SB 274-8_ Filed 02/25/2004, 07:34 Aguilera


Text Box


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    WITHDRAWN        Noes _______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


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 274 be amended to read as follows:

SOURCE: Page 1, line 1; (04)MO027416.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 6-1.1-3-23; (04)MO027416.1. -->     "SECTION 1. IC 6-1.1-3-23, AS ADDED BY P.L.120-2003, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2004 (RETROACTIVE)]: Sec. 23. (a) For purposes of The following definitions apply throughout this section:
        (1) "Adjusted cost" refers to the adjusted cost established in 50 IAC 4.2-4-4 (as in effect on January 1, 2003).
        (2) "Depreciable personal property" has the meaning set forth in 50 IAC 4.2-4-1 (as in effect on January 1, 2003).
        (3) "Displaces" means the transfer of jobs involving production or manufacturing at or related to a special integrated steel mill or oil refinery/petrochemical equipment from Indiana to another country. The term does not include a decrease in jobs in Indiana that is not part of a plan to permanently transfer jobs from Indiana to another country. Displacement does not occur if a taxpayer employs in Indiana, during a calendar year, the same or a greater number of employees than the taxpayer employed during the immediately preceding calendar year.
         (4) "Integrated steel mill" means a person that produces steel by processing iron ore and other raw materials in a blast furnace.
        (4) (5) "Oil refinery/petrochemical company" means a person that

produces a variety of petroleum products by processing an annual average of at least one hundred thousand (100,000) barrels of crude oil per day.
        (5) (6) "Permanently retired depreciable personal property" has the meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1, 2003).
        (6) (7) "Pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in effect on January 1, 2003).
        (7) (8) "Special integrated steel mill or oil refinery/petrochemical equipment" means depreciable personal property, other than special tools and permanently retired depreciable personal property:
            (A) that:
                (i) is owned, leased, or used by an integrated steel mill or an entity that is at least fifty percent (50%) owned by an affiliate of an integrated steel mill; and
                (ii) falls within Asset Class 33.4 as set forth in IRS Rev. Proc. 87-56, 1987-2, C.B. 647; or
            (B) that:
                (i) is owned, leased, or used as an integrated part of an oil refinery/petrochemical company or its affiliate; and
                (ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS Rev. Proc. 87-56, 1987-2, C.B. 647.
        (8) (9) "Special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as in effect on January 1, 2003). and
        (9) (10) "Year of acquisition" refers to the year of acquisition determined under 50 IAC 4.2-4-6 (as in effect on January 1, 2003).
    (b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50 IAC 4.2-4-7, and except as provided in subsection (h), a taxpayer may elect to calculate the true tax value of the taxpayer's special integrated steel mill or oil refinery/petrochemical equipment by multiplying the adjusted cost of that equipment by the percentage set forth in the following table:
        Year of Acquisition    Percentage
                    1            40%
                    2            56%
                    3            42%
                    4            32%
                    5            24%
                    6            18%
                    7            15%
                    8 and older        10%
    (c) The department of local government finance shall designate the table under subsection (b) as "Pool No. 5" on the business personal

