HB 1001-2_ Filed 11/20/2003, 07:33 Crawford


Text Box


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    WITHDRAWN        Noes _______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


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1001 be amended to read as follows:

SOURCE: Page 3, line 10; (04)MO100116.3. -->     Page 3, line 10, delete "IC 6-1.1-22.5-20." and insert " IC 6-1.1-4-37(l).".
    Page 3, line 12, delete "IC 6-1.1-4-33." and insert "IC 6-1.1-4-33, IC 6-1.1-4-36(j), or IC 6-1.1-22.5-20.".
    Page 4, line 3, after "IC 22-13-2-8(c)," insert " and except as provided in subsection (j),".
    Page 4, line 6, after "(a)(14)," insert " (a)(25), or (a)(26),".
    Page 4, line 9, after "periods." insert " A rule adopted under subsection (a)(25) or(a)(26) may be extended for an unlimited number of extension periods.".
    Page 4, between lines 21 and 22, begin a new paragraph and insert:
    " (j) A rule described in subsection (a)(26) expires not later than January 1, 2006.".
    Page 6, between lines 5 and 6, begin a new paragraph and insert:
SOURCE: IC 6-1.1-4-34; (04)MO100116.7. -->     "SECTION 7. IC 6-1.1-4-34, AS ADDED BY P.L.235-2003, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MAY 8, 2003 (RETROACTIVE)]: Sec. 34. (a) As used in this section, "special master" refers to a person designated by the Indiana board under subsection (e).
    (b) The notice of reassessment under section 32(f) of this chapter is subject to appeal by the taxpayer to the Indiana board. The procedures and time limitations that apply to an appeal to the Indiana board of a determination of the department of local government finance

do not apply to an appeal under this subsection. The Indiana board may establish applicable procedures and time limitations under subsection (l).
    (c) In order to appeal under subsection (b), the taxpayer must:
        (1) request and participate as required in the informal hearing process under section 33 of this chapter not later than forty-five (45) days after the date of the notice of reassessment under section 32(f) of this chapter;
        (2) except as provided in section 33(i) of this chapter, receive a notice of changed reassessment under section 33(g) of this chapter; and
        (3) file a petition for review with the appropriate county assessor not later than thirty (30) days after the notice of the department of local government finance is given to the taxpayer under section 32(f) 32(g) of this chapter.
    (d) The Indiana board may develop a form for petitions under subsection (c) that:
        (1) outlines:
            (A) the appeal process;
            (B) the burden of proof; and
            (C) evidence necessary to warrant a change to a reassessment; and
        (2) describes:
            (A) the increase in the property tax replacement credit; and
            (B) other changes to the property tax system;
        under P.L.192-2002(ss) that reduced the effect of general reassessment on property tax liability.
    (e) The Indiana board may contract with, appoint, or otherwise designate the following to serve as special masters to conduct evidentiary hearings and prepare reports required under subsection (g):
        (1) Independent, licensed appraisers.
        (2) Attorneys.
        (3) Certified level two Indiana assessor-appraisers (including administrative law judges employed by the Indiana board).
        (4) Other qualified individuals.
    (f) Each contract entered into under subsection (e) must specify the appointee's compensation and entitlement to reimbursement for expenses. The compensation and reimbursement for expenses are paid from the county property reassessment fund. Payments under this subsection from the county property reassessment fund may not exceed five hundred thousand dollars ($500,000).
    (g) With respect to each petition for review filed under subsection (c), the special masters shall:
        (1) set a hearing date;
        (2) give notice of the hearing at least thirty (30) days before the hearing date, by mail, to:
            (A) the taxpayer;


