HB 1499-1_ Filed 02/12/2001, 16:25

Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

24

                                                        NO:
1

MR. SPEAKER:

    Your Committee on       Ways and Means     , to which was referred       House Bill 1499     , 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:

SOURCE: Page 1, line 1; (01)CR149901.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 6-1.1-3-7; (01)CR149901.1. -->     "SECTION 1. IC 6-1.1-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7. (a) Except as provided in subsections (b) and (d), a taxpayer shall, on or before the filing date of each year, file a personal property return with the assessor of each township in which the taxpayer's personal property is subject to assessment.
    (b) The township assessor may grant a taxpayer a filing date for filing the taxpayer's return is extended by thirty (30) day extension to file the taxpayer's return days if (1) the taxpayer submits to the township assessor a written application for an notice of extension prior to before the filing date. and (2) the taxpayer is prevented from filing a timely return because of sickness, absence from the county, or any other good and sufficient reason.
    (c) If the sum of the assessed values reported by a taxpayer on the business personal property returns which the taxpayer files with the township assessor for a year exceeds one hundred fifty thousand dollars ($150,000), the taxpayer shall file each of the returns in duplicate.
    (d) A taxpayer may file a consolidated return with the county assessor if the taxpayer has personal property subject to assessment in more than one (1) township in a county and the total assessed value of the personal property in the county is less than one million five hundred thousand dollars ($1,500,000). A taxpayer filing a consolidated return shall attach a schedule listing, by township, all the taxpayer's personal property and the property's assessed value. A taxpayer filing a consolidated return is not required to file a personal property return with the assessor of each township. A taxpayer filing a consolidated return shall provide the following:
        (1) The county assessor with the information necessary for the county assessor to allocate the assessed value of the taxpayer's personal property among the townships listed on the return, including the street address, the township, and the location of the property.
        (2) A copy of the consolidated return, with attachments, for each township listed on the return.
    (e) The county assessor shall provide to each affected township assessor in the county all information filed by a taxpayer under subsection (d) that affects the township. The county assessor shall provide the information before:
        (1) May 25 of each year, for a return filed on or before the filing date for the return; or
        (2) June 30 of each year, for a return filed after the filing date for the return.
    (f) The township assessor shall send all required notifications to the taxpayer.
    (g) The county assessor may refuse to accept a consolidated personal property tax return that does not have attached to it a schedule listing, by township, all the personal property of the taxpayer and the assessed value of the property as required under subsection (d). For purposes of IC 6-1.1-37-7 , a consolidated return is filed on the date it is filed with the county assessor with the schedule of personal property and assessed value attached.
SOURCE: IC 6-1.1-3-7.5; (01)CR149901.2. -->     SECTION 2. IC 6-1.1-3-7.5 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7.5. (a) A taxpayer may file an amended personal property tax return, in conformity with the rules adopted by the state board of tax commissioners, not more than six (6) months after the later of the following:
        (1) The filing date for the original personal property tax return, if the taxpayer is does not granted take an extension in which to file under section 7 of this chapter.
        (2) The extension date for the original personal property tax return, if the taxpayer is granted takes an extension under section 7 of this chapter.
    (b) A tax adjustment related to an amended personal property tax return shall be made in conformity with rules adopted under IC 4-22-2 by the state board of tax commissioners.".

SOURCE: Page 1, line 9; (01)CR149901.1. -->     Page 1, line 9, delete "2004" and insert " 2006".
    Page 2, between lines 7 and 8, begin a new paragraph and insert:
SOURCE: IC 6-1.1-4-12.5; (01)CR149901.4. -->     "SECTION 4. IC 6-1.1-4-12.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2001 (RETROACTIVE)]: Sec. 12.5. (a) For purposes of this section, the term "secondary recovery method" includes but is not limited to the stimulation of oil production by means of the injection of water, steam, hydrocarbons, or chemicals, or by means of in situ combustion.
    (b) The total assessed value of all interests in the oil located on or beneath the surface of a particular tract of land equals the product of (1) the average daily production of the oil, multiplied by (2) three hundred sixty-five (365), and further multiplied by (3) one-third (1/3) of the posted price of oil on the assessment date. However, if the oil is being extracted by use of a secondary recovery method, the total assessed value of all interests in the oil equals one-half (1/2) the assessed value computed under the formula prescribed in this subsection. The appropriate township assessor shall, in the manner prescribed by the state board of tax commissioners, apportion the total assessed value of all interests in the oil among the owners of those interests.
    (c) The appropriate township assessor shall, in the manner prescribed by the state board of tax commissioners, determine and apportion the total assessed value of all interests in the gas located beneath the surface of a particular tract of land.
    (d) The state board of tax commissioners shall prescribe a schedule for township assessors to use in assessing the appurtenances described in section 12.4 (c) of this chapter.".
SOURCE: Page 6, line 23; (01)CR149901.6. -->     Page 6, between lines 23 and 24, begin a new paragraph and insert:
SOURCE: IC 6-1.1-4-27; (01)CR149901.8. -->     "SECTION 8. IC 6-1.1-4-27 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27. (a) The auditor of each county shall establish a property reassessment fund. The county treasurer shall deposit all collections resulting from the property taxes that the county is required to levy under this section in the county's property reassessment fund.
    (b) With respect to the general reassessment of real property which is to commence on July 1, 1999, the county council of each county shall, for property taxes due in the year in which the general reassessment is to commence and the three (3) years immediately preceding that year, levy against all the taxable property of the county an amount equal to three-fourteenths (3/14) of the estimated cost of the general reassessment.
    (c) With respect to a general reassessment of real property that is to commence on July 1, 2003, and each fourth year thereafter, the county council of each county shall, for property taxes due in the year that the general reassessment is to commence and the three (3) years preceding that year, levy against all the taxable property in the county an amount equal to one-fourth (1/4) of the estimated cost of the general reassessment.
    (d) The state board of tax commissioners shall give to each county council notice, before January 1, of the tax levies required by this section.
    (e) The state board of tax commissioners may raise or lower the property taxes levied under this section for a year if they determine it is appropriate because the estimated cost of the general reassessment has changed.
     (f) If the county council determines that there is insufficient money in the county's reassessment fund to pay all expenses (as permitted under section 28 of this chapter) relating to the general reassessment of real property referred to in subsection (b), the county may, for the purpose of paying expenses (as permitted under section 28 of this chapter) relating to the general reassessment referred to in subsection (b), use money deposited in

the fund from taxes levied under subsection (c).

SOURCE: IC 6-1.1-4.5; (01)CR149901.9. -->     SECTION 9. IC 6-1.1-4.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
    Chapter 4.5. Determination of Financial Impact of Government Owned Real Property in a Qualified Township
    Sec. 1. As used in this chapter, "qualified assessed value" means the value, as determined by the state board of tax commissioners under rules adopted by the state board of tax commissioners, of real property that is owned and occupied by the government of the United States, an agency or instrumentality of the United States, the state, an agency or instrumentality of the state, or a political subdivision of the state. As used in this chapter, the term does not mean fair market value or true tax value.
    Sec. 2. As used in this chapter, "qualified township" means a township that:
        (1) has a population of more than one hundred eighty thousand (180,000); and
        (2) is located in a county having a consolidated city.
    Sec. 3. Notwithstanding IC 6-1.1-11-9 (b), the qualified assessed value of real property in a qualified township that is owned and occupied by the government of the United States, an agency or instrumentality of the United States, the state, an agency or instrumentality of the state, or a political subdivision of the state shall be determined by the state board of tax commissioners in the manner prescribed in this chapter.
    Sec. 4. Before January 1, 2002, and before January 1 each year that a general reassessment begins under IC 6-1.1-4-4 , the county assessor of a county having a qualified township shall provide the state board of tax commissioners with a list of each parcel of real property subject to assessment under section 3 of this chapter.

     Sec. 5. The county assessor of a county having a qualified township shall provide support to the state board of tax commissioners' assessor during an assessment under section 3 of this chapter.
    Sec. 6. (a) When the state board of tax commissioners determines its final assessments of parcels subject to assessment under section 3 of this chapter, the state board shall certify the

qualified assessed values to the county assessor and the county auditor of the county in which the parcels are located.
    (b) The county assessor shall review the certification of the state board of tax commissioners to determine if any parcels subject to assessment under section 3 of this chapter have been omitted and shall notify the state board of additions that the county assessor finds are necessary. The state board shall consider the county assessor's findings and make any additions to the certification that the state board finds are necessary.

    (c) A determination of qualified assessed value by the state board of tax commissioners under this chapter may not be the subject of an appeal by any entity or taxpayer.
    Sec. 7. (a) The state board of tax commissioners shall publish a report containing the following information before December 31, 2004:
        (1) The qualified assessed value of the following property in each taxing district in a qualified township as of March 1, 2004:
            (A) Real property owned by the United States and its agencies and instrumentalities that is exempt from property taxation.
            (B) Real property owned by the state and its agencies and instrumentalities that is exempt from property taxation.
            (C) Real property owned by a political subdivision of the state that is exempt from property taxation.
        (2) For taxes payable in the year for which the assessment is made, the tax rate (net of the property tax replacement credit) that would have applied for:
            (A) the qualified township; and
            (B) each taxing unit located in the qualified township;
        if the qualified assessed value in the qualified township had been taxable assessed value.
    (b)
For purposes of this section, a taxing district in a qualified township includes a taxing district located wholly or partially in the township.
    Sec. 8. This chapter is intended to provide special rules for the qualified assessment of real property that is owned and occupied by the government of the United States, an agency or

instrumentality of the United States, the state, an agency or instrumentality of the state, or a political subdivision of the state. If a provision in this chapter conflicts with any other provision in this article, the provision in this chapter controls with respect to the assessment of such property.
     Sec. 9. The state board of tax commissioners shall adopt rules under IC 4-22-2 to carry out this chapter.".

