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;
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).".
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: