-CLIENT AND WORK PRODUCT PRIVILEGES. (NEGELE S) Permits a county council to impose a local service fee on each person that has business personal property exempt from taxation because the person's business personal property in the county has an acquisition cost of less than $20,000. Authorizes the department of local government finance (DLGF) to increase the maximum property tax levy of Brown Township, Jackson Township, and Blue River Township in Hancock County if the township submits a petition to the DLGF requesting the increase. Specifies the maximum increase that may be granted. Allows Brown County to impose an additional property tax levy of $478,115 each year in 2016 and 2017. Defines "licensed practitioner" for purposes of the sales and use tax law. Specifies that the definition of "storage" for purposes of the use tax does not include temporary storage of property for not more than 180 days for the purpose of the subsequent use of the property solely outside Indiana. Removes the 36 month rolling time limit on filing refund claims for utility purchases exempt from sales and use tax. Amends the sales tax exemption for medical equipment, supplies, and devices to: (1) restate the application of the sales tax exemption for medical equipment, supplies, and devices; and (2) provide a sales tax exemption for food, food ingredients, and dietary supplements that are sold by a licensed practitioner or pharmacist. Amends the sales tax exemption for drugs, insulin, oxygen, blood, or blood plasma to restate the application of the sales tax exemption. Repeals the sales tax exemption for food and food ingredients prescribed as medically necessary by a physician. Amends the definition of "research and development activities" for purposes of the sales tax exemption for research and development equipment and property. Modifies the sales tax exemption for receiving recycling materials. Adds recycling carts to the sales tax exemption for certain recycling equipment. Makes changes regarding sales or use tax collection and manufacturers that have meters exempt or partially exempt from sales and use tax. Provides guidance on when a retail merchant's certificate may be revoked. Updates references to the Internal Revenue Code. Provides that "base amount" and "qualified research expense" for purposes of the state research expense income tax credit have the same meaning as those terms are defined under the Internal Revenue Code and that the federal research and development credit used for purposes of calculating the Indiana research expense income tax credit is the same as the federal research and development credit allowed under the Internal Revenue Code. Removes outdated references to earned income tax advance payments. Provides that, when construction of jail facilities are complete and bonds and leases are fully paid, the county adjusted gross income tax rate in Marshall County shall be established at a rate such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities. Authorizes Tipton County to impose an additional county adjusted gross income tax rate of not more than 0.4% for constructing and equipping a jail and related facilities and renovating the county courthouse. Authorizes Rush County to impose an additional county adjusted gross income tax rate of not more than 0.6% for constructing, equipping, operating, and maintaining a jail and related facilities. Provides that the maximum combined county economic development income tax (CEDIT) and county option income tax (COIT) rates in Greene County may not exceed 1.25% (rather than 1%, under current law). Reduces the maximum public safety local option income tax (LOIT) rate otherwise applicable (0.25%) in Greene County by the amount that the combined CEDIT and COIT tax rates exceed 1%. Requires an employer to file annual withholding tax reports (Form WH-3) not later than 31 days after the end of the calendar year. Amends the definition of "captive insurer" for insurance regulation and taxation purposes. Permits the department to deny an application for a motor carrier in certain situations. Requires the department to enter into an agreement with the fiscal officer of a capital improvement board of managers to provide the fiscal officer with certain information. Establishes standards governing the date by which a taxpayer must notify the department of state revenue (department) of a modification of a taxpayer's federal income tax return or tax liability for a taxable year. Makes changes concerning the withholding of income taxes for nonresident partners, shareholders, and trust beneficiaries. Provides that the time limit to appeal: (1) letters of findings; and (2) a denial of a refund claim; may be extended according to terms of a written agreement. Aligns the administrative procedures for protesting refund denials and proposed assessments. Provides that the interest required to be paid on an overpayment of tax begins to accrue: (1) on the date the tax was due; or (2) the date the tax was paid; whichever is later. Provides that a tax judgment may be released and a tax warrant expunged if the commissioner of the department determines that the release of the tax judgment and the expungement of the tax