Citations Affected: IC 6-1.1-12-41; IC 6-3.5-7-25.
Synopsis: Inventory tax deduction ordinances. Extends until June 1,
2005, the time in which an ordinance may be adopted in a county to
provide: (1) a property tax deduction for inventory assessed in 2005;
and (2) a homestead credit funded from county economic development
income tax revenues to eliminate the effects of the inventory deduction
on homesteads.
Effective: Upon passage; March 30, 2004 (retroactive); March 31,
2005 (retroactive).
January 6, 2005, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
assessed value of inventory located in the county for the appropriate
year of assessment. An ordinance adopted under this subsection must
be adopted before January 1 of a calendar year beginning after
December 31, 2002. An ordinance adopted under this section in a
particular year applies:
(1) if adopted before March 31, 2004, to each subsequent
assessment year ending before January 1, 2006; and
(2) if adopted after March 30, 2004, and before June 1, 2005,
to the March 1, 2005, assessment date.
An ordinance adopted under this section may be consolidated with an
ordinance adopted under IC 6-3.5-7-25 or IC 6-3.5-7-26. The
consolidation of an ordinance adopted under this section with an
ordinance adopted under IC 6-3.5-7-26 does not cause the ordinance
adopted under IC 6-3.5-7-26 to expire after December 31, 2005.
(g) An ordinance may not be adopted under subsection (f) after
March May 30, 2004. 2005. However, an ordinance adopted under this
section:
(1) before March 31, 2004, may be amended after March 30,
2004; and
(2) before June 1, 2005, may be amended after May 30, 2005;
to consolidate an ordinance adopted under IC 6-3.5-7-26.
(h) The entity that may adopt the ordinance permitted under
subsection (f) is:
(1) the county income tax council if the county option income tax
is in effect on January 1 of the year in which an ordinance under
this section is adopted;
(2) the county fiscal body if the county adjusted gross income tax
is in effect on January 1 of the year in which an ordinance under
this section is adopted; or
(3) the county income tax council or the county fiscal body,
whichever acts first, for a county not covered by subdivision (1)
or (2).
To adopt an ordinance under subsection (f), a county income tax
council shall use the procedures set forth in IC 6-3.5-6 concerning the
imposition of the county option income tax. The entity that adopts the
ordinance shall provide a certified copy of the ordinance to the
department of local government finance before February 1.
(i) A taxpayer is not required to file an application to qualify for the
deduction permitted under subsection (f).
(j) The department of local government finance shall incorporate the
deduction established in this section in the personal property return
form to be used each year for filing under IC 6-1.1-3-7 or
IC 6-1.1-3-7.5 to permit the taxpayer to enter the deduction on the
form. If a taxpayer fails to enter the deduction on the form, the
township assessor shall:
(1) determine the amount of the deduction; and
(2) within the period established in IC 6-1.1-16-1, issue a notice
of assessment to the taxpayer that reflects the application of the
deduction to the inventory assessment.
(k) The deduction established in this section must be applied to any
inventory assessment made by:
(1) an assessing official;
(2) a county property tax board of appeals; or
(3) the department of local government finance.
of the certified distribution specified in the ordinance for use for the
purpose provided in subsection (e) shall be:
(1) retained by the county auditor under subsection (g); (i); and
(2) used for the purpose provided in subsection (e) instead of the
purposes specified in the capital improvement plans adopted
under section 15 of this chapter.
(e) If an ordinance is adopted under subsection (c), the imposing
entity shall use the certified distribution described in section 16(c) of
this chapter to increase the homestead credit allowed in the county
under IC 6-1.1-20.9 for a year to offset the effect on homesteads in the
county resulting from a county deduction for inventory under
IC 6-1.1-12-41.
(f) If the imposing entity specifies the application of uniform
increased homestead credits under subsection (c)(3)(A), the county
auditor shall, for each calendar year in which an increased homestead
credit percentage is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit percentage for the year;
(2) the amount of uniformly applied homestead credits for the
year in the county that equals the amount determined under
subdivision (1); and
(3) the increased percentage of homestead credit that equates to
the amount of homestead credits determined under subdivision
(2).
(g) The increased percentage of homestead credit determined by the
county auditor under subsection (f) applies uniformly in the county in
the calendar year for which the increased percentage is determined.
(h) If the imposing entity specifies the application of allocated
increased homestead credits under subsection (c)(3)(B), the county
auditor shall, for each calendar year in which an increased homestead
credit is authorized under this section, determine:
(1) the amount of the certified distribution that is available to
provide an increased homestead credit for the year; and
(2) an increased percentage of homestead credit for each taxing
district in the county that allocates to the taxing district an amount
of increased homestead credits that bears the same proportion to
the amount determined under subdivision (1) that the amount of
inventory assessed value deducted under IC 6-1.1-12-41 in the
taxing district for the immediately preceding year's assessment
date bears to the total inventory assessed value deducted under
IC 6-1.1-12-41 in the county for the immediately preceding year's
assessment date.
earliest of the following:
(1) The date that the department of local government finance
adopts an interim rule under subsection (b) to supersede a
rule previously adopted under subsection (b).
(2) The date that the department of local government finance
adopts a permanent rule under IC 4-22-2 to supersede a rule
previously adopted under subsection (b).
(3) The date that the department of local government finance
adopts under subsection (b) or IC 4-22-2 a repeal of a rule
previously adopted under subsection (b).
(4) December 31, 2006.