HB 1365-1_ Filed 03/04/2004, 16:04
CONFERENCE COMMITTEE REPORT
DIGEST FOR EHB 1365
Citations Affected: IC 4-32-9-33; IC 6-2.5; IC 6-3-2-2.5; IC 6-3-2-2.6; IC 6-3.1-13-7;
IC 6-3.1-13-21; IC 6-3.1-26-26; IC 6-4.1-1-3; IC 6-2.5-4-5; IC 6-3-2-1; IC 6-3-2-1.5;
IC 6-3.1-11.6; IC 36-7-32-11; IC 32-24-1-4; IC 32-34-1-28; IC 32-34-1-28.5; IC 6-3.1-19-3;
IC 6-3.1-19-5; IC 36-7-13; IC 6-8.1-3-16; IC 34-30-2-16.7; IC 4-4-5.2; IC 36-1-8-5.1;
IC 36-4-1-1; IC 36-9-41; IC 6-1.1-4-40; IC 6-2.5-5-15; IC 9-18-9-4.
Synopsis: State and local administration. Makes the following changes to the sales and use tax:
(1) Grants a credit against Indiana use tax for sales tax paid in another state for a vehicle, a
watercraft, or an aircraft. (2) Makes the furnishing of satellite television service, cable radio
service, and satellite radio service a retail transaction. (3) Indicates that a deduction for sales tax
paid on a purchase price that becomes uncollectible is assignable only if the retail merchant that
paid the tax assigned the right to the deduction in writing. (4) Requires certain out-of-state entities
to collect sales tax in Indiana. (5) Provides that gross retail income does not include receipts
attributable to installation charges if those charges are separately stated on the invoice. Revises
the manner in which net operating losses are computed. Makes the research expense credit
permanent (instead of expiring at the end of 2013). Repeals the sales tax credit for sales of motor
vehicles, trailers, watercraft, and aircraft that are sold in Indiana and titled or registered in another
state. Repeals the registration fee for a converter dolly. Repeals the sales tax on complimentary
hotel rooms. Makes various changes concerning taxation, economic development, state and local
administration, and charity gaming. (This conference committee report does the following:
(1) Restores a provision deleted in the senate that limited the classification of adopted
children as Class A transferees for the purposes of the inheritance tax. (2) Adds SB 215
concerning prize limits for charity gaming. (3) Adds SB 272 concerning military bases and
economic development (senate passed version plus the certified technology park
amendment passed in Ways and Means). (4) Adds SB 201 concerning eminent domain
filings. (5) Adds SB 252 concerning unclaimed property resulting from the demutualization
of an insurance company. (6) Adds provisions from SB 180 concerning community
revitalization enhancement districts. (7) Adds SB 425 concerning early retirees from
Muscatatuck. (8) Adds provisions concerning the EDGE credit and certain pass through
entities. (9) Authorizes the department of revenue to publish on the Internet a list of
taxpayers that are subject to tax warrants issued at least 24 months before the date of the
publication of the list. (10) Sunsets the authority to publish the list after June 30, 2006.
(11) Removes the repeal of the annual fee to renew a permanent registration of a
semitrailer. (12) Provides that delivery charges are taxable by removing them from the
bill's exclusion from gross retail income. (13) Extends the Hoosier business investment
tax credit by two years. (14) Establishes the interim study committee on corporate
taxation to study the utilization of passive investment corporations by companies doing
business in Indiana. (15) Adds provisions from SB 211 concerning a twenty-first century
fund grant office. (16) Adds the senate passed version of SB 47 creating the emerging
technology grant fund to be administered by the twenty-first century research and
technology fund board. (17) Adds SB 151 concerning local rainy day funds. (18) Adds SB
149 concerning borrowing for local public works. (19) Adds provisions from SB 281
concerning property tax abatement but limits the application to a particular locality. (20)
Adds SB 274 concerning an optional property tax abatement fee. (21) Removes provisions
concerning farmland preservation. (22) Adds a provision concerning the assessment of
Section 42 low income housing.)
Effective: Upon passage; January 1, 2004 (retroactive); March 1, 2004 (retroactive); April 1,
2004; July 1, 2004; January 1, 2005.
CONFERENCE COMMITTEE REPORT
MADAM PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed Senate Amendments to Engrossed House Bill No. 1365 respectfully
reports that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
Delete everything after the enacting clause and insert the following:
SOURCE: IC 4-32-9-33; (04)CC136505.1.1. -->
SECTION 1. IC 4-32-9-33 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 33. (a) The total prizes awarded for
one (1) pull tab, punchboard, or tip board game may not exceed two
five thousand dollars ($2,000). ($5,000).
(b) A single prize awarded for one (1) winning ticket in a pull tab,
punchboard, or tip board game may not exceed three five hundred
ninety-nine dollars ($300). ($599).
(c) The selling price for one (1) ticket for a pull tab, punchboard, or
tip board game may not exceed one dollar ($1).
SOURCE: IC 6-2.5-1-5; (04)CC136505.1.2. -->
SECTION 2. IC 6-2.5-1-5, AS AMENDED BY P.L.257-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection (b),
"gross retail income" means the total gross receipts, of any kind or
character, received in a retail transaction, including cash, credit,
property, and services, for which tangible personal property is sold,
leased, or rented, valued in money, whether received in money or
otherwise, without any deduction for:
(1) the seller's cost of the property sold;
(2) the cost of materials used, labor or service cost, interest, losses,
all costs of transportation to the seller, all taxes imposed on the
seller, and any other expense of the seller;
(3) charges by the seller for any services necessary to complete the
sale, other than delivery and installation charges;
(4) delivery charges; or
(5) installation charges; or
(6) (5) the value of exempt personal property given to the
purchaser where taxable and exempt personal property have been
bundled together and sold by the seller as a single product or piece
of merchandise.
For purposes of subdivision (4), delivery charges are charges by
the seller for preparation and delivery of the property to a location
designated by the purchaser of property, including but not limited
to transportation, shipping, postage, handling, crating, and
packing.
(b) "Gross retail income" does not include that part of the gross
receipts attributable to:
(1) the value of any tangible personal property received in a like
kind exchange in the retail transaction, if the value of the property
given in exchange is separately stated on the invoice, bill of sale, or
similar document given to the purchaser;
(2) the receipts received in a retail transaction which constitute
interest, finance charges, or insurance premiums on either a
promissory note or an installment sales contract;
(3) discounts, including cash, terms, or coupons that are not
reimbursed by a third party that are allowed by a seller and taken by
a purchaser on a sale;
(4) interest, financing, and carrying charges from credit extended
on the sale of personal property if the amount is separately stated
on the invoice, bill of sale, or similar document given to the
purchaser; or
(5) any taxes legally imposed directly on the consumer that are
separately stated on the invoice, bill of sale, or similar document
given to the purchaser; or
(6) installation charges that are separately stated on the
invoice, bill of sale, or similar document given to the
purchaser.
(c) A public utility's or a power subsidiary's gross retail income
includes all gross retail income received by the public utility or power
subsidiary, including any minimum charge, flat charge, membership fee,
or any other form of charge or billing.
SOURCE: IC 6-2.5-3-1; (04)CC136505.1.3. -->
SECTION 3. IC 6-2.5-3-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 1. For purposes of this chapter:
(a) "Use" means the exercise of any right or power of ownership over
tangible personal property.
(b) "Storage" means the keeping or retention of tangible personal
property in Indiana for any purpose except the subsequent use of that
property solely outside Indiana.
(c) "A retail merchant engaged in business in Indiana" includes any
retail merchant who makes retail transactions in which a person
acquires personal property or services for use, storage, or
consumption in Indiana and who: maintains:
(1) maintains an office, place of distribution, sales location,
sample location, warehouse, storage place, or other place of
business which is located in Indiana and which the retail merchant
maintains, occupies, or uses, either permanently or temporarily,
either directly or indirectly, and either by himself the retail
merchant or through an a representative, agent, or subsidiary;
or
(2) maintains a representative, agent, salesman, canvasser, or
solicitor who, while operating in Indiana under the authority of and
on behalf of the retail merchant or a subsidiary of the retail
merchant, sells, delivers, installs, repairs, assembles, sets up,
accepts returns of, bills, invoices, or takes orders for sales of
tangible personal property or services to be used, stored, or
consumed in Indiana;
(3) is otherwise required to register as a retail merchant
under IC 6-2.5-8-1; or
(4) may be required by the state to collect tax under this
article to the extent allowed under the Constitution of the
United States and federal law.
(d) Notwithstanding any other provision of this section, tangible or
intangible property that is:
(1) owned or leased by a person that has contracted with a
commercial printer for printing; and
(2) located at the premises of the commercial printer;
shall not be considered to be, or to create, an office, a place of
distribution, a sales location, a sample location, a warehouse, a storage
place, or other place of business maintained, occupied, or used in any
way by the person. A commercial printer with which a person has
contracted for printing shall not be considered to be in any way a
representative, an agent, a salesman, a canvasser, or a solicitor for the
person.
SOURCE: IC 6-2.5-3-5; (04)CC136505.1.4. -->
SECTION 4. IC 6-2.5-3-5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 5. (a) A person is entitled to a credit
against the use tax imposed on the use, storage, or consumption of a
particular item of tangible personal property equal to the amount, if any,
of sales tax, purchase tax, or use tax paid to another state, territory, or
possession of the United States for the acquisition of that property.
(b) The credit provided under subsection (a) does not apply to the use
tax imposed on the use, storage, or consumption of vehicles,
watercraft, or aircraft that are required to be titled, registered, or
licensed by Indiana.
SOURCE: IC 6-2.5-4-1; (04)CC136505.1.5. -->
SECTION 5. IC 6-2.5-4-1, AS AMENDED BY P.L.257-2003,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) A person is a retail merchant making a
retail transaction when he engages in selling at retail.
(b) A person is engaged in selling at retail when, in the ordinary
course of his regularly conducted trade or business, he:
(1) acquires tangible personal property for the purpose of resale;
and
(2) transfers that property to another person for consideration.
(c) For purposes of determining what constitutes selling at retail, it
does not matter whether:
(1) the property is transferred in the same form as when it was
acquired;
(2) the property is transferred alone or in conjunction with other
property or services; or
(3) the property is transferred conditionally or otherwise.
(d) Notwithstanding subsection (b), a person is not selling at retail if
he is making a wholesale sale as described in section 2 of this chapter.
(e) The gross retail income received from selling at retail is only
taxable under this article to the extent that the income represents:
(1) the price of the property transferred, without the rendition of
any service; and
(2) except as provided in subsection (g), any bona fide charges
which are made for preparation, fabrication, alteration,
modification, finishing, completion, delivery, or other service
performed in respect to the property transferred before its transfer
and which are separately stated on the transferor's records.
For purposes of subdivision (2), charges for delivery are charges by the
seller for preparation and delivery of the property to a location
designated by the purchaser of property, including but not limited to
transportation, shipping, postage, handling, crating, and packing. For
purposes of this subsection, a transfer is considered to have
occurred after delivery of the property to the purchaser.
(f) Notwithstanding subsection (e):
(1) in the case of retail sales of gasoline (as defined in
IC 6-6-1.1-103) and special fuel (as defined in IC 6-6-2.5-22), the
gross retail income received from selling at retail is the total sales
price of the gasoline or special fuel minus the part of that price
attributable to tax imposed under IC 6-6-1.1, IC 6-6-2.5, or Section
4041(a) or Section 4081 of the Internal Revenue Code; and
(2) in the case of retail sales of cigarettes (as defined in
IC 6-7-1-2), the gross retail income received from selling at retail
is the total sales price of the cigarettes including the tax imposed
under IC 6-7-1.
(g) Gross retail income does not include income that represents
charges for serving or delivering food and food ingredients furnished,
prepared, or served for consumption at a location, or on equipment,
provided by the retail merchant. However, the exclusion under this
subsection only applies if the charges for the serving or delivery are
stated separately from the price of the food and food ingredients when
the purchaser pays the charges.
SOURCE: IC 6-2.5-4-11; (04)CC136505.1.6. -->
SECTION 6. IC 6-2.5-4-11 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE MARCH 1, 2004 (RETROACTIVE)]: Sec. 11. (a) A
person is a retail merchant making a retail transaction when he the
person furnishes local cable television or radio service or intrastate
cable satellite television or radio service that terminates in Indiana.
(b) Notwithstanding subsection (a), a person is not a retail merchant
making a retail transaction when the person provides, installs,
constructs, services, or removes tangible personal property which is
used in connection with the furnishing of local cable television or radio
service or intrastate cable satellite or radio television service.
SOURCE: IC 6-2.5-6-9; (04)CC136505.1.7. -->
SECTION 7. IC 6-2.5-6-9, AS AMENDED BY P.L.257-2003,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 9. (a) In determining the amount of state gross
retail and use taxes which he a retail merchant must remit under
section 7 of this chapter, a the retail merchant shall, subject to
subsection subsections (c) and (d), deduct from his the retail
merchant's gross retail income from retail transactions made during a
particular reporting period, an amount equal to his the retail
merchant's receivables which:
(1) resulted from retail transactions in which the retail merchant did
not collect the state gross retail or use tax from the purchaser;
(2) resulted from retail transactions on which the retail merchant
has previously paid the state gross retail or use tax liability to the
department; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code during
the particular reporting period.
(b) If a retail merchant deducts a receivable under subsection (a) and
subsequently collects all or part of that receivable, then the retail
merchant shall, subject to subsection (c)(6), (d)(6), include the amount
collected as part of his the retail merchant's gross retail income from
retail transactions for the particular reporting period in which he the
retail merchant makes the collection.
(c) This subsection applies only to retail transactions occurring
after June 30, 2004. The right to a deduction under this section is
assignable only if the retail merchant that paid the state gross
retail or use tax liability assigned the right to the deduction in
writing.
(d) The following provisions apply to a deduction for a receivable
treated as uncollectible debt under subsection (a):
(1) The deduction does not include interest.
(2) The amount of the deduction shall be determined in the manner
provided by Section 166 of the Internal Revenue Code for bad
debts but shall be adjusted to exclude:
(A) financing charges or interest;
(B) sales or use taxes charged on the purchase price;
(C) uncollectible amounts on property that remain in the
possession of the seller until the full purchase price is paid;
(D) expenses incurred in attempting to collect any debt; and
(E) repossessed property.
(3) The deduction shall be claimed on the return for the period
during which the receivable is written off as uncollectible in the
claimant's books and records and is eligible to be deducted for
federal income tax purposes. For purposes of this subdivision, a
claimant who is not required to file federal income tax returns may
deduct an uncollectible receivable on a return filed for the period in
which the receivable is written off as uncollectible in the claimant's
books and records and would be eligible for a bad debt deduction
for federal income tax purposes if the claimant were required to file
a federal income tax return.
(4) If the amount of uncollectible receivables claimed as a
deduction by a retail merchant for a particular reporting period
exceeds the amount of the retail merchant's taxable sales for that
reporting period, the retail merchant may file a refund claim under
IC 6-8.1-9. However, the deadline for the refund claim shall be
measured from the due date of the return for the reporting period
on which the deduction for the uncollectible receivables could first
be claimed.
