Introduced Version






SENATE BILL No. 164

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-37-7.

Synopsis: Personal property tax undervaluation penalty. Increases from 5% to 10% the threshold for application of the penalty for undervaluation of property on a personal property tax return, and decreases the penalty from 20% to 10% of the taxes due on the undervaluation.

Effective: July 1, 2003.





Kenley




    January 7, 2003, read first time and referred to Committee on Finance.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 164



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

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

    SECTION 1. IC 6-1.1-37-7 , AS AMENDED BY P.L.90-2002, SECTION 261, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: 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 the person 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 by the township assessor under IC 6-1.1-3-7 (b).
    (c) The penalties prescribed under this section do not apply to an individual or his the individual's dependents if he: the individual:
        (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 department of local government finance 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 ten percent (5%) (10%) of the value that should have been reported on the return, then the county auditor shall add a penalty of twenty ten percent (20%) (10%) 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.
    SECTION 2. [EFFECTIVE JULY 1, 2003] (a) IC 6-1.1-37-7 , as amended by this act, applies only to property taxes first due and payable after December 31, 2003.
    (b) This SECTION expires January 1, 2005.