SB 1-21_ Filed 11/24/2003, 10:52 Simpson

SENATE MOTION


MR. PRESIDENT:

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

SOURCE: Page 72, line 21; (04)MO000103.72. -->     Page 72, between lines 21 and 22, begin a new paragraph and insert:
SOURCE: IC 6-3.1-29; (04)MO000103.45. -->     "SECTION 45. IC 6-3.1-29 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]:
     Chapter 29. Income Tax Circuit Breaker Credit
    Sec. 1. As used in this chapter:
        (1) "adjusted gross income tax liability" means an individual's adjusted gross income tax liability under IC 6-3; and
        (2) "homestead" has the meaning set forth in IC 6-1.1-20.9-1.
    Sec. 2. (a) Except as provided in subsection (b), an individual is entitled to a credit under this chapter if the:
        (1) individual's adjusted gross income for the taxable year is less than forty-seven thousand dollars ($47,000); and
        (2) the individual pays property taxes in the taxable year on a homestead the individual:
            (A) owns; or
            (B) is buying under a contract that requires the individual to pay property taxes on the homestead, if the contract or a memorandum of the contract is recorded in the county recorder's office.
    (b) An individual is not entitled to a credit under this chapter for a taxable year for property taxes paid on the individual's homestead if the individual claims the deduction under IC 6-3-1-3.5(a)(17) for the homestead for that same taxable year.
    Sec. 3. (a) An individual described in section 2 of this chapter is entitled each year to a refundable credit against the individual's adjusted gross income tax liability. The amount of the credit to

which a qualifying individual is entitled equals the lesser of:
        (1) the remainder (not less than zero (0)) of:
            (A) the amount of property taxes the individual paid in the taxable year on a homestead; minus
            (B) the product of:
                (i) the appropriate percentage from the table in subsection (b); multiplied by
                (ii) the qualifying individual's adjusted gross income for the taxable year; or
        (2) three hundred seventy-five dollars ($375).
    (b) The percentage under subsection (a)(1)(B)(i) is the percentage from the following table that corresponds to the individual's adjusted gross income for the taxable year:
    ADJUSTED GROSS INCOME              PERCENTAGE
    Less than $5,000          3.5%
    At least $5,000 but less than $10,000         4%
    At least $10,000 but less than $25,000         4.5%
    At least $25,000 but less than $47,000         5%
    (c) The amount of the credit under subsection (a) may not exceed the amount of property taxes the individual paid in the taxable year on the homestead.
    (d) If the amount of the credit under this chapter exceeds the individual's adjusted gross income tax liability for the taxable year, the excess shall be refunded to the taxpayer.
    Sec. 4. To obtain the credit provided by this chapter, an individual must:
        (1) claim the credit in the manner prescribed by the department of state revenue; and
        (2) file with the department of state revenue:
            (A) information concerning the property taxes paid on the individual's homestead; and
            (B) any other information required by the department.
".

SOURCE: Page 103, line 35; (04)MO000103.103. -->     Page 103, between lines 35 and 36, begin a new paragraph and insert:
SOURCE: ; (04)MO000103.74. -->     "SECTION 74. [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)] IC 6-3.1-29, as added by this act, applies only to taxable years beginning after December 31, 2003.".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 1 as printed November 21, 2003.)

________________________________________

Senator SIMPSON


MO000103/DI 52
2004