(5) If a retail merchant's filing responsibilities have been assumed
by a certified service provider (as defined in IC 6-2.5-11-2), the
certified service provider may claim, on behalf of the retail
merchant, any deduction or refund for uncollectible receivables
provided by this section. The certified service provider must credit
or refund the full amount of any deduction or refund received to
the retail merchant.
(6) For purposes of reporting a payment received on a previously
claimed uncollectible receivable, any payments made on a debt or
account shall be applied first proportionally to the taxable price of
the property and the state gross retail tax or use tax thereon, and
secondly to interest, service charges, and any other charges.
(7) A retail merchant claiming a deduction for an uncollectible
receivable may allocate that receivable among the states that are
members of the streamlined sales and use tax agreement if the
books and records of the retail merchant support that allocation.
SOURCE: IC 6-2.5-8-10; (04)CC136505.1.8. -->
SECTION 8. IC 6-2.5-8-10, AS AMENDED BY P.L.254-2003,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 10. (a) A person that:
(1) makes retail transactions from outside Indiana to a destination
in Indiana;
(2) does not maintain a place of business in Indiana; and
(3) either:
(A) engages in the regular or systematic soliciting of retail
transactions from potential customers in Indiana;
(B) enters into a contract to provide property or services to an
agency (as defined in IC 4-13-2-1) or
an a state educational
institution
of higher education (as defined in IC 20-12-0.5-1);
or
(C) agrees to sell property or services to an agency (as defined
in IC 4-13-2-1) or
an a state educational institution
of higher
education (as defined in IC 20-12-0.5-1);
or
(D) is closely related to another person that maintains a
place of business in Indiana or is described in clause (A),
(B), or (C);
shall file an application for a retail merchant's certificate under this
chapter and collect and remit tax as provided in this article. Conduct
described in subdivision (3)(B) and (3)(C) occurring after June 30,
2003, constitutes consent to be treated under this article as if the person
has a place of business in Indiana or is engaging in conduct described
in subdivision (3)(A), including the provisions of this article that require
a person to collect and remit tax under this article.
(b) A person is rebuttably presumed to be engaging in the regular or
systematic soliciting of retail transactions from potential customers in
Indiana if the person does any of the following:
(1) Distributes catalogs, periodicals, advertising flyers, or other
written solicitations of business to potential customers in Indiana,
regardless of whether the distribution is by mail or otherwise and
without regard to the place from which the distribution originated
or in which the materials were prepared.
(2) Displays advertisements on billboards or displays other outdoor
advertisements in Indiana.
(3) Advertises in newspapers published in Indiana.
(4) Advertises in trade journals or other periodicals that circulate
primarily in Indiana.
(5) Advertises in Indiana editions of a national or regional
publication or a limited regional edition in which Indiana is included
as part of a broader regional or national publication if the
advertisements are not placed in other geographically defined
editions of the same issue of the same publication.
(6) Advertises in editions of regional or national publications that
are not by the contents of the editions geographically targeted to
Indiana but that are sold over the counter in Indiana or by
subscription to Indiana residents.
(7) Broadcasts on a radio or television station located in Indiana.
(8) Makes any other solicitation by telegraphy, telephone, computer
data base, cable, optic, microwave, or other communication
system.
(c) A person not maintaining a place of business in Indiana is
considered to be engaged in the regular or systematic soliciting of retail
transactions from potential customers in Indiana if the person engages
in any of the activities described in subsection (b) and:
(1) makes at least one hundred (100) retail transactions from
outside Indiana to destinations in Indiana during a period of twelve
(12) consecutive months; or
(2) makes at least ten (10) retail transactions totaling more than one
hundred thousand dollars ($100,000) from outside Indiana to
destinations in Indiana during a period of twelve (12) consecutive
months.
(d) Subject to subsection (e), the location in or outside Indiana of
vendors that:
(1) are independent of a person that is soliciting customers in
Indiana; and
(2) provide products or services to the person in connection with
the person's solicitation of customers in Indiana:
(A) including products and services such as creation of copy,
printing, distribution, and recording;
but
(B) excluding:
(i) delivery of goods;
(ii) billing or invoicing for the sale of goods;
(iii) providing repairs of goods;
(iv) assembling or setting up goods for use by the
purchaser; or
(v) accepting returns of unwanted or damaged goods;
is not to be taken into account in the determination of whether the
person is required to collect use tax under this section.
(e) Subsection (d) does not apply if the person soliciting orders
is closely related to the vendor.
(f) For purposes of subsections (a) and (e), a person is closely
related to another person if:
(1) the two (2) persons:
(A) use an identical or a substantially similar name,
trademark, or good will to develop, promote, or maintain
sales;
(B) pay for each other's services in whole or in part
contingent on the volume or value of sales; or
(C) share a common business plan or substantially
coordinate their business plans; and
(2) either:
(A) one (1) or both of the persons are corporations and:
(i) one (1) person; and
(ii) any other person related to the person in a manner
that would require an attribution of stock from the
corporation to the person or from the person to the
corporation under the attribution rules of Section 318 of
the Internal Revenue Code;
own directly, indirectly, beneficially, or constructively at
least fifty percent (50%) of the value of the corporation's
outstanding stock;
(B) both entities are corporations and an individual
stockholder and the members of the stockholder's family
(as defined in Section 318 of the Internal Revenue Code)
own directly, indirectly, beneficially, or constructively a total
of at least fifty percent (50%) of the value of both entities'
outstanding stock; or
(C) one (1) or both persons are limited liability companies,
partnerships, limited liability partnerships, estates, or
trusts, and their members, partners, or beneficiaries own
directly, indirectly, beneficially, or constructively a total of
at least fifty percent (50%) of the profits, capital, stock, or
value of one (1) or both persons.
SOURCE: IC 6-3-1-3.5; (04)CC136505.1.9. -->
SECTION 9. IC 6-3-1-3.5, AS AMENDED BY P.L.1-2004,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: 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 12-10-6-2.1, 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.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(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.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(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.
(6) Add an amount equal to any deduction allowed under
Section 172 or Section 810 of the Internal Revenue Code.
(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.
(6) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(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.
(4) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(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: IC 6-3-2-2.5; (04)CC136505.1.10. -->
SECTION 10. IC 6-3-2-2.5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 2.5. (a) This
section applies to a resident person.
for a particular taxable year, if the
taxpayer's adjusted gross income for that taxable year is reduced
because of a deduction allowed under Section 172 of the Internal
Revenue Code for a net operating loss. For purposes of section 1 of this
chapter, the taxpayer's adjusted gross income, for the particular taxable
year, is the remainder determined under STEP FOUR of the following
formula:
STEP ONE: Determine the taxpayer's adjusted gross income, for
the taxable year, as calculated without the deduction for net
operating losses provided by Section 172 of the Internal Revenue
Code.
STEP TWO: Determine, in the manner prescribed in subsection
(b), the amount of the taxpayer's net operating losses that are
deductible for the taxable year under Section 172 of the Internal
Revenue Code, as adjusted to reflect the modifications required by
IC 6-3-1-3.5.
STEP THREE: Enter the larger of zero (0) or the amount
determined under STEP TWO.
STEP FOUR: Subtract the amount entered under STEP THREE
from the amount determined under STEP ONE.
(b) For purposes of STEP TWO of subsection (a), the modifications
that are to be applied are those modifications required under
IC 6-3-1-3.5 for the same taxable year during which each net operating
loss was incurred. In addition, for purposes of STEP TWO of
subsection (a), the following procedures apply:
(1) The taxpayer's net operating loss for a particular taxable year
shall be treated as a positive number.
(2) A modification that is to be added to federal adjusted gross
income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a negative number.
(3) A modification that is to be subtracted from federal adjusted
gross income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a positive number.
(b) Resident persons are entitled to a net operating loss
deduction. The amount of the deduction taken in a taxable year
may not exceed the taxpayer's unused Indiana net operating
losses carried back or carried over to that year.
(c) An Indiana net operating loss equals the taxpayer's federal
net operating loss for a taxable year as calculated under Section
172 of the Internal Revenue Code, adjusted for the modifications
required by IC 6-3-1-3.5.
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those
modifications required under IC 6-3-1-3.5 for the same
taxable year in which each net operating loss was incurred.
(2) An Indiana net operating loss includes a net operating loss
that arises when the modifications required by IC 6-3-1-3.5
exceed the taxpayer's federal adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for the
taxable year in which the Indiana net operating loss is
determined.
(e) Subject to the limitations contained in subsection (g), an
Indiana net operating loss carryback or carryover shall be
available as a deduction from the taxpayer's adjusted gross income
(as defined in IC 6-3-1-3.5) in the carryback or carryover year
provided in subsection (f).
(f) Carrybacks and carryovers shall be determined under this
subsection as follows:
(1) An Indiana net operating loss shall be an Indiana net
operating loss carryback to each of the carryback years
preceding the taxable year of the loss.
(2) An Indiana net operating loss shall be an Indiana net
operating loss carryover to each of the carryover years
following the taxable year of the loss.
(3) Carryback years shall be determined by reference to the
number of years allowed for carrying back a net operating loss
under Section 172(b) of the Internal Revenue Code.
(4) Carryover years shall be determined by reference to the
number of years allowed for carrying over net operating losses
under Section 172(b) of the Internal Revenue Code.
(5) A taxpayer who makes an election under Section 172(b)(3)
of the Internal Revenue Code to relinquish the carryback
period with respect to a net operating loss for any taxable year
shall be considered to have also relinquished the carryback of
the Indiana net operating loss for purposes of this section.
(g) The entire amount of the Indiana net operating loss for any
taxable year shall be carried to the earliest of the taxable years to
which (as determined under subsection (f)) the loss may be
carried. The amount of the Indiana net operating loss remaining
after the deduction is taken under this section in a taxable year
may be carried back or carried over as provided in subsection (f).
The amount of the Indiana net operating loss carried back or
carried over from year to year shall be reduced to the extent that
the Indiana net operating loss carryback or carryover is used by
the taxpayer to obtain a deduction in a taxable year until the
occurrence of the earlier of the following:
(1) The entire amount of the Indiana net operating loss has
been used as a deduction.
(2) The Indiana net operating loss has been carried over to
each of the carryover years provided by subsection (f).
SOURCE: IC 6-3-2-2.6; (04)CC136505.1.11. -->
SECTION 11. IC 6-3-2-2.6, AS AMENDED BY P.L.192-2002(ss),
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 2.6. (a) This section
applies to a corporation or a nonresident person.
for a particular taxable
year, if the taxpayer's adjusted gross income for that taxable year is
reduced because of a deduction allowed under Section 172 of the
Internal Revenue Code for a net operating loss. For purposes of section
1 of this chapter, the taxpayer's adjusted gross income, for the
particular taxable year, derived from sources within Indiana is the
remainder determined under STEP FOUR of the following formula:
STEP ONE: Determine, in the manner prescribed in section 2 of
this chapter, the taxpayer's adjusted gross income, for the taxable
year, derived from sources within Indiana, as calculated without
the deduction for net operating losses provided by Section 172 of
the Internal Revenue Code.
STEP TWO: Determine, in the manner prescribed in subsection
(b), the amount of the taxpayer's net operating losses that are
deductible for the taxable year under Section 172 of the Internal
Revenue Code, as adjusted to reflect the modifications required by
IC 6-3-1-3.5, and that are derived from sources within Indiana.
STEP THREE: Enter the larger of zero (0) or the amount
determined under STEP TWO.
STEP FOUR: Subtract the amount entered under STEP THREE
from the amount determined under STEP ONE.
(b) For purposes of STEP TWO of subsection (a), the modifications
that are to be applied are those modifications required under
IC 6-3-1-3.5 for the same taxable year during which each net operating
loss was incurred. In addition, for purposes of STEP TWO of
subsection (a), the amount of a taxpayer's net operating losses that are
derived from sources within Indiana shall be determined in the same
manner that the amount of the taxpayer's income derived from sources
within Indiana is determined, under section 2 of this chapter, for the
same taxable year during which each loss was incurred. Also, for
purposes of STEP TWO of subsection (a), the following procedures
apply:
(1) The taxpayer's net operating loss for a particular taxable year
shall be treated as a positive number.
(2) A modification that is to be added to federal adjusted gross
income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a negative number.
(3) A modification that is to be subtracted from federal adjusted
gross income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a positive number.
(4) A net operating loss under this section shall be considered even
though in the year the taxpayer incurred the loss the taxpayer was
not subject to the tax imposed under section 1 of this chapter
because the taxpayer was:
(A) a life insurance company (as defined in Section 816(a) of the
Internal Revenue Code); or
(B) an insurance company subject to tax under Section 831 of
the Internal Revenue Code.
(b) Corporations and nonresident persons are entitled to a net
operating loss deduction. The amount of the deduction taken in a
taxable year may not exceed the taxpayer's unused Indiana net
operating losses carried back or carried over to that year.
(c) An Indiana net operating loss equals the taxpayer's federal
net operating loss for a taxable year as calculated under Section
172 of the Internal Revenue Code, derived from sources within
Indiana and adjusted for the modifications required by
IC 6-3-1-3.5.
(d) The following provisions apply for purposes of subsection (c):
(1) The modifications that are to be applied are those
modifications required under IC 6-3-1-3.5 for the same
taxable year in which each net operating loss was incurred.
(2) The amount of the taxpayer's net operating loss that is
derived from sources within Indiana shall be determined in
the same manner that the amount of the taxpayer's adjusted
income derived from sources within Indiana is determined
under section 2 of this chapter for the same taxable year
during which each loss was incurred.
(3) An Indiana net operating loss includes a net operating loss
that arises when the modifications required by IC 6-3-1-3.5
exceed the taxpayer's federal taxable income (as defined in
Section 63 of the Internal Revenue Code), if the taxpayer is
a corporation, or when the modifications required by
IC 6-3-1-3.5 exceed the taxpayer's federal adjusted gross
income (as defined by Section 62 of the Internal Revenue
Code), if the taxpayer is a nonresident person, for the taxable
year in which the Indiana net operating loss is determined.
(e) Subject to the limitations contained in subsection (g), an
Indiana net operating loss carryback or carryover shall be
available as a deduction from the taxpayer's adjusted gross income
derived from sources within Indiana (as defined in section 2 of
this chapter) in the carryback or carryover year provided in
subsection (f).
(f) Carrybacks and carryovers shall be determined under this
subsection as follows:
(1) An Indiana net operating loss shall be an Indiana net
operating loss carryback to each of the carryback years
preceding the taxable year of the loss.
(2) An Indiana net operating loss shall be an Indiana net
operating loss carryover to each of the carryover years
following the taxable year of the loss.
(3) Carryback years shall be determined by reference to the
number of years allowed for carrying back a net operating loss
under Section 172(b) of the Internal Revenue Code.
(4) Carryover years shall be determined by reference to the
number of years allowed for carrying over net operating losses
under Section 172(b) of the Internal Revenue Code.
(5) A taxpayer who makes an election under Section 172(b)(3)
of the Internal Revenue Code to relinquish the carryback
period with respect to a net operating loss for any taxable year
shall be considered to have also relinquished the carryback of
the Indiana net operating loss for purposes of this section.
(g) The entire amount of the Indiana net operating loss for any
taxable year shall be carried to the earliest of the taxable years to
which (as determined under subsection (f)) the loss may be
carried. The amount of the Indiana net operating loss remaining
after the deduction is taken under this section in a taxable year
may be carried back or carried over as provided in subsection (f).