property tax return.
    (d) The percentage factors in the table under subsection (b) automatically reflect all adjustments for depreciation and obsolescence, including abnormal obsolescence, for special integrated steel mill or oil refinery/petrochemical equipment. The equipment is entitled to all exemptions, credits, and deductions for which it qualifies.
    (e) The minimum valuation limitations under 50 IAC 4.2-4-9 do not apply to special integrated steel mill or oil refinery/petrochemical equipment valued under this section. The value of the equipment is not included in the calculation of that minimum valuation limitation for the taxpayer's other assessable depreciable personal property in the taxing district.
    (f) An election to value special integrated steel mill or oil refinery/petrochemical equipment under this section:
        (1) must be made by reporting the equipment under this section on a business personal property tax return;
        (2) applies to all of the taxpayer's special integrated steel mill or oil refinery/petrochemical equipment located in the state (whether owned or leased, or used as an integrated part of the equipment); and
        (3) is binding on the taxpayer for the assessment date for which the election is made.
However, a taxpayer whose election is invalid under this section may claim depreciation and obsolescence, including abnormal obsolescence, in the taxpayer's original or amended property tax return as if the taxpayer did not make an election under subsection (b), notwithstanding any other law. The department of local government finance shall prescribe the forms to make the election beginning with the March 1, 2003, assessment date. required under this section. Any special integrated steel mill or oil refinery/petrochemical equipment acquired by a taxpayer that has made an election under this section is valued under this section.
    (g) If fifty percent (50%) or more of the adjusted cost of a taxpayer's property that would, notwithstanding this section, be reported in a pool other than Pool No. 5 is attributable to special integrated steel mill or oil refinery/petrochemical equipment, the taxpayer may elect to calculate the true tax value of all of that property as special integrated steel mill or oil refinery/petrochemical equipment. The true tax value of property for which an election is made under this subsection is calculated under subsections (b) through (f).
     (h) This subsection applies to assessment dates beginning after February 28, 2005. A taxpayer may not make an election under subsection (b) if the taxpayer displaces jobs during the calendar year immediately preceding the assessment date for which the election would be made. If a taxpayer makes an election under

subsection (b) and, in a calendar year after the calendar year in which the election is made, displaces jobs, the department of local government finance shall disallow the election for the assessment date in the calendar year in which the displacement occurs.
    (i) This subsection applies beginning with the March 1, 2005, assessment date and if all the following conditions are satisfied:
        (1) A taxpayer that makes an election under subsection (b) is a party, or has employees in Indiana who are a party, to a collective bargaining agreement.
        (2) The enforcement provisions of the collective bargaining agreement prohibit the displacement of jobs from Indiana to another country.
        (3) The taxpayer displaces from Indiana to another country jobs that are covered by the collective bargaining agreement in a calendar year after the initial calendar year in which the taxpayer makes an election under subsection (b).
        (4) It is determined under the terms of the collective bargaining agreement that the displacement described in subdivision (3) occurred contrary to the enforcement provisions of the collective bargaining agreement.
The election under subsection (b) is disallowed for the assessment date in the calendar year in which the determination described in subdivision (4) is made.
    (j) Except as provided in subsection (i), the department of local government finance shall determine whether a taxpayer is eligible for an election under subsection (b) not later than March 30 of:
        (1) the year in which the taxpayer makes the election; or
        (2) any other year in which the election is in effect;
as applicable. A township assessor, county assessor, or county property tax assessment board of appeals may not disallow a taxpayer's election under subsection (b). The department of local government finance shall give notice by mail, and an opportunity for a hearing at least ten (10) days after notice is mailed, to a taxpayer whose eligibility is under review under this subsection. The notice must clearly state the department of local government finance's reasons for disallowing the election. If the department of local government finance does not make a final determination under this subsection by March 30 of the applicable year, the election is allowed for the assessment date of the applicable year. If the department of local government finance disallows a taxpayer's election under subsection (b), the taxpayer may appeal the department of local government finance's determination by filing a petition with the Indiana board not more than forty-five

(45) days after the department of local government finance gives the taxpayer notice of the determination. A petition filed under this subsection is considered a petition filed under IC 6-1.1-15-3 for purposes of petition and review under IC 6-1.1-15.".

SOURCE: Page 2, line 32; (04)MO027416.2. -->     Page 2, after line 32, begin a new paragraph and insert:
SOURCE: ; (04)MO027416.3. -->     "SECTION 3. [EFFECTIVE MARCH 1, 2004 (RETROACTIVE)] (a) IC 6-1.1-3-23, as amended by this act, applies:
        (1) beginning with the March 1, 2004, assessment date; and
        (2) to property taxes first due and payable after December 31, 2004.
    (b) A taxpayer that makes an election under IC 6-1.1-3-23(b), before its amendment by this act, may file an amended personal property tax return for the March 1, 2004, assessment.
    (c) The department of local government finance shall adopt rules under IC 4-22-2 to implement this SECTION.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 274 as printed February 13, 2004.)

________________________________________

Representative Aguilera


MO027416/DI 103     2004