SB 496-1_ Filed 02/09/2005, 16:03
Adopted 2/10/2005

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Tax and Fiscal Policy, to which was referred Senate Bill No. 496, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 9, line 28; (05)CR049601.9. -->     Page 9, line 28, delete ":".
    Page 9, line 29, delete "(1)".
    Page 9, run in lines 28 through 29.
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    Page 9, delete lines 31 through 32.
    Page 12, between lines 13 and 14, begin a new line block indented and insert:
        " (5) With respect to a proposed bond issue or lease agreement for the acquisition, construction, renovation, improvement, expansion, or use of a building, structure, or other public improvement, the extent to which the building, structure, or public improvement will be made available to residents of the political subdivision for uses other than those planned by the political subdivision.".
    Page 12, line 14, delete "(5)" and insert " (6)".
    Page 14, line 22, after "through" delete "a" and insert " the Internet or other electronic means, as determined by the department.".
    Page 14, delete lines 23 through 24.
    Page 15, line 2, delete "quarterly reports and".
    Page 15, line 3, delete "annual summaries of".
    Page 15, line 4, after "Internet" insert " at least annually".
    Page 15, delete lines 10 through 42, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12-41; (05)CR049601.5. -->     "SECTION 5. IC 6-1.1-12-41 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 30, 2004 (RETROACTIVE)]: Sec. 41. (a) This section does not apply to assessment years beginning after December 31, 2005.
    (b) As used in this section, "assessed value of inventory" means the assessed value determined after the application of any deductions or adjustments that apply by statute or rule to the assessment of inventory, other than the deduction allowed under subsection (f).
    (c) As used in this section, "county income tax council" means a council established by IC 6-3.5-6-2.
    (d) As used in this section, "fiscal body" has the meaning set forth in IC 36-1-2-6.
    (e) As used in this section, "inventory" has the meaning set forth in IC 6-1.1-3-11.
    (f) An ordinance may be adopted in a county to provide that a deduction applies to the assessed value of inventory located in the county. The deduction is equal to one hundred percent (100%) of the 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.
SOURCE: IC 6-1.1-15-1; (05)CR049601.6. -->     SECTION 6. IC 6-1.1-15-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. (a) A taxpayer may obtain a review by the county property tax assessment board of appeals

of a county or township official's action with respect to the assessment of the taxpayer's tangible property if the official's action requires the giving of notice to the taxpayer. At the time that notice is given to the taxpayer, the taxpayer shall also be informed in writing of:
        (1) the opportunity for review under this section, including an informal preliminary conference with the county or township official referred to in this subsection; and
        (2) the procedures the taxpayer must follow in order to obtain review under this section.
    (b) In order to appeal a current assessment and have a change in the assessment effective for the most recent assessment date, the taxpayer must request in writing a preliminary conference with the county or township official referred to in subsection (a):
        (1) within not later than forty-five (45) days after notice of a change in the assessment is given to the taxpayer; or
        (2) on or before May 10 of that year;
whichever is later. The county or township official referred to in subsection (a) shall notify the county auditor that the assessment is under appeal. The preliminary conference required under this subsection is a prerequisite to a review by the county property tax assessment board of appeals under subsection (i).
    (c) A change in an assessment made as a result of an appeal filed:
        (1) in the same year that notice of a change in the assessment is given to the taxpayer; and
        (2) after the time prescribed in subsection (b);
becomes effective for the next assessment date.
    (d) A taxpayer may appeal a current real property assessment in a year even if the taxpayer has not received a notice of assessment in the year. If an appeal is filed on or before May 10 of a year in which the taxpayer has not received notice of assessment, a change in the assessment resulting from the appeal is effective for the most recent assessment date. If the appeal is filed after May 10, the change becomes effective for the next assessment date.
    (e) The written request for a preliminary conference that is required under subsection (b) must include the following information:
        (1) The name of the taxpayer.
        (2) The address and parcel or key number of the property.
        (3) The address and telephone number of the taxpayer.