SOURCE: Page 6, line 35; (01)CR149901.6. -->     Page 6, line 35, delete "treasurer" and insert " auditor".
    Page 6, line 36, delete "treasurer" and insert " auditor".
    Page 7, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: IC 6-1.1-10-16; (01)CR149901.13. -->     "SECTION 13. IC 6-1.1-10-16 , AS AMENDED BY P.L.126-2000, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 16. (a) All or part of a building is exempt from property taxation if it is owned, occupied, and used by a person for educational, literary, scientific, religious, or charitable purposes.
    (b) A building is exempt from property taxation if it is owned, occupied, and used by a town, city, township, or county for educational, literary, scientific, fraternal, or charitable purposes.
    (c) A tract of land, including the campus and athletic grounds of an educational institution, is exempt from property taxation if:
        (1) a building which is exempt under subsection (a) or (b) is situated on it; and
        (2) the tract does not exceed:
            (A) fifty (50) acres in the case of:
                (i) an educational institution; or
                (ii) a tract that was exempt under this subsection on March 1, 1987; or
            (B) two hundred (200) acres in the case of a local association formed for the purpose of promoting 4-H programs; or
            (C) fifteen (15) acres in all other cases.
    (d) A tract of land is exempt from property taxation if:
        (1) it is purchased for the purpose of erecting a building which is to be owned, occupied, and used in such a manner that the building will be exempt under subsection (a) or (b);
        (2) the tract does not exceed:
            (A) fifty (50) acres in the case of:
                (i) an educational institution; or
                (ii) a tract that was exempt under this subsection on March

1, 1987;
            (B) two hundred (200) acres in the case of a local association formed for the purpose of promoting 4-H programs; or
            (C) fifteen (15) acres in all other cases; and
        (3) not more than three (3) years after the property is purchased, and for each year after the three (3) year period, the owner demonstrates substantial progress towards the erection of the intended building and use of the tract for the exempt purpose. To establish that substantial progress is being made, the owner must prove the existence of factors such as the following:
            (A) Organization of and activity by a building committee or other oversight group.
            (B) Completion and filing of building plans with the appropriate local government authority.
            (C) Cash reserves dedicated to the project of a sufficient amount to lead a reasonable individual to believe the actual construction can and will begin within three (3) years.
            (D) The breaking of ground and the beginning of actual construction.
            (E) Any other factor that would lead a reasonable individual to believe that construction of the building is an active plan and that the building is capable of being completed within six (6) years considering the circumstances of the owner.
    (e) Personal property is exempt from property taxation if it is owned and used in such a manner that it would be exempt under subsection (a) or (b) if it were a building.
    (f) A hospital's property which is exempt from property taxation under subsection (a), (b), or (e) shall remain exempt from property taxation even if the property is used in part to furnish goods or services to another hospital whose property qualifies for exemption under this section.
    (g) Property owned by a shared hospital services organization which is exempt from federal income taxation under Section 501(c)(3) or 501(e) of the Internal Revenue Code is exempt from property taxation if it is owned, occupied, and used exclusively to furnish goods or services to a hospital whose property is exempt from property taxation under subsection (a), (b), or (e).
    (h) This section does not exempt from property tax an office or a

practice of a physician or group of physicians that is owned by a hospital licensed under IC 16-21-1 or other property that is not substantially related to or supportive of the inpatient facility of the hospital unless the office, practice, or other property:
        (1) provides or supports the provision of charity care (as defined in IC 16-18-2-52.5 ), including providing funds or other financial support for health care services for individuals who are indigent (as defined in IC 16-18-2-52.5 (b) and IC 16-18-2-52.5 (c)); or
        (2) provides or supports the provision of community benefits (as defined in IC 16-21-9-1 ), including research, education, or government sponsored indigent health care (as defined in IC 16-21-9-2 ).
However, participation in the Medicaid or Medicare program alone does not entitle an office, practice, or other property described in this subsection to an exemption under this section.
    (i) A tract of land or a tract of land plus all or part of a structure on the land is exempt from property taxation if:
        (1) the tract is acquired for the purpose of erecting, renovating, or improving a single family residential structure that is to be given away or sold:
            (A) in a charitable manner;
            (B) by a nonprofit organization; and
            (C) to low income individuals who will:
                (i) use the land as a family residence; and
                (ii) not have an exemption for the land under this section;
        (2) the tract does not exceed three (3) acres;
        (3) the tract of land or the tract of land plus all or part of a structure on the land is not used for profit while exempt under this section; and
        (4) not more than three (3) years after the property is acquired for the purpose described in subdivision (1), and for each year after the three (3) year period, the owner demonstrates substantial progress towards the erection, renovation, or improvement of the intended structure. To establish that substantial progress is being made, the owner must prove the existence of factors such as the following:
            (A) Organization of and activity by a building committee or other oversight group.


            (B) Completion and filing of building plans with the appropriate local government authority.
            (C) Cash reserves dedicated to the project of a sufficient amount to lead a reasonable individual to believe the actual construction can and will begin within six (6) years of the initial exemption received under this subsection.
            (D) The breaking of ground and the beginning of actual construction.
            (E) Any other factor that would lead a reasonable individual to believe that construction of the structure is an active plan and that the structure is capable of being:
                (i) completed; and
                (ii) transferred to a low income individual who does not receive an exemption under this section;
            within six (6) years considering the circumstances of the owner.
    (j) An exemption under subsection (i) terminates when the property is conveyed by the nonprofit organization to another owner. When the property is conveyed to another owner, the nonprofit organization receiving the exemption must file a certified statement with the auditor assessor of the county, notifying the auditor assessor of the change not later than sixty (60) days after the date of the conveyance. The county assessor shall forward a copy of the certified statement to the county auditor. A nonprofit organization that fails to file the statement required by this subsection is liable for the amount of property taxes due on the property conveyed if it were not for the exemption allowed under this chapter.
    (k) If property is granted an exemption in any year under subsection (i) and the owner:
        (1) ceases to be eligible for the exemption under subsection (i)(4);
        (2) fails to transfer the tangible property within six (6) years after the assessment date for which the exemption is initially granted; or
        (3) transfers the tangible property to a person who:
            (A) is not a low income individual; or
            (B) does not use the transferred property as a residence for at least one (1) year after the property is transferred;
the person receiving the exemption shall notify the county recorder and

the county auditor assessor of the county in which the property is located not later than sixty (60) days after the event described in subdivision (1), (2), or (3) occurs. The county assessor shall inform the county auditor of a notification received under this subsection.
    (l) If subsection (k)(1), (k)(2), or (k)(3) applies, the owner shall pay, not later than the date that the next installment of property taxes is due, an amount equal to the sum of the following:
        (1) The total property taxes that, if it were not for the exemption under subsection (i), would have been levied on the property in each year in which an exemption was allowed.
        (2) Interest on the property taxes at the rate of ten percent (10%) per year.
    (m) The liability imposed by subsection (l) is a lien upon the property receiving the exemption under subsection (i). An amount collected under subsection (l) shall be collected as an excess levy. If the amount is not paid, it shall be collected in the same manner that delinquent taxes on real property are collected.

SOURCE: IC 6-1.1-10-21; (01)CR149901.14. -->     SECTION 14. IC 6-1.1-10-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 21. (a) The following tangible property is exempt from property taxation if it is owned by, or held in trust for the use of, a church or religious society:
        (1) A building which is used for religious worship.
        (2) Buildings that are used as parsonages.
        (3) The pews and furniture contained within a building which is used for religious worship.
        (4) The tract of land, not exceeding fifteen (15) acres, upon which a building described in this section is situated.
    (b) To obtain an exemption for parsonages, a church or religious society must provide the county auditor assessor with an affidavit at the time the church or religious society applies for the exemptions. The affidavit must state that:
        (1) all parsonages are being used to house one (1) of the church's or religious society's rabbis, priests, preachers, ministers, or pastors; and
        (2) none of the parsonages are being used to make a profit.
The affidavit shall be signed under oath by the church's or religious society's head rabbi, priest, preacher, minister, or pastor. The county assessor shall forward a copy of the affidavit to the county auditor.
SOURCE: IC 6-1.1-10-36.5; (01)CR149901.15. -->     SECTION 15. IC 6-1.1-10-36.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 36.5. (a) Tangible property is not exempt from property taxation under sections 16 through 28 of this chapter or under section 33 of this chapter if it is used by the exempt organization in a trade or business, not substantially related to the exercise or performance of the organization's exempt purpose.
     (b) The state board of tax commissioners shall adopt rules under IC 4-22-2 to carry out this section.
SOURCE: IC 6-1.1-11-3; (01)CR149901.16. -->     SECTION 16. IC 6-1.1-11-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. (a) The An owner of tangible property who wishes to obtain an exemption from property taxation shall file a certified application in duplicate with the auditor assessor of the county in which the property that is the subject of the exemption is located. The application must be filed annually on or before May 15 on forms prescribed by the state board of tax commissioners. The county assessor shall forward a copy of the certified application to the county auditor. Except as provided in sections 1, 3.5, and 4 of this chapter, the application applies only for the taxes imposed for the year for which the application is filed.
    (b) The authority for signing an exemption application may not be delegated by the owner of the property to any other person except by an executed power of attorney.
    (c) An exemption application which is required under this chapter shall contain the following information:
        (1) A description of the property claimed to be exempt in sufficient detail to afford identification.
        (2) A statement showing the ownership, possession, and use of the property.
        (3) The grounds for claiming the exemption.
        (4) The full name and address of the applicant.
        (5) Any additional information which the state board of tax commissioners may require.
     (d) A person who signs an exemption application shall attest in writing and under penalties of perjury that, to the best of the person's knowledge and belief, a predominant part of the property claimed to be exempt is not being used or occupied in connection with a trade or business that is not substantially related to the

exercise or performance of the organization's exempt purpose.

SOURCE: IC 6-1.1-11-3.5; (01)CR149901.17. -->     SECTION 17. IC 6-1.1-11-3.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3.5. (a) A not-for-profit corporation that seeks an exemption provided by IC 6-1.1-10 for 1988 or for a year that follows 1988 by a multiple of four (4) years must file an application for the exemption in that year. However, if a not-for-profit corporation seeks an exemption provided by IC 6-1.1-10 for a year not specified in this subsection and the corporation did not receive the exemption for the preceding year, the corporation must file an application for the exemption in the year for which the exemption is sought. The not-for-profit corporation must file each exemption application in the manner (other than the requirement for filing annually) prescribed in section 3 of this chapter.
    (b) A not-for-profit corporation that receives an exemption provided under IC 6-1.1-10 for a particular year that remains eligible for the exemption for the following year is only required to file a statement to apply for the exemption in the years specified in subsection (a), if the use of the not-for-profit corporation's property remains unchanged.
    (c) A not-for-profit corporation that receives an exemption provided under IC 6-1.1-10 for a particular year which becomes ineligible for the exemption for the following year shall notify the auditor assessor of the county in which the tangible property for which it claims the exemption is located of its ineligibility on or before May 15 of the year for which it becomes ineligible. If a not-for-profit corporation that is receiving an exemption provided under IC 6-1.1-10 changes the use of its tangible property so that part or all of that property no longer qualifies for the exemption, the not-for-profit corporation shall notify the assessor of the county in which the tangible property for which it claims the exemption is located of its ineligibility on or before May 15 of the year for which it first becomes ineligible. The county assessor shall notify the county auditor of the not-for-profit corporation's ineligibility or disqualification for the exemption. A not-for-profit corporation that fails to provide the notification required by this subsection is subject to the penalties set forth in IC 6-1.1-37-9.
    (d) For each year that is not a year specified in subsection (a), the auditor of each county shall apply an exemption provided under IC 6-1.1-10 to the tangible property owned by a not-for-profit

corporation that received the exemption in the preceding year unless the auditor county property tax assessment board of appeals determines that the not-for-profit corporation is no longer eligible for the exemption.
    (e) The state board of tax commissioners may at any time review an exemption provided under this section and determine whether or not the not-for-profit corporation is eligible for the exemption.

