Introduced Version






SENATE BILL No. 510

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-37-7.

Synopsis: Penalty for incomplete personal property returns. Imposes a penalty on a personal property taxpayer that fails to include on a return the information necessary for the township assessor to assign the appropriate assessed value to the return. The penalty is the lesser of 10% of the taxes on the assessed value determined by the township assessor or $1,000.

Effective: July 1, 2005.





Young R Michael




    January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.







Introduced

First Regular Session 114th General Assembly (2005)


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SENATE BILL No. 510



    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 6-1.1-37-7; (05)IN0510.1.1. -->     SECTION 1. IC 6-1.1-37-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (a) If a person fails to file a required personal property return on or before the due date, the county auditor shall add a penalty of twenty-five dollars ($25) to the person's next property tax installment. The county auditor shall also add an additional penalty to the taxes payable by the person if he the person fails to file the personal property return within thirty (30) days after the due date. The amount of the additional penalty is twenty percent (20%) of the taxes finally determined to be due with respect to the personal property which should have been reported on the return.
    (b) For purposes of this section, a personal property return is not due until the expiration of any extension period granted by the township assessor under IC 6-1.1-3-7(b).
    (c) The penalties prescribed under this section do not apply to an individual or his the individual's dependents if he: the individual:
        (1) is in the military or naval forces of the United States on the assessment date; and
        (2) is covered by the federal Soldiers' and Sailors' Civil Relief Act.
    (d) Subject to subsection (h), if:
         (1) a person subject to IC 6-1.1-3-7(d) fails to include on a personal property return the information, if any, that the department of local government finance requires under IC 6-1.1-3-9; or IC 6-1.1-5-13, and
        (2) the township assessor:
            (A) is unable as a result of the person's failure under subdivision (1) to:
                (i) identify which property reported on the return is subject to assessment; or
                (ii) otherwise determine the amount of personal property assessed value the person intends to report on the return;
            in the township assessor's township; and
            (B) corrects the deficiencies described in clause (A) and assigns a personal property assessed value to the return;

the county auditor shall add a penalty to the property tax installment next due for the return.
     (e) The amount of the penalty under subsection (d) is twenty-five dollars ($25). the lesser of:
        (1) ten percent (10%) of the taxes finally determined to be due with respect to the personal property assigned by the township assessor to the person's personal property return under subsection (d)(2)(B); or
        (2) one thousand dollars ($1,000).

    (e) (f) Subject to subsection (h), if the total assessed value that a person reports on a personal property return is less than the total assessed value that the person is required by law to report and if the amount of the undervaluation exceeds five percent (5%) of the value that should have been reported on the return, then the county auditor shall add a penalty of twenty percent (20%) of the additional taxes finally determined to be due as a result of the undervaluation. The penalty shall be added to the property tax installment next due for the return on which the property was undervalued. If a person has complied with all of the requirements for claiming a deduction, an exemption, or an adjustment for abnormal obsolescence, then the increase in assessed value that results from a denial of the deduction, exemption, or adjustment for abnormal obsolescence is not considered to result from an undervaluation for purposes of this subsection.
     (g) If a person fails to include on a personal property return the information, if any, the department of local government finance

requires under IC 6-1.1-5-13, the county auditor shall add a penalty of twenty-five dollars ($25) to the property tax installment next due for the return.
     (h) If a township assessor assigns personal property assessed value to a personal property return based on the failure of a person to provide information under subsection (d) or an undervaluation under subsection (f), the county auditor may not apply both:
         (1) the penalty under subsection (d); and
        (2) the penalty under subsection (f);
based on that assignment.

    (f) (i) A penalty is due with an installment under subsection (a), (d), or (e) (f), or (g) whether or not an appeal is filed under IC 6-1.1-15-5 with respect to the tax due on that installment.

SOURCE: ; (05)IN0510.1.2. -->     SECTION 2. [EFFECTIVE JULY 1, 2005] IC 6-1.1-37-7, as amended by this act, applies only to personal property returns filed after June 30, 2005.