warrant are in the best interest of the state. Requires the department to adopt rules to define the circumstances under which a release and expungement may be granted based on a finding that the release and expungement would be in the best interest of the state. Authorizes the DLGF to increase the maximum school corporation transportation fund levy for the New Durham Township School Corporation and the North Vermillion Community School Corporation, if the school corporation submits a petition to the DLGF requesting the increase. Specifies the maximum increase that may be granted. Provides that a tax increment financing area established by a redevelopment authority that has a United States government military base that is scheduled for closing or is completely or partially inactive or closed does not expire before July 1, 2016. Requires the legislative services agency to conduct a study to determine the amount of statutory tax relief that C corporations have realized in the calendar years from 2011 through 2014 and are anticipated to realize from 2015 through 2021. Requires the legislative services agency to submit a report of the study by December 31, 2016. Requires the department of state revenue to: (1) study the department's current information systems; (2) develop a plan for modernizing the department's information systems; and (3) submit a report of the study and plan to the budget committee and the legislative council. |
| | Current Status: | 5/6/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1472 |
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| SB324 | VARIOUS CHILD SUPPORT MATTERS. (HEAD R) Makes various changes to family and juvenile law concerning the following: (1) Parties entitled to file a paternity action. (2) Petitions for child support. (3) Petitions for adoption. (4) Adoption decrees. (5) Duties of the child support bureau. (6) Costs of services for children and payments of child support. Repeals the Uniform Interstate Family Support Act currently in effect and replaces it with an updated version of the act. Makes technical corrections. |
| | Current Status: | 5/5/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB324 |
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| SB436 | STATE AND LOCAL TAXATION. (HERSHMAN B) Provides that if a taxpayer has personal property subject to assessment in more than one township in a county or has personal property that is subject to assessment and that is located in two or more taxing districts within the same township, the taxpayer shall file a single tax return with the county assessor. Provides that a personal property return notice must be filed with the county assessor, and not the township assessor, of the county in which the owner resides when the personal property is located in a different county. Provides a property tax exemption for taxpayers with less than $20,000 of total business personal property in a county. Removes the requirement in current law that such an exemption is effective in a county only if adopted by the county income tax council. Requires, for the $20,000 personal property exemption, that the owner's certification be notarized and signed under penalties for perjury. Extends the expiration date of the law specifying the value of outdoor signs through the 2018 assessment date. Specifies that for purposes of property tax assessment, certain land is considered to be devoted to agricultural use. Specifies that "agricultural use" includes certain uses defined as agricultural uses for purposes of planning and zoning law. Provides that the soil productivity factors used for the March 1, 2011, assessment of agricultural land must be used for the March 1, 2015, assessment date. Specifies that new soil productivity factors shall be used for assessment dates occurring after March 1, 2015. Provides that the statewide agricultural land base rate value per acre for the 2015 assessment date is $2,050 (the base rate used for the 2014 assessment date). Provides that for the 2016 assessment date and each assessment date thereafter, the statewide agricultural land base rate value per acre is equal to the base rate value for the immediately preceding assessment date, multiplied by the assessed value growth quotient. Removes the provision specifying that the statute governing the assessment of agricultural land does not apply to land purchased for residential uses. Specifies conditions for valuing big box retail properties and commercial nonincome producing real property for property tax purposes and excludes multi-tenant income producing shopping centers from both provisions. Requires the Indiana board of tax review (IBTR) to recommend that the parties settle or mediate any case pending before the board as of May 1, 2015, that has not yet received a hearing if certain conditions apply. Urges the legislative council to assign to a study committee the topic of studying the need for a definition of the term "utility of the user" under the current property tax assessment system. Specifies that in the case of a change occurring after February 28, 2015, in the classification of real property, the assessor has the burden of proving that the change is correct in any review