| HB1040 | FOOD AND BEVERAGE TAX. (COX C) Provides that, subject to the duty to pay amounts pledged to the repayment of existing obligations, the existing uses of the Henry County food and beverage tax are optional rather than mandatory. Adds the construction, renovation, improvement, or repair of county roads to the list of capital improvements for which Henry County is authorized to use county food and beverage tax revenues. Removes obsolete provisions concerning the existing county capital improvements committee, which is abolished by current law on January 1, 2016. Establishes a county food and beverage tax advisory committee to make recommendations to the county fiscal body concerning the use of food and beverage tax revenue. Provides that the fiscal officer of any municipality in Allen County may request the county auditor to determine and report to the fiscal officer the percentage amount of the county supplemental food and beverage tax that is collected in the preceding year in: (1) each municipality; and (2) the unincorporated territory of the county. Provides that the county auditor may charge a municipality that makes a request for the supplemental food and beverage tax percentages in the preceding year for any direct costs associated with determining and reporting the information. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1040 |
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| HB1180 | PILOTS, CHARGES, AND FEES ON TAX EXEMPT PROPERTY. (BURTON W) Provides that a political subdivision may not do any of the following with regard to tax exempt property that is located in a tax increment allocation area and either: (1) was located in the allocation area before the designation of the allocation area and has been continuously used for a tax exempt purpose since the date the allocation area was designated; or (2) was donated for a tax exempt purpose: (A) Unless it is upon the request of the owner of the property, impose a payment in lieu of taxes (PILOT) or other charge or user fee on the property. (B) Unless it is upon the request of the owner of the property, enter into an agreement requiring a PILOT or other charge or user fee on the property as a condition of granting, issuing, or approving certain permits or zoning approvals, or as a condition of continuing governmental services to the property. (C) Unless it is upon the request of the owner of the property, require a person to limit the person's rights to challenge the imposition of a PILOT or other charge or user fee or the assessment of property taxes imposed on the property. Provides that an impact fee may not be imposed on the property, unless it is upon the request of the owner of the property. Specifies that these restrictions do not prohibit the imposing of utility fees or charges, sewer fees or charges, ditch or drainage assessments, storm water fees or charges, or waste collection or disposal fees or charges. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | HB1180 |
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| SB67 | LOCAL INCOME TAX DISTRIBUTIONS. (HERSHMAN B) Provides for a supplemental distribution of local income taxes when the balance in a county's local income tax trust account exceeds 15% (rather than 50%, under current law) of the certified distributions to be made to the county. Specifies the accounting, allocation method, and distribution requirements for supplemental distributions. Requires before May 2016 a one time special allocation of the balance in a county's trust account as of December 31, 2014. Provides that a taxing unit's allocation amount is to be determined in the same manner as a supplemental distribution would have generally been determined under the former income taxes. Requires a special distribution of the allocation amount. Provides that at least 75% of the distributions made to a county, city, or town must be: (1) used exclusively for local road construction, maintenance, or repair, or capital projects for aviation, including capital projects of an airport authority; or (2) deposited in a rainy day fund and later used for those purposes. Provides that any remaining distribution to a county, city, or town may be used for any purposes of the county, city, or town. Requires the allocation amount for other taxing units to be deposited in the taxing unit's rainy day fund. |
| | Current Status: | 3/23/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB67 |
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| SB87 | MULTIPLE COUNTY PTABOAS. (KENLEY L) Provides that the legislative bodies of two or more counties may adopt substantially similar ordinances to establish a multiple county property tax assessment board of appeals (PTABOA). Provides that a multiple county PTABOA must consist of either of the following number of members: (1) Three members, not more than two of whom may be from the same political party. (2) Five members, not more than three of whom may be from the same political party. Provides that the fiscal bodies of the counties that establish a multiple county PTABOA must adopt substantially similar ordinances to appoint the members of the multiple county PTABOA. Provides that the compensation of members of a multiple county PTABOA shall be determined jointly by the fiscal bodies of the participating counties. Requires the assessor's office for the county with the greatest population in a multiple county PTABOA to provide administrative support to the board. Makes conforming amendments. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB87 |
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| SB279 | REFERENDUM AND PETITION AND REMONSTRANCE PROCESS. (STOOPS M) Provides that at least 500 or 5% of the property owners or registered voters of a political subdivision are necessary to initiate either a debt service remonstrance or debt service referendum. (Current law provides that at least 100 or 5% of the property owners or registered voters of a political subdivision are necessary to initiate either a debt service remonstrance or debt service referendum.) Specifies that a resolution to extend a referendum levy must be adopted by the governing body of a school corporation and approved by the voters before December 31 of the final calendar year in which the school corporation's previously approved referendum levy is imposed. Specifies the ballot language for a referendum to extend a referendum levy. Provides that the number of years for which a referendum levy may be extended if the referendum is approved may not exceed the number of years for which the expiring referendum levy was imposed. |
| | Current Status: | 3/23/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB279 |
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| SB304 | PROPERTY TAX MATTERS. (KENLEY L) For the January 1, 2017, assessment date, increases the assessed value limit for the property tax deduction for certain veterans with a disability from $143,160 to $175,000.
