Introduced Version
HOUSE BILL No. 1816
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-20.
Synopsis: Income tax credit for property tax paid. Increases from
$18,600 to $30,000 the income eligibility level for the income tax
credit for property taxes paid on homesteads in Lake County. Reduces
the amount of the credit funded by riverboat admissions taxes in the
county.
Effective: January 1, 2005 (retroactive).
Smith V
January 19, 2005, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 114th General Assembly (2005)
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HOUSE BILL No. 1816
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 6-3.1-20-4; (05)IN1816.1.1. -->
SECTION 1. IC 6-3.1-20-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 4. (a) Except as provided in subsection (b), an individual is
entitled to a credit under this chapter if the:
(1) individual's earned income for the taxable year is less than
eighteen thirty thousand
six hundred ($18,600); dollars
($30,000); and
(2) the individual pays property taxes in the taxable year on a
homestead that:
(A) the individual:
(i) owns; or
(ii) is buying under a contract that requires the individual to
pay property taxes on the homestead, if the contract or a
memorandum of the contract is recorded in the county
recorder's office; and
(B) is located in a county having a population of more than
four hundred thousand (400,000) but less than seven hundred
thousand (700,000).
(b) An individual is not entitled to a credit under this chapter for a
taxable year for property taxes paid on the individual's homestead if the
individual claims the deduction under IC 6-3-1-3.5(a)(17) for the
homestead for that same taxable year.
SOURCE: IC 6-3.1-20-5; (05)IN1816.1.2. -->
SECTION 2. IC 6-3.1-20-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 5. (a) Each year, an individual described in section 4 of this
chapter is entitled to a refundable credit against the individual's state
income tax liability in the amount determined under this section.
(b) In the case of an individual with earned income of less than
eighteen twenty-nine thousand four hundred dollars ($18,000)
($29,400) for the taxable year, the amount of the credit is equal to the
lesser of:
(1) three hundred dollars ($300); or
(2) the amount of property taxes described in section 4(a)(2) of
this chapter paid by the individual in the taxable year.
(c) In the case of an individual with earned income that is at least
eighteen twenty-nine thousand four hundred dollars ($18,000)
($29,400) but less than eighteen thirty thousand six hundred dollars
($18,600) ($30,000) for the taxable year, the amount of the credit is
equal to the lesser of the following:
(1) An amount determined under STEP TWO of the following
STEPS: formula:
STEP ONE: Determine the result of:
(i) eighteen thirty thousand six hundred dollars ($18,600);
($30,000); minus
(ii) the individual's earned income for the taxable year.
STEP TWO: Determine the result of:
(i) the STEP ONE amount; multiplied by
(ii) five-tenths (0.5).
(2) The amount of property taxes described in section 4(a)(2) of
this chapter paid by the individual in the taxable year.
(d) If the amount of the credit under this chapter exceeds the
individual's state tax liability for the taxable year, the excess shall be
refunded to the taxpayer.
SOURCE: IC 6-3.1-20-7; (05)IN1816.1.3. -->
SECTION 3. IC 6-3.1-20-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
Sec. 7. (a) The department shall before July 1 of each year determine
the amount of credits allowed under this chapter for taxable years
ending before January 1 of the year.
(b)
One-half (1/2) Three-tenths (3/10) of the amount determined by
the department under subsection (a) shall be:
(1) deducted during the year from the riverboat admissions tax
revenue otherwise payable to the county under
IC 4-33-12-6(d)(2); and
(2) paid instead to the state general fund.
(c) One-sixth (1/6) One-tenth (1/10) of the amount determined by
the department under subsection (a) shall be:
(1) deducted during the year from the riverboat admissions tax
revenue otherwise payable under IC 4-33-12-6(d)(1) to each of
the following:
(A) The largest city by population located in the county.
(B) The second largest city by population located in the
county.
(C) The third largest city by population located in the county;
and
(2) paid instead to the state general fund.
SOURCE: ; (05)IN1816.1.4. -->
SECTION 4. [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]
IC 6-3.1-20-4, IC 6-3.1-20-5, and IC 6-3.1-20-7, all as amended by
this act, apply only to taxable years beginning after December 31,
2004.
SOURCE: ; (05)IN1816.1.5. -->
SECTION 5.
An emergency is declared for this act.