or appeal heard by the property tax assessment board of appeals (county board) and in any appeals taken to the IBTR or to the Indiana tax court. Allows county assessors to apply negative influence factors to determine the assessed value of land classified as residential excess land. Provides that the basement of a dwelling or other building that is situated in a special flood hazard area as designated by the Federal Emergency Management Agency is exempt from property taxation if: (1) the basement floor level has been elevated to mitigate the risk of flooding; and (2) as a result, the basement is rendered unusable as living space. Specifies that, to be eligible for a homestead deduction for property that an individual is buying under contract, the contract must obligate the owner to convey title to the individual upon completion of all of the individual's contract obligations. Provides that on the form forwarded by the assessor to the county auditor and the county board after a preliminary informal meeting with a taxpayer, the assessor must attest that the assessor described to the taxpayer the taxpayer's right to a review of the issues by the county board and the taxpayer's right to appeal to the IBTR and to the Indiana tax court. Provides that for property tax appeals for the 2014 assessment date, or before, a county auditor may pay refund claims greater than $100,000 over a period of five years (through 2019) by using credits against future property taxes owed on the property. Authorizes a county fiscal body to adopt an ordinance to allow political subdivisions and local agencies within the county to use a uniform property tax disclosure form. Specifies the information that must be disclosed on the form. Provides that the department of local government finance (DLGF) shall: (1) review the tax rates and levies for each fire protection territory whose establishment was effective not later than July 1, 2012; (2) make recommendations to the participating units concerning their existing tax rates and tax levies; and (3) report its findings and recommendations to the legislative council. Deletes the requirement that a county may impose the motor vehicle license excise surtax only at the same rate or amount on each motor vehicle. Authorizes counties to: (1) impose the surtax at the same rate or amount on each motor vehicle; or (2) impose the surtax at one or more different rates based on the class of vehicle (passenger vehicles, motorcycles, trucks with a declared gross weight that does not exceed 11,000 pounds, and motor driven cycles). Does the following in the case of a certified technology park that is operating jointly by multiple redevelopment commissions: (1) Increases the total maximum amount of tax increment that may be captured by the certified technology park. (2) Authorizes a party to the agreement to allocate a part of the maximum amount that may be deposited in the party's incremental tax financing fund to one or more other parties to the agreement. Provides that a redevelopment commission may enter into a written agreement with a taxpayer in which the taxpayer waives review of any assessment of the taxpayer's tangible property that is located in an allocation area. Urges the legislative council to assign to a study committee the issue of alternative means of agricultural land assessment. Provides that for purposes of the provisions in current law concerning: (1) the designation of a township as distressed; (2) the requiring of a separate township assistance benefits levy and a separate township assistance administration levy; and (3) the transfer of municipal territory to an adjacent township after a referendum; those provisions apply to a township if the township's township assistance property tax rate is more than the result of the statewide average township assistance property tax rate for the preceding year (rather than for the current year, under existing law) multiplied by 12. Urges a legislative study of methods used to determine the true tax value for nonincome producing commercial property. |
| | Current Status: | 5/6/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB436 |
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| SB438 | STATE AND LOCAL TAX ISSUES. (HERSHMAN B) Provides that the fiscal body of a municipality may adopt a resolution renewing an enterprise zone for an additional five years and that all enterprise zones expire and must be phased out by December 31, 2030. Provides that the cutting of steel bars into billets is to be treated as processing of tangible personal property for purposes of the sales tax exemption for certain manufacturing activities. Modifies the sales tax exemption for receiving recycling materials. Adds recycling carts to the sales tax exemption for some recycling equipment. Adds changes concerning the withholding of income taxes for nonresident partners and shareholders. Establishes standards governing the date by which a taxpayer must notify the department of state revenue (department) of a modification of a taxpayer's federal income tax return or tax liability for a taxable year. Provides that "base amount" and "qualified research expense" for purposes of the state research expense