Provides that an individual may claim a deduction from the assessed value of the individual's homestead if: (1) the individual served in the military or naval forces of the United States; (2) the individual received an honorable discharge; (3) the individual has a disability of at least 50%; (4) the individual's disability is evidenced by a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs or by a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs; and (5) the homestead was conveyed without charge to the individual who is the owner of the homestead by an organization that is exempt from income taxation under the federal Internal Revenue Code. Specifies that a property continues to qualify as a homestead if the property is leased while the owner is away from Indiana serving on active duty in the armed forces, if the individual has lived at the property at any time during the past 10 years. (Current law specifies that a property ceases to qualify as a homestead if the property is leased while such an individual is away from Indiana.) |
| | Current Status: | 3/22/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB304 |
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| SB308 | LOCAL TAX MATTERS. (HERSHMAN B) Provides that when calculating the base rate for agricultural land for the January 1, 2016, assessment date and each assessment date thereafter, the department of local government finance (DLGF) shall do the following: (1) Use the six most recent years preceding the year in which the assessment date occurs for which data is available (before the highest of those six years is eliminated when determining the rolling average). (2) After determining a preliminary base rate that would apply for the assessment date, adjust the preliminary base rate as follows: (A) If the preliminary base rate for the assessment date would be at least 10% greater than the final base rate determined for the preceding assessment date, a capitalization rate of 8% shall be used to determine the final base rate. (B) If the preliminary base rate for the assessment date would be at least 10% less than the final base rate determined for the preceding assessment date, a capitalization rate of 6% shall be used to determine the final base rate. (C) If the preliminary base rate for the assessment date is neither at least 10% greater nor at least 10% less than the final base rate determined for the preceding assessment date, a capitalization rate of 7% shall be used to determine the final base rate. Specifies that for purposes of the assessment of agricultural land, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the January 1, 2016, assessment date and each assessment date thereafter. (Under current law, new soil productivity factors are to be used for assessment dates occurring after March 1, 2015.) Deletes the requirement that an assessor shall examine and verify the accuracy of each personal property tax return filed by a taxpayer. Provides instead that an assessor may examine and verify the accuracy of a personal property tax return if the assessor considers the examination and verification of that personal property return to be useful to the accuracy of the assessment process. Increases the assessed value per acre of classified forest land, classified windbreaks, and classified filter strips from $1 per acre to $13.29 per acre for the January 1, 2017, assessment date. For assessment dates after January 1, 2017, increases the assessed value by the annual percentage change in the consumer price index. Adds certain types of property to the exemption for property used for public airport purposes. Authorizes a county fiscal body to adopt an ordinance to capture taxes from all taxing units in a taxing district when there is an appeal that is uncommon and infrequent. Specifies that such a taxing unit may not include these captured taxes as part of an appeal for a shortfall levy increase. Provides an exemption from the maximum property tax levy limits for a municipality in a year if: (1) the percentage growth in the municipality's assessed value for the preceding year compared to the year before the preceding year is at least two times the assessed value growth quotient; and (2) the municipality's population increased by at least 150% between the last two decennial censuses. Specifies that such a municipality may increase its property tax levy in excess of the levy limits by a percentage equal to the lesser of 6% or the percentage growth in the municipality's assessed value for the preceding year compared to the year before the preceding year. Provides that Cain Township in Fountain County may increase its maximum township unit levy