SB 1-20_ Filed 12/04/2003, 07:38 Hoffman


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 1 be amended to read as follows:

SOURCE: Page 18, line 26; (04)MO000153.18. -->     Page 18, between lines 26 and 27, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12-43; (04)MO000153.13. -->     "SECTION 13. IC 6-1.1-12-43 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 43. (a) As used in this section, "agricultural land" refers to land that is assessed as agricultural land under IC 6-1.1-4-13.
    (b) As used in this chapter, "farm" means one (1) or more tracts of agricultural land with common ownership that are:
        (1) devoted to an agricultural use;
        (2) located in one (1) county; and
        (3) contiguous, as determined without regard to any intervening public, public utility, or transportation easements or rights-of-way.
    (c) As used in this section, "farm owner" means a person that:
        (1) is an owner of a farm; and
        (2) either is:
            (A) an individual who:
                (i) actively participates in; and
                (ii) alone or with one (1) or more other individuals substantially owns and controls;
            the use of the agricultural land; or
            (B) a corporation (as defined in IC 6-3-1-10) or a partnership (as defined in IC 6-3-1-19) that, directly or

indirectly, is substantially owned and controlled by one (1) or more individuals who actively participate in and substantially control the use of the agricultural land.
    (d) As used in this section, "total farmland acreage" means total farmland acreage, as determined for agricultural land under the rules adopted by the department of local government finance.
    (e) A farm owner is eligible for a farmland deduction from the assessed valuation of the farm owner's farm.
    (f) The amount of the farmland deduction is equal to twenty percent (20%) of the assessed valuation of the total farmland acreage in the farm. If the farm consists of more than one (1) tract that receives separate tax statements under IC 6-1.1-22-8, the farmland deduction shall be allocated among the tracts in conformity with the rules adopted by the department of local government finance. A taxpayer may claim the farmland deduction in more than one (1) county. However, the total statewide farmland acreage for which a taxpayer may claim a deduction under this section may not exceed five hundred (500) acres.
    (g) To obtain the farmland deduction under this section, a farm owner must file a certified statement in duplicate:
        (1) on forms prescribed by the department of local government finance; and
        (2) containing the information required by the department of local government finance;
with the county auditor of the county in which the agricultural land is subject to assessment. The statement must be filed before May 10 of the year containing the assessment date for the first year to which the farmland deduction is to be applied. Upon verification of the statement by the township assessor of the township in which the agricultural land is subject to assessment, the county auditor shall allow the farmland deduction.
    (h) A person who receives a farmland deduction under this section for a particular year and who remains eligible for the farmland deduction for the following year is not required to file a statement to apply for the farmland deduction for the following year.
    (i) A person who receives a farmland deduction provided under this section for a particular year and becomes ineligible for the farmland deduction for the following year shall notify the county auditor of the county in which the agricultural land for which the person received the farmland deduction is located of the person's ineligibility before March 31 of the year for which the person

becomes ineligible. The filing of an amended application under subsection (k) meets the requirements of this subsection.
    (j) The county auditor of each county shall, in a particular year, apply a farmland deduction provided under this section to each person that received the farmland deduction in the preceding year unless the auditor determines that the person is no longer eligible for the farmland deduction.
    (k) The following do not terminate eligibility for a farmland deduction under this section:
        (1) A change in ownership of agricultural land if:
            (A) a person who is a farm owner after the change in ownership or control files an amended application with the county auditor in the county where the farm is located, in the form prescribed by the department of local government finance before March 31 after the change in ownership occurs; and
            (B) the agricultural land otherwise continues to qualify for the farmland deduction under this section after the change in ownership or control.