The amount of the Indiana net operating loss carried back or
carried over from year to year shall be reduced to the extent that
the Indiana net operating loss carryback or carryover is used by
the taxpayer to obtain a deduction in a taxable year until the
occurrence of the earlier of the following:
(1) The entire amount of the Indiana net operating loss has
been used as a deduction.
(2) The Indiana net operating loss has been carried over to
each of the carryover years provided by subsection (f).
(h) An Indiana net operating loss deduction determined under
this section shall be allowed notwithstanding the fact that in the
year the taxpayer incurred the net operating loss the taxpayer was
not subject to the tax imposed under section 1 of this chapter
because the taxpayer was:
(1) a life insurance company (as defined in Section 816(a) of
the Internal Revenue Code); or
(2) an insurance company subject to tax under Section 831 of
the Internal Revenue Code.
(i) In the case of a life insurance company that claims an
operations loss deduction under Section 810 of the Internal
Revenue Code, this section shall be applied by:
(1) substituting the corresponding provisions of Section 810 of
the Internal Revenue Code in place of references to Section
172 of the Internal Revenue; and
(2) substituting life insurance company taxable income (as
defined in Section 801 the Internal Revenue Code) in place of
references to taxable income (as defined in Section 63 of the
Internal Revenue Code).
(j) For purposes of an amended return filed to carry back an
Indiana net operating loss:
(1) the term "due date of the return" as used in
IC 6-8.1-9-1(a)(1) means the due date of the return for the
taxable year in which the net operating loss was incurred; and
(2) the term "date the payment was due" as used in
IC 6-8.1-9-2(c) means the due date of the return for the
taxable year in which the net operating loss was incurred.
SOURCE: IC 6-3.1-4-6; (04)CC136505.1.12. -->
SECTION 12. IC 6-3.1-4-6, AS AMENDED BY P.L.224-2003,
SECTION 191, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 6. Notwithstanding the other provisions of this
chapter, a taxpayer is not entitled to a credit for Indiana qualified
research expense incurred after December 31, 2013. Notwithstanding
Section 41 of the Internal Revenue Code, the termination date in Section
41(h) of the Internal Revenue Code does not apply to a taxpayer who
is eligible for the credit under this chapter for the taxable year in which
the Indiana qualified research expense is incurred.
SOURCE: IC 6-3.1-13-7; (04)CC136505.1.13. -->
SECTION 13. IC 6-3.1-13-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec.
7. As used in this chapter, "pass through entity" means a:
(1) a corporation that is exempt from the adjusted gross income tax
under IC 6-3-2-2.8(2); or
(2) a partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
SOURCE: IC 6-3.1-13-21; (04)CC136505.1.14. -->
SECTION 14. IC 6-3.1-13-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec.
21. (a) If a pass through entity does not have state income tax liability
against which the tax credit may be applied, a shareholder or partner of
the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income
to which the shareholder or partner is entitled.
(b) The credit provided under subsection (a) is in addition to a tax
credit to which a shareholder or partner of a pass through entity is
otherwise entitled under a separate agreement under this chapter. A pass
through entity and a shareholder or partner of the pass through entity
may not claim more than one (1) credit under the same agreement.
(c) This subsection applies only to a pass through entity that is
a limited liability company or a limited liability partnership owned
wholly or in part by an electric cooperative incorporated under
IC 8-1-13. At the request of a pass through entity, if the board
finds that the amount of the average wage to be paid by the pass
through entity will be at least double the average wage paid within
the county in which the project will be located, the board may
determine that:
(1) the credit shall be claimed by the pass through entity; and
(2) if the credit exceeds the pass through entity's state income
tax liability for the taxable year, the excess shall be refunded
to the pass through entity.
If the board grants a refund directly to a pass through entity
under this subsection, the pass through entity shall claim the
refund on forms prescribed by the department of state revenue.
SOURCE: ; (04)CC136505.1.15. -->
SECTION 15. [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]
IC 6-3.1-13-7 and IC 6-3.1-13-21, both as amended by this act,
apply to taxable years beginning after December 31, 2003.
SOURCE: IC 6-3.1-26-26; (04)CC136505.1.16. -->
SECTION 16. IC 6-3.1-26-26, AS ADDED BY P.L.224-2003,
SECTION 197, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 26. (a) This chapter
applies to taxable years beginning after December 31, 2003.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for a qualified investment made after December
31, 2005. 2007. However, this section may not be construed to prevent
a taxpayer from carrying an unused tax credit attributable to a qualified
investment made before January 1, 2006, 2008, forward to a taxable
year beginning after December 31, 2005, 2007, in the manner provided
by section 15 of this chapter.
SOURCE: ; (04)CC136505.1.17. -->
SECTION 17. P.L.224-2003, SECTION 198 IS REPEALED
[EFFECTIVE UPON PASSAGE].
SOURCE: IC 6-4.1-1-3; (04)CC136505.1.18. -->
SECTION 18. IC 6-4.1-1-3, AS AMENDED BY HEA 1154-2004,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) "Class A transferee" means a transferee who
is:
(1) a lineal ancestor of the transferor;
(2) a lineal descendant of the transferor; or
(3) a stepchild of the transferor.
(b) "Class B transferee" means a transferee who is a:
(1) brother or sister of the transferor;
(2) descendant of a brother or sister of the transferor; or
(3) spouse, widow, or widower of a child of the transferor.
(c) "Class C transferee" means a transferee, except a surviving
spouse, who is neither a Class A nor a Class B transferee.
(d) For purposes of this section, a legally adopted child is to be
treated as if the child were the natural child of the child's adopting
parent
if the adoption occurred before the individual was totally
emancipated. For purposes of this section, if a relationship of loco
parentis has existed for at least ten (10) years and if the relationship
began before the child's fifteenth birthday, the child is to be considered
the natural child of the loco parentis parent.
(e) As used in this section, "stepchild" means a child of the
transferor's surviving, deceased, or former spouse who is not a child
of the transferor.
SOURCE: IC 6-2.5-4-5; (04)CC136505.1.19. -->
SECTION 19. IC 6-2.5-4-5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 5. (a) As used in this section, a
"power subsidiary" means a corporation which is owned or controlled
by one (1) or more public utilities that furnish or sell electrical energy,
natural or artificial gas, water, steam, or steam heat and which
produces power exclusively for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction
when: in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described in
section 6 of this chapter.
or
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, refining, oil extraction, mineral
extraction, irrigation, agriculture, or horticulture. However, this
exclusion for sales of the services and commodities only applies if
the services are consumed as an essential and integral part of an
integrated process that produces tangible personal property and
those sales are separately metered for the excepted uses listed in
this subdivision, or if those sales are not separately metered but are
predominately used by the purchaser for the excepted uses listed in
this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, an
economic development area established under
IC 36-7-14.5-12.5, or a military base recovery site
designated under IC 6-3.1-11.5.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another
location in Indiana in order to relocate its operations in an
area described in this subdivision, unless the department
determines that the business had existing operations in the
area described in this subdivision and that the operations
relocated to the area are an expansion of the business's
operations in the area.
SOURCE: IC 6-3-2-1; (04)CC136505.1.20. -->
SECTION 20. IC 6-3-2-1, AS AMENDED BY P.L.192-2002(ss),
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 1. (a) Each taxable year, a tax at the rate of
three and four-tenths percent (3.4%) of adjusted gross income is
imposed upon the adjusted gross income of every resident person, and
on that part of the adjusted gross income derived from sources within
Indiana of every nonresident person.
(b) Except as provided in section 1.5 of this chapter, each taxable
year, a tax at the rate of eight and five-tenths percent (8.5%) of
adjusted gross income is imposed on that part of the adjusted gross
income derived from sources within Indiana of every corporation.
SOURCE: IC 6-3-2-1.5; (04)CC136505.1.21. -->
SECTION 21. IC 6-3-2-1.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]:
Sec. 1.5. (a) As used in this section, "qualified
area" means:
(1) a military base (as defined in IC 36-7-30-1(c));
(2) a military base reuse area established under IC 36-7-30;
(3) an economic development area established under
IC 36-7-14.5-12.5; or
(4) a military base recovery site designated under
IC 6-3.1-11.5.
(b) Except as provided in subsection (c), a tax at the rate of five
percent (5%) of adjusted gross income is imposed on that part of
the adjusted gross income of a corporation that is derived from
sources within a qualified area if the corporation locates all or part
of its operations in a qualified area during the taxable year, as
determined under subsection (e). The tax rate under this section
applies to the taxable year in which the corporation locates its
operations in the qualified area and to the next succeeding four
(4) taxable years.
(c) A taxpayer is not entitled to the tax rate described in
subsection (b) to the extent that the taxpayer substantially
reduces or ceases its operations at another location in Indiana in
order to relocate its operations within the qualified area, unless:
(1) the taxpayer had existing operations in the qualified area;
and
(2) the operations relocated to the qualified area are an
expansion of the taxpayer's operations in the qualified area.
(d) A determination under subsection (c) that a taxpayer is not
entitled to the tax rate provided by this section as a result of a
substantial reduction or cessation of operations applies to the
taxable year in which the substantial reduction or cessation occurs
and in all subsequent years. Determinations under this section
shall be made by the department of state revenue.
(e) The department of state revenue:
(1) shall adopt rules under IC 4-22-2 to establish a procedure
for determining the part of a corporation's adjusted gross
income that was derived from sources within a qualified area;
and
(2) may adopt other rules that the department considers
necessary for the implementation of this chapter.
SOURCE: IC 6-3.1-11.6; (04)CC136505.1.22. -->
SECTION 22. IC 6-3.1-11.6 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]:
Chapter 11.6. Military Base Investment Cost Credit
Sec. 1. As used in this chapter, "NAICS Manual" refers to the
current edition of the North American Industry Classification
System Manual - United States published by the National
Technical Information Service of the United States Department of
Commerce.
Sec. 2. As used in this chapter, "qualified area" means:
(1) a military base (as defined in IC 36-7-30-1(c));
(2) a military base reuse area established under IC 36-7-30;
(3) an economic development area established under
IC 36-7-14.5-12.5; or
(4) a military base recovery site designated under
IC 6-3.1-11.5.
Sec. 3. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 4. As used in this chapter, "qualified investment" means
any of the following:
(1) The purchase of an ownership interest in a business that
locates all or part of its operations in a qualified area during
the taxable year, if the purchase is approved by the
department of commerce under section 12 of this chapter.
(2) Subject to section 13 of this chapter, an investment:
(A) that is made in a business that locates all or part of its
operations in a qualified area during the taxable year;
(B) through which the taxpayer does not acquire an
ownership interest in the business; and
(C) that is approved by the department of commerce under
section 12 of this chapter.
Sec. 5. As used in this chapter, "SIC Manual" refers to the
current edition of the Standard Industrial Classification Manual
of the United States Office of Management and Budget.
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under IC 6-3-1
through IC 6-3-7 (the adjusted gross income tax), as computed
after the application of the credits that, under IC 6-3.1-1-2, are to
be applied before the credit provided by this chapter.
Sec. 7. As used in this chapter, "taxpayer" means an individual
or pass through entity that has any state tax liability.
Sec. 8. As used in this chapter, "transfer ownership" means to
purchase existing investment in a business, including real
property, improvements to real property, or equipment.
Sec. 9. (a) A taxpayer is entitled to a credit against the
taxpayer's state tax liability for a taxable year if the taxpayer
makes a qualified investment in that taxable year.
(b) The amount of the credit to which a taxpayer is entitled is
the percentage determined under section 12 of this chapter
multiplied by the amount of the qualified investment made by the
taxpayer during the taxable year.
Sec. 10. (a) If a pass through entity is entitled to a credit under
section 9 of this chapter but does not have state tax liability
against which the tax credit may be applied, an individual who is
a shareholder, partner, or member of the pass through entity is
entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for
the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
(b) The credit provided under subsection (a) is in addition to a
tax credit to which a shareholder, partner, or member of a pass
through entity is otherwise entitled under this chapter. However,
a pass through entity and an individual who is a shareholder,
partner, or member of the pass through entity may not claim
more than one (1) credit for the same investment.
Sec. 11. (a) If the amount determined under section 9(b) of this
chapter for a taxpayer in a taxable year exceeds the taxpayer's
state tax liability for that taxable year, the taxpayer may carry the
excess over to the following taxable years. The amount of the
credit carryover from a taxable year shall be reduced to the extent
that the carryover is used by the taxpayer to obtain a credit under
this chapter for a subsequent taxable year.
(b) A taxpayer is not entitled to a carryback or refund of unused
credit.
Sec. 12. (a) To be entitled to a credit for a purchase described in
section 4(1) of this chapter, a taxpayer must request the
department of commerce to determine:
(1) whether a purchase of an ownership interest in a business
located in a qualified area is a qualified investment; and
(2) the percentage credit to be allowed.
The request must be made before a purchase is made.
(b) To be entitled to a credit for an investment described in
section 4(2) of this chapter, a taxpayer must request the
department of commerce to determine:
(1) whether an investment in a business that locates in a
qualified area during the taxable year is a qualified
investment; and
(2) the percentage credit to be allowed.
The request must be made before an investment is made.
(c) The department of commerce shall find that a purchase or
other investment is a qualified investment if:
(1) the business is viable;
(2) the taxpayer has a legitimate purpose for purchase of the
ownership interest or the investment;
(3) the purchase or investment would not be made unless a
credit is allowed under this chapter; and
(4) the purchase or investment is critical to the
commencement, enhancement, or expansion of business
operations in the qualified area and:
(A) in the case of a purchase described in section 4(1) of this
chapter, the purchase will not merely transfer ownership,
and the purchase proceeds will be used only in business
operations in the qualified area; and
(B) in the case of an investment described in section 4(2) of
this chapter, the investment will not be made in a business
that substantially reduces or ceases its operations at
another location in Indiana in order to relocate its
operations within the qualified area, as described in section
13 of this chapter.
(d) If the department of commerce finds that a purchase or
other investment is a qualified investment, the department of
commerce shall certify the percentage credit to be allowed under
this chapter based upon the following:
(1) For a purchase described in section 4(1) of this chapter, a
percentage credit of ten percent (10%) may be allowed based
on the need of the business for equity financing, as
demonstrated by the inability of the business to obtain debt
financing.
(2) A percentage credit of two percent (2%) may be allowed
for purchases of or investments in business operations in the
retail, professional, or warehouse/distribution codes of the SIC
Manual (or corresponding sectors in the NAICS Manual).
(3) A percentage credit of five percent (5%) may be allowed
for purchases of or investments in business operations in the
manufacturing codes of the SIC Manual (or corresponding
sectors in the NAICS Manual).
(4) A percentage credit of five percent (5%) may be allowed
for purchases of or investments in high technology business
operations (as defined in IC 4-4-6.1-1.3).
(5) A percentage credit may be allowed for jobs created during
the twelve (12) month period following the purchase of an
ownership interest in the business or other investment in the
business, as determined under the following table:
JOBS CREATED PERCENTAGE
Less than 11 jobs 1%
11 to 25 jobs 2%
26 to 40 jobs 3%
41 to 75 jobs 4%
More than 75 jobs 5%
(6) A percentage credit of five percent (5%) may be allowed
if fifty percent (50%) or more of the jobs created in the
twelve (12) month period following the purchase of an
ownership interest in the business or other investment in the
business will be reserved for residents in the qualified area.