SOURCE: IC 6-1.1-11-8.5; (01)CR149901.18. -->     SECTION 18. IC 6-1.1-11-8.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 8.5. (a) Before November 1 of each year that is not a general reassessment year, the county property tax assessment board of appeals shall review each exemption that was granted during the calendar year that is two (2) years before the current calendar year.
    (b) The county property tax assessment board of appeals shall determine if the property granted the exemption still meets the criteria for an exemption.
    (c) If the county property tax assessment board of appeals determines that property granted an exemption no longer meets the criteria for the exemption, the board of appeals shall:
        (1) revoke the exemption; and
        (2) inform the county auditor.
Upon receiving a notice from the county property tax assessment board of appeals under this subsection, the county auditor shall notify the owner of the property by mail. Not more than thirty (30) days after the notice is mailed, the owner may, in the manner prescribed by IC 6-1.1-15-3 , petition the state board of tax commissioners to review the revocation decision of the county property tax assessment board of appeals.

SOURCE: IC 6-1.1-11-10; (01)CR149901.19. -->     SECTION 19. IC 6-1.1-11-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 10. Each county auditor assessor shall, on behalf of the county, collect a fee of two dollars ($2) for each exemption application filed with him under this chapter. Each fee shall be accounted for and paid into the county general fund at the close of each month in the same manner as are other fees due the county. No other fee may be charged by a county auditor, assessor, or his the assessor's employees, for filing or preparing an exemption application.
SOURCE: IC 6-1.1-12-28.5; (01)CR149901.20. -->     SECTION 20. IC 6-1.1-12-28.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 28.5. (a) For purposes of this section:
    "Hazardous waste" has the meaning set forth in IC 13-11-2-99 (a) and includes a waste determined to be a hazardous waste under IC 13-22-2-3 (b).
    "Resource recovery system" means tangible property directly used to dispose of solid waste or hazardous waste by converting it into energy or other useful products.
    "Solid waste" has the meaning set forth in IC 13-11-2-205 (a) but does not include dead animals or any animal solid or semisolid wastes.
    (b) Except as provided in this section, the owner of a resource recovery system is entitled to an annual deduction in an amount equal to ninety-five percent (95%) of the assessed value of the system if:
        (1) the system was certified by the department of environmental management for the 1993 assessment year or a prior assessment year; and
        (2) the owner filed a timely application for the deduction for the 1993 assessment year.
For purposes of this section, a system includes tangible property that replaced tangible property in the system after the certification by the department of environmental management.
    (c) The owner of a resource recovery system that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
        (1) is convicted of any violation under IC 13-7-13-3 (repealed), IC 13-7-13-4 (repealed), or IC 13-30-6 ; or
        (2) is subject to an order or a consent decree with respect to property located in Indiana based upon a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.
    (d) The certification of a resource recovery system by the department of environmental management for the 1993 assessment year or a prior assessment year is valid through the 1997 assessment year so long as the property is used as a resource recovery system. If the property is no longer used for the purpose for which the property

was used when the property was certified, the owner of the property shall notify the county auditor. However, the deduction from the assessed value of the system is:
        (1) ninety-five percent (95%) for the 1994 assessment year;
        (2) ninety percent (90%) for the 1995 assessment year;
        (3) seventy-five percent (75%) for the 1996 assessment year; and
        (4) sixty percent (60%) for the 1997 assessment year.
Notwithstanding this section as it existed before 1995, for the 1994 assessment year, the portion of any tangible property comprising a resource recovery system that was assessed and first deducted for the 1994 assessment year may not be deducted for property taxes first due and payable in 1995 or later.
    (e) In order to qualify for a deduction under this section, the person who desires to claim the deduction must file an application with the county auditor after February 28 and before May 16 of the current assessment year unless the person has been granted taken an extension under IC 6-1.1-3-7. If the person has been granted taken an extension, the person must file the application after February 28 and before June 15 of the current assessment year. An application must be filed in each year for which the person desires to obtain the deduction. The application may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. If the application is not filed before the applicable deadline under this subsection, the deduction is waived. The application must be filed on a form prescribed by the state board of tax commissioners. The application for a resource recovery system deduction must include:
        (1) a certification by the department of environmental management for the 1993 assessment year or a prior assessment year as described in subsection (d); or
        (2) the certification by the department of environmental management for the 1993 assessment year as described in subsection (g).
Beginning with the 1995 assessment year a person must also file an itemized list of all property on which a deduction is claimed. The list must include the date of purchase of the property and the cost to acquire the property.
    (f) Before July 1, 1995, the department of environmental management shall transfer all the applications, records, or other

material the department has with respect to resource recovery system deductions under this section for the 1993 and 1994 assessment years. The township assessor shall verify each deduction application filed under this section and the county auditor shall determine the deduction. The county auditor shall send to the state board of tax commissioners a copy of each deduction application. The county auditor shall notify the county property tax assessment board of appeals of all deductions allowed under this section. A denial of a deduction claimed under this subsection may be appealed as provided in IC 6-1.1-15. The appeal is limited to a review of a determination made by the township assessor or the county auditor.
    (g) Notwithstanding subsection (d), the certification for the 1993 assessment year of a resource recovery system in regard to which a political subdivision is liable for the payment of the property taxes remains valid at the ninety-five percent (95%) deduction level allowed before 1994 as long as the political subdivision remains liable for the payment of the property taxes on the system.

SOURCE: IC 6-1.1-12-35; (01)CR149901.21. -->     SECTION 21. IC 6-1.1-12-35 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 35. (a) Except as provided in section 36 of this chapter, a person who desires to claim the deduction provided by section 31, 33, or 34 of this chapter must file a certified statement in duplicate, on forms prescribed by the state board of tax commissioners, and proof of certification under subsection (b) with the auditor of the county in which the property for which the deduction is claimed is subject to assessment. Except as provided in subsection (e), with respect to property that is not assessed under IC 6-1.1-7 , the person must file the statement between March 1 and May 10, inclusive, of the assessment year. The person must file the statement in each year for which he desires to obtain the deduction. With respect to a property which is assessed under IC 6-1.1-7 , the person must file the statement between January 15 and March 31, inclusive, of each year for which he desires to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. On verification of the statement by the assessor of the township in which the property for which the deduction is claimed is subject to assessment, the county auditor shall allow the deduction.
    (b) The department of environmental management, upon application

by a property owner, shall determine whether a system or device qualifies for a deduction provided by section 31, 33, or 34 of this chapter. If the department determines that a system or device qualifies for a deduction, it shall certify the system or device and provide proof of the certification to the property owner. The department shall prescribe the form and manner of the certification process required by this subsection.
    (c) If the department of environmental management receives an application for certification before April 10 of the assessment year, the department shall determine whether the system or device qualifies for a deduction before May 10 of the assessment year. If the department fails to make a determination under this subsection before May 10 of the assessment year, the system or device is considered certified.
    (d) A denial of a deduction claimed under section 31, 33, or 34 of this chapter may be appealed as provided in IC 6-1.1-15. The appeal is limited to a review of a determination made by the township assessor, county property tax assessment board of appeals, or state board of tax commissioners.
    (e) A person who timely files a personal property return under IC 6-1.1-3-7 (a) for an assessment year and who desires to claim the deduction provided in section 31 of this chapter for property that is not assessed under IC 6-1.1-7 must file the statement described in subsection (a) between March 1 and May 15, inclusive, of that year. A person who obtains takes a filing extension under IC 6-1.1-3-7 (b) for an assessment year must file the application between March 1 and June 14, inclusive, of that year.

SOURCE: IC 6-1.1-12-40; (01)CR149901.22. -->     SECTION 22. IC 6-1.1-12-40 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 40. (a) This section applies only to real property that is located in an enterprise zone established in a county containing a consolidated city.
    (b) The owner of real property described in subsection (a) is entitled to a deduction under this section if:
        (1) an obsolescence depreciation adjustment for either functional obsolescence or economic obsolescence was allowed for the property for property taxes assessed in the year preceding the year in which the owner purchased the property;
        (2) the property owner submits an application requesting the deduction to the urban enterprise association established for the enterprise zone in which the property is located; and
        (3) the urban enterprise association approves the deduction.
    (c) If an urban enterprise association approves a deduction under this section, it must notify the county auditor of the approval of the deduction.
    (d) A deduction may be claimed under this section for not more than four (4) years. The amount of the deduction under this section equals:
        (1) the amount of the obsolescence depreciation adjustment for either functional obsolescence or economic obsolescence that was allowed for the property for property taxes assessed in the year preceding the year in which the owner purchased the property; multiplied by
        (2) the following percentages:
            (A) One hundred percent (100%), for property taxes assessed in the year in which the owner purchased the property.
            (B) Seventy-five percent (75%), for property taxes assessed in the year after the year in which the owner purchased the property.
            (C) Fifty percent (50%), for property taxes assessed in the second year after the year in which the owner purchased the property.
            (D) Twenty-five percent (25%), for property taxes assessed in the third year after the year in which the owner purchased the property.

