February 18, 2005





HOUSE BILL No. 1584

_____


DIGEST OF HB 1584 (Updated February 16, 2005 8:31 pm - DI 44)



Citations Affected: IC 6-1.1; noncode.

Synopsis: Steel mill personal property assessment. Provides that special integrated steel mill equipment property tax valuation applies only if the mill produces steel in a blast furnace in Indiana.

Effective: January 1, 2004 (retroactive).





Becker, Stilwell




    January 18, 2005, read first time and referred to Committee on Ways and Means.
    February 17, 2005, reported _ Do Pass.






February 18, 2005

First Regular Session 114th General Assembly (2005)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1584



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-3-23; (05)HB1584.1.1. -->     SECTION 1. IC 6-1.1-3-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)]: Sec. 23. (a) For purposes of this section:
        (1) "adjusted cost" refers to the adjusted cost established in 50 IAC 4.2-4-4 (as in effect on January 1, 2003);
        (2) "depreciable personal property" has the meaning set forth in 50 IAC 4.2-4-1 (as in effect on January 1, 2003);
        (3) "integrated steel mill" means a person that produces steel by processing iron ore and other raw materials in a blast furnace in Indiana;
        (4) "oil refinery/petrochemical company" means a person that produces a variety of petroleum products by processing an annual average of at least one hundred thousand (100,000) barrels of crude oil per day;
        (5) "permanently retired depreciable personal property" has the meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1, 2003);
        (6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in effect on January 1, 2003);
        (7) "special integrated steel mill or oil refinery/petrochemical equipment" means depreciable personal property, other than special tools and permanently retired depreciable personal property:
            (A) that:
                (i) is owned, leased, or used by an integrated steel mill or an entity that is at least fifty percent (50%) owned by an affiliate of an integrated steel mill; and
                (ii) falls within Asset Class 33.4 as set forth in IRS Rev. Proc. 87-56, 1987-2, C.B. 647; or
            (B) that:
                (i) is owned, leased, or used as an integrated part of an oil refinery/petrochemical company or its affiliate; and
                (ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS Rev. Proc. 87-56, 1987-2, C.B. 647;
        (8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as in effect on January 1, 2003); and
        (9) "year of acquisition" refers to the year of acquisition determined under 50 IAC 4.2-4-6 (as in effect on January 1, 2003).
    (b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50 IAC 4.2-4-7, a taxpayer may elect to calculate the true tax value of the taxpayer's special integrated steel mill or oil refinery/petrochemical equipment by multiplying the adjusted cost of that equipment by the percentage set forth in the following table:
        Year of Acquisition    Percentage
            1            40%
            2            56%
            3            42%
            4            32%
            5            24%
            6            18%
            7            15%
            8 and older        10%
    (c) The department of local government finance shall designate the table under subsection (b) as "Pool No. 5" on the business personal property tax return.
    (d) The percentage factors in the table under subsection (b) automatically reflect all adjustments for depreciation and obsolescence, including abnormal obsolescence, for special integrated steel mill or oil

refinery/petrochemical equipment. The equipment is entitled to all exemptions, credits, and deductions for which it qualifies.
    (e) The minimum valuation limitations under 50 IAC 4.2-4-9 do not apply to special integrated steel mill or oil refinery/petrochemical equipment valued under this section. The value of the equipment is not included in the calculation of that minimum valuation limitation for the taxpayer's other assessable depreciable personal property in the taxing district.
    (f) An election to value special integrated steel mill or oil refinery/petrochemical equipment under this section:
        (1) must be made by reporting the equipment under this section on a business personal property tax return;
        (2) applies to all of the taxpayer's special integrated steel mill or oil refinery/petrochemical equipment located in the state (whether owned or leased, or used as an integrated part of the equipment); and
        (3) is binding on the taxpayer for the assessment date for which the election is made.
The department of local government finance shall prescribe the forms to make the election beginning with the March 1, 2003, assessment date. Any special integrated steel mill or oil refinery/petrochemical equipment acquired by a taxpayer that has made an election under this section is valued under this section.
    (g) If fifty percent (50%) or more of the adjusted cost of a taxpayer's property that would, notwithstanding this section, be reported in a pool other than Pool No. 5 is attributable to special integrated steel mill or oil refinery/petrochemical equipment, the taxpayer may elect to calculate the true tax value of all of that property as special integrated steel mill or oil refinery/petrochemical equipment. The true tax value of property for which an election is made under this subsection is calculated under subsections (b) through (f).

SOURCE: ; (05)HB1584.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2004 (RETROACTIVE)] IC 6-1.1-3-23, as amended by this act, applies only to property taxes first due and payable after December 31, 2004.
SOURCE: ; (05)HB1584.1.3. -->     SECTION 3. An emergency is declared for this act.