(7) A percentage credit may be allowed for investments made
in real or depreciable personal property, as determined under
the following table:
AMOUNT OF INVESTMENT PERCENTAGE
Less than $25,001 1%
$25,001 to $50,000 2%
$50,001 to $100,000 3%
$100,001 to $200,000 4%
More than $200,000 5%
The total percentage credit may not exceed thirty percent (30%).
(e) In the case of a purchase described in section 4(1) of this
chapter, if all or a part of a purchaser's intent is to transfer
ownership, the tax credit shall be applied only to that part of the
purchase that relates directly to the enhancement or expansion of
business operations in the qualified area.
Sec. 13. (a) This subsection applies to an investment described
in section 4(2) of this chapter.
(b) A taxpayer is not entitled to claim the credit provided by
this chapter to the extent that the taxpayer invests in a business
that substantially reduces or ceases its operations at another
location in Indiana in order to relocate its operations within the
qualified area, unless:
(1) the business had existing operations in the qualified area;
and
(2) the operations relocated to the qualified area are an
expansion of the business's operations in the qualified area.
(c) A determination under subsection (b) that a taxpayer is not
entitled to the credit provided by this chapter as a result of a
business's substantial reduction or cessation of operations applies
to credits that would otherwise arise in the taxable year:
(1) in which the substantial reduction or cessation occurs; or
(2) in which the taxpayer proposes to make the investment
in the business, if different than the taxable year described
in subdivision (1).
Determinations under this section shall be made by the
department of state revenue.
Sec. 14. To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's annual state tax
return or returns in the manner prescribed by the department of
state revenue. The taxpayer shall submit to the department of
state revenue the certification of the percentage credit by the
department of commerce and all information that the department
of state revenue determines is necessary for the calculation of the
credit provided by this chapter and for the determination of
whether an investment is a qualified investment.
SOURCE: IC 36-7-32-11; (04)CC136505.1.23. -->
SECTION 23. IC 36-7-32-11, AS ADDED BY P.L.192-2002(ss),
SECTION 187, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 11. (a) After receipt of an application under
section 10 of this chapter, and subject to subsection (b), the department
of commerce may designate a certified technology park if the
department determines that the application demonstrates a firm
commitment from at least one (1) business engaged in a high
technology activity creating a significant number of jobs and satisfies
one (1) or more of the following additional criteria:
(1) A demonstration of significant support from an institution of
higher education,
or a private research based institute,
or a
military research and development or testing facility on an
active United States government military base or other
military installation located within, or in the vicinity of, the
proposed certified technology park, as evidenced by the following
criteria:
(A) Grants of preferences for access to and commercialization
of intellectual property.
(B) Access to laboratory and other facilities owned by or under
the control of the institution of higher education or private
research based institute.
(C) Donations of services.
(D) Access to telecommunications facilities and other
infrastructure.
(E) Financial commitments.
(F) Access to faculty, staff, and students.
(G) Opportunities for adjunct faculty and other types of staff
arrangements or affiliations.
(H) Other criteria considered appropriate by the department.
(2) A demonstration of a significant commitment by the institution
of higher education,
or private research based institute,
or
military research and development or testing facility on an
active United States government military base or other
military installation to the commercialization of research
produced at the certified technology park, as evidenced by the
intellectual property and, if applicable, tenure policies that reward
faculty and staff for commercialization and collaboration with
private businesses.
(3) A demonstration that the proposed certified technology park
will be developed to take advantage of the unique characteristics
and specialties offered by the public and private resources
available in the area in which the proposed certified technology
park will be located.
(4) The existence of or proposed development of a business
incubator within the proposed certified technology park that
exhibits the following types of resources and organization:
(A) Significant financial and other types of support from the
public or private resources in the area in which the proposed
certified technology park will be located.
(B) A business plan exhibiting the economic utilization and
availability of resources and a likelihood of successful
development of technologies and research into viable business
enterprises.
(C) A commitment to the employment of a qualified full-time
manager to supervise the development and operation of the
business incubator.
(5) The existence of a business plan for the proposed certified
technology park that identifies its objectives in a clearly focused
and measurable fashion and that addresses the following matters:
(A) A commitment to new business formation.
(B) The clustering of businesses, technology, and research.
(C) The opportunity for and costs of development of
properties under common ownership or control.
(D) The availability of and method proposed for development
of infrastructure and other improvements, including
telecommunications technology, necessary for the development
of the proposed certified technology park.
(E) Assumptions of costs and revenues related to the
development of the proposed certified technology park.
(6) A demonstrable and satisfactory assurance that the proposed
certified technology park can be developed to principally contain
property that is primarily used for, or will be primarily used for,
a high technology activity or a business incubator.
(b) The department of commerce may not approve an application
that would result in a substantial reduction or cessation of operations in
another location in Indiana in order to relocate them within the certified
technology park.
SOURCE: ; (04)CC136505.1.24. -->
SECTION 24. [EFFECTIVE JANUARY 1, 2005] IC 6-3-2-1, as
amended by this act, and IC 6-3-2-1.5 and IC 6-3.1-11.6, both as
added by this act, apply to taxable years beginning after December
31, 2004.
SOURCE: ; (04)CC136505.1.25. -->
SECTION 25. [EFFECTIVE JULY 1, 2004] IC 6-2.5-4-5, as
amended by this act, applies to transactions that occur after June
30, 2004.
SOURCE: IC 32-24-1-4; (04)CC136505.1.26. -->
SECTION 26. IC 32-24-1-4, AS ADDED BY P.L.2-2002, SECTION
9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2004]: Sec. 4. (a) If the person seeking to acquire the property does not
agree with the owner of an interest in the property or with the guardian
of an owner concerning the damages sustained by the owner, the
person seeking to acquire the property may file a complaint for that
purpose with the clerk of the circuit court of the county where the
property is located.
(b) The complaint must state the following:
(1) The name of the person seeking to acquire the property. This
person shall be named as the plaintiff.
(2) The names of all owners, claimants to, and holders of liens on
the property, if known, or a statement that they are unknown.
These owners, claimants, and holders of liens shall be named as
defendants.
(3) The use the plaintiff intends to make of the property or right
sought to be acquired.
(4) If a right-of-way is sought, the location, general route, width,
and the beginning and end points of the right-of-way.
(5) A specific description of each piece of property sought to be
acquired and whether the property includes the whole or only part
of the entire parcel or tract. If property is sought to be acquired
by the state or by a county for a public highway or by a municipal
corporation for a public use and the acquisition confers benefits
on any other property of the owner, a specific description of each
piece of property to which the plaintiff alleges the benefits will
accrue. Plats of property alleged to be affected may accompany
the descriptions.
(6) That the plaintiff has been unable to agree for the purchase of
the property with the owner, owners, or guardians, as the case
may be, or that the owner is mentally incompetent or less than
eighteen (18) years of age and has no legally appointed guardian,
or is a nonresident of Indiana.
(c) All parcels lying in the county and required for the same public
use, whether owned by the same parties or not, may be included in the
same or separate proceedings at the option of the plaintiff. However, the
court may consolidate or separate the proceedings to suit the
convenience of parties and the ends of justice. The filing of the
complaint and a lis pendens notice in any eminent domain action
under this article constitutes notice of proceedings to all subsequent
purchasers and persons taking encumbrances of the property, who are
bound by the notice.
SOURCE: IC 32-34-1-28; (04)CC136505.1.27. -->
SECTION 27. IC 32-34-1-28, AS AMENDED BY P.L.107-2003,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 28. (a) Except as provided in subsection (e), the
attorney general shall publish a notice not later than November 30 of the
year immediately following the year in which unclaimed property has
been paid or delivered to the attorney general.
(b) Except as provided in subsection (c), the notice required by
subsection (a) must be published at least once each week for two (2)
successive weeks in a newspaper of general circulation published in the
county in Indiana of the last known address of any person named in the
notice.
(c) If the holder:
(1) does not report an address for the apparent owner; or
(2) reports an address outside Indiana;
the notice must be published in the county in which the holder has its
principal place of business within Indiana or any other county that the
attorney general may reasonably select.
(d) The advertised notice required by this section must be in a form
that, in the judgment of the attorney general, will attract the attention of
the apparent owner of the unclaimed property and must contain the
following information:
(1) The name of each person appearing to be an owner of
property that is presumed abandoned, as set forth in the report
filed by the holder.
(2) The last known address or location of each person appearing
to be an owner of property that is presumed abandoned, if an
address or a location is set forth in the report filed by the holder.
(3) A statement explaining that the property of the owner is
presumed to be abandoned and has been taken into the protective
custody of the attorney general.
(4) A statement that information about the abandoned property and
its return to the owner is available, upon request, from the
attorney general, to a person having a legal or beneficial interest in
the property.
(e) The attorney general is not required to publish the following in
the notice:
(1) Any item with a value of less than one hundred dollars ($100).
(2) Information concerning a traveler's check, money order, or
any similar instrument.
(3) Property reported as a result of a demutualization of an
insurance company.
SOURCE: IC 32-34-1-28.5; (04)CC136505.1.28. -->
SECTION 28. IC 32-34-1-28.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 28.5. (a) The attorney general shall publish
a notice not later than November 30 of the year immediately
following the year in which unclaimed property as a result of a
demutualization of an insurance company has been paid or
delivered to the attorney general.
(b) The notice required by subsection (a) must be published at
least once in a newspaper of general circulation published in the
county of Indiana of the last known address of any person named
in the notice.
(c) If the holder does not report an address for the apparent
owner, the notice must be published in the county in which the
holder has its principal place of business within Indiana or any
other county that the attorney general may reasonably select.
(d) The advertised notice required by this section must be in a
form that, in the judgment of the attorney general, will attract the
attention of the apparent owner of the unclaimed property. The
advertised notice is not subject to the rate prescribed in
IC 5-3-1-1. The rate may not be higher than the rate set in
IC 5-3-1-1.
(e) The advertised notice must contain the following
information:
(1) The name of each person appearing to be an owner of
property that is presumed abandoned, as set forth in the
report filed by the holder.
(2) The last known address or location of each person
appearing to be an owner of property that is presumed
abandoned, if an address or a location is set forth in the
report filed by the holder.
(3) A statement explaining that the property of the owner is
presumed to be abandoned and has been taken into
protective custody of the attorney general.
(4) A statement that information about the abandoned
property and its return to the owner is available, upon
request, from the attorney general, to a person having a
legal or beneficial interest in the property.
(f) The attorney general is not required to include any item
with a value of less than one hundred dollars ($100) in the notice.
SOURCE: IC 6-3.1-19-3; (04)CC136505.1.29. -->
SECTION 29. IC 6-3.1-19-3, AS AMENDED BY P.L.224-2003,
SECTION 196, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) Subject to section 5 of this chapter, a
taxpayer is entitled to a credit against the taxpayer's state and local tax
liability for a taxable year if the taxpayer makes a qualified investment
in that year.
(b) The amount of the credit to which a taxpayer is entitled is the
qualified investment made by the taxpayer during the taxable year
multiplied by twenty-five percent (25%).
(c) A taxpayer may assign any part of the credit to which the
taxpayer is entitled under this chapter to a lessee of property
redeveloped or rehabilitated under section 2 of this chapter. A credit that
is assigned under this subsection remains subject to this chapter.
(d) An assignment under subsection (c) must be in writing and both
the taxpayer and the lessee must report the assignment on their state tax
return for the year in which the assignment is made, in the manner
prescribed by the department. The taxpayer may not receive value in
connection with the assignment under subsection (c) that exceeds the
value of the part of the credit assigned.
(e) If a pass through entity is entitled to a credit under this chapter
but does not have state and local tax liability against which the tax credit
may be applied, a shareholder, partner, or member of the pass through
entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income
to which the shareholder, partner, or member is entitled.
The credit provided under this subsection is in addition to a tax credit
to which a shareholder, partner, or member of a pass through entity is
otherwise entitled under this chapter. However, a pass through entity
and an individual who is a shareholder, partner, or member of the pass
through entity may not claim more than one (1) credit for the same
investment.
(f) A taxpayer that is otherwise entitled to a credit under this
chapter for a taxable year may claim the credit regardless of
whether any income tax incremental amount or gross retail
incremental amount has been:
(1) deposited in the incremental tax financing fund
established for the community revitalization enhancement
district; or
(2) allocated to the district.
SOURCE: IC 6-3.1-19-5; (04)CC136505.1.30. -->
SECTION 30. IC 6-3.1-19-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. (a)
Except as
provided in subsection (b), A taxpayer is not entitled to claim the credit
provided by this chapter to the extent that the taxpayer substantially
reduces or ceases its operations in Indiana in order to relocate them
within the district.
(b) Notwithstanding subsection (a), a taxpayer's substantial
reduction or cessation of operations in Indiana in order to relocate
operations to a district does not make a taxpayer ineligible for a credit
under this chapter if: (1)
Determinations under this section shall be made by the
department. The department shall adopt a proposed order
concerning a taxpayer's eligibility for the credit based on
subsection (b) and the following criteria:
(1) A site-specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or
any activity involving permanent full-time or part-time
employees, shall be considered a business operation.
(2) With respect to an operation located outside the district
(referred to in this section as a "nondistrict operation"), any
of the following that occurs during the twelve (12) months
before the completion of the physical relocation of all or part
of the activity described in subdivision (1) from the
nondistrict operation to the district as compared with the
twelve (12) months before that twelve (12) months shall be
considered a substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would
otherwise be disqualified under subsection (a) is eligible for the
credit provided by this chapter if the taxpayer meets at least one
(1) of the following conditions:
(1) The taxpayer relocates all or part of its nondistrict
operation for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of
the taxpayer.
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed
by the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building
authority.
(D) The building for the nondistrict operation has been
totally destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location
of the nondistrict operation are more than one and
one-half (1 1/2) times the costs of purchase, renovation,
and construction of a facility in the district, as certified by
three (3) independent estimates.
(F) The taxpayer had existing operations in the district and (2)
the nondistrict operations relocated to the district are an
expansion of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nondistrict operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the district. These costs must be
certified by three (3) independent estimates.
(2) The taxpayer has not terminated or reduced the pension
or health insurance obligations payable to employees or
former employees of the nondistrict operation without the
consent of the employees.
(c) The department shall cause to be delivered to the taxpayer
and to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's
proposed order. The taxpayer and these persons shall be
considered parties for purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of
the proposed order, file written objections with the department.
The department shall immediately forward copies of the objections
to the director of the budget agency and the director of the
department of commerce. A hearing panel composed of the
commissioner of the department or the commissioner's designee,
the director of the budget agency or the director's designee, and
the director of the department of commerce or the director's
designee shall set the objections for oral argument and give notice
to the parties. A party at its own expense may cause to be filed
with the hearing panel a transcript of the oral testimony or any
other part of the record of the proceedings. The oral argument
shall be on the record filed with the hearing panel. The hearing
panel may hear additional evidence or remand the action to the
department with instructions appropriate to the expeditious and
proper disposition of the action. The hearing panel may adopt the
proposed order of the department, may amend or modify the
proposed order, or may make such order or determination as is
proper on the record. The affirmative votes of at least two (2)
members of the hearing panel are required for the hearing panel
to take action on any measure. The taxpayer may appeal the
decision of the hearing panel to the tax court in the same manner
that a final determination of the department may be appealed
under IC 33-3-5.