    (f) The county or township official referred to in subsection (a) shall, within not later than thirty (30) days after the receipt of a written request for a preliminary conference, attempt to hold a preliminary conference with the taxpayer to resolve as many issues as possible by:
        (1) discussing the specifics of the taxpayer's reassessment;
        (2) reviewing the taxpayer's property record card;
        (3) explaining to the taxpayer how the reassessment was determined;
        (4) providing to the taxpayer information about the statutes, rules, and guidelines that govern the determination of the reassessment;
        (5) noting and considering objections of the taxpayer;
        (6) considering all errors alleged by the taxpayer; and
        (7) otherwise educating the taxpayer about:
            (A) the taxpayer's reassessment;
            (B) the reassessment process; and
            (C) the reassessment appeal process.
Within Not later than ten (10) days after the conference, the county or township official referred to in subsection (a) shall forward to the county auditor and the county property tax assessment board of appeals the results of the conference on a form prescribed by the department of local government finance that must be completed and signed by the taxpayer and the official. The official and the taxpayer shall each retain a copy of the form for their records.
    (g) The form submitted to the county property tax assessment board of appeals under subsection (f) must specify the following:
        (1) The physical characteristics of the property in issue that bear on the assessment determination.
        (2) All other facts relevant to the assessment determination.
        (3) A list of the reasons the taxpayer believes that the assessment determination by the county or township official referred to in subsection (a) is incorrect.
        (4) An indication of the agreement or disagreement by the official with each item listed under subdivision (3).
        (5) The reasons the official believes that the assessment determination is correct.
    (h) If after the conference there are no items listed on the form submitted to the county property tax assessment board of appeals under subsection (f) on which there is disagreement:
        (1) the county or township official referred to in subsection (a) shall give notice to the taxpayer, the county property tax assessment board of appeals, and the county assessor of the assessment in the amount agreed to by the taxpayer and the official; and
        (2) the county property tax assessment board of appeals may reserve the right to change the assessment under IC 6-1.1-13.
    (i) If after the conference there are items listed in the form submitted under subsection (f) on which there is disagreement, the county property tax assessment board of appeals shall hold a hearing. The taxpayer and county or township official whose original determination is under review are parties to the proceeding before the board of appeals. Except as provided in subsections (k) and (l), the hearing must be held within not later than ninety (90) days of after the official's receipt of the taxpayer's written request for a preliminary conference under subsection (b). The taxpayer may present the taxpayer's reasons for disagreement with the assessment. The county or township official referred to in subsection (a) must present the basis for the assessment decision on these items to the board of appeals at the hearing and the reasons the taxpayer's appeal should be denied on those items. The board of appeals shall have a written record of the hearing and prepare a written statement of findings and a decision on each item within not later than sixty (60) days of after the hearing, except as provided in subsections (k) and (l).
    (j) If the township assessor does not attempt to hold a preliminary conference, the taxpayer may file a request in writing with the county assessor for a hearing before the property tax assessment board of appeals. If the board determines that the county or township official referred to in subsection (a) did not attempt to hold a preliminary conference, the board shall hold a hearing. The taxpayer and the county or township official whose original determination is under review are parties to the proceeding before the board of appeals. The hearing must be held within not later than ninety (90) days of after the receipt by the board of appeals of the taxpayer's hearing request under this subsection. The requirements of subsection (i) with respect to:
        (1) participation in the hearing by the taxpayer and the township assessor or county assessor; and
        (2) the procedures to be followed by the county board;
apply to a hearing held under this subsection.
    (k) This subsection applies to a county having a population of more than three hundred thousand (300,000). In the case of a petition filed after December 31, 2000, the county property tax assessment board of appeals shall:
        (1) hold its hearing within not later than one hundred eighty (180) days instead of ninety (90) days after the filing of the petition; and
        (2) have a written record of the hearing and prepare a written statement of findings and a decision on each item within not later than one hundred twenty (120) days after the hearing.
    (l) This subsection applies to a county having a population of three hundred thousand (300,000) or less. With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the county property tax assessment board of appeals shall:
        (1) hold its hearing within not later than one hundred eighty (180) days instead of ninety (90) days after the filing of the petition; and
        (2) have a written record of the hearing and prepare a written statement of findings and a decision on each item within not later than one hundred twenty (120) days after the hearing.
    (m) The county property tax assessment board of appeals:
        (1) may not require a taxpayer to file documentary evidence or summaries of statements of testimonial evidence before the hearing required under subsection (i) or (j); and
        (2) may amend the form submitted under subsection (f) if the board determines that the amendment is warranted.
     (n) Upon receiving a request for a preliminary conference under subsection (b), the county or township official referred to in subsection (a) shall notify the county auditor in writing that the assessment is under appeal. With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notice must include the appellant's name and address, the assessed value of the appealed items for the assessment date immediately preceding the assessment date for which the appeal was filed, and the assessed value of the appealed items on the most recent assessment date. If the county auditor determines that the

