SB 496-2_ Filed 04/04/2005, 11:22 Welch


Text Box


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    WITHDRAWN        Noes _______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


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 496 be amended to read as follows:

SOURCE: Page 119, line 11; (05)MO049610.119. -->     Page 119, between lines 11 and 12, begin a new paragraph and insert:
SOURCE: ; (05)MO049610.94. -->     "SECTION 94. [EFFECTIVE UPON PASSAGE] (a) The general assembly makes the following findings:
        (1) Indiana's current tax system has evolved over the last two (2) centuries and is in need of a comprehensive review.
        (2) Some elements of the current tax system may no longer function well as the economy changes.
        (3) The general assembly should do all it can to make Indiana's tax system equitable for all citizens of Indiana.
    (b) As used in this SECTION, "commission" refers to the commission on tax reform established by this SECTION.
    (c) There is established the commission on tax reform.
    (d) The commission consists of the following eleven (11) voting members:
        (1) Four (4) individuals appointed by the speaker of the house of representatives who:
            (A) are professors at state supported universities; and
            (B) have expertise in business, economics, or state and local taxation.
        (2) An individual who is a former deputy state budget director and is appointed by the minority leader of the house of representatives.
        (3) Four (4) individuals appointed by the president pro

tempore of the senate who:
            (A) are professors at state supported universities; and
            (B) have expertise in business, economics, or state and local taxation.
        (4) An individual who holds a graduate degree in economics and is employed in the private sector and is appointed by the minority leader of the senate.
        (5) An individual who holds a graduate degree in economics and is appointed by the governor.
A member serves at the pleasure of the appointing authority.
    (e) The governor shall appoint the chairperson of the commission. The chairperson serves in that position at the pleasure of the governor.
    (f) The commission shall undertake a comprehensive review and analysis of Indiana's state and local tax structure. The commission shall evaluate the tax system using the following criteria and shall address the following questions:
        (1) Growth performance and elasticity: is our tax system designed to grow along with the Indiana economy?
        (2) Reliability and volatility: are the revenues raised relatively stable over time, or are they excessively volatile and difficult to predict?
        (3) Distributional effects and fairness: how are the taxes distributed among various types of taxpayers? Does the system treat similarly situated taxpayers similarly? Does the system account for taxpayers' different capacities to bear the burden of taxation?
        (4) Transparency and administrative simplicity: are the taxes easy and economical to collect and administer? To what extent does the system result in taxpayers being accountable for paying their taxes and tax agencies being accountable for enforcing the laws?
        (5) Federal interaction: to what extent are state and local taxes deductible for federal purposes?
        (6) Economic climate: what effects do the taxes have on Indiana's business climate and overall economic activity? To what extent does the system promote economic growth?
        (7) Provision of adequate revenues: does the tax system result in sufficient, stable, and certainty of revenues?
    (g) The legislative services agency shall provide:
        (1) the legislative drafting, clerical, fiscal research, and administrative personnel; and
        (2) other assistance;
necessary to enable the commission to properly perform its duties.
    (h) The expenses of the commission shall be paid from funds appropriated to the legislative council.


    (i) The commission shall operate under the legislative council's rules governing study committees. However, the commission shall meet as often as is necessary to properly perform its duties and shall issue a final report before November 2, 2005.
    (j) The affirmative votes of a majority of the voting members appointed to the commission are required for the commission to take action on any measure, including final reports.
    (k) This SECTION expires November 2, 2005.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 496 as printed April 1, 2005.)

________________________________________

Representative Welch


MO049610/DI 92     2005