SOURCE: IC 6-1.1-12.1-5.5; (01)CR149901.23. -->     SECTION 23. IC 6-1.1-12.1-5.5 , AS AMENDED BY P.L.4-2000, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5.5. (a) A person that desires to obtain the deduction provided by section 4.5 of this chapter must file a certified deduction application on forms prescribed by the state board of tax commissioners with:
        (1) the auditor of the county in which the new manufacturing equipment or new research and development equipment, or both, is located; and
        (2) the state board of tax commissioners.
A person that timely files a personal property return under IC 6-1.1-3-7 (a) for the year in which the new manufacturing equipment or new research and development equipment, or both, is installed must file the application between March 1 and May 15 of that year. A person that obtains takes a filing extension under IC 6-1.1-3-7 (b) for the year in which the new manufacturing equipment or new research and development equipment, or both, is installed must file the application between March 1 and June 14 of that year.
    (b) The deduction application required by this section must contain the following information:
        (1) The name of the owner of the new manufacturing equipment or new research and development equipment, or both.
        (2) A description of the new manufacturing equipment or new research and development equipment, or both.
        (3) Proof of the date the new manufacturing equipment or new research and development equipment, or both, was installed.
        (4) The amount of the deduction claimed for the first year of the deduction.
    (c) This subsection applies to a deduction application with respect to new manufacturing equipment or new research and development equipment, or both, for which a statement of benefits was initially approved after April 30, 1991. If a determination about the number of years the deduction is allowed has not been made in the resolution adopted under section 2.5 of this chapter, the county auditor shall send a copy of the deduction application to the designating body and the designating body shall adopt a resolution under section 4.5(h)(2) of this chapter.
    (d) A deduction application must be filed under this section in the year in which the new manufacturing equipment or new research and development equipment, or both, is installed and in each of the immediately succeeding years the deduction is allowed.
    (e) The state board of tax commissioners shall review and verify the correctness of each deduction application and shall notify the county auditor of the county in which the property is located that the deduction application is approved or denied or that the amount of the deduction is altered. Upon notification of approval of the deduction application or of alteration of the amount of the deduction, the county auditor shall make the deduction. The county auditor shall notify the county property

tax assessment board of appeals of all deductions approved under this section.
    (f) If the ownership of new manufacturing equipment or new research and development equipment, or both, changes, the deduction provided under section 4.5 of this chapter continues to apply to that equipment if the new owner:
        (1) continues to use the equipment in compliance with any standards established under section 2(g) of this chapter; and
        (2) files the deduction applications required by this section.
    (g) The amount of the deduction is the percentage under section 4.5 of this chapter that would have applied if the ownership of the property had not changed multiplied by the assessed value of the equipment for the year the deduction is claimed by the new owner.
    (h) If a person desires to initiate an appeal of the state board of tax commissioners' final determination, the person must do all of the following not more than forty-five (45) days after the state board of tax commissioners gives the person notice of the final determination:
        (1) File a written notice with the state board of tax commissioners informing the board of the person's intention to appeal.
        (2) File a complaint in the tax court.
        (3) Serve the attorney general and the county auditor with a copy of the complaint.

SOURCE: IC 6-1.1-15-4; (01)CR149901.24. -->     SECTION 24. IC 6-1.1-15-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. (a) After receiving a petition for review which is filed under section 3 of this chapter, the division of appeals of the state board of tax commissioners shall conduct a hearing at its earliest opportunity. In addition, the division of appeals of the state board may assess the property in question, correcting any errors which may have been made. The state board of tax commissioners, including its division of appeals, is not required to assess the property in question. The state board of tax commissioners, including its division of appeals, may limit the scope of the appeal to the issues raised in the petition and the evaluation of the evidence presented in support of those issues. The division of appeals of the state board shall give notice of the date fixed for the hearing, by mail, to the taxpayer and to the appropriate township assessor, county assessor, and county auditor. The division of appeals of the state board shall give these notices at least ten (10) thirty (30)

days before the day fixed for the hearing.
    (b) The burden of persuasion and the burden of going forward with the proof is on the petitioner. There is a rebuttable presumption that the determination of the county property tax assessment board of appeals or other officer from which the appeal is taken is correct. The petitioner may rebut the presumption by presenting a prima facie case, supported by substantial and reliable evidence, that the determination is in error.
     (c) If a petition for review does not comply with the state board of tax commissioners' instructions for completing the form prescribed under section 3 of this chapter, the division of appeals of the state board of tax commissioners shall return the petition to the petitioner and include a notice describing the defect in the petition. The petitioner then has thirty (30) days from the date on the notice to cure the defect and file a corrected petition. The division of appeals of the state board of tax commissioners shall deny a corrected petition for review if it does not substantially comply with the state board of tax commissioners' instructions for completing the form prescribed under section 3 of this chapter.
    (c) (d) The state board of tax commissioners shall prescribe a form for use in processing petitions for review of actions by the county property tax assessment board of appeals. The state board shall issue instructions for completion of the form. The form must require the division of appeals of the state board, to indicate agreement or disagreement with each item that is:
        (1) indicated on the petition submitted under section 1(e) of this chapter;
        (2) included in the township assessor's response under section 1(g) of this chapter; and
        (3) included in the county property tax assessment board of appeals' findings, record, and determination under section 2.1(d) of this chapter.
The form must also require the division of appeals of the state board to indicate the issues in dispute and its reasons in support of its resolution of those issues.
    (d) (e) After the hearing the division of appeals of the state board shall give the petitioner, the township assessor, the county assessor, and the county auditor:


        (1) notice, by mail, of its final determination;
        (2) a copy of the form completed under subsection (c); (d); and
        (3) notice of the procedures they must follow in order to obtain court review under section 5 of this chapter.
    (e) (f) Except as provided in subsection (g), the division of appeals of the state board of tax commissioners shall conduct a hearing within six (6) nine (9) months after a petition in proper form is filed with the division, excluding any time due to a delay reasonably caused by the petitioner.
    (g) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4 , the division of appeals of the state board of tax commissioners shall conduct a hearing within one (1) year after a petition in proper form is filed with the division, excluding any time due to a delay reasonably caused by the petitioner.

     (h) Except as provided in subsection (i), the division of appeals shall make a determination within the later of forty-five (45) ninety (90) days after the hearing or the date set in an extension order issued by the chairman of the state board of tax commissioners. However,
    (i) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4 , the division of appeals shall make a determination within the later of one hundred eighty (180) days after the hearing or the date set in an extension order issued by the chairman of the state board of tax commissioners.
     (j) The state board of tax commissioners may not extend the final determination date under subsection (h) or (i) by more than one hundred eighty (180) days.
     (k) Except as provided in subsection (g): (l):
        (1) the failure of the division of appeals to make a determination within the time allowed by this subsection (h) or (i) shall be treated as a final determination of the state board of tax commissioners to deny the petition; and
        (2) a final decision of the division of appeals is a final determination of the state board of tax commissioners.
    (g) (l) A final determination of the division of appeals is not a final

determination of the state board of tax commissioners if the state board of tax commissioners:
        (1) gives notice to the parties that the state board of tax commissioners will review the determination of the division of appeals within fifteen (15) days after the division of appeals gives notice of the determination to the parties or the maximum allowable time for the issuance of a determination under subsection (f) (h) or (i) expires; or
        (2) determines to rehear the determination under section 5 of this chapter.
The state board of tax commissioners shall conduct a review under subdivision (1) in the same manner as a rehearing under section 5 of this chapter.
     (m) A final determination must include separately stated findings of fact for all aspects of the determination. Findings of ultimate fact must be accompanied by a concise statement of the underlying basic facts of record to support the findings. Findings must be based exclusively upon the evidence on the record in the proceeding and on matters officially noticed in the proceeding. Findings must be based upon evidence that is substantial and reliable. The hearing officer's experience, technical competence, and specialized knowledge may be used in evaluating evidence.

SOURCE: IC 6-1.1-15-5; (01)CR149901.25. -->     SECTION 25. IC 6-1.1-15-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5. (a) Within fifteen (15) days after the division of appeals of the state board of tax commissioners gives notice of its final determination under section 4 of this chapter to the party or the maximum allowable time for the issuance of a determination by the division of appeals under section 4 of this chapter expires, a party to the proceeding may request a rehearing before the board. The board may conduct a rehearing and affirm or modify its final determination, giving the same notices after the rehearing as are required by section 4 of this chapter. The state board of tax commissioners has thirty (30) days after receiving a petition for a rehearing to determine whether to grant a rehearing. Failure to grant a rehearing within thirty (30) days after receiving the petition shall be treated as a final determination to deny the petition. A petition for a rehearing does not toll the time in which to file a petition for judicial review unless the petition for rehearing is granted. If the

state board of tax commissioners determines to rehear a final determination of the division of appeals, the state board of tax commissioners:
        (1) may conduct the additional hearings that the state board of tax commissioners determines necessary or review the written record of the division of appeals without additional hearings; and
        (2) shall issue a final determination within ninety (90) days after notifying the parties that the state board of tax commissioners will rehear the determination.
Failure of the state board of tax commissioners to make a determination within the time allowed under subdivision (2) shall be treated as a final determination affirming the decision of the division of appeals.
    (b) A person may appeal the final determination of the division of appeals or the state board of tax commissioners regarding the assessment of that person's tangible property. The appeal shall be taken to the tax court. Appeals may be consolidated at the request of the appellants if it can be done in the interest of justice.
    (c) If a person desires to initiate an appeal of the state board of tax commissioners' final determination, the person shall:
        (1) file a written notice with the state board of tax commissioners informing the board of his intention to appeal;
        (2) file a complaint in the tax court; and
        (3) serve the attorney general and the county assessor with a copy of the complaint.
    (d) To initiate an appeal under this section, a person must take the action required by subsection (c) within:
        (1) forty-five (45) days after the state board of tax commissioners gives the person notice of its final determination under IC 6-1.1-14-11 unless a rehearing is conducted under subsection (a);
        (2) thirty (30) days after the board gives the person notice under subsection (a) of its final determination, if a rehearing is conducted under subsection (a) or the maximum time elapses for the state board of tax commissioners to make a determination under this section; or
        (3) forty-five (45) days after the division of appeals gives notice of a final determination under section 4 of this chapter or the division fails to make a determination within the maximum time

allowed under section 4 of this chapter, if a rehearing is not granted under this section.
    (e) The failure of the state board of tax commissioners to conduct a hearing within the time period prescribed in section 4(b) 4(f) of this chapter does not constitute notice to the person of a board determination.
    (f) In a case in which the final determination of the state board of tax commissioners would result in a claim by a taxpayer with respect to a particular year for a refund that exceeds:
        (1) eight hundred thousand dollars ($800,000); or
        (2) an amount equal to ten percent (10%) of the aggregate tax levies of all taxing units in the county for that year;
whichever is less, the county executive may take an appeal to the tax court in the manner prescribed in this section, but only upon request by the county assessor.