(e) If no objections are filed, the department may adopt the
proposed order without oral argument.
(c) (f) A determination that a taxpayer is not entitled to the credit
provided by this chapter as a result of a substantial reduction or
cessation of operations applies to credits that would otherwise arise in
the taxable year in which the substantial reduction or cessation occurs
and in all subsequent years. Determinations under this section shall be
made by the department of state revenue.
SOURCE: IC 36-7-13-2.4; (04)CC136505.1.31. -->
SECTION 31. IC 36-7-13-2.4, AS AMENDED BY P.L.178-2002,
SECTION 116, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2.4. Except as provided in section 10.7(c) of this
chapter, as used in this chapter, "gross retail base period amount"
means:
(1) the aggregate amount of state gross retail and use taxes
remitted under IC 6-2.5 by the businesses operating in the territory
comprising a district during the full state fiscal year that precedes
the date on which:
(A) an advisory commission on industrial development adopted
a resolution designating the district, in the case of a district that
is not described in section 12(c) of this chapter; or
(B) the legislative body of a county or municipality adopts an
ordinance designating a district under section 10.5 of this
chapter; or
(2) an amount equal to:
(A) the aggregate amount of state gross retail and use taxes
remitted:
(i) under IC 6-2.5 by the businesses operating in the territory
comprising a district; and
(ii) during the month in which an advisory commission on
industrial development adopted a resolution designating the
district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of this
chapter; or
(3) an amount equal to the amount determined under
subdivision (1) or (2); plus:
(A) the aggregate amount of state gross retail and use
taxes remitted:
(i) under IC 6-2.5 by the businesses operating in the
territory added to the district; and
(ii) during the month in which a petition to modify the
district's boundaries is approved by the budget agency
under section 12.5 of this chapter; multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of this
chapter.
SOURCE: IC 36-7-13-3.2; (04)CC136505.1.32. -->
SECTION 32. IC 36-7-13-3.2, AS AMENDED BY P.L.178-2002,
SECTION 117, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3.2. Except as provided in section 10.7(d) of this
chapter, as used in this chapter, "income tax base period amount"
means:
(1) the aggregate amount of state and local income taxes paid by
employees employed in the territory comprising a district with
respect to wages and salary earned for work in the district for the
state fiscal year that precedes the date on which:
(A) an advisory commission on industrial development adopted
a resolution designating the district, in the case of a district that
is not described in section 12(c) of this chapter; or
(B) the legislative body of a county or municipality adopts an
ordinance designating a district under section 10.5 of this
chapter; or
(2) an amount equal to:
(A) the aggregate amount of state and local income taxes paid
by employees employed in the territory comprising a district
with respect to wages and salary earned for work in the district
during the month in which an advisory commission on
industrial development adopted a resolution designating the
district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of this
chapter; or
(3) an amount equal to the amount determined under
subdivision (1) or (2); plus:
(A) the aggregate amount of state and local income taxes
paid by employees employed in the territory added to the
district with respect to wages and salary earned for work
in the modified district during the month in which a
petition to modify the district's boundaries is approved by
the budget agency under section 12.5 of this chapter;
multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of this
chapter.
SOURCE: IC 36-7-13-10.5; (04)CC136505.1.33. -->
SECTION 33. IC 36-7-13-10.5, AS AMENDED BY P.L.178-2002,
SECTION 118, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 10.5. (a) This section applies only to a county that
meets the following conditions:
(1) The county's annual rate of unemployment has been above the
average annual statewide rate of unemployment during at least
three (3) of the preceding five (5) years.
(2) The median income of the county has:
(A) declined over the preceding ten (10) years; or
(B) has grown at a lower rate than the average annual statewide
growth in median income during at least three (3) of the
preceding five (5) years.
(3) The population of the county (as determined by the legislative
body of the county) has declined over the preceding ten (10)
years.
(b) Except as provided in section 10.7 of this chapter, in a county
described in subsection (a), the legislative body of the county may
adopt an ordinance designating an unincorporated part or
unincorporated parts of the county as a district, and the legislative body
of a municipality located within the county may adopt an ordinance
designating a part or parts of the municipality as a district, if the
legislative body finds all of the following:
(1) The area to be designated as a district contains a building or
buildings that:
(A) have a total of at least fifty thousand (50,000) square feet
of usable interior floor space; and
(B) are vacant or will become vacant due to the relocation of
the employer or the cessation of operations on the site by the
employer.
(2) Significantly fewer persons are employed in the area to be
designated as a district than were employed in the area during the
year that is ten (10) years previous to the current year.
(3) There are significant obstacles to redevelopment in the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination or remediation.
(c) A legislative body adopting an ordinance under subsection (b)
shall designate the duration of the district. However, the duration may
not exceed a district must terminate not later than fifteen (15)
years from the time of designation. after the income tax incremental
amount or gross retail incremental amount is first allocated to the
district.
(d) Except as provided in section 10.7 of this chapter, upon adoption
of an ordinance designating a district, the legislative body shall submit
the ordinance to the budget committee for review and recommendation
to the budget agency. If the budget agency fails to take action on an
ordinance designating a district within one hundred twenty (120)
days after the date that the ordinance is submitted to the budget
committee, the designation of the district by the ordinance is
considered approved.
(e) Except as provided in section 10.7 of this chapter, when
considering the designation of a district by an ordinance adopted under
this section, the budget committee and the budget agency must make
the following findings before approving the designation of the district:
(1) The area to be designated as a district meets the conditions
necessary for the designation as a district.
(2) The designation of the district will benefit the people of Indiana
by protecting or increasing state and local tax bases and tax
revenues for at least the duration of the district.
(f) Except as provided in section 10.7 of this chapter, the income tax
incremental amount and the gross retail incremental amount may not be
allocated to the district until the budget agency approves the designation
of the district by the local ordinance is approved under this section.
SOURCE: IC 36-7-13-12; (04)CC136505.1.34. -->
SECTION 34. IC 36-7-13-12, AS AMENDED BY P.L.224-2003,
SECTION 238, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 12. (a) If a municipal or county executive has
submitted an application to an advisory commission on industrial
development requesting that an area be designated as a district under
this chapter and the advisory commission has compiled and prepared
the information required under section 11 of this chapter concerning the
area, the advisory commission may adopt a resolution designating the
area as a district if it makes the findings described in subsection (b),
(c), (d), or (e). In a county described in subsection (c), an advisory
commission may designate more than one (1) district under subsection
(c).
(b) For an area located in a county having a population of more than
one hundred twenty thousand (120,000) but less than one hundred
thirty thousand (130,000), an advisory commission may adopt a
resolution designating a particular area as a district only after finding all
of the following:
(1) The area contains a building or buildings:
(A) with at least one million (1,000,000) square feet of usable
interior floor space; and
(B) that is or are vacant or will become vacant due to the
relocation of an employer.
(2) At least one thousand (1,000) fewer persons are employed in
the area than were employed in the area during the year that is ten
(10) years previous to the current year.
(3) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, or
pledged at least one hundred thousand dollars ($100,000) for
purposes of addressing the redevelopment obstacles described in
subdivision (3).
(5) The area is located in a county having a population of more
than one hundred twenty thousand (120,000) but less than one
hundred thirty thousand (130,000).
(c) For a county having a population of more than one hundred
eighteen thousand (118,000) but less than one hundred twenty thousand
(120,000), an advisory commission may adopt a resolution designating
not more than two (2) areas as districts. An advisory commission may
designate an area as a district only after finding the following:
(1) The area meets either of the following conditions:
(A) The area contains a building with at least seven hundred
ninety thousand (790,000) square feet, and at least eight
hundred (800) fewer people are employed in the area than were
employed in the area during the year that is fifteen (15) years
previous to the current year.
(B) The area contains a building with at least four hundred
forty thousand (440,000) three hundred eighty-six thousand
(386,000) square feet, and at least four hundred (400) fewer
people are employed in the area than were employed in the area
during the year that is fifteen (15) years previous to the current
year.
(2) The area is located in or is adjacent to an industrial park.
(3) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The area is located in a county having a population of more
than one hundred eighteen thousand (118,000) but less than one
hundred twenty thousand (120,000).
(d) For an area located in a county having a population of more than
two hundred thousand (200,000) but less than three hundred thousand
(300,000), an advisory commission may adopt a resolution designating
a particular area as a district only after finding all of the following:
(1) The area contains a building or buildings:
(A) with at least one million five hundred thousand (1,500,000)
square feet of usable interior floor space; and
(B) that is or are vacant or will become vacant.
(2) At least eighteen thousand (18,000) fewer persons are
employed in the area at the time of application than were employed
in the area before the time of application.
(3) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, or
pledged at least one hundred thousand dollars ($100,000) for
purposes of addressing the redevelopment obstacles described in
subdivision (3).
(5) The area is located in a county having a population of more
than two hundred thousand (200,000) but less than three hundred
thousand (300,000).
(e) For an area located in a county having a population of more than
three hundred thousand (300,000) but less than four hundred thousand
(400,000), an advisory commission may adopt a resolution designating
a particular area as a district only after finding all of the following:
(1) The area contains a building or buildings:
(A) with at least eight hundred thousand (800,000) gross
square feet; and
(B) having leasable floor space, at least fifty percent (50%) of
which is or will become vacant.
(2) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings as evidenced by a decline
of at least seventy-five percent (75%) in their assessed
valuation during the preceding ten (10) years.
(B) Transportation or access problems.
(C) Environmental contamination.
(3) At least four hundred (400) fewer persons are employed in the
area than were employed in the area during the year that is fifteen
(15) years previous to the current year.
(4) The area has been designated as an economic development
target area under IC 6-1.1-12.1-7.
(5) The unit has appropriated, pooled, set aside, or pledged at least
two hundred fifty thousand dollars ($250,000) for purposes of
addressing the redevelopment obstacles described in subdivision
(2).
(6) The area is located in a county having a population of more
than three hundred thousand (300,000) but less than four hundred
thousand (400,000).
(f) The advisory commission, or the county or municipal legislative
body, in the case of a district designated under section 10.5 of this
chapter, shall designate the duration of the district.
but the duration may
not exceed However, a district must terminate not later than fifteen
(15) years
(at the time of designation). after the income tax
incremental amount or gross retail incremental amount is first
allocated to the district.
(g) Upon adoption of a resolution designating a district, the advisory
commission shall submit the resolution to the budget committee for
review and recommendation to the budget agency.
If the budget
agency fails to take action on a resolution designating a district
within one hundred twenty (120) days after the date that the
resolution is submitted to the budget committee, the designation
of the district by the resolution is considered approved.
(h) When considering a resolution, the budget committee and the
budget agency must make the following findings:
(1) The area to be designated as a district meets the conditions
necessary for designation as a district.
(2) The designation of the district will benefit the people of Indiana
by protecting or increasing state and local tax bases and tax
revenues for at least the duration of the district.
(i) The income tax incremental amount and the gross retail
incremental amount may not be allocated to the district until
the budget
agency approves the resolution
is approved under this section.
SOURCE: IC 36-7-13-12.1; (04)CC136505.1.35. -->
SECTION 35. IC 36-7-13-12.1, AS ADDED BY P.L.224-2003,
SECTION 239, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 12.1. (a) If the executive of a city described in
section 10.1(a) of this chapter has submitted an application to an
advisory commission on industrial development requesting that an area
be designated as a district under this chapter and the advisory
commission has compiled and prepared the information required under
section 11 of this chapter concerning the area, the advisory commission
may adopt a resolution designating the area as a district if it finds the
following:
(1) That the redevelopment of the area in the district will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the area; or
(C) retain or expand a significant business enterprise within the
area.
(2) That there are significant obstacles to redevelopment of the
area due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or ineffective utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(G) Lack of development or cessation of growth.
(H) Deterioration of improvements or character of occupancy,
age, obsolescence, or substandard buildings.
(I) Other factors that have impaired values or prevent a normal
development of property or use of property.
(b) To address the obstacles identified in subsection (a)(2), the city
may make expenditures for:
(1) the acquisition of land;
(2) interests in land;
(3) site improvements;
(4) infrastructure improvements;
(5) buildings;
(6) structures;
(7) rehabilitation, renovation, and enlargement of buildings and
structures;
(8) machinery;
(9) equipment;
(10) furnishings;
(11) facilities;
(12) administration expenses associated with such a project;
(13) operating expenses; or
(14) substance removal or remedial action to the area.
(c) In addition to the findings described in subsection (a), an
advisory commission must also find that the city described in section
10.1(a) of this chapter has expended, appropriated, pooled, set aside, or
pledged at least two hundred fifty thousand dollars ($250,000) for
purposes of addressing the redevelopment obstacles described in
subsection (a)(2).
(d) The advisory commission shall designate the duration of the
district. but the duration may not exceed However, a district must
terminate not later than fifteen (15) years (at the time of
designation). after the income tax incremental amount or gross
retail incremental amount is first allocated to the district under
this chapter.
(e) Upon adoption of a resolution designating a district, the advisory
commission shall submit the resolution to the budget committee for
review and recommendation to the budget agency. If the budget
agency fails to take action on a resolution designating a district
within one hundred twenty (120) days after the date that the
resolution is submitted to the budget committee, the designation
of the district by the resolution is considered approved.
(f) When considering a resolution, the budget committee and the
budget agency must make the following findings:
(1) The area to be designated as a district meets the conditions
necessary for designation as a district.
(2) The designation of the district will benefit the people of Indiana
by protecting or increasing state and local tax bases and tax
revenues for at least the duration of the district.
(g) The income tax incremental amount and the gross retail
incremental amount may not be allocated to the district until the budget
agency approves the resolution is approved under this section.
SOURCE: IC 36-7-13-12.5; (04)CC136505.1.36. -->
SECTION 36. IC 36-7-13-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 12.5. (a) An advisory commission on industrial
development that designates a district under section 12 or 12.1 of
this chapter or the legislative body of a county or municipality
that adopts an ordinance designating a district under section 10.5
of this chapter may petition for permission to modify the
boundaries of the district. The petition must be submitted to the
budget committee for review and recommendation to the budget
agency.
(b) When considering a petition submitted under subsection (a),
the budget committee and the budget agency must make the
following findings:
(1) The area to be added to the district, if any, meets the
conditions necessary for designation as a district under
section 10.5, 12, or 12.1 of this chapter.
(2) The proposed modification of the district will benefit the
people of Indiana by protecting or increasing state and local
tax bases and tax revenues for at least the duration of the
district.
(c) Upon approving a petition submitted under subsection (a),
the budget agency shall certify the district's modified boundaries
to the department of state revenue.
SOURCE: IC 36-7-13-13; (04)CC136505.1.37. -->
SECTION 37. IC 36-7-13-13, AS AMENDED BY P.L.224-2003,
SECTION 240, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 13. (a) If an advisory commission on industrial
development designates a district under section 12 or 12.1 of this
chapter or if the legislative body of a county or municipality adopts an
ordinance designating a district under section 10.5 of this chapter, the
advisory commission, or the legislative body in the case of a district
designated under section 10.5 of this chapter, shall send a certified copy
of the resolution or ordinance designating the district to the department
of state revenue by certified mail and shall include with the resolution
a complete list of the following:
(1) Employers in the district.
(2) Street names and the range of street numbers of each street in
the district.