        (2) A change in the ownership or control of a corporation (as defined in IC 6-3-1-10) or a partnership (as defined in IC 6-3-1-19) that owns agricultural land, if the corporation or the partnership:
            (A) files an amended application with the county auditor in the county where the agricultural land is located in the form prescribed by the department of local government finance
before March 31 after the change in ownership or control land occurs; and
            (B) otherwise continues to qualify for the farmland deduction under this section after the change in ownership or control.
In applying subdivision (1) or (2) after the death of a farm owner or a shareholder, partner, member, or beneficiary of a farm owner, the person who is entitled to receive the property interest of the deceased person shall be treated as an owner of the deceased person's interest while the interest is in the estate of the deceased person.
".

SOURCE: Page 59, line 22; (04)MO000153.59. -->     Page 59, between lines 22 and 23, begin a new paragraph and insert:
SOURCE: IC 6-1.1-21-3; (04)MO000153.35. -->     "SECTION 35. IC 6-1.1-21-3, AS AMENDED BY P.L.192-2002(ss), SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The department, with the assistance of the auditor of state and the department of local government finance, shall determine an amount

equal to the eligible property tax replacement amount, which is the estimated property tax replacement.
    (b) The department of local government finance shall certify to the department the amount of:
        (1) property tax deduction replacement credits provided under IC 6-1.1-21.9 that are allowed by the county for the particular calendar year; and
         (2) homestead credits provided under IC 6-1.1-20.9 which are allowed by the county for the particular calendar year.
    (c) If there are one (1) or more taxing districts in the county that contain all or part of an economic development district that meets the requirements of section 5.5 of this chapter, the department of local government finance shall estimate an additional distribution for the county in the same report required under subsection (a). This additional distribution equals the sum of the amounts determined under the following STEPS for all taxing districts in the county that contain all or part of an economic development district:
        STEP ONE: Estimate that part of the sum of the amounts under section 2(g)(1)(A) and 2(g)(2) of this chapter that is attributable to the taxing district.
        STEP TWO: Divide:
            (A) that part of the estimated property tax replacement amount attributable to the taxing district; by
            (B) the STEP ONE sum.
        STEP THREE: Multiply:
            (A) the STEP TWO quotient; times
            (B) the taxes levied in the taxing district that are allocated to a special fund under IC 6-1.1-39-5.
    (d) The sum of the amounts determined under subsections (a) through (c) is the particular county's estimated distribution for the calendar year.

SOURCE: IC 6-1.1-21-4; (04)MO000153.36. -->     SECTION 36. IC 6-1.1-21-4, AS AMENDED BY P.L.245-2003, SECTION 19, AND AS AMENDED BY P.L.264-2003, SECTION 12, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Each year the department shall allocate from the property tax replacement fund an amount equal to the sum of:
        (1) each county's total eligible property tax replacement amount for that year; plus
        (2) the total amount of homestead tax credits that are provided under IC 6-1.1-20.9 and allowed by each county for that year; plus
        (3) an amount for each county that has one (1) or more taxing districts that contain all or part of an economic development district that meets the requirements of section 5.5 of this chapter.

This amount is the sum of the amounts determined under the following STEPS for all taxing districts in the county that contain all or part of an economic development district:
            STEP ONE: Determine that part of the sum of the amounts under section 2(g)(1)(A) and 2(g)(2) of this chapter that is attributable to the taxing district.
            STEP TWO: Divide:
                (A) that part of the subdivision (1) amount that is attributable to the taxing district; by
                (B) the STEP ONE sum.
            STEP THREE: Multiply:
                (A) the STEP TWO quotient; times
                (B) the taxes levied in the taxing district that are allocated to a special fund under IC 6-1.1-39-5; plus
         (4) the total amount of property tax deduction replacement credits that are provided under IC 6-1.1-21.9 and allowed by each county for that year.
    (b) Except as provided in subsection (e), between March 1 and August 31 of each year, the department shall distribute to each county treasurer from the property tax replacement fund one-half (1/2) of the estimated distribution for that year for the county. Between September 1 and December 15 of that year, the department shall distribute to each county treasurer from the property tax replacement fund the remaining one-half (1/2) of each estimated distribution for that year. The amount of the distribution for each of these periods shall be according to a schedule determined by the property tax replacement fund board under section 10 of this chapter. The estimated distribution for each county may be adjusted from time to time by the department to reflect any changes in the total county tax levy upon which the estimated distribution is based.
    (c) On or before December 31 of each year or as soon thereafter as possible, the department shall make a final determination of the amount which should be distributed from the property tax replacement fund to each county for that calendar year. This determination shall be known as the final determination of distribution. The department shall distribute to the county treasurer or receive back from the county treasurer any deficit or excess, as the case may be, between the sum of the distributions made for that calendar year based on the estimated distribution and the final determination of distribution. The final determination of distribution shall be based on the auditor's abstract filed with the auditor of state, adjusted for postabstract adjustments included in the December settlement sheet for the year, and such additional information as the department may require.
    (d) All distributions provided for in this section shall be made on warrants issued by the auditor of state drawn on the treasurer of state.