SOURCE: IC 6-1.1-15-6; (01)CR149901.26. -->     SECTION 26. IC 6-1.1-15-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 6. (a) If an appeal is initiated by a person under section 5 of this chapter, the secretary of the state board of tax commissioners shall prepare a certified transcript record of the proceedings related to the appeal. However, the transcript shall not include the evidence compiled by the board with respect to the proceedings. The secretary of the board shall transmit the transcript to the clerk of the court designated by the appellant.
     (b) The record for judicial review must include the following documents and items:
        (1) Copies of all papers submitted to the state board of tax commissioners, including its division of appeals, during the course of the action and copies of all papers provided to the parties by the state board of tax commissioners, including its division of appeals. For purposes of this subdivision, the term "papers" includes, without limitation, all notices, petitions, motions, pleadings, orders, orders on rehearing, briefs, requests, intermediate rulings, photographs, and other written documents.
        (2) Evidence received or considered by the state board of tax commissioners, including its division of appeals.
        (3) A statement of whether a site inspection was conducted, and, if a site inspection was conducted, either:
            (A) a summary report of the site inspection; or
            (B) a videotape transcript of the site inspection.
        (4) A statement of matters officially noticed.
        (5) Proffers of proof and objections and rulings on them.
        (6) Copies of proposed findings, requested orders, and exceptions.
        (7) Either:
            (A) a transcription of the audio tape of the hearing; or
            (B) a transcript of the hearing prepared by a court reporter.
Copies of exhibits that, because of their nature, cannot be incorporated into the certified record must be kept by the state board of tax commissioners until the appeal is finally terminated. However, this evidence must be briefly named and identified in the transcript of the evidence and proceedings.
    (c) If:
        (1) a report of all or a part of the evidence or proceedings at a hearing conducted by the state board of tax commissioners, including its division of appeals, was not made; or
        (2) a transcript is unavailable;
a party to the appeal initiated under section 5 of this chapter may prepare a statement of the evidence or proceedings. The statement must be submitted to the tax court and also must be served on all other parties. A party to the proceeding may serve objections or prepare amendments to the statement not later than ten (10) days after service.

SOURCE: IC 6-1.1-15-10; (01)CR149901.27. -->     SECTION 27. IC 6-1.1-15-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) If a petition for review to any board or an appeal to the tax court regarding an assessment or increase in assessment is pending, the taxes resulting from the assessment or increase in assessment are, notwithstanding the provisions of IC 6-1.1-22-9 , not due until after the petition for review, or the appeal, is finally adjudicated and the assessment or increase in assessment is finally determined. However, even though a petition for review or an appeal is pending, the taxpayer shall pay taxes on the tangible property when the property tax installments come due, unless the collection of the taxes is enjoined pending an original tax appeal under IC 33-3-5. The amount of taxes which the taxpayer is required

to pay, pending the final determination of the assessment or increase in assessment, shall be based on:
        (1) the assessed value reported by the taxpayer on his an amount based on the immediately preceding year's assessment of personal property return if a personal property an assessment, or an increase in such an assessment, of personal property is involved; or
        (2) an amount based on the immediately preceding year's assessment of real property if an assessment, or increase in assessment, of real property is involved.
    (b) If the petition for review or the appeal is not finally determined by the last installment date for the taxes, the taxpayer, upon showing of cause by a taxing official or at the tax court's discretion, may be required to post a bond or provide other security in an amount not to exceed the taxes resulting from the contested assessment or increase in assessment.
    (c) Each county auditor shall keep separate on the tax duplicate a record of that portion of the assessed value of property on which a taxpayer is not required to pay taxes under subsection (a). When establishing rates and calculating state school support, the state board of tax commissioners shall recognize the fact that a taxpayer is not required to pay taxes under certain circumstances.

SOURCE: IC 6-1.1-18.5-1; (01)CR149901.28. -->     SECTION 28. IC 6-1.1-18.5-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 1. As used in this chapter:
    "Ad valorem property tax levy for an ensuing calendar year" means the total property taxes imposed by a civil taxing unit for current property taxes collectible in that ensuing calendar year.
    "Adopting county" means any county in which the county adjusted gross income tax is in effect.
    "Civil taxing unit" means any taxing unit except a school corporation.
    "Maximum permissible ad valorem property tax levy for the preceding calendar year" means the greater of:
        (1) the civil taxing unit's maximum permissible ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined under section 3 of this chapter; or
        (2) the civil taxing unit's ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined by the state board of tax commissioners in fixing the civil taxing unit's budget, levy, and rate for that preceding calendar year under IC 6-1.1-17.
    "Taxable property" means all tangible property that is subject to the tax imposed by this article and is not exempt from the tax under IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this chapter, the term "taxable property" is further defined in section 6 of this chapter.
     "Unadjusted assessed value" means the assessed value of a civil taxing unit as determined by local assessing officials and the state board of tax commissioners in a particular calendar year before the application of an annual adjustment under IC 6-1.1-4-4.5 for that particular calendar year or any calendar year since the last general reassessment preceding the particular calendar year.
SOURCE: IC 6-1.1-18.5-2; (01)CR149901.29. -->     SECTION 29. IC 6-1.1-18.5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 2. (a) This subsection applies to a calendar year ending before January 1, 2006. For purposes of determining a civil taxing unit's maximum permissible ad valorem property tax levy for an ensuing calendar year, the civil taxing unit shall use the assessed value growth quotient determined in the last STEP of the following STEPS:
        STEP ONE: Determine the three (3) calendar years that most immediately precede the ensuing calendar year and in which a statewide general reassessment of real property does not first become effective.
        STEP TWO: Compute separately, for each of the calendar years determined in STEP ONE, the quotient (rounded to the nearest ten-thousandth) of the civil taxing unit's total assessed value of all taxable property in the particular calendar year, divided by the civil taxing unit's total assessed value of all taxable property in the calendar year immediately preceding the particular calendar year.
        STEP THREE: Divide the sum of the three (3) quotients computed in STEP TWO by three (3).
        STEP FOUR: Determine the greater of the result computed in STEP THREE or one and five-hundredths (1.05).
        STEP FIVE: Determine the lesser of the result computed in STEP

FOUR or one and one-tenth (1.1).
    (b) This subsection applies to a calendar year beginning after December 31, 2005. For purposes of determining a civil taxing unit's maximum permissible ad valorem property tax levy for an ensuing calendar year, the civil taxing unit shall use the assessed value growth quotient determined in the last STEP of the following STEPS:
        STEP ONE: Determine the three (3) calendar years that most immediately precede the ensuing calendar year and in which a statewide general reassessment of real property does not first become effective.
        STEP TWO: Compute separately, for each of the calendar years determined in STEP ONE, the quotient (rounded to the nearest ten-thousandth) of the civil taxing unit's total unadjusted assessed value of all taxable property in the particular calendar year, divided by the civil taxing unit's total unadjusted assessed value of all taxable property in the calendar year immediately preceding the particular calendar year.
        STEP THREE: Divide the sum of the three (3) quotients computed in STEP TWO by three (3).
        STEP FOUR: Determine the greater of the result computed in STEP THREE or one and five-hundredths (1.05).
        STEP FIVE: Determine the lesser of the result computed in STEP FOUR or one and one-tenth (1.1).

     (c) This subsection applies to a calendar year ending before January 1, 2006. If the assessed values of taxable property used in determining a civil taxing unit's property taxes that are first due and payable in a particular calendar year are significantly increased over the assessed values used for the immediately preceding calendar year's property taxes due to the settlement of litigation concerning the general reassessment of that civil taxing unit's real property, then for purposes of determining that civil taxing unit's assessed value growth quotient for an ensuing calendar year, the state board of tax commissioners shall replace the quotient described in STEP TWO of subsection (a) for that particular calendar year. The state board of tax commissioners shall replace that quotient with one that as accurately as possible will reflect the actual growth in the civil taxing unit's assessed values of real

property from the immediately preceding calendar year to that particular calendar year.
     (d) This subsection applies to a calendar year beginning after December 31, 2005. If the unadjusted assessed values of taxable property used in determining a civil taxing unit's property taxes that are first due and payable in a particular calendar year are significantly increased over the unadjusted assessed values used for the immediately preceding calendar year's property taxes due to the settlement of litigation concerning the general reassessment of that civil taxing unit's real property, then for purposes of determining that civil taxing unit's assessed value growth quotient for an ensuing calendar year, the state board of tax commissioners shall replace the quotient described in STEP TWO of subsection (b) for that particular calendar year. The state board of tax commissioners shall replace that quotient with one that, as accurately as possible, will reflect the actual growth in the civil taxing unit's unadjusted assessed values of real property from the immediately preceding calendar year to that particular calendar year.

SOURCE: IC 6-1.1-18.5-3; (01)CR149901.30. -->     SECTION 30. IC 6-1.1-18.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 3. (a) Except as otherwise provided in this chapter, a civil taxing unit that is treated as not being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, that was used to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of subsection (b) for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in either the last STEP of section 2 (a) of this chapter for calendar years ending before January 1, 2006, or the last STEP of section 2(b) of this chapter for calendar years beginning after December 31, 2005.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient (rounded to the nearest ten-thousandth), of

the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
    (b) Except as otherwise provided in this chapter, a civil taxing unit that is treated as being located in an adopting county under section 4 of this chapter may not impose an ad valorem property tax levy for an ensuing calendar year that exceeds the amount determined in the last STEP of the following STEPS:
        STEP ONE: Add the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year to the part of the civil taxing unit's certified share, if any, used to reduce the civil taxing unit's ad valorem property tax levy under STEP EIGHT of this subsection for that preceding calendar year.
        STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in either the last STEP of section 2 (a) of this chapter for calendar years ending before January 1, 2006, or the last STEP of section 2(b) of this chapter for calendar years beginning after December 31, 2005.
        STEP THREE: Determine the lesser of one and fifteen hundredths (1.15) or the quotient of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year divided by the assessed value of all taxable property that is subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year and that is contained within the geographic area that was subject to the civil taxing unit's ad valorem property tax levy in the preceding