(b) The advisory commission, or the legislative body in the case of
a district designated under section 10.5 of this chapter, shall update the
list:
(1) before July 1 of each year; or
(2) within fifteen (15) days after the date that the budget
agency approves a petition to modify the boundaries of the
district under section 12.5 of this chapter.
(b) (c) Not later than sixty (60) days after receiving a copy of the
resolution or ordinance designating a district, the department of state
revenue shall determine the gross retail base period amount and the
income tax base period amount.
(d) Not later than sixty (60) days after receiving a certification
of a district's modified boundaries under section 12.5(c) of this
chapter, the department shall recalculate the gross retail base
period amount and the income tax base period amount for a
district modified under section 12.5 of this chapter.
SOURCE: IC 36-7-13-14; (04)CC136505.1.38. -->
SECTION 38. IC 36-7-13-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. (a) Before the first
business day in October of each year, the department shall calculate the
income tax incremental amount and the gross retail incremental amount
for the preceding state fiscal year for each district designated under this
chapter.
(b) Not later than sixty (60) days after receiving a certification
of a district's modified boundaries under section 12.5(c) of this
chapter, the department shall recalculate the income tax
incremental amount and the gross retail incremental amount for
the preceding state fiscal year for a district modified under section
12.5 of this chapter.
SOURCE: ; (04)CC136505.1.39. -->
SECTION 39. [EFFECTIVE JULY 1, 2004] (a) An advisory
commission or a legislative body that designated a community
revitalization enhancement district before July 1, 2004, may adopt
a resolution before July 1, 2005, to amend the duration of the
district under IC 36-7-13-10.5, IC 36-7-13-12, or IC 36-7-13-12.1,
all as amended by this act, if no income tax incremental amounts
or gross retail incremental amounts have been:
(1) deposited in the incremental tax financing fund
established for the community revitalization enhancement
district; or
(2) allocated to the district.
(b) If an advisory commission or a legislative body adopts a
resolution under this SECTION to amend the duration of the
district, the advisory commission or legislative body shall
immediately send a certified copy of the resolution to the budget
agency and the department of state revenue by certified mail.
(c) This SECTION expires January 1, 2006.
SOURCE: ; (04)CC136505.1.40. -->
SECTION 40. [EFFECTIVE JULY 1, 2004] IC 6-3.1-19-3, as
amended by this act, applies only to taxable years beginning after
December 31, 2004.
SOURCE: IC 6-8.1-3-16; (04)CC136505.1.41. -->
SECTION 41. IC 6-8.1-3-16, AS AMENDED BY P.L.192-2002(ss),
SECTION 141, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 16.
(a) The department shall prepare a list of all
outstanding tax warrants for listed taxes each month. The list shall
identify each taxpayer liable for a warrant by name, address, amount of
tax, and either Social Security number or employer identification
number. Unless the department renews the warrant, the department
shall exclude from the list a warrant issued more than ten (10) years
before the date of the list. The department shall certify a copy of the list
to the bureau of motor vehicles.
(b) The department shall prescribe and furnish tax release forms for
use by tax collecting officials. A tax collecting official who collects
taxes in satisfaction of an outstanding warrant shall issue to the
taxpayers named on the warrant a tax release stating that the tax has
been paid. The department may also issue a tax release:
(1) to a taxpayer who has made arrangements satisfactory to the
department for the payment of the tax; or
(2) by action of the commissioner under IC 6-8.1-8-2(k).
(c) The department may not issue or renew:
(1) a certificate under IC 6-2.5-8;
(2) a license under IC 6-6-1.1 or IC 6-6-2.5; or
(3) a permit under IC 6-6-4.1;
to a taxpayer whose name appears on the most recent monthly warrant
list, unless that taxpayer pays the tax, makes arrangements satisfactory
to the department for the payment of the tax, or a release is issued
under IC 6-8.1-8-2(k).
(d) The bureau of motor vehicles shall, before issuing the title to a
motor vehicle under IC 9-17, determine whether the purchaser's or
assignee's name is on the most recent monthly warrant list. If the
purchaser's or assignee's name is on the list, the bureau shall enter as
a lien on the title the name of the state as the lienholder unless the
bureau has received notice from the commissioner under
IC 6-8.1-8-2(k). The tax lien on the title:
(1) is subordinate to a perfected security interest (as defined and
perfected in accordance with IC 26-1-9.1); and
(2) shall otherwise be treated in the same manner as other title
liens.
(e) The commissioner is the custodian of all titles for which the state
is the sole lienholder under this section. Upon receipt of the title by the
department, the commissioner shall notify the owner of the
department's receipt of the title.
(f) The department shall reimburse the bureau of motor vehicles for
all costs incurred in carrying out this section.
(g) Notwithstanding IC 6-8.1-8, a person who is authorized to
collect taxes, interest, or penalties on behalf of the department under
IC 6-3 or IC 6-3.5 may not, except as provided in subsection (h) or (i),
receive a fee for collecting the taxes, interest, or penalties if:
(1) the taxpayer pays the taxes, interest, or penalties as
consideration for the release of a lien placed under subsection (d)
on a motor vehicle title; or
(2) the taxpayer has been denied a certificate or license under
subsection (c) within sixty (60) days before the date the taxes,
interest, or penalties are collected.
(h) In the case of a sheriff, subsection (g) does not apply if:
(1) the sheriff collects the taxes, interest, or penalties within sixty
(60) days after the date the sheriff receives the tax warrant; or
(2) the sheriff collects the taxes, interest, or penalties through the
sale or redemption, in a court proceeding, of a motor vehicle that
has a lien placed on its title under subsection (d).
(i) In the case of a person other than a sheriff:
(1) subsection (g)(2) does not apply if the person collects the
taxes, interests, or penalties within sixty (60) days after the date
the commissioner employs the person to make the collection; and
(2) subsection (g)(1) does not apply if the person collects the
taxes, interest, or penalties through the sale or redemption, in a
court proceeding, of a motor vehicle that has a lien placed on its
title under subsection (d).
(j) IC 5-14-3-4, IC 6-8.1-7-1, and any other law exempting
information from disclosure by the department does not apply to
this subsection. From the list prepared under subsection (a), the
department shall compile each month a list of the taxpayers
subject to tax warrants that:
(1) were issued at least twenty-four (24) months before the
date of the list; and
(2) are for amounts that exceed one thousand dollars
($1,000).
The list compiled under this subsection must identify each
taxpayer liable for a warrant by name, address, and amount of tax.
The department shall publish the list compiled under this
subsection on accessIndiana (as defined in IC 5-21-1-1.5) and
make the list available for public inspection and copying under
IC 5-14-3. The department or an agent, employee, or officer of the
department is immune from liability for the publication of
information under this subsection.
(k) The department may not publish a list under subsection (j)
that identifies a particular taxpayer unless at least two (2) weeks
before the publication of the list the department sends notice to
the taxpayer stating that the taxpayer:
(1) is subject to a tax warrant that:
(A) was issued at least twenty-four (24) months before the
date of the notice; and
(B) is for an amount that exceeds one thousand dollars
($1,000); and
(2) will be identified on a list to be published on
accessIndiana unless a tax release is issued to the taxpayer
under subsection (b).
(l) The department may not publish a list under subsection (j)
after June 30, 2006.
SOURCE: IC 34-30-2-16.7; (04)CC136505.1.42. -->
SECTION 42. IC 34-30-2-16.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 16.7. IC 6-8.1-3-16(j) (Concerning the
department of state revenue for publishing a list of delinquent
taxpayers).
SOURCE: IC 4-4-32; (04)CC136505.1.43. -->
SECTION 43. IC 4-4-32 IS ADDED TO THE INDIANA CODE AS
A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2004]:
Chapter 32. Twenty-First Century Research and Technology
Fund Grant Office
Sec. 1. As used in this chapter, "office" refers to the grant
office established by section 3 of this chapter.
Sec. 2. As used in this chapter, "fund" refers to the Indiana
twenty-first century research and technology fund established by
IC 4-4-5.1-3.
Sec. 3. The fund board may establish and administer a grant
office to assist state agencies, units of local government, public
and private colleges and universities, private sector for-profit and
nonprofit entities, and other entities in Indiana in researching,
developing, and receiving grants and funding from:
(1) the federal government;
(2) private foundations; or
(3) any other source of funding.
Sec. 4. The office may do the following:
(1) Work with and coordinate with state, university, and
private entities that are responsible for the identification and
acquisition of research and development grants and funds
and other sources of assistance to do the following:
(A) Share information.
(B) Leverage skills and assets.
(C) Jointly market their respective programs to the widest
possible population in Indiana.
(2) Serve as a repository and clearinghouse for information
concerning available research and development grants and
funds and other sources of assistance.
Sec. 5. The office may establish and maintain a list of all:
(1) Indiana state and local governmental entities;
(2) public and private colleges and universities; and
(3) private sector for-profit and nonprofit entities;
that are actively seeking research and development money and
may benefit from assistance in acquiring research and
development funding from a source described in section 3 of this
chapter.
Sec. 6. (a) The office may assist potential funding recipients
described in section 5 of this chapter in preparing applications and
all other documentation to aggressively seek funding.
(b) The office may give priority to assisting the following:
(1) Highly ranked applicants for grants from the fund.
(2) Entities with proposal concepts that the fund board
determines are consistent with state strategic objectives.
(3) Opportunities with strong commercial potential for
Indiana.
(4) Opportunities that have substantial private entity interest
and participation.
Sec. 7. The office may accept:
(1) appropriations from the general assembly; and
(2) gifts and donations from any other source;
to further the activities of the office.
SOURCE: IC 4-4-5.2; (04)CC136505.1.44. -->
SECTION 44. IC 4-4-5.2 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2004]:
Chapter 5.2. Emerging Technology Grant Fund
Sec. 1. As used in this chapter, "board" refers to the Indiana
twenty-first century research and technology fund board
established by IC 4-4-5.1-6.
Sec. 2. As used in this chapter, "fund" refers to the emerging
technology grant fund established by section 5 of this chapter.
Sec. 3. As used in this chapter, "small business" means a
business that satisfies all the following:
(1) The business is independently owned and operated.
(2) The principal office of the business is located in Indiana.
(3) The business satisfies either of the following:
(A) The business has not more than:
(i) one hundred (100) employees; and
(ii) average annual gross receipts of ten million dollars
($10,000,000).
(B) If the business is a manufacturing business, the
business does not have more than one hundred (100)
employees.
Sec. 4. As used in this chapter, "small sized technology based
business" means a small business engaged in any of the following:
(1) Life sciences.
(2) Information technology.
(3) Advanced manufacturing.
(4) Logistics.
Sec. 5. (a) The emerging technology grant fund is established
to provide grants to match federal grants for small sized
technology based businesses to be used to accelerate
commercialization of emerging technologies.
(b) The fund consists of appropriations from the general
assembly and gifts and grants to the fund.
(c) The treasurer of state shall invest the money in the fund
not currently needed to meet the obligations of the fund in the
same manner as other public funds may be invested.
(d) The money in the fund at the end of a state fiscal year does
not revert to the state general fund but remains in the fund to be
used exclusively for purposes of this chapter.
(e) Money in the fund is continuously appropriated for the
purposes of this chapter.
Sec. 6. The purpose of the grant program is to do the following:
(1) Assist Indiana businesses to compete nationally for
federal research and development awards.
(2) Provide matching grants that focus on small sized
technology based businesses in industry sectors vital to
Indiana's economic growth.
Sec. 7. (a) The board shall administer the grant program under
this chapter.
(b) The board shall award grants to support projects that
leverage private sector, federal, and state resources to create new
globally competitive commercial products or services that will
enhance economic growth and job creation in Indiana.
(c) The board may award grants only to businesses that receive
federal grant awards.
(d) In awarding grants, the board shall give preference to
proposals from businesses that include other Indiana based
organizations. However, the amount of the grant may be
measured only against the federal money allocated to the small
sized technology based business partner.
(e) The board shall consider the following when making grants
under this chapter:
(1) Whether the grant will increase the viability of the
applicant's project.
(2) Whether the grant will attract additional federal
research, development, and commercialization money.
(3) Whether the grant will assist in accelerating the
introduction of technology based products in the market.
(4) Whether the grant will produce additional technology
based jobs in Indiana.
(5) Other factors the board considers relevant.
(f) An applicant for a grant under this chapter must be in the
process of applying for, have applied for, or have received a
federal grant for the proposed project. If the applicant has already
received a federal grant for the proposed project, the start date of
the federal award must be after June 30, 2003.
(g) Any federal program may serve as the basis for a grant
under this chapter if all the following are satisfied:
(1) The applicant's federal proposal is a response to a
nationally competitive federal solicitation.
(2) The federal program provides money to develop, revise,
or commercialize a new technology.
(3) The federal program accepts matching funds.
(4) The applicant's federal proposal includes the state as a
potential funding source.
Sec. 8. Before July 1 of each year, the board shall establish and
publish guidelines determining the following:
(1) Priority industries and technological areas for grants
under this chapter.
(2) Matching levels for the different priorities established
under subdivision (1). The matching level may not be more
than one dollar ($1) for each federal dollar received by an
applicant.
(3) The maximum dollar amount that may be awarded for a
proposal. The maximum dollar amount may not exceed one
hundred fifty thousand dollars ($150,000) for each business
for each proposal.
SOURCE: IC 36-1-8-5.1; (04)CC136505.1.45. -->
SECTION 45. IC 36-1-8-5.1, AS AMENDED BY P.L.267-2003,
SECTION 15, AND P.L.173-2003, SECTION 19, IS AMENDED AND
CORRECTED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 5.1.
(a) A political subdivision may establish a rainy
day fund
to receive transfers of unused and unencumbered funds under:
(1) section 5 of this chapter; (2) IC 6-3.5-1.1-21.1; (3)
IC 6-3.5-6-17.3; and (4) IC 6-3.5-7-17.3. by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(b) An ordinance or a resolution adopted under this section must
specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(B) Any other funding source:
(i) specified in the ordinance or resolution adopted
under this section; and
(ii) not otherwise prohibited by law.
(b) (c) The rainy day fund is subject to the same appropriation
process as other funds that receive tax money.
Before making an
appropriation from the rainy day fund, the fiscal body shall make a
finding that the proposed use of the rainy day fund is consistent with
the intent of the fund.
(c) (d) In any fiscal year, a political subdivision may transfer
under
section 5 of this chapter not more than ten percent (10%) of the
political subdivision's total
annual budget for that fiscal year,
adopted
under IC 6-1.1-17, to the rainy day fund.
(d) (e) A political subdivision may use only the funding sources
specified in subsection (b)(2)(A) or in the ordinance or resolution
establishing the rainy day fund. unless The political subdivision adopts
may adopt a subsequent ordinance or resolution authorizing the use of
another funding source.
(f) The department of local government finance may not reduce the
actual or maximum permissible levy of a political subdivision as a result
of a balance in the rainy day fund of the political subdivision.
SOURCE: IC 36-4-1-1; (04)CC136505.1.46. -->
SECTION 46. IC 36-4-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Municipalities
are classified according to their status and population as follows:
STATUS AND POPULATION CLASS
Cities of 250,000 500,000 or more First class cities
Cities of 35,000 to 249,999 499,999 Second class cities
Cities of less than 35,000 Third class cities
Other municipalities of any
population Towns
(b) Except as provided in subsection (c), a city that attains a
population of thirty-five thousand (35,000) remains a second class city
even though its population decreases to less than thirty-five thousand
(35,000) at the next federal decennial census.