income tax credit have the same meaning as those terms are defined under the Internal Revenue Code and that the federal research and development credit used for purposes of calculating the Indiana research expense income tax credit is the same as the federal research and development credit allowed under the Internal Revenue Code. Requires the department to enter into an agreement with the fiscal officer of a capital improvement board of managers to provide the fiscal officer with certain information. Provides that the interest required to be paid on an overpayment of tax begins to accrue: (1) on the date the tax was due; or (2) the date the tax was paid; whichever is later. Amends the definition of "captive insurer" for insurance regulation and taxation purposes. Requires the department to: (1) study the department's current information systems; (2) develop a plan for modernizing the department's information systems; and (3) submit a report of the study and plan to the budget committee and the legislative council. Makes changes regarding sales or use tax collection and manufacturers that have meters exempt or partially exempt from sales and use tax. Provides that the department of state revenue may disclose to a power subsidiary or a public utility information regarding sales tax exemption certificates of a customer of the power subsidiary or public utility for the purpose of enforcing and collecting the sales or use tax. Permits Rush County to impose an income tax to provide for a county jail, related buildings, and parking facilities and for their operation. Provides that a tax increment financing area established by a redevelopment authority does not expire before July 1, 2016. Proposes that an interim study committee determine the amount of statutory tax relief that C corporations have realized in the calendar years from 2011 through 2014 and are anticipated to realize from 2015 through 2021. |
| | Current Status: | 4/22/2015 - , (Bill Scheduled for
Hearing); Time & Location: 4:30 PM, Rm. 431
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| | State Bill Page: | SB438 |
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| SB441 | VARIOUS TAX MATTERS. (HERSHMAN B) Eliminates the World War I veteran property tax deduction for property taxes imposed for an assessment date after 2015. Provides that the equipment eligible for the double direct sales tax exemption includes material handling equipment purchased for the purpose of transporting materials into production activities from an onsite location. Provides that: (1) the cutting of steel bars into billets; and (2) the felling of trees for further use in production or for sale in the ordinary course of business; is to be treated as processing of tangible personal property for purposes of the double direct sales tax exemption for certain manufacturing activities. Eliminates the taxation of income that is attributed to a state that does not have an income tax (the "throwback rule"). Specifies that gross receipts derived from the sale of computer software shall be treated as sales of tangible personal property. Increases the maximum amount of the state income tax deduction for federal civil service annuity income to $8,000 for 2015 and $16,000 for 2016 and thereafter. Provides that the deduction is also available to a surviving spouse. Extends the sunset date of the venture capital investment tax credit and the Hoosier business investment tax credit from January 1, 2017, to January 1, 2021. Provides that upgrading or building passing lines or automated switches on a rail line is an eligible logistics investment for purposes of the Hoosier business investment tax credit. Provides that, in the case of the Hoosier business investment tax credit, the Indiana economic development corporation (IEDC) may under a written agreement accelerate payment (at a discounted amount) of any unused excess tax credit that certain taxpayers would otherwise be eligible to carry forward to a subsequent tax year. Provides that the total amount of such accelerated tax credits that the IEDC may approve may not exceed $17 million in a state fiscal year. Provides that after December 31, 2015, qualified investments for purposes of the community revitalization enhancement district tax credit do not include a taxpayer's expenditures made on property that is classified as residential for property tax purposes. Eliminates various add backs for purposes of determining Indiana adjusted gross income. Provides that business income is all income apportionable to the state under the Constitution of the United States. Eliminates various income tax deductions, exemptions, and credits. Broadens the add back to Indiana adjusted gross income related to intercompany interest expenses. Makes technical corrections and conforming amendments. Provides that in addition to any appropriations made in HEA 1001-2015, there is appropriated from the state general fund to the department of correction $9,000,000 in the state fiscal year beginning July 1, 2016, for community corrections programs. |
| | Current Status: | 5/6/2015 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB441 |
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