calendar year.
        STEP FOUR: Determine the greater of the amount determined in STEP THREE or one (1).
        STEP FIVE: Multiply the amount determined in STEP TWO by the amount determined in STEP FOUR.
        STEP SIX: Add the amount determined under STEP TWO to the amount determined under subsection (c).
        STEP SEVEN: Determine the greater of the amount determined under STEP FIVE or the amount determined under STEP SIX.
        STEP EIGHT: Subtract the amount determined under STEP FIVE of subsection (e) from the amount determined under STEP SEVEN of this subsection.
    (c) If a civil taxing unit in the immediately preceding calendar year provided an area outside its boundaries with services on a contractual basis and in the ensuing calendar year that area has been annexed by the civil taxing unit, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals the amount paid by the annexed area during the immediately preceding calendar year for services that the civil taxing unit must provide to that area during the ensuing calendar year as a result of the annexation. In all other cases, the amount to be entered under STEP SIX of subsection (a) or STEP SIX of subsection (b), as the case may be, equals zero (0).
    (d) This subsection applies only to civil taxing units located in a county having a county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1 ) of one percent (1%) as of January 1 of the ensuing calendar year. For each civil taxing unit, the amount to be added to the amount determined in subsection (e), STEP FOUR, is determined using the following formula:
        STEP ONE: Multiply the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year by two percent (2%).
        STEP TWO: For the determination year, the amount to be used as the STEP TWO amount is the amount determined in subsection (f) for the civil taxing unit. For each year following the determination year the STEP TWO amount is the lesser of:
            (A) the amount determined in STEP ONE; or
            (B) the amount determined in subsection (f) for the civil taxing

unit.
        STEP THREE: Determine the greater of:
            (A) zero (0); or
            (B) the civil taxing unit's certified share for the ensuing calendar year minus the greater of:
                (i) the civil taxing unit's certified share for the calendar year that immediately precedes the ensuing calendar year; or
                (ii) the civil taxing unit's base year certified share.
        STEP FOUR: Determine the greater of:
            (A) zero (0); or
            (B) the amount determined in STEP TWO minus the amount determined in STEP THREE.
Add the amount determined in STEP FOUR to the amount determined in subsection (e), STEP THREE, as provided in subsection (e), STEP FOUR.
    (e) For each civil taxing unit, the amount to be subtracted under subsection (b), STEP EIGHT, is determined using the following formula:
        STEP ONE: Determine the lesser of the civil taxing unit's base year certified share for the ensuing calendar year, as determined under section 5 of this chapter, or the civil taxing unit's certified share for the ensuing calendar year.
        STEP TWO: Determine the greater of:
            (A) zero (0); or
            (B) the remainder of:
                (i) the amount of federal revenue sharing money that was received by the civil taxing unit in 1985; minus
                (ii) the amount of federal revenue sharing money that will be received by the civil taxing unit in the year preceding the ensuing calendar year.
        STEP THREE: Determine the lesser of:
            (A) the amount determined in STEP TWO; or
            (B) the amount determined in subsection (f) for the civil taxing unit.
        STEP FOUR: Add the amount determined in subsection (d), STEP FOUR, to the amount determined in STEP THREE.
        STEP FIVE: Subtract the amount determined in STEP FOUR from the amount determined in STEP ONE.


    (f) As used in this section, a taxing unit's "determination year" means the latest of:
        (1) calendar year 1987, if the taxing unit is treated as being located in an adopting county for calendar year 1987 under section 4 of this chapter;
        (2) the taxing unit's base year, as defined in section 5 of this chapter, if the taxing unit is treated as not being located in an adopting county for calendar year 1987 under section 4 of this chapter; or
        (3) the ensuing calendar year following the first year that the taxing unit is located in a county that has a county adjusted gross income tax rate of more than one-half percent (0.5%) on July 1 of that year.
The amount to be used in subsections (d) and (e) for a taxing unit depends upon the taxing unit's certified share for the ensuing calendar year, the taxing unit's determination year, and the county adjusted gross income tax rate for resident county taxpayers (as defined in IC 6-3.5-1.1-1 ) that is in effect in the taxing unit's county on July 1 of the year preceding the ensuing calendar year. For the determination year and the ensuing calendar years following the taxing unit's determination year, the amount is the taxing unit's certified share for the ensuing calendar year multiplied by the appropriate factor prescribed in the following table:
COUNTIES WITH A TAX RATE OF 1/2%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    0
COUNTIES WITH A TAX RATE OF 3/4%

         Subsection (e)
    Year     Factor
For the determination year and each en-
suing calendar year following the deter-
mination year    1/2
COUNTIES WITH A TAX RATE OF 1.0%

        Subsection (d)     Subsection (e)
    Year    Factor     Factor
For the determination year    1/6     1/3
For the ensuing calendar
year following the determi-
nation year    1/4     1/3
For the ensuing calendar
year following the determi-
nation year by two (2) years    1/3     1/3
SOURCE: IC 6-1.1-18.5-6; (01)CR149901.31. -->     SECTION 31. IC 6-1.1-18.5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 6. (a) For purposes of STEP TWO of section 2 (a) of this chapter and STEP TWO of section 2(b) of this chapter, the civil taxing unit's taxable property includes all taxable property located in the geographic area subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, regardless of whether that property was located in the geographic area subject to the civil taxing unit's ad valorem property tax levy in the calendar years for which the computation is made.
    (b) For purposes of STEP TWO of section 2 (a) of this chapter, STEP THREE of section 3(a) of this chapter, and STEP THREE of section 3(b) of this chapter, the assessed value of taxable property is the assessed value of that property as determined by the state board of tax commissioners in fixing the civil taxing unit's budget, levy, and rate for the applicable calendar year, excluding deductions allowed under IC 6-1.1-12 or IC 6-1.1-12.1.
SOURCE: IC 6-1.1-18.5-13; (01)CR149901.32. -->     SECTION 32. IC 6-1.1-18.5-13 , AS AMENDED BY P.L.6-1997, SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 13. With respect to an appeal filed under section 12 of this chapter, the local government tax control board may recommend that a civil taxing unit receive any one (1) or more of the following types of relief:
        (1) Permission to the civil taxing unit to reallocate the amount set aside as a property tax replacement credit as required by IC 6-3.5-1.1 for a purpose other than property tax relief. However, whenever this occurs, the local government tax control board shall also state the amount to be reallocated.
        (2) Permission to the civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if in the judgment of the local government tax control board the increase is reasonably necessary due to increased costs of the civil

taxing unit resulting from annexation, consolidation, or other extensions of governmental services by the civil taxing unit to additional geographic areas or persons.
        (3) Permission to the civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the civil taxing unit needs the increase to meet the civil taxing unit's share of the costs of operating a court established by statute enacted after December 31, 1973. Before recommending such an increase, the local government tax control board shall consider all other revenues available to the civil taxing unit that could be applied for that purpose. The maximum aggregate levy increases that the local government tax control board may recommend for a particular court equals the civil taxing unit's share of the costs of operating a court for the first full calendar year in which it is in existence.
        (4) Permission to the civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if the civil taxing unit's average three (3) year growth factor, as determined in section 2 (a) (STEP THREE) of this chapter for calendar years ending before January 1, 2006, or section 2(b) (STEP THREE) of this chapter for calendar years beginning after December 31, 2005, exceeds one and one-tenth (1.1). However, any increase in the amount of the civil taxing unit's levy recommended by the local government tax control board under this subdivision may not exceed an amount equal to the remainder of:
            (A) the amount of ad valorem property taxes the civil taxing unit could impose for the ensuing calendar year under section 3 of this chapter if at STEP TWO of subsection (a) or (b), as the case may be, the amount determined in STEP THREE of section 2 (a) of this chapter for calendar years ending before January 1, 2006, or in STEP THREE of section 2(b) of this chapter for calendar years beginning after December 31, 2005, is substituted for the amount determined under STEP FIVE of section 2 (a) of this chapter for calendar years ending before January 1, 2006, or under STEP FIVE of section 2(b) of this chapter for calendar years beginning after December 31, 2005; minus


            (B) the amount of ad valorem property taxes the civil taxing unit could impose under section 3 of this chapter for the ensuing calendar year.
        In addition, before the local government tax control board may recommend the relief allowed under this subdivision, the civil taxing unit must show a need for the increased levy because of special circumstances, and the local government tax control board must consider other sources of revenue and other means of relief.
        (5) Permission to the civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the civil taxing unit needs the increase to pay the costs of furnishing fire protection for the civil taxing unit through a volunteer fire department. For purposes of determining a township's need for an increased levy, the local government tax control board shall not consider the amount of money borrowed under IC 36-6-6-14 during the immediately preceding calendar year. However, any increase in the amount of the civil taxing unit's levy recommended by the local government tax control board under this subdivision for the ensuing calendar year may not exceed the lesser of:
            (A) ten thousand dollars ($10,000); or
            (B) twenty percent (20%) of:
                (i) the amount authorized for operating expenses of a volunteer fire department in the budget of the civil taxing unit for the immediately preceding calendar year; plus
                (ii) the amount of any additional appropriations authorized during that calendar year for the civil taxing unit's use in paying operating expenses of a volunteer fire department under IC 6-1.1-18.5 ; minus
                (iii) the amount of money borrowed under IC 36-6-6-14 during that calendar year for the civil taxing unit's use in paying operating expenses of a volunteer fire department.
        (6) Permission to a civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter in order to raise revenues for pension payments and contributions the civil taxing unit is required to make under IC 36-8. The maximum increase in a civil taxing unit's levy that may be recommended under this subdivision for an ensuing calendar year

equals the amount, if any, by which the pension payments and contributions the civil taxing unit is required to make under IC 36-8 during the ensuing calendar year exceeds the product of one and one-tenth (1.1) multiplied by the pension payments and contributions made by the civil taxing unit under IC 36-8 during the calendar year that immediately precedes the ensuing calendar year. For purposes of this subdivision, "pension payments and contributions made by a civil taxing unit" does not include that part of the payments or contributions that are funded by distributions made to a civil taxing unit by the state.
        (7) Permission to increase its levy in excess of the limitations established under section 3 of this chapter if the local government tax control board finds that:
            (A) the township's poor relief ad valorem property tax rate is less than one and sixty-seven hundredths cents ($0.0167) per one hundred dollars ($100) of assessed valuation; and
            (B) the township needs the increase to meet the costs of providing poor relief under IC 12-20 and IC 12-30-4.
        The maximum increase that the board may recommend for a township is the levy that would result from an increase in the township's poor relief ad valorem property tax rate of one and sixty-seven hundredths cents ($0.0167) per one hundred dollars ($100) of assessed valuation minus the township's ad valorem property tax rate per one hundred dollars ($100) of assessed valuation before the increase.
        (8) Permission to a civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter if:
            (A) the increase has been approved by the legislative body of the municipality with the largest population where the civil taxing unit provides public transportation services; and
            (B) the local government tax control board finds that the civil taxing unit needs the increase to provide adequate public transportation services.
        The local government tax control board shall consider tax rates and levies in civil taxing units of comparable population, and the effect (if any) of a loss of federal or other funds to the civil taxing unit that might have been used for public transportation purposes. However, the increase that the board may recommend under this