            (B) the department of local government finance;
            (C) the township assessor; and
            (D) the county assessor;
        (3) conduct a hearing and hear all evidence submitted under this section; and
        (4) make evidentiary findings and file a report with the Indiana board.
    (h) At the hearing under subsection (g):
        (1) the taxpayer shall present:
            (A) its evidence that the reassessment is incorrect;
            (B) the method by which the taxpayer contends the reassessment is correctly determined; and
            (C) comparable sales, appraisals, or other pertinent information concerning valuation as required by the Indiana board; and
        (2) the department of local government finance shall present its evidence that the reassessment is correct.
    (i) The Indiana board may dismiss a petition for review filed under subsection (c) if the evidence and other information required under subsection (h)(1) is not provided at the hearing under subsection (g).
    (j) The township assessor and the county assessor may attend and participate in the hearing under subsection (g).
    (k) The Indiana board may:
        (1) consider the report of the special masters under subsection (g)(4);
        (2) make a final determination based on the findings of the special masters without:
            (A) conducting a hearing; or
            (B) any further proceedings; and
        (3) incorporate the findings of the special masters into the board's findings in resolution of the appeal.
    (l) The Indiana board may adopt emergency rules under IC 4-22-2-37.1 to:
        (1) establish procedures to expedite:
            (A) the conduct of hearings under subsection (g); and
            (B) the issuance of determinations of appeals under subsection (b); and
        (2) establish deadlines:
            (A) for conducting hearings under subsection (g); and
            (B) for issuing determinations of appeals under subsection (b).
    (m) A determination by the Indiana board of an appeal under subsection (b) is subject to appeal to the tax court under IC 6-1.1-15.
    (n) This section expires December 31, 2005.".
SOURCE: Page 17, line 14; (04)MO100116.17. -->     Page 17, delete lines 14 through 21, begin a new paragraph and insert:
    " (b) The value of federal income tax credits may not be considered in determining the true tax value of the property.".
    Page 19, delete lines 14 through 21, begin a new line blocked left and insert:
" The value of federal income tax credits may not be considered in determining the true tax value of the property.".
    Page 48, reset in bold lines 26 through 28.
    Page 76, between lines 32 and 33, begin a new paragraph and insert:
SOURCE: IC 6-3-1-3.5; (04)MO100116.61. -->     "SECTION 61. IC 6-3-1-3.5, AS AMENDED BY P.L.105-2003, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 3.5. When used in this article, the term "adjusted gross income" shall mean the following:
    (a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 62 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state of the United States.
        (3) Subtract one thousand dollars ($1,000), or in the case of a joint return filed by a husband and wife, subtract for each spouse one thousand dollars ($1,000).
        (4) Subtract one thousand dollars ($1,000) for:
            (A) each of the exemptions provided by Section 151(c) of the Internal Revenue Code;
            (B) each additional amount allowable under Section 63(f) of the Internal Revenue Code; and
            (C) the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
        (5) Subtract:
            (A) one thousand five hundred dollars ($1,500) for each of the exemptions allowed under Section 151(c)(1)(B) of the Internal Revenue Code for taxable years beginning after December 31, 1996; and
            (B) five hundred dollars ($500) for each additional amount allowable under Section 63(f)(1) of the Internal Revenue Code if the adjusted gross income of the taxpayer, or the taxpayer and the taxpayer's spouse in the case of a joint return, is less than forty thousand dollars ($40,000).
        This amount is in addition to the amount subtracted under subdivision (4).
        (6) Subtract an amount equal to the lesser of:
            (A) that part of the individual's adjusted gross income (as defined in Section 62 of the Internal Revenue Code) for that taxable year that is subject to a tax that is imposed by a political

subdivision of another state and that is imposed on or measured by income; or
            (B) two thousand dollars ($2,000).
        (7) Add an amount equal to the total capital gain portion of a lump sum distribution (as defined in Section 402(e)(4)(D) of the Internal Revenue Code) if the lump sum distribution is received by the individual during the taxable year and if the capital gain portion of the distribution is taxed in the manner provided in Section 402 of the Internal Revenue Code.
        (8) Subtract any amounts included in federal adjusted gross income under Section 111 of the Internal Revenue Code as a recovery of items previously deducted as an itemized deduction from adjusted gross income.
        (9) Subtract any amounts included in federal adjusted gross income under the Internal Revenue Code which amounts were received by the individual as supplemental railroad retirement annuities under 45 U.S.C. 231 and which are not deductible under subdivision (1).
        (10) Add an amount equal to the deduction allowed under Section 221 of the Internal Revenue Code for married couples filing joint returns if the taxable year began before January 1, 1987.
        (11) Add an amount equal to the interest excluded from federal gross income by the individual for the taxable year under Section 128 of the Internal Revenue Code if the taxable year began before January 1, 1985.
        (12) Subtract an amount equal to the amount of federal Social Security and Railroad Retirement benefits included in a taxpayer's federal gross income by Section 86 of the Internal Revenue Code.
        (13) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year, the total amount of the deductions allowed pursuant to subdivisions (3), (4), (5), and (6) shall be reduced to an amount which bears the same ratio to the total as the taxpayer's income taxable in Indiana bears to the taxpayer's total income.
        (14) In the case of an individual who is a recipient of assistance under IC 12-10-6-1, IC 12-10-6-2, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7, subtract an amount equal to that portion of the individual's adjusted gross income with respect to which the individual is not allowed under federal law to retain an amount to pay state and local income taxes.
        (15) In the case of an eligible individual, subtract the amount of a Holocaust victim's settlement payment included in the individual's federal adjusted gross income.
        (16) For taxable years beginning after December 31, 1999, subtract an amount equal to the portion of any premiums paid during the taxable year by the taxpayer for a qualified long term

care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the taxpayer's spouse, or both.
        (17) Subtract an amount equal to the lesser of:
            (A) for a taxable year:
                (i) including any part of 2004, the amount determined under subsection (f); and
                (ii) beginning after December 31, 2004,
two thousand five hundred dollars ($2,500); or
            (B) the amount of property taxes that are paid during the taxable year in Indiana by the individual on the individual's principal place of residence.
        (18) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment included in the individual's federal adjusted gross income.
        (19) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
    (b) In the case of corporations, the same as "taxable income" (as defined in Section 63 of the Internal Revenue Code) adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state of the United States.
        (4) Subtract an amount equal to the amount included in the corporation's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
    (c) In the case of life insurance companies (as defined in Section