assessed value of the appealed items constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. Failure of the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.

SOURCE: IC 6-1.1-15-2.1; (05)CR049601.7. -->     SECTION 7. IC 6-1.1-15-2.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2.1. (a) The county property tax assessment board of appeals may assess the tangible property in question.
    (b) The county property tax assessment board of appeals shall, by mail, give notice of the date fixed for the hearing under section 1 section 1(i) of this chapter to the taxpayer, and to the township assessor, the county assessor, and the county auditor. With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notice must include the following:
        (1) For those items on which there is disagreement, the assessed value of the appealed items:
            (A) for the assessment date immediately preceding the assessment date for which the appeal was filed; and
            (B) on the most recent assessment date.
        (2) A statement that a taxing unit receiving the notice from the county auditor under subsection (c) may:
            (A) attend the hearing;
            (B) offer testimony; and
            (C) file an amicus curiae brief in the proceeding.

A taxing unit that receives a notice from the county auditor under subsection (c) is not a party to the appeal.
     (c) If, after receiving notice of a hearing under subsection (b), the county auditor determines that the assessed value of the items on which there is disagreement constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. Failure of

the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.
    (c) (d) The department of local government finance shall prescribe a form for use by the county property tax assessment board of appeals in processing a review of an assessment determination. The department shall issue instructions for completion of the form. The form must require the county property tax assessment board of appeals to include a record of the hearing, findings on each item, and indicate agreement or disagreement with each item that is indicated on the form submitted by the taxpayer and the county or township official under section 1(f) of this chapter. The form must also require the county property tax assessment board of appeals to indicate the issues in dispute for each item and its reasons in support of its resolution of those issues.
    (d) (e) After the hearing the county property tax assessment board of appeals shall, by mail, give notice of its determination to the taxpayer, the township assessor, and the county assessor, and the county auditor, and any taxing unit entitled to notice of the hearing under subsection (c). The county property tax assessment board of appeals shall include with the notice copies of the forms completed under subsection (c). (d).

SOURCE: IC 6-1.1-15-3; (05)CR049601.8. -->     SECTION 8. IC 6-1.1-15-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. (a) A taxpayer may obtain a review by the Indiana board of a county property tax assessment board of appeals action with respect to the assessment of that taxpayer's tangible property if the county property tax assessment board of appeals' action requires the giving of notice to the taxpayer. A township assessor, county assessor, member of a county property tax assessment board of appeals, or county property tax assessment board of appeals that made the original determination under appeal under this section is a party to the review under this section to defend the determination. At the time that notice is given to the taxpayer, the taxpayer shall also be informed in writing of:
        (1) the taxpayer's opportunity for review under this section; and
        (2) the procedures the taxpayer must follow in order to obtain review under this section.
    (b) A township assessor or county assessor may obtain a review by the Indiana board of any assessment which the township assessor or the