subdivision for a civil taxing unit may not exceed the revenue that would be raised by the civil taxing unit based on a property tax rate of one cent ($0.01) per one hundred dollars ($100) of assessed valuation.
        (9) Permission to a civil taxing unit to increase the unit's levy in excess of the limitations established under section 3 of this chapter if the local government tax control board finds that:
            (A) the civil taxing unit is:
                (i) a county having a population of more than one hundred twenty-nine thousand (129,000) but less than one hundred thirty thousand six hundred (130,600);
                (ii) a city having a population of more than forty-three thousand seven hundred (43,700) but less than forty-four thousand (44,000);
                (iii) a city having a population of more than twenty-five thousand five hundred (25,500) but less than twenty-six thousand (26,000);
                (iv) a city having a population of more than fifteen thousand three hundred fifty (15,350) but less than fifteen thousand five hundred seventy (15,570); or
                (v) a city having a population of more than five thousand six hundred fifty (5,650) but less than five thousand seven hundred eight (5,708); and
            (B) the increase is necessary to provide funding to undertake removal (as defined in IC 13-7-8.7-1 ) and remedial action (as defined in IC 13-7-8.7-1 ) relating to hazardous substances (as defined in IC 13-7-8.7-1 ) in solid waste disposal facilities or industrial sites in the civil taxing unit that have become a menace to the public health and welfare.
        The maximum increase that the local government tax control board may recommend for such a civil taxing unit is the levy that would result from a property tax rate of six and sixty-seven hundredths cents ($0.0667) for each one hundred dollars ($100) of assessed valuation. For purposes of computing the ad valorem property tax levy limit imposed on a civil taxing unit under section 3 of this chapter, the civil taxing unit's ad valorem property tax levy for a particular year does not include that part of the levy imposed under this subdivision. In addition, a property

tax increase permitted under this subdivision may be imposed for only two (2) calendar years.
        (10) Permission for a county having a population of more than seventy-eight thousand (78,000) but less than eighty-five thousand (85,000) to increase the county's levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the county needs the increase to meet the county's share of the costs of operating a jail or juvenile detention center, including expansion of the facility, if the jail or juvenile detention center is opened after December 31, 1991. Before recommending an increase, the local government tax control board shall consider all other revenues available to the county that could be applied for that purpose. An appeal for operating funds for a jail or juvenile detention center shall be considered individually, if a jail and juvenile detention center are both opened in one (1) county. The maximum aggregate levy increases that the local government tax control board may recommend for a county equals the county's share of the costs of operating the jail or juvenile detention center for the first full calendar year in which the jail or juvenile detention center is in operation.
        (11) Permission for a township to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the township needs the increase so that the property tax rate to pay the costs of furnishing fire protection for a township, or a portion of a township, enables the township to pay a fair and reasonable amount under a contract with the municipality that is furnishing the fire protection. However, for the first time an appeal is granted the resulting rate increase may not exceed fifty percent (50%) of the difference between the rate imposed for fire protection within the municipality that is providing the fire protection to the township and the township's rate. A township is required to appeal a second time for an increase under this subdivision if the township wants to further increase its rate. However, a township's rate may be increased to equal but may not exceed the rate that is used by the municipality. More than one (1) township served by the same municipality may use this appeal.


SOURCE: IC 6-1.1-20.8-2; (01)CR149901.33. -->     SECTION 33. IC 6-1.1-20.8-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 2. (a) A person that desires to claim the credit provided by section 1 of this chapter shall file a certified application, on forms prescribed by the state board of tax commissioners, with:
        (1) the auditor of the county where the property for which the credit is claimed was located on the assessment date; and
        (2) the state board of tax commissioners.
A person that timely files a personal property return under IC 6-1.1-3-7 (a) for an assessment year must file the application between March 1 and May 15 of that year in order to obtain the credit in the following year. A person that obtains takes a filing extension under IC 6-1.1-3-7 (b) for an assessment year must file the application between March 1 and June 14 of that year in order to obtain the credit in the following year.
    (b) A taxpayer shall include on an application filed under this section all information that the state board of tax commissioners requires to determine eligibility for the credit provided under this chapter.
    (c) Compliance with this chapter does not exempt a person from compliance with IC 4-4-6.1-2.5.".
SOURCE: Page 7, line 15; (01)CR149901.7. -->     Page 7, line 15, after "1." insert " (a)".
    Page 7, line 18, delete "Except for" and insert " In addition to".
    Page 7, line 19, delete "an" and insert " only one (1) other".
    Page 7, line 20, delete "not".
    Page 7, line 29, delete ", unless" and insert " .".
    Page 7, line 30, delete "the county assessor is a certified level two assessor-appraiser." and insert " However, if the county assessor is a certified level 2 Indiana assessor-appraiser, the board of county commissioners may waive the requirement in this subsection that one (1) of the freehold members appointed by the board of county commissioners must be a certified level 2 Indiana assessor-appraiser.".
    Page 7, between lines 41 and 42, begin a new paragraph and insert:
    " (b) The county assessor, county fiscal body, and board of county commissioners may agree to waive the requirement in subsection (a) that not more than three (3) of the five (5) members of the county property tax assessment board of appeals may be of

the same political party if it is necessary to waive the requirement due to the absence of certified level 2 Indiana assessor-appraisers:
        (1) who are willing to serve on the board; and
        (2) whose political party membership status would satisfy the requirement in subsection (c)(1).
    (c) If the board of county commissioners is not able to identify at least two (2) prospective freehold members of the county property tax assessment board of appeals who are:
        (1) residents of the county;
        (2) certified level 2 Indiana assessor-appraisers; and
        (3) willing to serve on the county property tax assessment board of appeals;
it is not necessary that at least three (3) of the five (5) members of the county property tax assessment board of appeals be residents of the county.
".
    Page 11, between lines 23 and 24, begin a new paragraph and insert:

SOURCE: IC 6-1.1-37-7; (01)CR149901.41. -->     "SECTION 41. IC 6-1.1-37-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7. (a) If a person fails to file a required personal property return on or before the due date, the county auditor shall add a penalty of twenty-five dollars ($25) to the person's next property tax installment. The county auditor shall also add an additional penalty to the taxes payable by the person if he fails to file the personal property return within thirty (30) days after the due date. The amount of the additional penalty is twenty percent (20%) of the taxes finally determined to be due with respect to the personal property which should have been reported on the return.
    (b) For purposes of this section, a personal property return is not due until the expiration of any extension period granted taken by the township assessor person under IC 6-1.1-3-7 (b).
    (c) The penalties prescribed under this section do not apply to an individual or his dependents if he:
        (1) is in the military or naval forces of the United States on the assessment date; and
        (2) is covered by the federal Soldiers' and Sailors' Civil Relief Act.
    (d) If a person subject to IC 6-1.1-3-7 (d) fails to include on a personal property return the information, if any, that the state board of tax commissioners requires under IC 6-1.1-3-9 or IC 6-1.1-5-13 , the

county auditor shall add a penalty to the property tax installment next due for the return. The amount of the penalty is twenty-five dollars ($25).
    (e) If the total assessed value that a person reports on a personal property return is less than the total assessed value that the person is required by law to report and if the amount of the undervaluation exceeds five percent (5%) of the value that should have been reported on the return, then the county auditor shall add a penalty of twenty percent (20%) of the additional taxes finally determined to be due as a result of the undervaluation. The penalty shall be added to the property tax installment next due for the return on which the property was undervalued. If a person has complied with all of the requirements for claiming a deduction, an exemption, or an adjustment for abnormal obsolescence, then the increase in assessed value that results from a denial of the deduction, exemption, or adjustment for abnormal obsolescence is not considered to result from an undervaluation for purposes of this subsection.
    (f) A penalty is due with an installment under subsection (a), (d), or (e) whether or not an appeal is filed under IC 6-1.1-15-5 with respect to the tax due on that installment.

SOURCE: IC 6-1.1-40-11; (01)CR149901.42. -->     SECTION 42. IC 6-1.1-40-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 11. (a) A person that desires to obtain the deduction provided by section 10 of this chapter must file a certified deduction application, on forms prescribed by the state board of tax commissioners, with:
        (1) the auditor of the county in which the new manufacturing equipment and inventory is located; and
        (2) the state board of tax commissioners.
A person that timely files a personal property return under IC 6-1.1-3-7 (a) for the year in which the new manufacturing equipment is installed or the inventory is subject to assessment must file the application between March 1 and May 15 of that year. A person that obtains takes a filing extension under IC 6-1.1-3-7 (b) for the year in which the new manufacturing equipment is installed or the inventory is subject to assessment must file the application between March 1 and June 14 of that year.
    (b) The application required by this section must contain the following information:
        (1) The name of the owner of the new manufacturing equipment and inventory.
        (2) A description of the new manufacturing equipment and inventory.
        (3) Proof of the date the new manufacturing equipment was installed.
        (4) The amount of the deduction claimed for the first year of the deduction.
    (c) A deduction application must be filed under this section in the year in which the new manufacturing equipment is installed or the inventory is subject to assessment and in each of the immediately succeeding nine (9) years.
    (d) The state board of tax commissioners shall review and verify the correctness of each application and shall notify the county auditor of the county in which the property is located that the application is approved or denied or that the amount of the deduction is altered. Upon notification of approval of the application or of alteration of the amount of the deduction, the county auditor shall make the deduction.
    (e) If the ownership of new manufacturing equipment changes, the deduction provided under section 10 of this chapter continues to apply to that equipment if the new owner:
        (1) continues to use the equipment in compliance with any standards established under section 7(c) of this chapter; and
        (2) files the applications required by this section.
    (f) The amount of the deduction is:
        (1) the percentage under section 10 of this chapter that would have applied if the ownership of the property had not changed; multiplied by
        (2) the assessed value of the equipment for the year the deduction is claimed by the new owner.
SOURCE: IC 14-23-3-3; (01)CR149901.43. -->     SECTION 43. IC 14-23-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2001 (RETROACTIVE)]: Sec. 3. Annually there shall be levied and collected as other state taxes are levied and collected the amount of six and one-half (6 1/2) mills two hundred sixteen-thousandths of one cent ($0.00216) upon each one hundred dollars ($100) worth of taxable property in Indiana. The money collected shall be paid into the fund.
SOURCE: IC 33-3-5-14; (01)CR149901.44. -->     SECTION 44. IC 33-3-5-14 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14. (a) Subject to subsection (b), with respect to determinations as to whether any issues or evidence may be heard in an original tax appeal that was not heard in the administrative hearing or proceeding, the tax court is governed by the law that applied before the creation of the tax court to appeals to trial courts of final determinations made by the department of state revenue and the state board of tax commissioners.
     (b) This subsection applies only to a proceeding in a matter described in IC 6-1.1-30-11 (c). This subsection does not apply to an appeal under IC 6-1.1-8-29 or any other determination of the state board of tax commissioners not described in IC 6-1.1-30-11 (c). Judicial review of disputed issues of fact must be confined to:
        (1) the record of the proceeding before the state board of tax commissioners, including its division of appeals; and
        (2) any additional evidence taken under section 14.5 of this chapter.
The tax court may not try the cause de novo or substitute its judgment for that of the state board of tax commissioners, including its division of appeals. Judicial review is limited to only those issues raised before the state board of tax commissioners, including its division of appeals, or otherwise described by the state board of tax commissioners, including its division of appeals, in its final determination.
    (c) A person may obtain judicial review of an issue that was not raised before the state board of tax commissioners only to the extent that the:
        (1) issue concerns whether a person who was required to be notified of the commencement of a proceeding under this chapter was notified in substantial compliance with the applicable law; or
        (2) interests of justice would be served by judicial resolution of an issue arising from a change in controlling law occurring after the state board of tax commissioners' action.