(c) The legislative body of a city to which subsection (b) applies
may, by ordinance, adopt third class city status.
SOURCE: IC 36-9-41; (04)CC136505.1.47. -->
SECTION 47. IC 36-9-41 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]:
Chapter 41. Financing of Public Work Projects by Political
Subdivisions
Sec. 1. This chapter applies to a public work project that will
cost the political subdivision not more than two million dollars
($2,000,000).
Sec. 2. As used in this chapter, "public work" means a project
for the construction of any public building, highway, street, alley,
bridge, sewer, drain, or any other public facility that is paid for out
of public funds.
Sec. 3. Notwithstanding any other statute, a political subdivision
may borrow the money necessary to finance a public work project
from a financial institution in Indiana by executing a negotiable
note under section 4 of this chapter. The political subdivision shall
provide notice of its determination to issue the note under
IC 5-3-1. Money borrowed under this chapter is chargeable against
the political subdivision's constitutional debt limitation.
Sec. 4. A political subdivision borrowing money under section
3 of this chapter shall execute and deliver to the financial
institution the negotiable note of the political subdivision for the
sum borrowed. The note must bear interest, with both principal
and interest payable in equal or approximately equal installments
on January 1 and July 1 each year over a period not exceeding six
(6) years.
Sec. 5. (a) The first installment of principal and interest on a
note executed under this chapter is due on the next January 1 or
July 1 following the first tax collection for which it is possible for
the political subdivision to levy a tax under subsection (b).
(b) The political subdivision shall appropriate an amount for
and levy a tax each year sufficient to pay the political subdivision's
obligation under the note according to its terms.
(c) An obligation of a political subdivision under a note
executed under this chapter is a valid and binding obligation of the
political subdivision, notwithstanding any tax limitation, debt
limitation, bonding limitation, borrowing limitation, or other
statute to the contrary.
Sec. 6. If a political subdivision gives notice under section 3 of
this chapter of its determination that money should be borrowed
under this chapter, not less than ten (10) taxpayers in the political
subdivision who disagree with the determination may file a
petition in the office of the county auditor not more than thirty
(30) days after notice of the determination is given. The petition
must state the taxpayers' objections and the reasons why the
taxpayers believe the borrowing to be unnecessary or unwise.
Sec. 7. (a) Upon receiving a petition under section 6 of this
chapter, the county auditor shall immediately certify a copy of the
petition, together with other data necessary to present the
questions involved, to the department of local government
finance. Upon receipt of the certified petition and other data, the
department of local government finance shall fix a time and place
for a hearing on the matter.
(b) The hearing shall be held not less than five (5) and not
more than thirty (30) days after the department's receipt of the
certified petition, and shall be held in the county where the
petition arose.
(c) The department of local government finance shall give
notice of the hearing by letter to the political subdivision and to
the first ten (10) taxpayer petitioners listed on the petition. A copy
of the letter shall be sent to each of the first ten (10) taxpayer
petitioners at the taxpayer's usual place of residence at least five
(5) days before the date of the hearing. In addition, public notice
shall be published at least five (5) days before the date of the
hearing under IC 5-3-1.
(d) After the hearing under subsection (c), the department of
local government shall issue a final determination concerning the
petition.
Sec. 8. A:
(1) taxpayer who signed a petition filed under section 6 of
this chapter; or
(2) political subdivision against which a petition is filed under
section 6 of this chapter;
may petition the tax court established by IC 33-3-5-1 for judicial
review of the final determination of the department of local
government finance on the taxpayers' petition. The petition for
judicial review must be filed in the tax court not more than
forty-five (45) days after the date of the department's final
determination.
SOURCE: IC 6-1.1-12.1-1; (04)CC136505.1.48. -->
SECTION 48. IC 6-1.1-12.1-1, AS AMENDED BY P.L.4-2000,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of
growth, deterioration of improvements or character of occupancy,
age, obsolescence, substandard buildings, or other factors which
have impaired values or prevent a normal development of property
or use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise provided
in this chapter.
(2) "City" means any city in this state, and "town" means any
town incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means any tangible personal
property which:
(A) was installed after February 28, 1983, and before January
1, 2006, in an area that is declared an economic revitalization
area after February 28, 1983, in which a deduction for tangible
personal property is allowed;
(B) is used in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited to
use to dispose of solid waste or hazardous waste by converting
the solid waste or hazardous waste into energy or other useful
products; and
(C) was acquired by its owner for use as described in clause
(B) and was never before used by its owner for any purpose
in Indiana.
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures in
economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment of
property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the
fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means either:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter; or
(B) the application filed in accordance with section 5.5 of this
chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter.
(9) "Designation application" means an application that is filed with
a designating body to assist that body in making a determination
about whether a particular area should be designated as an
economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) is installed after June 30, 2000, and before January 1,
2006, in an economic revitalization area in which a deduction
for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) is used in research and development activities devoted
directly and exclusively to experimental or laboratory research
and development for new products, new uses of existing
products, or improving or testing existing products; and
(D) is acquired by the property owner for purposes described
in this subdivision and was never before used by the owner for
any purpose in Indiana.
The term does not include equipment installed in facilities used for
or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar
projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) is installed after June 30, 2004, and before January 1,
2006, in an economic revitalization area:
(i) in which a deduction for tangible personal property is
allowed; and
(ii) located in a county referred to in section 2.3 of this
chapter, subject to section 2.3(c) of this chapter.
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk
behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical
distribution;
(C) is used for the storage or distribution of goods,
services, or information; and
(D) before being used as described in clause (C), was
never used by its owner for any purpose in Indiana.
(14) "New information technology equipment" means
tangible personal property that:
(A) is installed after June 30, 2004, and before January 1,
2006, in an economic revitalization area:
(i) in which a deduction for tangible personal property is
allowed; and
(ii) located in a county referred to in section 2.3 of this
chapter, subject to section 2.3(c) of this chapter.
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics; and
(C) before being installed as described in clause (A), was
never used by its owner for any purpose in Indiana.
SOURCE: IC 6-1.1-12.1-2; (04)CC136505.1.49. -->
SECTION 49. IC 6-1.1-12.1-2, AS AMENDED BY P.L.4-2000,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. (a) A designating body may find that a particular
area within its jurisdiction is an economic revitalization area. However,
the deduction provided by this chapter for economic revitalization areas
not within a city or town shall not be available to retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an area
as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than five (5) years. In order
to declare a particular area a residentially distressed area, the designating
body must follow the same procedure that is required to designate an
area as an economic revitalization area and must make all the following
additional findings or all the additional findings described in subsection
(c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional findings
as an alternative to the additional findings described in subsection (b):
(1) A significant number of dwelling units within the area are not
permanently occupied or a significant number of parcels in the
area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling
units, as documented by census information, local building and
demolition permits, or certificates of occupancy, or the area is
owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection as an alternative to one
(1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following conditions
to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body may
require that the redevelopment or rehabilitation be completed
within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of this
chapter.
(f) The property tax deductions provided by sections 3 and 4.5 of
this chapter are only available within an area which the designating body
finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing general
standards to be used, along with the requirements set forth in the
definition of economic revitalization area, by the designating body in
finding an area to be an economic revitalization area. The standards
must have a reasonable relationship to the development objectives of the
area in which the designating body has jurisdiction. The following three
(3) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not residentially
distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5 of
this chapter.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular area
as an economic revitalization area. The fee may be sufficient to defray
actual processing and administrative costs. However, the fee charged
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the area shall be so designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to either the deduction allowed under
section 3 of this chapter or the deduction allowed under section
4.5 of this chapter;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, and new research
and development equipment, new logistical distribution
equipment, and new information technology equipment if a
deduction under this chapter had not been filed before July 1,
1987, for that equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in areas
that are designated as economic revitalization areas on or after
September 1, 1988; or
(5) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment, or new research and development equipment, or both.
new logistical distribution equipment, or new information
technology equipment.
To exercise one (1) or more of these powers a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, or new research and development
equipment, or both, new logistical distribution equipment, or
new information technology equipment installed before January
1, 2006, but after the expiration of the economic revitalization area
if:
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, or new research and
development equipment, or both, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and approved
by the designating body in accordance with section 4.5 of this
chapter before the expiration of the economic revitalization area
designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4 or 4.5 of this chapter.
(k) Notwithstanding any other provision of this chapter, deductions:
(1) that are authorized under section 3 of this chapter for property
in an area designated as an urban development area before March
1, 1983, and that are based on an increase in assessed valuation
resulting from redevelopment or rehabilitation that occurs before
March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at the
time that an application for the deduction was first made. No deduction
that is based on the location of property or new manufacturing
equipment in an urban development area is authorized under this chapter
after February 28, 1983, unless the initial increase in assessed value
resulting from the redevelopment or rehabilitation of the property or the
installation of the new manufacturing equipment occurred before March
1, 1983.
(l) If property located in an economic revitalization area is also
located in an allocation area (as defined in IC 36-7-14-39 or
IC 36-7-15.1-26), an application for the property tax deduction
provided by this chapter may not be approved unless the commission
that designated the allocation area adopts a resolution approving the
application.
SOURCE: IC 6-1.1-12.1-2.3; (04)CC136505.1.50. -->
SECTION 50. IC 6-1.1-12.1-2.3 IS ADDED AS A NEW SECTION
TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2.3. (a)
This section applies only to:
(1) a county in which mile markers fourteen (14) through
one hundred twenty (120) of Interstate Highway 69 are
located as of March 1, 2004; and
(2) a city or town located in a county referred to in
subdivision (1).
(b) A designating body may adopt a resolution under section 2.5
of this chapter to authorize a deduction for new logistical
distribution equipment or new information technology equipment.
(c) If any amendment to this chapter that takes effect July 1,
2004, applies a deduction under this chapter for new logistical
distribution equipment or new information technology equipment
to a broader geographic area than the deduction that would apply
under a resolution adopted under this section, the more broadly
applied deduction controls with respect to the application of the
deduction for new logistical distribution equipment or new
information technology equipment.
SOURCE: IC 6-1.1-12.1-4.5; (04)CC136505.1.51. -->
SECTION 51. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.1-2003,
SECTION 22, AND AS AMENDED BY P.L.245-2003, SECTION 8,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 4.5. (a) For purposes of this
section, "personal property" means personal property other than
inventory (as defined in IC 6-1.1-3-11(a)).
(b) An applicant must provide a statement of benefits to the
designating body. The applicant must provide the completed statement
of benefits form to the designating body before the hearing specified in
section 2.5(c) of this chapter or before the installation of the new
manufacturing equipment,
or new research and development equipment,
or both, new logistical distribution equipment, or new information
technology equipment for which the person desires to claim a
deduction under this chapter. The department of local government
finance shall prescribe a form for the statement of benefits. The
statement of benefits must include the following information:
(1) A description of the new manufacturing equipment, or new
research and development equipment, or both, new logistical
distribution equipment, or new information technology
equipment that the person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
an estimate of the number of individuals who will be employed or
whose employment will be retained by the person as a result of the
installation of the new manufacturing equipment, or new research
and development equipment, or both, new logistical distribution
equipment, or new information technology equipment and an
estimate of the annual salaries of these individuals.
(3) An estimate of the cost of the new manufacturing equipment,
or new research and development equipment, or both. new
logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, an
estimate of the amount of solid waste or hazardous waste that will
be converted into energy or other useful products by the new
manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(c) The designating body must review the statement of benefits
required under subsection (b). The designating body shall determine
whether an area should be designated an economic revitalization area or
whether the deduction shall be allowed, based on (and after it has made)
the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, or new research and development equipment, or both,
new logistical distribution equipment, or new information
technology equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be reasonably
expected to result from the installation of the new manufacturing
equipment,
or new research and development equipment,
or both.
new logistical distribution equipment, or new information
technology equipment.
(3) Whether the estimate of the annual salaries of those individuals
who will be employed or whose employment will be retained can
be reasonably expected to result from the proposed installation of
new manufacturing equipment,
or new research and development
equipment,
or both. new logistical distribution equipment, or
new information technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, whether
the estimate of the amount of solid waste or hazardous waste that
will be converted into energy or other useful products can be
reasonably expected to result from the installation of the new
manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
or new research and development equipment,
or both. new
logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the findings
required by this subsection in the affirmative.
(d) Except as provided in subsection (h), an owner of new
manufacturing equipment,
or new research and development equipment,
or both, new logistical distribution equipment, or new information
technology equipment whose statement of benefits is approved after
June 30, 2000, is entitled to a deduction from the assessed value of that
equipment for the number of years determined by the designating body
under subsection (g). Except as provided in subsection (f) and in
section 2(i)(3) of this chapter, the amount of the deduction that an
owner is entitled to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment,
or
new research and development equipment,
or both, new logistical
distribution equipment, or new information technology
equipment in the year of deduction under the appropriate table set
forth in subsection (e); multiplied by
(2) the percentage prescribed in the
appropriate table set forth in
subsection (e).
(e) The percentage to be used in calculating the deduction under
subsection (d) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter 0%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 90%
3rd 80%
4th 70%
5th 60%
6th 50%
7th 40%
8th 30%
9th 20%
10th 10%
11th and thereafter 0%
(f) With respect to new manufacturing equipment and new research
and development equipment installed before March 2, 2001, the
deduction under this section is the amount that causes the net assessed
value of the property after the application of the deduction under this
section to equal the net assessed value after the application of the
deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1, 2001;
and
(2) the assessed value of the property under 50 IAC 4.2, as in
effect on March 1, 2001, or, in the case of property subject to
IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(g) For an economic revitalization area designated before July 1,
2000, the designating body shall determine whether a property owner
whose statement of benefits is approved after April 30, 1991, is entitled
to a deduction for five (5) or ten (10) years. For an economic
revitalization area designated after June 30, 2000, the designating body
shall determine the number of years the deduction is allowed. However,
the deduction may not be allowed for more than ten (10) years. This
determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor.
A determination about the number of years the deduction is allowed that
is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(h) The owner of new manufacturing equipment that is directly used
to dispose of hazardous waste is not entitled to the deduction provided
by this section for a particular assessment year if during that
assessment year the owner:
(1) is convicted of a violation under IC 13-7-13-3 (repealed),
IC 13-7-13-4 (repealed), or IC 13-30-6; or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
SOURCE: IC 6-1.1-12.1-5.4; (04)CC136505.1.52. -->
SECTION 52. IC 6-1.1-12.1-5.4, AS AMENDED BY P.L.245-2003,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5.4. (a) A person that desires to obtain the
deduction provided by section 4.5 of this chapter must file a certified
deduction application on forms prescribed by the department of local
government finance with the auditor of the county in which the new
manufacturing equipment,
or new research and development equipment,
or both, new logistical distribution equipment, or new information
technology equipment is located. A person that timely files a personal
property return under IC 6-1.1-3-7(a) for the year in which the new
manufacturing equipment,
or new research and development equipment,
or both, new logistical distribution equipment, or new information
technology equipment is installed must file the application between
March 1 and May 15 of that year. A person that obtains a filing
extension under IC 6-1.1-3-7(b) for the year in which the new
manufacturing equipment,
or new research and development equipment,
or both, new logistical distribution equipment, or new information
technology equipment is installed must file the application between
March 1 and the extended due date for that year.
