March 30, 2001





ENGROSSED

HOUSE BILL No. 1591

_____


DIGEST OF HB 1591 (Updated March 29, 2001 1:07 PM - DI 44)



Citations Affected: IC 6-1.1; noncode.

Synopsis: Tax abatement. Specifies that the provision limiting a property tax abatement for new manufacturing equipment to the extent that it would cause the assessed value of all personal property of the owner in the taxing district in which the equipment is located to be less than the assessed value of all personal property of the owner in that taxing district in the immediately preceding year does not apply to new manufacturing equipment located in Gibson County if the total cost of all new manufacturing equipment placed into service in the county by the owner exceeds $500,000,000 and the economic revitalization area in which the new manufacturing equipment was installed was approved by the designating body before January 1, 2001. Provides that in the case of a taxpayer specified in the bill, an abatement deduction is not allowed with respect to new manufacturing equipment to the extent the deduction would cause the assessed value of all real and personal property of the owner in the taxing district to be less than the "incremental net assessed value" for that year. Specifies that if in a particular year the taxpayer's abatement deduction is limited by this provision, the deduction shall be carried over and allowed as a deduction in succeeding years. Specifies that the abatement deduction may only be carried over during the period of the abatement deduction specified by statute or the period that was originally specified in the resolution adopted by the designating body.

Effective: March 1, 2001 (retroactive).





Frenz , Kruse, Gregg
(SENATE SPONSORS _ SERVER, HUME, MEEKS R)




    January 17, 2001, read first time and referred to Committee on Ways and Means.
    February 8, 2001, reported _ Do Pass.
    February 12, 2001, read second time, ordered engrossed. Engrossed.
    February 13, 2001, read third time, passed. Yeas 93, nays 0.

SENATE ACTION

    March 1, 2001, read first time and referred to Committee on Finance.
    March 29, 2001, amended, reported favorably _ Do Pass.







March 30, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.


ENGROSSED

HOUSE BILL No. 1591



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-12.1-4.7; (01)EH1591.1.1. -->     SECTION 1. IC 6-1.1-12.1-4.7, AS ADDED BY P.L.126-2000, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2001 (RETROACTIVE)]: Sec. 4.7. (a) Section 4.5(f) of this chapter does not apply to new manufacturing equipment located in a township that:
        (1) has a population of more than three thousand five hundred (3,500) but less than four thousand three hundred (4,300); and
        (2) is located in a county having a population of more than thirty-five thousand (35,000) but less than thirty-seven thousand (37,000);
if the total original cost of all new manufacturing equipment placed into service by the owner during the preceding sixty (60) months exceeds fifty million dollars ($50,000,000), and if the economic revitalization area in which the new manufacturing equipment was installed was approved by the designating body before September 1, 1994.
     (b) Section 4.5(f) of this chapter does not apply to new

manufacturing equipment located in a county having a population of more than thirty-one thousand five hundred (31,500) but less than thirty-two thousand (32,000) if:
        (1) the total original cost of all new manufacturing equipment placed into service in the county by the owner exceeds five hundred million dollars ($500,000,000); and
        (2) the economic revitalization area in which the new manufacturing equipment was installed was approved by the designating body before January 1, 2001.

     (c) A deduction under section 4.5(d) of this chapter is not allowed with respect to new manufacturing equipment described in subsection (b) in the first year the deduction is claimed or in subsequent years as permitted by section 4.5(d) of this chapter to the extent the deduction would cause the assessed value of all real property and personal property of the owner in the taxing district to be less than the incremental net assessed value for that year.
    (d) The following apply for purposes of subsection (c):
        (1) A deduction under section 4.5(d) of this chapter shall be disallowed only with respect to new manufacturing equipment installed after March 1, 2000.
        (2) "Incremental net assessed value" means the sum of:
            (A) the net assessed value of real property and depreciable personal property from which property tax revenues are required to be held in trust and pledged for the benefit of the owners of bonds issued by the redevelopment commission of a county described in subsection (b) under resolutions adopted November 16, 1998, and July 13, 2000 (as amended November 27, 2000); plus
            (B) fifty-four million four hundred eighty-one thousand seven hundred seventy dollars ($54,481,770).
        (3) The assessed value of real property and personal property of the owner shall be determined after the deductions provided by sections 3 and 4.5 of this chapter.
        (4) The personal property of the owner shall include inventory.
        (5) The amount of deductions provided by section 4.5 of this chapter with respect to new manufacturing equipment that was installed on or before March 1, 2000, shall be increased from thirty-three and one-third percent (33 1/3%) of true tax value to one hundred percent (100%) of true tax value for assessment dates after February 28, 2001.
    (e) A deduction not fully allowed under subsection (c) in the first

year the deduction is claimed or in a subsequent year permitted by section 4.5 of this chapter shall be carried over and allowed as a deduction in succeeding years. A deduction that is carried over to a year but is not allowed in that year under this subsection shall be carried over and allowed as a deduction in succeeding years. The following apply for purposes of this subsection:
        (1) A deduction that is carried over to a succeeding year is not allowed in that year to the extent that the deduction, together with:
            (A) deductions otherwise allowed under section 3 of this chapter;
            (B) deductions otherwise allowed under section 4.5 of this chapter; and
            (C) other deductions carried over to the year under this subsection;
        would cause the assessed value of all real property and personal property of the owner in the taxing district to be less than the incremental net assessed value for that year.
        (2) Each time a deduction is carried over to a succeeding year, the deduction shall be reduced by the amount of the deduction that was allowed in the immediately preceding year.
        (3) A deduction may not be carried over to a succeeding year under this subsection if such year is after the period specified in section 4.5(d) of this chapter or the period specified in a resolution adopted by the designating body under section 4.5(h) of this chapter.

SOURCE: ; (01)EH1591.1.2. -->     SECTION 2. [EFFECTIVE MARCH 1, 2001 (RETROACTIVE)] IC 6-1.1-12-4.7(b), as added by this act, applies only to property taxes first due and payable after December 31, 2001.
SOURCE: ; (01)EH1591.1.3. -->     SECTION 3. An emergency is declared for this act.