and its maximum levy for fire protection and emergency services for 2017. Limits the increase to what each of these levies would be for 2017 if the township had imposed the maximum amount for each of these levies since 2003. Permits the fiscal body of Howard Township in Washington County to adopt a resolution to authorize the township executive to request that the DLGF increase the township's maximum permissible property tax levy for 2017 and thereafter. Requires the DLGF to increase the maximum levy by 10%. Permits a county fiscal body to impose a local income tax (LIT) rate for a public safety emergency assistance answering point that is part of the statewide 911 system (PSAP) if the adopting body in the county is the LIT council and the LIT council has not allocated the revenue from an expenditure rate of at least 0.1% to a PSAP in the county. Specifies that the rate may not exceed 0.1%. Specifies that the revenue generated by the rate is to be paid only to the county unit and used only for a PSAP. Allows a county to use excess reserves in its prisoner reimbursement fund for the costs of care, maintenance, and housing of prisoners, including the cost of housing prisoners in the facilities of another county. Expires under the tax increment financing law the downtown Indianapolis consolidated allocation area on January 1, 2051. Urges a study of the topic of allowing an exemption from the maximum levy limits for growing municipalities by the interim study committee on fiscal policy. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB308 |
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| SB309 | STATE AND LOCAL TAXATION. (HERSHMAN B) Eliminates the exemption for property taxes during the planning and construction of a residence that is conveyed upon completion to a low income individual by a nonprofit organization. Restricts but does not eliminate the exemption for property taxes for improvements on real property that are constructed, rehabilitated, or acquired for the purpose of providing low income housing. Specifies that the payments in lieu of taxes (PILOTS) that may be required from a property owner claiming such an exemption may not be imposed for an assessment date occurring after January 1, 2017. Eliminates the property tax deduction for residential rehabilitation of a dwelling. Eliminates the property tax deduction for rehabilitation of a structure over 50 years old. Provides that the state use tax is imposed on a contractor's conversion of construction material into real property if that construction material was purchased by the contractor. Specifies, however, that the use tax does not apply to conversions of construction material if: (1) the sales or use tax has been previously imposed on the contractor's acquisition or use of that construction material; (2) the person for whom the construction material is being converted could have purchased the construction material exempt from the sales and use tax (as evidenced by an exemption certificate) if that person had directly purchased the material from a retail merchant in a retail transaction; or (3) the conversion of the construction material into real property is governed by a time and material contract. Provides that a contractor is a retail merchant making a retail transaction when the contractor disposes of tangible personal property or converts tangible personal property into real property under a time and material contract. Specifies that a person is a retail merchant making a retail transaction for purposes of state gross retail and use taxes when the person rents or furnishes rooms, lodgings, or accommodations (lodgings) that: (1) are rented or furnished for periods of less than 30 days; and (2) are located in a house, condominium, or apartment in which lodgings are rented or furnished for transient residential housing for consideration. Defines "facilitator" as a person who: (1) contracts with a person who rents or furnishes lodgings for consideration to market the lodgings through the Internet; and (2) accepts payment from the consumer for the lodging. Provides that a facilitator is a retail merchant making a retail transaction when the facilitator accepts payment from the consumer for lodgings rented or furnished in Indiana. Provides that a retail merchant who rents or furnishes lodgings shall provide to the consumer of the lodging an itemized statement separately stating all of the following: (1) The part of the gross retail income that is charged for the rental or furnishing of the lodging. (2) Any taxes collected by the person renting or furnishing the lodging. (3) Any part of the gross retail income that is a fee, commission, or other