(b) The deduction application required by this section must contain
the following information:
(1) The name of the owner of the new manufacturing equipment,
or new research and development equipment,
or both. new
logistical distribution equipment, or new information
technology equipment.
(2) A description of the new manufacturing equipment,
or new
research and development equipment, or both. new logistical
distribution equipment, or new information technology
equipment.
(3) Proof of the date the new manufacturing equipment, or new
research and development equipment, or both, new logistical
distribution equipment, or new information technology
equipment was installed.
(4) The amount of the deduction claimed for the first year of the
deduction.
(c) This subsection applies to a deduction application with respect
to new manufacturing equipment, or new research and development
equipment, or both, new logistical distribution equipment, or new
information technology equipment for which a statement of benefits
was initially approved after April 30, 1991. If a determination about the
number of years the deduction is allowed has not been made in the
resolution adopted under section 2.5 of this chapter, the county auditor
shall send a copy of the deduction application to the designating body,
and the designating body shall adopt a resolution under section 4.5(g)(2)
of this chapter.
(d) A deduction application must be filed under this section in the
year in which the new manufacturing equipment, or new research and
development equipment, or both, new logistical distribution
equipment, or new information technology equipment is installed
and in each of the immediately succeeding years the deduction is
allowed.
(e) Subject to subsection (i), the county auditor shall:
(1) review the deduction application; and
(2) approve, deny, or alter the amount of the deduction.
Upon approval of the deduction application or alteration of the amount
of the deduction, the county auditor shall make the deduction. The
county auditor shall notify the county property tax assessment board of
appeals of all deductions approved under this section.
(f) If the ownership of new manufacturing equipment, or new
research and development equipment, or both, new logistical
distribution equipment, or new information technology equipment
changes, the deduction provided under section 4.5 of this chapter
continues to apply to that equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) files the deduction applications required by this section.
(g) The amount of the deduction is the percentage under section 4.5
of this chapter that would have applied if the ownership of the property
had not changed multiplied by the assessed value of the equipment for
the year the deduction is claimed by the new owner.
(h) A person may appeal the determination of the county auditor
under subsection (e) by filing a complaint in the office of the clerk of
the circuit or superior court not more than forty-five (45) days after the
county auditor gives the person notice of the determination.
(i) Before the county auditor acts under subsection (e), the county
auditor may request that the township assessor in which the property
is located review the deduction application.
SOURCE: IC 6-1.1-12.1-5.6; (04)CC136505.1.53. -->
SECTION 53. IC 6-1.1-12.1-5.6, AS AMENDED BY P.L.4-2000,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5.6. (a) This subsection applies to a property
owner whose statement of benefits was approved under section 4.5 of
this chapter before July 1, 1991. In addition to the requirements of
section 5.5(b) of this chapter, a deduction application filed under
section 5.5 of this chapter must contain information showing the extent
to which there has been compliance with the statement of benefits
approved under section 4.5 of this chapter. Failure to comply with a
statement of benefits approved before July 1, 1991, may not be a basis
for rejecting a deduction application.
(b) This subsection applies to a property owner whose statement of
benefits was approved under section 4.5 of this chapter after June 30,
1991. In addition to the requirements of section 5.5(b) of this chapter,
a property owner who files a deduction application under section 5.5 of
this chapter must provide the county auditor and the designating body
with information showing the extent to which there has been
compliance with the statement of benefits approved under section 4.5
of this chapter.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the new manufacturing
equipment,
or new research and development equipment,
or both,
new logistical distribution equipment, or new information
technology equipment for which the deduction was granted.
(3) Any information concerning the number of employees at the
facility where the new manufacturing equipment,
or new research
and development equipment,
or both, new logistical distribution
equipment, or new information technology equipment is
located, including estimated totals that were provided as part of
the statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the amount of solid waste or
hazardous waste converted into energy or other useful products
by the new manufacturing equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment,
or new research and development
equipment,
or both, new logistical distribution equipment, or
new information technology equipment including estimates that
were provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the owner of the new manufacturing
equipment, or new research and development equipment, or both.
new logistical distribution equipment, or new information
technology equipment.
(2) Any information concerning the cost of the new
manufacturing equipment, or new research and development
equipment, or both. new logistical distribution equipment, or
new information technology equipment.
SOURCE: IC 6-1.1-12.1-5.8; (04)CC136505.1.54. -->
SECTION 54. IC 6-1.1-12.1-5.8, AS AMENDED BY P.L.256-2003,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5.8. In lieu of providing the statement of benefits
required by section 3 or 4.5 of this chapter and the additional
information required by section 5.1 or 5.6 of this chapter, the
designating body may, by resolution, waive the statement of benefits if
the designating body finds that the purposes of this chapter are served
by allowing the deduction and the property owner has, during the
thirty-six (36) months preceding the first assessment date to which the
waiver would apply, installed new manufacturing equipment, or new
research and development equipment, or both, new logistical
distribution equipment, or new information technology equipment
or developed or rehabilitated property at a cost of at least ten million
dollars ($10,000,000) as determined by the assessor of the township in
which the property is located.
SOURCE: IC 6-1.1-12.1-8; (04)CC136505.1.55. -->
SECTION 55. IC 6-1.1-12.1-8, AS AMENDED BY P.L.90-2002,
SECTION 125, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 8. (a) Not later than December 31 of each year,
the county auditor shall publish the following in a newspaper of general
interest and readership and not one of limited subject matter:
(1) A list of the approved deduction applications that were filed
under this chapter during that year. The list must contain the
following:
(A) The name and address of each person approved for or
receiving a deduction that was filed for during the year.
(B) The amount of each deduction that was filed for during the
year.
(C) The number of years for which each deduction that was
filed for during the year will be available.
(D) The total amount for all deductions that were filed for and
granted during the year.
(2) The total amount of all deductions for real property that were
in effect under section 3 of this chapter during the year.
(3) The total amount of all deductions for new manufacturing
equipment, or new research and development equipment, or both,
new logistical distribution equipment, or new information
technology equipment that were in effect under section 4.5 of
this chapter during the year.
(b) The county auditor shall file the information described in
subsection (a)(2) and (a)(3) with the department of local government
finance not later than December 31 of each year.
SOURCE: IC 6-1.1-12.1-11.3; (04)CC136505.1.56. -->
SECTION 56. IC 6-1.1-12.1-11.3, AS AMENDED BY
P.L.245-2003, SECTION 11, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 11.3. (a) This section applies only
to the following requirements:
(1) Failure to provide the completed statement of benefits form to
the designating body before the hearing required by section 2.5(c)
of this chapter.
(2) Failure to submit the completed statement of benefits form to
the designating body before the initiation of the redevelopment or
rehabilitation or the installation of new manufacturing equipment,
or new research and development equipment, or both, new
logistical distribution equipment, or new information
technology equipment for which the person desires to claim a
deduction under this chapter.
(3) Failure to designate an area as an economic revitalization area
before the initiation of the:
(A) redevelopment;
(B) installation of new manufacturing equipment, or new
research and development equipment, or both; new logistical
distribution equipment, or new information technology
equipment; or
(C) rehabilitation;
for which the person desires to claim a deduction under this
chapter.
(4) Failure to make the required findings of fact before designating
an area as an economic revitalization area or authorizing a
deduction for new manufacturing equipment, or new research and
development equipment, or both, new logistical distribution
equipment, or new information technology equipment under
section 2, 3, or 4.5 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5 or 5.4 of this chapter.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions specified
in the resolution. Before adopting a waiver under this subsection, the
designating body shall conduct a public hearing on the waiver.
SOURCE: IC 6-1.1-12.1-14; (04)CC136505.1.57. -->
SECTION 57. IC 6-1.1-12.1-14 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Sec. 14. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter
for which a statement of benefits was approved before July
1, 2004.
(b) A property owner that receives a deduction under section 3
or 4.5 of this chapter is subject to this section only if the
designating body, with the consent of the property owner,
incorporates this section, including the percentage to be applied by
the county auditor for purposes of STEP TWO of subsection (c),
into its initial approval of the property owner's statement of
benefits and deduction at the time of that approval.
(c) During each year in which a property owner's property tax
liability is reduced by a deduction granted under this chapter, the
property owner shall pay to the county treasurer a fee in an
amount determined by the county auditor. The county auditor
shall determine the amount of the fee to be paid by the property
owner according to the following formula:
STEP ONE: Determine the additional amount of property
taxes that would have been paid by the property owner during
the year if the deduction had not been in effect.
STEP TWO: Multiply the amount determined under STEP
ONE by the percentage determined by the designating body
under subsection (b), which may not exceed fifteen percent
(15%). The percentage determined by the designating body
remains in effect throughout the term of the deduction and
may not be changed.
STEP THREE: Determine the lesser of the STEP TWO
product or one hundred thousand dollars ($100,000).
(d) Fees collected under this section must be distributed to one
(1) or more public or nonprofit entities established to promote
economic development within the corporate limits of the city,
town, or county served by the designating body. The designating
body shall notify the county auditor of the entities that are to
receive distributions under this section and the relative
proportions of those distributions. The county auditor shall
distribute fees collected under this section in accordance with the
designating body's instructions.
(e) If the designating body determines that a property owner
has not paid a fee imposed under this section, the designating
body may adopt a resolution terminating the property owner's
deduction under section 3 or 4.5 of this chapter. If the designating
body adopts such a resolution, the deduction does not apply to the
next installment of property taxes owed by the property owner or
to any subsequent installment of property taxes.
SOURCE: IC 6-1.1-4-40; (04)CC136505.1.58. -->
SECTION 58. IC 6-1.1-4-40 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2004 (RETROACTIVE)]: Sec. 40. The value of federal
income tax credits awarded under Section 42 of the Internal
Revenue Code may not be considered in determining the assessed
value of low income housing tax credit property.
SOURCE: IC 6-2.5-4-4.5; IC 6-2.5-6-15.
; (04)CC136505.1.59. -->
SECTION 59. THE FOLLOWING ARE REPEALED [EFFECTIVE
APRIL 1, 2004]: IC 6-2.5-4-4.5; IC 6-2.5-6-15.
SOURCE: IC 6-2.5-5-15; (04)CC136505.1.60. -->
SECTION 60. IC 6-2.5-5-15 IS REPEALED [EFFECTIVE JULY 1,
2004].
SOURCE: IC 9-18-9-4; (04)CC136505.1.61. -->
SECTION 61. IC 9-18-9-4 IS REPEALED [EFFECTIVE JULY 1,
2004].
SOURCE: ; (04)CC136505.1.62. -->
SECTION 62. [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]
(a) IC 6-2.5-3-5, as amended by this act, applies only to vehicles,
watercraft, and aircraft that are initially titled, registered, or
licensed in Indiana after June 30, 2004.
(b) IC 6-2.5-4-11, as amended by this act, applies only to
transactions occurring after March 1, 2004. A retail transaction to
which IC 6-2.5-4-11, as amended by this act, applies shall be
considered as having occurred after March 1, 2004, if charges are
collected for the retail transactions upon original statements and
billings dated after March 31, 2004.
(c) IC 6-2.5-8-10, as amended by this act, and the repeal of
IC 6-2.5-5-15 by this act apply only to retail transactions occurring
after June 30, 2004. A retail transaction shall be considered as
having occurred after June 30, 2004, to the extent that delivery of
the property or services constituting selling at retail is made after
that date to the purchaser or to the place of delivery designated by
the purchaser. However, a transaction shall be considered as
having occurred before July 1, 2004, to the extent that the
agreement of the parties to the transaction was entered into
before July 1, 2004, and payment for the property or services
furnished in the transaction is made before July 1, 2004,
notwithstanding the delivery of the property or services after June
30, 2004.
(d) IC 6-2.5-6-9, as amended by this act, applies only to
deductions assigned after June 30, 2004.
(e) IC 6-3-1-3.5, IC 6-3-2-2.5, and IC 6-3-2-2.6, all as amended
by this act, apply only to taxable years beginning after December
31, 2003.
(f) The following provisions apply to deductions for net
operating losses that are claimed after December 31, 2003:
(1) Deductions for net operating losses that are incurred in
taxable years beginning after December 31, 2003, and are
carried back or carried forward and deducted in taxable years
ending before January 1, 2004, must be calculated under
IC 6-3-2-2.5 and IC 6-3-2-2.6, both as amended by this act.
(2) Deductions for net operating losses that were incurred in
taxable years ending before January 1, 2004, and that are
carried forward and deducted in taxable years ending after
December 31, 2003, must be calculated under IC 6-3-2-2.5
and IC 6-3-2-2.6, both as amended by this act.
(3) Deductions for net operating losses that were incurred in
taxable years ending before January 1, 2004, and are carried
back or carried forward and deducted in taxable years ending
before January 1, 2004, must be calculated under the
versions of IC 6-3-2-2.5 and IC 6-3-2-2.6 that were in effect
in the year the net operating loss was incurred.
(4) Any net operating loss carried forward and deducted in a
taxable year beginning after December 31, 2003, shall be
reduced by the amount of the net operating loss previously
deducted in an earlier taxable year.
(g) IC 6-4.1-1-3, as amended by this act, applies only to an
adopting parent who dies after June 30, 2004.
SOURCE: ; (04)CC136505.1.63. -->
SECTION 63. [EFFECTIVE UPON PASSAGE] (a) An individual
who:
(1) was employed by Muscatatuck State Developmental
Center on November 1, 2002;
(2) retired under the state's retirement incentive program
that was effective beginning November 1, 2002, and ending
June 14, 2003;
(3) would meet the years of service requirements specified in
IC 5-10-8-8(b)(3) and the years of participation requirement
specified in IC 5-10-8-8(b)(4) if:
(A) one (1) year of additional service credit is added to the
individual's total years of service for every five (5) years
of creditable state service; and
(B) pro rated months of additional service credit are added
to the individual's total years of service for any additional
years of creditable state service;
(4) otherwise meets the requirements of IC 5-10-8-8(b); and
(5) applies for participation in the group health insurance
program under IC 5-10-8-8 before December 31, 2005;
is eligible for participation in the group health insurance program
available to retired employees under IC 5-10-8-8.
(b) This SECTION expires December 31, 2006.
SOURCE: ; (04)CC136505.1.64. -->
SECTION 64. [EFFECTIVE JULY 1, 2004] (a) As used in this
SECTION, committee" refers to the interim study committee on
corporate taxation established under subsection (b).
(b) There is established the interim study committee on
corporate taxation. The committee shall study the use of passive
investment corporations by companies doing business in Indiana.
(c) The committee shall operate under the policies governing
study committees adopted by the legislative council.
(d) The affirmative votes of a majority of the voting members
appointed to the committee are required for the committee to
take action on any measure, including final reports.
(e) This SECTION expires November 1, 2004.
SOURCE: ; (04)CC136505.1.65. -->
SECTION 65.
An emergency is declared for this act.
(Reference is to EHB 1365 as reprinted February 24, 2004.)
Conference Committee Report
on
Engrossed House
Bill 1365
Text Box
S
igned by:
____________________________ ____________________________
Representative Cochran Senator Borst
Chairperson
____________________________ ____________________________
Representative Espich Senator Simpson
House Conferees Senate Conferees