If the amounts allocated by the department from the property tax replacement fund exceed in the aggregate the balance of money in the fund, then the amount of the deficiency shall be transferred from the state general fund to the property tax replacement fund, and the auditor of state shall issue a warrant to the treasurer of state ordering the payment of that amount. However, any amount transferred under this section from the general fund to the property tax replacement fund shall, as soon as funds are available in the property tax replacement fund, be retransferred from the property tax replacement fund to the state general fund, and the auditor of state shall issue a warrant to the treasurer of state ordering the replacement of that amount.
    (e) Except as provided in subsection (I), the department shall not distribute under subsection (b) and section 10 of this chapter the money attributable to the county's property reassessment fund if:
        (1) by the date the distribution is scheduled to be made, (1) the county auditor has not sent a certified statement required to be sent by that date under IC 6-1.1-17-1 to the department of local government finance; or
        (2) by the deadline under IC 36-2-9-20, the county auditor has not transmitted data as required under that section; or
        (2) (3) the county assessor has not forwarded to the department of local government finance the duplicate copies of all approved exemption applications required to be forwarded by that date under IC 6-1.1-11-8(a).
    (f) Except as provided in subsection (I), if the elected township assessors in the county, the elected township assessors and the county assessor, or the county assessor has not transmitted to the department of local government finance by October 1 of the year in which the distribution is scheduled to be made the data for all townships in the county required to be transmitted under IC 6-1.1-4-25(b), the state board or the department shall not distribute under subsection (b) and section 10 of this chapter a part of the money attributable to the county's property reassessment fund. The portion not distributed is the amount that bears the same proportion to the total potential distribution as the number of townships in the county for which data was not transmitted by August 1 October 1 as described in this section bears to the total number of townships in the county.
    (g) Money not distributed under subsection (e) for the reasons stated in subsection (e)(1) and (e)(2) shall be distributed to the county when:
        (1) the county auditor sends to the department of local government finance the certified statement required to be sent under IC 6-1.1-17-1; and
        (2) the county assessor forwards to the department of local government finance the approved exemption applications required to be forwarded under IC 6-1.1-11-8(a);


with respect to which the failure to send or forward resulted in the withholding of the distribution under subsection (e).
    (h) Money not distributed under subsection (f) shall be distributed to the county when the elected township assessors in the county, the elected township assessors and the county assessor, or the county assessor transmits to the department of local government finance the data required to be transmitted under IC 6-1.1-4-25(b) with respect to which the failure to transmit resulted in the withholding of the distribution under subsection (f).
    (i) The restrictions on distributions under subsections (e) and (f) do not apply if the department of local government finance determines that:
        (1) the failure of:
            (A) a county auditor to send a certified statement; or
            (B) a county assessor to forward copies of all approved exemption applications;