county assessor has made, upon which the township assessor or the county assessor has passed, or which has been made over the township assessor's or the county assessor's protest.
    (c) In order to obtain a review by the Indiana board under this section, the party must file a petition for review with the appropriate county assessor within not later than thirty (30) days after the notice of the county property tax assessment board of appeals action is given to the taxpayer.
    (d) The Indiana board shall prescribe the form of the petition for review of an assessment determination by the county property tax assessment board of appeals. The Indiana board shall issue instructions for completion of the form. The form and the instructions must be clear, simple, and understandable to the average individual. An appeal of such a determination must be made on the form prescribed by the Indiana board. The form must require the petitioner to specify the following:
        (1) If the county or township official held a preliminary conference under section 1(f) of this chapter, the items listed in section 1(g)(1) and 1(g)(2) of this chapter.
        (2) The reasons why the petitioner believes that the assessment determination by the county property tax assessment board of appeals is erroneous.
    (e) The county assessor shall transmit the petition for review to the Indiana board within not later than ten (10) days after it is filed.
    (f) If a township assessor or a member of the county property tax assessment board of appeals files a petition for review under this section concerning the assessment of a taxpayer's property, the county assessor must send a copy of the petition to the taxpayer. The county assessor shall transmit the petition for review to the Indiana board not later than ten (10) days after the petition is filed.

SOURCE: IC 6-1.1-15-4; (05)CR049601.9. -->     SECTION 9. IC 6-1.1-15-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. (a) After receiving a petition for review which is filed under section 3 of this chapter, the Indiana board shall conduct a hearing at its earliest opportunity. The Indiana board may:
        (1) assign:
            (A) full;
            (B) limited; or
            (C) no;
        evidentiary value to the assessed valuation of tangible property determined by stipulation submitted as evidence of a comparable sale; and
        (2) correct any errors that may have been made, and adjust the assessment in accordance with the correction.
     (b) If the Indiana board conducts a site inspection of the property as part of its review of the petition, the Indiana board shall give notice to all parties of the date and time of the site inspection. The Indiana board is not required to assess the property in question. The Indiana board shall give notice of the date fixed for the hearing and a copy of the petition filed under section 3 of this chapter, by mail, to the taxpayer and to the appropriate township assessor, county assessor, and county auditor. With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notice must include the following:
        (1) The assessed value of the appealed items for the assessment date immediately preceding the assessment date for which the appeal was filed under section 1 of this chapter.
        (2) The action of the county property tax assessment board of appeals with respect to the appealed items.
        (3) A statement that a taxing unit receiving the notice from the county auditor under subsection (c) may:
            (A) attend the hearing; and
            (B) offer testimony.

A taxing unit that receives a notice from the county auditor under subsection (c) is not a party to the appeal. The Indiana board shall give these notices at least thirty (30) days before the day fixed for the hearing. The property tax assessment board of appeals that made the determination under appeal under this section may, with the approval of the county executive, file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the property tax assessment board of appeals in filing the amicus curiae brief shall be paid from the property reassessment fund under IC 6-1.1-4-27.5. The executive of a taxing unit may file an amicus curiae brief in the review proceeding under this section if the property whose assessment is under appeal is subject to assessment by that taxing unit.
     (c) If, after receiving notice of a hearing under subsection (b), the county auditor determines that the assessed value of the

appealed items constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. Failure of the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.
    (b) (d) If a petition for review does not comply with the Indiana board's instructions for completing the form prescribed under section 3 of this chapter, the Indiana board shall return the petition to the petitioner and include a notice describing the defect in the petition. The petitioner then has thirty (30) days from the date on the notice to cure the defect and file a corrected petition. The Indiana board shall deny a corrected petition for review if it does not substantially comply with the Indiana board's instructions for completing the form prescribed under section 3 of this chapter.
    (c) (e) The Indiana board shall prescribe a form for use in processing petitions for review of actions by the county property tax assessment board of appeals. The Indiana board shall issue instructions for completion of the form. The form must require the Indiana board to indicate agreement or disagreement with each item that is:
        (1) if the county or township official held a preliminary conference under section 1(f) of this chapter, indicated on the petition submitted under that section by the taxpayer and the official; and
        (2) included in the county property tax assessment board of appeals' findings, record, and determination under section 2.1(c) section 2.1(d) of this chapter.
The form must also require the Indiana board to indicate the issues in dispute and its reasons in support of its resolution of those issues.
    (d) (f) After the hearing the Indiana board shall give the petitioner, the township assessor, the county assessor, and the county auditor, and the affected taxing units required to be notified under subsection (c):
        (1) notice, by mail, of its final determination;
        (2) a copy of the form completed under subsection (c); (e); and
        (3) notice of the procedures they must follow in order to obtain court review under section 5 of this chapter.