charge of a facilitator. Provides that a penalty of $25 is imposed on a facilitator for each transaction in which the facilitator fails to separately state such information. Repeals the state sales tax exemption for the cutting of steel bars into billets after 2016. Provides that the exemption applies retroactively to transactions occurring from 2010 through 2015, but that a taxpayer is not entitled to a refund of state sales taxes paid on those transactions. Provides that for taxable years beginning after December 31, 2017, a taxpayer may claim the $1,500 additional dependent deduction for a dependent child for whom the taxpayer is the legal guardian. Provides that the state income tax credit for certain acute care hospitals for part of the property taxes paid by the hospital may be carried forward if the hospital cannot use the entire credit because of the taxpayer's income tax liability for that taxable year. Repeals the state income tax credit for contributions to the twenty-first century scholars program support fund. Makes conforming changes. Sets forth criteria for determining the date on which a taxpayer has made a contribution to a 529 plan. Provides that if an ordinance has been adopted requiring the payment of the innkeeper's tax to the county treasurer instead of the department, the county treasurer has the same rights and powers with respect to refunding the innkeeper's tax as the department. Provides that if a partnership, a trust, or an estate fails to withhold and pay any amount of tax required to be withheld and thereafter the tax is paid by the partners of the partnership (or the beneficiaries in the case of a trust or estate), the amount of tax paid by partners (or the beneficiaries in the case of a trust or estate) may not be collected from the partnership, trust, or estate. Specifies that the partnership, trust, or estate remains liable for interest or penalty based on the failure to withhold the tax. Provides that if the department issues to a person a demand notice for the payment of a tax, the person has 20 days (rather than 10 days, under current law) to either pay the amount demanded or show reasonable cause for not paying the amount demanded. Provides that a public-private agreement for communications systems infrastructure may be entered into using the procedures that apply to requests for proposals by the Indiana finance authority (IFA) or using a request for information and entering into negotiations with a single offeror. Provides that the IFA may set user fees as part of the public-private agreement. Specifies that any improvements on any real property interests may be owned by the IFA, a governmental entity, an operator, or a private entity instead of having to be owned in the name of the state or by a governmental entity. Provides that local planning and zoning laws do not restrict or regulate the exercise of the power of eminent domain by the IFA or the use of property owned or occupied by the IFA. Reconciles a conflict with SEA 23-2016 and HEA 1036-2016. Urges the legislative council to assign to a study committee the topic of the eligibility of low income housing for a property tax exemption. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB309 |
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| SB321 | LOCAL GOVERNMENT BUDGETING. (MILLER P) Provides that for each budget year after 2018, the department of local government finance (DLGF) shall certify a political subdivision's budget, tax rate, and tax levy not later than: (1) December 31 of the year preceding the budget year, unless a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal; or (2) January 15 of the budget year, if a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal. (Under current law, these certifications must be completed not later than February 15 of the budget year.) Retains the November 1 deadline for a political subdivision to adopt a budget for the following year. Specifies that after 2017, the county auditor shall provide before June 1 an initial estimate of assessed valuations to political subdivisions within the county. For calendar years after 2017, changes: (1) the date by which a county must submit the coefficient of dispersion study and property sales assessment ratio study to the DLGF; (2) the date by which a political subdivision must submit a proposal to establish a cumulative fund to the DLGF; (3) the date by which the budget agency must provide to the DLGF and county auditors an estimate of each county's local income tax distributions for the following year; and (4) the date by which the DLGF must estimate each taxing unit's distribution of local income tax for the following year.