        as described in subsection (e); or
        (2) the failure of an official to transmit data as described in subsection (f);
is justified by unusual circumstances.".
SOURCE: Page 60, line 26; (04)MO000153.60. -->     Page 60, between lines 26 and 27, begin a new paragraph and insert:
SOURCE: IC 6-1.1-21.9; (04)MO000153.39. -->     "SECTION 39. IC 6-1.1-21.9 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 21.9. Property Tax Deduction Replacement Credits
    Sec. 1. This chapter applies to the following:
        (1) A property tax deduction increment.
        (2) A qualified property tax deduction.
    Sec. 2. The definitions set forth in IC 6-1.1-21 apply throughout this chapter.
    Sec. 3. As used in this chapter, "county property tax deduction replacement amount" means the sum of a particular county's taxpayer
property tax deduction replacement credits.
    Sec. 4. (a) This section applies only to a property tax deduction available under this article that is:
        (1) in effect on December 1, 2003; and
        (2) increased in value by the general assembly after December 1, 2003, and before March 14, 2004.
    (b) As used in this chapter, "property tax deduction increment" means"
        (1) the value of a property tax deduction available under this article (as in effect after November 30, 2003); minus
        (2) the value of the property tax deduction described in subdivision (1) before December 1, 2003.
    Sec. 5. As used in this chapter, "qualified property tax

deduction" means a property tax deduction enacted by the general assembly after December 1, 2003, and before March 14, 2004.
    Sec. 6. As used in this chapter, "taxpayer's property tax deduction replacement credit" means the amount determined in the last of the following STEPS:
        STEP ONE: Determine the sum of a particular taxpayer's property tax deduction increments.
        STEP TWO: Determine the sum of the taxpayer's qualified property tax deductions.
        STEP THREE: Determine the sum of the STEP ONE and STEP TWO results.
        STEP FOUR: Multiply the STEP THREE result by the total net tax rate applicable in the taxpayer's taxing district.

    Sec. 7. The department, with the assistance of the auditor of state and the department of local government finance, shall determine for each county an amount equal to the county property tax deduction replacement amount.
    Sec. 8. For purposes of calculating tax rates, the county auditor shall add the sum of each county taxpayer's:
        (1) property tax deduction increments; and
        (2) qualified property tax deductions;
to the county's net assessed value.
    Sec. 9. For purposes of calculating a particular taxpayer's tax bill, the county treasurer shall add the sum of the taxpayer's:
        (1) property tax deduction increments; and
        (2) qualified property tax deductions;
to the taxpayer's net assessed value.
    Sec. 10. Each year the taxpayers of each county shall receive a credit for property tax deduction replacement in the amount of each taxpayer's property tax deduction replacement credit amount for taxes which under IC 6-1.1-22-9 are due and payable in May and November of that year. The credit shall be applied to each installment of taxes. The dollar amount of the credit for each taxpayer shall be determined by the county auditor, based on data furnished by the department of local government finance.
".

SOURCE: Page 122, line 3; (04)MO000153.122. -->     Page 122, between lines 3 and 4, begin a new paragraph and insert:
SOURCE: ; (04)MO000153.91. -->     "SECTION 91. [EFFECTIVE UPON PASSAGE] (a) The definitions in IC 6-1.1-1 and IC 6-1.1-12-43, as added by this act, apply throughout this SECTION.
    (b) IC 6-1.1-12-43, as added by this act, applies only to property taxes first due and payable after December 31, 2003, for an assessment date after February 28, 2003.
    (c) Notwithstanding IC 6-1.1-12-43, as added by this act, the

time in which a person may file the initial application for a deduction under IC 6-1.1-12-43, as added by this act, for property taxes first due and payable in 2004 is extended from May 10, 2003, to February 29, 2004.
    (d) The department of local government finance may adopt temporary rules in the manner provided for the adoption of emergency rules under IC 4-22-2-37.1 to implement this SECTION. A temporary rule adopted under this SECTION expires on the earliest of the following:
        (1) The date another temporary rule is adopted under this SECTION to supersede the previously adopted temporary rule.


        (2) The date that a permanent rule superseding the temporary rule is adopted and becomes effective under IC 4-22-2.
        (3) January 1, 2005.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 1 as printed December 2, 2003.)

________________________________________

Representative Hoffman


MO000153/DI 73     2004