    (e) (g) Except as provided in subsection (f), (h), the Indiana board shall conduct a hearing not later than nine (9) months after a petition in proper form is filed with the Indiana board, excluding any time due to a delay reasonably caused by the petitioner.
    (f) (h) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the Indiana board shall conduct a hearing not later than one (1) year after a petition in proper form is filed with the Indiana board, excluding any time due to a delay reasonably caused by the petitioner.
    (g) (i) Except as provided in subsection (h), (j), the Indiana board shall make a determination not later than the later of:
         (1) ninety (90) days after the hearing; or
         (2) the date set in an extension order issued by the Indiana board.
    (h) (j) With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the Indiana board shall make a determination not later than the later of:
         (1) one hundred eighty (180) days after the hearing; or
         (2) the date set in an extension order issued by the Indiana board.
    (i) (k) Except as provided in subsection (n), (p), the Indiana board may not extend the final determination date under subsection (g) (i) or (h) (j) by more than one hundred eighty (180) days. If the Indiana board fails to make a final determination within the time allowed by this subsection, the entity that initiated the petition may:
        (1) take no action and wait for the Indiana board to make a final determination; or
        (2) petition for judicial review under section 5(g) of this chapter.
    (j) (l) A final determination must include separately stated findings of fact for all aspects of the determination. Findings of ultimate fact must be accompanied by a concise statement of the underlying basic facts of record to support the findings. Findings must be based exclusively upon the evidence on the record in the proceeding and on matters officially noticed in the proceeding. Findings must be based upon a preponderance of the evidence.
    (k) (m) The Indiana board may limit the scope of the appeal to the issues raised in the petition and the evaluation of the evidence presented to the county property tax assessment board of appeals in support of

those issues only if all persons participating in the hearing required under subsection (a) agree to the limitation. A person participating in the hearing required under subsection (a) is entitled to introduce evidence that is otherwise proper and admissible without regard to whether that evidence has previously been introduced at a hearing before the county property tax assessment board of appeals.
    (l) (n) The Indiana board:
        (1) may require the parties to the appeal to file not more than five (5) business days before the date of the hearing required under subsection (a) documentary evidence or summaries of statements of testimonial evidence; and
        (2) may require the parties to the appeal to file not more than fifteen (15) business days before the date of the hearing required under subsection (a) lists of witnesses and exhibits to be introduced at the hearing.
    (m) (o) A party to a proceeding before the Indiana board shall provide to another party to the proceeding the information described in subsection (l) (n) if the other party requests the information in writing at least ten (10) days before the deadline for filing of the information under subsection (l). (n).
    (n) (p) The county assessor may:
        (1) appear as an additional party if the notice of appearance is filed before the review proceeding; or
        (2) with the approval of the township assessor, represent the township assessor;
in a review proceeding under this section.
    (o) (q) The Indiana board may base its final determination on a stipulation between the respondent and the petitioner. If the final determination is based on a stipulated assessed valuation of tangible property, the Indiana board may order the placement of a notation on the permanent assessment record of the tangible property that the assessed valuation was determined by stipulation. The Indiana board may:
        (1) order that a final determination under this subsection has no precedential value; or
        (2) specify a limited precedential value of a final determination under this subsection.

