HB 1386-1_ Filed 01/27/2000, 11:35


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

20

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Ways and Means     , to which was referred       House Bill 1386     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

    Delete everything after the enacting clause and insert the following:

SOURCE: IC 6-1.1-10-29.1; (00)AM138602.1. -->     SECTION 1. IC 6-1.1-10-29.1 IS ADDED OT THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 29.1. (a) As used in this section, "manufacturer" or "processor" means a person that performs an operation or continuous series of operations on raw materials, goods, or other personal property to alter the raw materials, goods, or other personal property into a new or changed state or form. The operation may be performed by hand, machinery, or a chemical process directed or controlled by an individual.
    (b) Personal property owned by a manufacturer or processor is exempt from property taxation if the owner is able to show by adequate records that the personal property:
        (1) is not exempt under any other law; and
        (2) will be used in an operation or a continuous series of operations to alter the personal property into a new or changed state or form and the resulting personal property will be shipped, or will be incorporated into personal property that will be shipped, to an out-of-state destination.
    (c) The amount of the exemption under this section is equal to the product of:
        (1) the appropriate percentage specified in subsection (d); multiplied by
        (2) the assessed value of personal property covered by this section.
    (d) The percentage described in subsection (c)(1) is determined by the calendar year that the personal property return is filed and is set forth in the following table:
CALENDAR YEAR    PERCENTAGE
    2001    10%
    2002    20%
    2003    30%
    2004    40%
    2005    50%
    2006    60%
    2007    70%
    2008    80%
    2009    90%
    2010 and thereafter    100%
    (e) A person may use an allocation percentage to claim an exemption under this section for a portion of the person's personal property if a person's business records substantiate that the allocation percentage accurately reflects the portion of the personal property that will be altered into a new or changed state or form and then will be shipped, or will be incorporated into personal property that will be shipped, to an out-of-state destination. The percentage may include personal property that will be sold to another processor or manufacturer if the personal property will be incorporated into the personal property of the buyer and that personal property will be shipped out-of-state.
    (f) A manufacturer or processor that possesses personal

property owned by another person may claim an exemption under this section if:
        (1) the manufacturer or processor includes the property on the manufacturer's or processor's personal property tax return; and
        (2) the manufacturer or processor is able to show that the owner of the personal property would otherwise have qualified for an exemption under subsection (b).

SOURCE: ; (00)AM138602.2. -->     SECTION 2. [EFFECTIVE JULY 1, 2000] IC 6-1.1-10-29.1 , as added by this act, applies to property taxes first due and payable after December 31, 2001.
    (Reference is to HB 1386 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Bauer


AM138602/DI 58    2000