Changes other deadlines in the local budgeting process in order to conform to the December 15 deadline for DLGF certification of budgets, tax rates, and tax levies. Provides that the DLGF shall before July 15 of each year provide taxing units with an estimate of the maximum property tax levies that will apply for the ensuing calendar year. Provides that the DLGF must before August 1 of each year provide to each taxing unit an estimate of the amount by which the taxing unit's distribution of property taxes may be reduced by circuit breaker credits in the ensuing year. Provides that for a fund of a political subdivision subject to the levy limits, the DLGF shall calculate and certify the allowable budget of the fund if the political subdivision adopts a tax levy that exceeds the estimated maximum levy limits as provided by the DLGF. Specifies that for a fund subject to levy limits and for which the political subdivision adopts a tax levy that is not more than the levy limits, the DLGF shall review the fund to ensure the adopted budget is fundable based on the unit's adopted tax levy and estimates of available revenues. Requires the budget agency to provide the assessed value growth quotient for the ensuing year to civil taxing units, school corporations, and the DLGF before July 1 of each year. Requires the DLGF to provide to political subdivisions: (1) the maximum property tax rate that may be imposed by the political subdivision for each cumulative fund or other fund for which a maximum rate is established; and (2) the property tax rates that must be imposed by the political subdivision in the following year for debt service. Requires the DLGF to update the estimate before August 1. Provides that in formulating a political subdivision's estimated budget, the proper officers of the political subdivision must consider the net property tax revenue that will be collected by the political subdivision during the ensuing year, after taking into account the estimates by the department of local government finance of: (1) the amount by which the political subdivision's distribution of property taxes will be reduced by circuit breaker credits; and (2) the maximum amount of net property tax revenue and miscellaneous revenue that the political subdivision will receive in the ensuing year. Repeals the statutes concerning county fiscal body nonbinding review of local budgets, tax levies, and tax rates and the nonbinding review pilot project. Requires the county fiscal body to review the following at a public meeting: (1) The estimated levy limits provided by the DLGF. (2) The estimated circuit breaker credit impact on taxing units. Provides that after this meeting is held, the county fiscal body may prepare and distribute a written recommendation for taxing units in the county. For property taxes first due and payable after December 31, 2016, provides that the maximum appropriations for a community intellectual disability and other developmental disabilities center is equal to the maximum allowable appropriation by the county for the preceding year multiplied by the assessed value growth quotient. Specifies that a county shall fund the operation of community mental health centers (unless a lower tax levy amount will be adequate to fulfill the county's financial obligations, as provided under current law) in an amount equal to: (1) the maximum amount that could have been levied in the county in the preceding year (using the amount calculated under for this purpose in 2004 as the base amount); multiplied by (2) the county's assessed value growth quotient. Requires the DLGF to provide to counties before July 15 of each year an estimate of the maximum appropriation amount for the ensuing year. Provides that for purposes of determining the property tax levy limits, a county's or municipality's tax levy excludes all the taxes imposed for a county or municipal cumulative capital development fund. Requires the DLGF to provide annually to each county and municipality an estimate of: (1) the maximum tax rate that the county, city, or town may impose for a cumulative capital development fund; and (2) the maximum amount of property taxes imposed for community mental health centers or community intellectual disability and other developmental disabilities centers that are exempt from the levy limits for the ensuing year. Requires the DLGF to make a one time permanent adjustment to the levy limits equal to the amount of property taxes imposed on personal property of banks that became subject to assessment in 1989 (this amount is currently excluded under a separate statute). Repeals the statute providing that property taxes imposed by a county or municipality to pay supplemental juror fees (above the required amount) are exempt from the levy limits. Changes the date (from July 1 to June 15 of each year) by which a redevelopment commission must determine the amount, if any, of excess assessed value that may be allocated to the respective taxing units. Urges the legislative council to assign to an interim study committee the study of the procedures by which a political subdivision in a county may: (1)
transfer the political subdivision's funds to another political subdivision located in the same county; and (2) transfer additional money from the political subdivision's other funds into the political subdivision's rainy day fund or general operating fund. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB321 |
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| SB323 | LEGISLATIVE STUDIES. (HERSHMAN B) Requires the legislative services agency to: (1) study the combined reporting approach to apportioning income and transfer pricing for income tax purposes; and (2) report the results of the study before October 1, 2016, to the legislative council and to the interim study committee on fiscal policy. Requires the interim study committee on fiscal policy to hold at least one public hearing at which the legislative services agency presents the results of the study. Urges the legislative council to assign an interim study committee certain study topics related to gaming and . Urges the legislative council to assign the topic of federal requirements for home and community based settings to the interim study committee on fiscal policy. |
| | Current Status: | 3/24/2016 - SIGNED BY GOVERNOR
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| | State Bill Page: | SB323 |
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