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SOURCE: IC 6-3.1-20; (00)MO100602.1. -->
"SECTION 1.
IC 6-3.1-20
IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2000 (RETROACTIVE)]:
Chapter 20. Credit for Property Taxes Paid on Inventory
Sec. 1. As used in this chapter, "assessed value" means the
assessed value of inventory determined under
IC 6-1.1-3.
Sec. 2. As used in this chapter, "inventory" has the meaning set
forth in
IC 6-1.1-3-11.
Sec. 3. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2); or
(2) a partnership.
Sec. 4. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-2.1 (gross income tax);
(2)
IC 6-3-1
through
IC 6-3-7
(adjusted gross income tax);
(3)
IC 6-3-8
(supplemental net income tax);
(4) IC 6-5.5 (financial institutions tax); and
(5)
IC 27-1-18-2
(insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2
are to be applied before the credit provided by this
chapter, including the credit under
IC 6-1.1-20.5.
Sec. 5. As used in this chapter, "taxpayer" means an individual
or entity that has state tax liability.
Sec. 6. (a) A taxpayer is entitled to a credit against the
taxpayer's state tax liability for a taxable year for the ad valorem
property taxes paid by the taxpayer in the taxable year on
inventory.
(b) The amount of the credit is equal to the product of:
(1) the appropriate percentage specified in subsection (c);
multiplied by
(2) the amount of property taxes paid on inventory by the
taxpayer during the taxable year.
(c) The percentage described in subsection (b)(1) is determined
by the calendar year in which the property taxes on inventory are
paid and is set forth in the following table:
CALENDAR YEAR IN PERCENTAGE OF
WHICH INVENTORY INVENTORY TAXES
TAXES ARE PAID ALLOWED AS A CREDIT
2000 10%
2001 20%
2002 30%
2003 40%
2004 50%
2005 60%
2006 70%
2007 80%
2008 90%
2009 and thereafter 100%
(d) If a taxpayer pays property taxes in two (2) different
calendar years during the taxpayer's same taxable year, the
taxpayer shall apply the appropriate percentage specified for each
calendar year to the property taxes paid in each calendar year to
compute the credit for the taxable year.
Sec. 7. (a) If the amount determined under section 6(b) of this
chapter for a taxpayer in a taxable year exceeds the taxpayer's
state tax liability for that taxable year, the taxpayer may carry the
excess over to the following taxable years. The amount of the
credit carryover from a taxable year shall be reduced to the extent
that the carryover is used by the taxpayer to obtain a credit under
this chapter for any subsequent taxable year. A taxpayer is not
entitled to a carryback.
(b) A taxpayer is not entitled to a refund of any unused credit.
Sec. 8. If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit
equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder or partner is entitled.
Sec. 9. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's state tax return or returns
in the manner prescribed by the department. The taxpayer shall
submit to the department proof of payment of an ad valorem
property tax and all information that the department determines
is necessary for the calculation of the credit provided by this
chapter.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1006 as printed January 18, 2000.)
________________________________________
MO100602/DI 73 2000