816(a) of the Internal Revenue Code) that are organized under Indiana law, the same as "life insurance company taxable income" (as defined in Section 801 of the Internal Revenue Code), adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c) of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state.
        (4) Subtract an amount equal to the amount included in the company's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
    (d) In the case of insurance companies subject to tax under Section 831 of the Internal Revenue Code and organized under Indiana law, the same as "taxable income" (as defined in Section 832 of the Internal Revenue Code), adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c) of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state.
        (4) Subtract an amount equal to the amount included in the company's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
    (e) In the case of trusts and estates, "taxable income" (as defined for

trusts and estates in Section 641(b) of the Internal Revenue Code) adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment included in the federal adjusted gross income of the estate of a victim of the September 11 terrorist attack or a trust to the extent the trust benefits a victim of the September 11 terrorist attack.
        (3) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
     (f) This subsection applies only to the extent that an individual paid property taxes in 2004 that were imposed for the March 1, 2002, assessment date or the January 15, 2003, assessment date. The maximum amount of the deduction under subsection (a)(17) is equal to the amount determined under STEP FIVE of the following formula:
        STEP ONE: Determine the amount of property taxes that the taxpayer paid after December 31, 2003, in the taxable year for property taxes imposed for the March 1, 2002, assessment date and the January 15, 2003, assessment date.
        STEP TWO: Determine the amount of property taxes that the taxpayer paid in the taxable year for the March 1, 2003, assessment date and the January 15, 2004, assessment date.
        STEP THREE: Determine the result of the STEP ONE amount divided by the STEP TWO amount.
        STEP FOUR: Multiply the STEP THREE amount by two thousand five hundred dollars ($2,500).
        STEP FIVE: Determine the sum of the STEP THREE amount and two thousand five hundred dollars ($2,500).
".

SOURCE: Page 101, line 39; (04)MO100116.101. -->     Page 101, line 39, delete "a" and insert " as".
    Page 107, line 4, after "(2)" insert " subject to subsection (c), before December 15, 2003,".
    Page 107, between lines 8 and 9, begin a new paragraph and insert:
    " (c) Notwithstanding IC 6-1.1-20.9-2 or any other law, for purposes of this SECTION, an individual is not required to have been the owner or contract purchaser of the property on March 1, 2003, to meet the eligibility criteria for the homestead credit or

other benefit under this SECTION. An individual who is the owner or contract purchaser on the date that the individual files a claim for a benefit under this SECTION meets the ownership criteria for the benefit.".
    Page 107, line 9, delete "(c)" and insert " (d)".
    Page 107, line 9, delete "(d)" and insert " (e)".
    Page 107, line 14, delete "(d)" and insert " (e)".
    Page 107, line 16, delete "(e)" and insert " (f)".
    Page 107, line 19, delete "(c)" and insert " (d)".
    Page 107, line 20, delete "(f)" and insert " (g)".
    Page 107, line 32, delete "(j)" and insert " (k)".
    Page 107, line 37, delete "(g)" and insert " (h)".
    Page 107, line 38, delete "(f)(2)(A)" and insert " (g)(2)(A)".
    Page 108, line 2, delete "(f)(2)(A)" and insert " (g)(2)(A)".
    Page 108, line 3, delete "(h)" and insert " (i)".
    Page 108, line 5, delete "(f)(2)(B)" and insert " (g)(2)(B)".
    Page 108, line 14, delete "(i)" and insert " (j)".
    Page 108, line 17, delete "(j)" and insert " (k)".
    Page 111, between lines 6 and 7, begin a new paragraph and insert:

SOURCE: ; (04)MO100116.92. -->     "SECTION 92. [EFFECTIVE JULY 1, 2004] IC 6-3-1-3.5, as amended by this act, applies only to taxable years after December 31, 2003.
    SECTION 93. The
SOURCE: ; (04)MO100116.92. --> provisions of this act are severable in the manner provided by IC 1-1-1-8(b).".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1001 as printed November 18, 2003.)

________________________________________

Representative Crawford


MO100116/DI 51     2004