SOURCE: IC 33-3-5-14.5; (01)CR149901.45. -->     SECTION 45. IC 33-3-5-14.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14.5. (a) This section applies only to proceedings in a matter described in IC 6-1.1-30-11 (c). This subsection does not apply to an appeal under IC 6-1.1-8-29 or any

other determination of the state board of tax commissioners not described in IC 6-1.1-30-11 (c).
     (b) The tax court may receive evidence in addition to that contained in the record of the determination of the state board of tax commissioners, including its division of appeals, only if it relates to the validity of the determination at the time it was taken and is needed to decide disputed issues regarding one (1) or both of the following:
        (1) Improper constitution as a decision making body or grounds for disqualification of those taking the agency action.
        (2) Unlawfulness of procedure or decision making process.
This subsection applies only if the additional evidence could not, by due diligence, have been discovered and raised in the administrative proceeding giving rise to a proceeding for judicial review.
    (c) The tax court may remand a matter to the state board of tax commissioners before final disposition of a petition for review with directions that the state board of tax commissioners or its division of appeals, as appropriate, conduct further factfinding or that the state board of tax commissioners or its division of appeals, as appropriate, prepare an adequate record, if:
        (1) the state board of tax commissioners or its division of appeals failed to prepare or preserve an adequate record;
        (2) the state board of tax commissioners or its division of appeals improperly excluded or omitted evidence from the record; or
        (3) a relevant law changed after the action of the state board of tax commissioners or its division of appeals and the tax court determines that the new provision of law may control the outcome.
    (d) This subsection applies if the record for a judicial review prepared under IC 6-1.1-15-6 contains an inadequate record of a site inspection. Rather than remand a matter under subsection (c), the tax court may take additional evidence not contained in the record relating only to observations and other evidence collected during a site inspection conducted by a hearing officer or other employee of the state board of tax commissioners. The evidence may include the testimony of a hearing officer only for purposes of

verifying or rebutting evidence regarding the site inspection that is already contained in the record.

SOURCE: IC 33-3-5-14.7; (01)CR149901.46. -->     SECTION 46. IC 33-3-5-14.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14.7. (a) This section applies only to proceedings in a matter described in IC 6-1.1-30-11 (c). This subsection does not apply to an appeal under IC 6-1.1-8-29 or any other determination of the state board of tax commissioners not described in IC 6-1.1-30-11 (c).
    (b) The burden of demonstrating the invalidity of an action taken by the state board of tax commissioners, including its division of appeals, is on the party to the judicial review proceeding asserting the invalidity.
    (c) The validity of an action taken by the state board of tax commissioners, including its division of appeals, shall be determined in accordance with the standards of review provided in this section as applied to the agency action at the time it was taken.
    (d) The tax court shall make findings of fact on each material issue on which the court's decision is based.
    (e) The tax court shall grant relief under section 15 of this chapter only if the tax court determines that a person seeking judicial relief has been prejudiced by an action by the state board of tax commissioners, including its division of appeals, that is:
        (1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
        (2) contrary to constitutional right, power, privilege, or immunity;
        (3) in excess of statutory jurisdiction, authority, or limitations, or short of statutory right;
        (4) without observance of procedure required by law; or
        (5) unsupported by substantial and reliable evidence.
".
SOURCE: Page 12, line 27; (01)CR149901.12. -->     Page 12, between lines 27 and 28, begin a new paragraph and insert:
SOURCE: IC 36-6-8-6; (01)CR149901.50. -->     "SECTION 50. IC 36-6-8-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 6. (a) A township assessor who becomes a certified level 2 Indiana assessor-appraiser is entitled to a salary increase of one thousand dollars ($1,000) after his the assessor's certification under IC 6-1.1-35.5.
    (b) A certified level 2 Indiana assessor-appraiser who replaces a township assessor who is not so certified is entitled to a salary of one thousand dollars ($1,000) more than his predecessor's the salary of the person's predecessor.
    (c) An employee of a township assessor who becomes a certified level 2 Indiana assessor-appraiser is entitled to a salary increase of five hundred dollars ($500) after the employee's certification under IC 6-1.1-35.5.
     (d) A salary increase under this section comprises a part of the township assessor's or employee's base salary for as long as he the person serves in that position and maintains the level 2 certification.".
SOURCE: Page 13, line 2; (01)CR149901.13. -->     Page 13, between lines 2 and 3, begin a new paragraph and insert:
SOURCE: ; (01)CR149901.53. -->     "SECTION 53. [EFFECTIVE JANUARY 1, 2002] IC 6-1.1-12-40 , as added by this act, applies only to property taxes first due and payable after December 31, 2001.
SOURCE: ; (01)CR149901.54. -->     SECTION 54. [EFFECTIVE JULY 1, 2001] (a) The following, each as amended by this act, apply to property taxes due and payable after December 31, 2002:
        IC 6-1.1-3-7
        IC 6-1.1-3-7.5
        IC 6-1.1-12-28.5
        IC 6-1.1-12-35
        IC 6-1.1-12.1-5.5
        IC 6-1.1-20.8-2
        IC 6-1.1-37-7
        IC 6-1.1-40-11
    (b) This SECTION expires January 1, 2004.

SOURCE: ; (01)CR149901.55. -->     SECTION 55. [EFFECTIVE UPON PASSAGE] IC 6-1.1-15-10 , as amended by this act, applies to property taxes first due and payable after December 31, 2000.
SOURCE: ; (01)CR149901.56. -->     SECTION 56. [EFFECTIVE JULY 1, 2001] (a) IC 6-1.1-15-4 , as amended by this act, applies to appeal petitions filed under IC 6-1.1-15-3 after June 30, 2001.
    (b) This SECTION expires January 1, 2003.

SOURCE: ; (01)CR149901.57. -->     SECTION 57. [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: (a) This section applies to a not for profit fraternal organization that:
        (1) owns property and conducts the business of the organization in a city having a population of more than thirty-five thousand (35,000) but less than thirty-seven thousand (37,000);
        (2) previously was determined by the auditor of the county in which the property is located to be eligible to receive the property tax exemption under IC 6-1.1-10-16 (b); and
        (3) is not eligible for the property tax exemption under IC 6-1.1-10-16 (b) for property taxes due and payable in 2001 because the not for profit fraternal organization failed to timely file an application under IC 6-1.1-11-3.5.
    (b) Notwithstanding IC 6-1.1-11-3.5 , the auditor of the county in which the property described in subsection (a)(1) is located shall
        (1) waive noncompliance with the timely filing requirement for the exemption application in question; and
        (2) make the appropriate exemption.
    (c) A property tax exemption granted under this SECTION applies to property taxes first due and payable after December 31, 2000.
    (d) This SECTION expires December 31, 2001.

SOURCE: ; (01)CR149901.58. -->     SECTION 58. [EFFECTIVE JULY 1, 2001] (a) To the extent allowable under the Constitution of the State of Indiana and the Constitution of the United States, IC 6-1.1-15-4 , IC 6-1.1-15-5 , IC 6-1.1-15-6 , and IC 33-3-5-14 , all as amended by this act, and IC 33-3-5-14.5 and IC 33-3-5-14.7 , both as added by this act, apply to all of the following:
        (1) Proceedings in matters described in IC 6-1.1-30-11 (c) that are pending before the state board of tax commissioners, including its division of appeals, on July 1, 2001.
        (2) Proceedings in matters described in IC 6-1.1-30-11 (c) that are pending before the tax court on July 1, 2001.
        (3) Proceedings in matters described in IC 6-1.1-30-11 (c) that are commenced in or remanded to the state board of tax commissioners, including its division of appeals, after June 30, 2001.
        (4) Proceedings in matters described in IC 6-1.1-30-11 (c) that are commenced in or remanded to the tax court after June 30, 2001.
    (b) The enactment of legislation by the general assembly to change the adjudication and judicial review procedures applicable to matters described in IC 6-1.1-30-11 (c) shall not be construed to change the procedures applicable to the adjudication and judicial review of other matters appealable to the tax court.

SOURCE: ; (01)CR149901.59. -->     SECTION 59. [EFFECTIVE JULY 1, 2001] (a) For purposes of this SECTION, a taxing district in a township includes a taxing district located wholly or partially in the township.
    (b) Before November 1, 2004, the state board of tax commissioners shall publish a report listing the assessed value of all exempt property in each taxing district in the state listed in the tax duplicate prepared under IC 6-1.1-22-3 for March 1, 2004.

     (c) The state board of tax commissioners shall adopt rules under IC 4-22-2 to carry out this section.
     (d) This SECTION expires January 1, 2006.
SOURCE: ; (01)CR149901.60. -->     SECTION 60. [EFFECTIVE UPON PASSAGE] (a) The state board of tax commissioners shall adopt the rules required by IC 6-1.1-10-36.5 , as amended by this act, before July 1, 2002.
    (b) This SECTION expires July 1, 2004.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1499 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Bauer


CR149901/DI 92+    2001