SOURCE: IC 6-1.1-15-5; (05)CR049601.10. -->     SECTION 10. IC 6-1.1-15-5 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. (a) Not later than fifteen (15) days after the Indiana board gives notice of its final determination under section 4 of this chapter to the party or the maximum allowable time for the issuance of a final determination by the Indiana board under section 4 of this chapter expires, a party to the proceeding may request a rehearing before the Indiana board. The Indiana board may conduct a rehearing and affirm or modify its final determination, giving the same notices after the rehearing as are required by section 4 of this chapter. The Indiana board has fifteen (15) days after receiving a petition for a rehearing to determine whether to grant a rehearing. Failure to grant a rehearing not later than fifteen (15) days after receiving the petition shall be treated as a final determination to deny the petition. A petition for a rehearing does not toll the time in which to file a petition for judicial review unless the petition for rehearing is granted. If the Indiana board determines to rehear a final determination, the Indiana board:
        (1) may conduct the additional hearings that the Indiana board determines necessary or review the written record without additional hearings; and
        (2) shall issue a final determination not later than ninety (90) days after notifying the parties that the Indiana board will rehear the final determination.
If of the Indiana board fails to make a final determination within the time allowed under subdivision (2), the entity that initiated the petition for rehearing may take no action and wait for the Indiana board to make a final determination or petition for judicial review under subsection (g).
    (b) A person may petition for judicial review of the final determination of the Indiana board regarding the assessment of that person's tangible property. The action shall be taken to the tax court under IC 4-21.5-5. Petitions for judicial review may be consolidated at the request of the appellants if it can be done in the interest of justice. The property tax assessment board of appeals that made the determination under appeal under this section may, with the approval of the county executive, file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the property tax assessment board of appeals in filing the amicus curiae brief shall be paid from the property reassessment fund under IC 6-1.1-4-27.5. In

addition, the executive of a taxing unit may file an amicus curiae brief in the review proceeding under this section if the property whose assessment is under appeal is subject to assessment by that taxing unit. The department of local government finance may intervene in an action taken under this subsection if the interpretation of a rule of the department is at issue in the action. A township assessor, county assessor, member of a county property tax assessment board of appeals, or county property tax assessment board of appeals that made the original assessment determination under appeal under this section is a party to the review under this section to defend the determination.
    (c) Except as provided in subsection (g), to initiate a proceeding for judicial review under this section, a person must take the action required by subsection (b) not later than:
        (1) forty-five (45) days after the Indiana board gives the person notice of its final determination, unless a rehearing is conducted under subsection (a); or
        (2) thirty (30) days after the Indiana board gives the person notice under subsection (a) of its final determination, if a rehearing is conducted under subsection (a) or the maximum time elapses for the Indiana board to make a determination under this section.
    (d) The failure of the Indiana board to conduct a hearing within the period prescribed in section 4(f) 4(h) or 4(g) 4(i) of this chapter does not constitute notice to the person of an Indiana board final determination.
    (e) The county executive may petition for judicial review to the tax court in the manner prescribed in this section upon request by the county assessor, or the elected township assessor, or an affected taxing unit. If an appeal is taken at the request of an affected taxing unit, the taxing unit shall pay the costs of the appeal.
    (f) If the county executive determines upon a request under this subsection to not appeal to the tax court:
        (1) the entity described in subsection (b) that made the original determination under appeal under this section may take an appeal to the tax court in the manner prescribed in this section using funds from that entity's budget; and
        (2) the petitioner may not be represented by the attorney general in an action described in subdivision (1).
    (g) If the maximum time elapses for the Indiana board to give notice

of its final determination under subsection (a) or section 4 of this chapter, a person may initiate a proceeding for judicial review by taking the action required by subsection (b) at any time after the maximum time elapses. If:
        (1) a judicial proceeding is initiated under this subsection; and
        (2) the Indiana board has not issued a determination;
the tax court shall determine the matter de novo.

SOURCE: IC 6-1.1-15-9; (05)CR049601.11. -->     SECTION 11. IC 6-1.1-15-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. (a) If the assessment of tangible property is corrected by the department of local government finance or the county property tax assessment board of appeals under section 8 of this chapter, the owner of the property has a right to appeal the final determination of the corrected assessment to the Indiana board. The county executive also has a right to appeal the final determination of the reassessment by the department of local government finance or the county property tax assessment board of appeals but only upon request by the county assessor, or the elected township assessor, or an affected taxing unit. If the appeal is taken at the request of an affected taxing unit, the taxing unit shall pay the costs of the appeal.
    (b) An appeal under this section must be initiated in the manner prescribed in section 3 of this chapter or IC 6-1.5-5.".
    Delete pages 16 through 21.
SOURCE: Page 22, line 1; (05)CR049601.22. -->     Page 22, delete lines 1 through 23.
    Page 25, between lines 15 and 16, begin a new line block indented and insert:
        " (5) With respect to a proposed bond issue or lease agreement for the acquisition, construction, renovation, improvement, expansion, or use of a building, structure, or other public improvement, whether the building, structure, or public improvement will be made available to residents of the civil taxing unit for uses other than those planned by the civil taxing unit.".
    Page 25, line 16, delete "(5)" and insert " (6)".
    Page 27, between lines 31 and 32, begin a new line block indented and insert:
        " (5) With respect to a proposed bond issue or lease agreement for the acquisition, construction, renovation, improvement,

expansion, or use of a building, structure, or other public improvement, whether the building, structure, or public improvement will be made available to residents of the school corporation for uses other than those planned by the school corporation.".
    Page 27, line 32, delete "(5)" and insert " (6)".
    Page 28, delete lines 22 through 42, begin a new paragraph and insert:

SOURCE: IC 6-1.1-20-3.2; (05)CR049601.15. -->     "SECTION 15. IC 6-1.1-20-3.2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3.2. If a sufficient petition requesting the application of a petition and remonstrance process has been filed as set forth in section 3.1 of this chapter, a political subdivision may not impose property taxes to pay debt service or lease rentals without completing the following procedures:
        (1) The proper officers of the political subdivision shall give notice of the applicability of the petition and remonstrance process by:
            (A) publication in accordance with IC 5-3-1; and
            (B) first class mail to the organizations described in section 3.1(1)(B) of this chapter.
        A notice under this subdivision must include a statement that any owners of real property or tenants of residential property within the political subdivision who want to petition in favor of or remonstrate against the proposed debt service or lease payments must file petitions and remonstrances in compliance with subdivisions (2) through (4) not earlier than thirty (30) days or later than sixty (60) days after publication in accordance with IC 5-3-1.
        (2) Not earlier than thirty (30) days or later than sixty (60) days after the notice under subdivision (1) is given:
            (A) petitions (described in subdivision (3)) in favor of the bonds or lease; and
            (B) remonstrances (described in subdivision (3)) against the bonds or lease;
        may be filed by an owner or owners of real property or a tenant or tenants of residential property within the political subdivision. A petition or remonstrance signed by a tenant of residential property must be accompanied by an affidavit

setting forth the name of the landlord and the property address of the tenant's leasehold. Each signature on a petition must be dated and the date of signature may not be before the date on which the petition and remonstrance forms may be issued under subdivision (3). A petition described in clause (A) or a remonstrance described in clause (B) must be verified in compliance with subdivision (4) before the petition or remonstrance is filed with the county auditor under subdivision (4).
        (3) The state board of accounts shall design and, upon request by the county auditor, deliver to the county auditor or the county auditor's designated printer the petition, and remonstrance, and affidavit forms to be used solely in the petition and remonstrance process described in this section. The county auditor shall issue to an owner or owners of real property or a tenant or tenants of residential property within the political subdivision the number of petition or remonstrance forms requested by the owner or owners or tenant or tenants. Each form must be accompanied by instructions detailing the requirements that:
            (A) the carrier and signers must be owners of real property or tenants of residential property;
            (B) the carrier must be a signatory on at least one (1) petition;
            (C) after the signatures have been collected, the carrier must swear or affirm before a notary public that the carrier witnessed each signature;
            (D) govern the closing date for the petition and remonstrance period; and
            (E) apply to the carrier under section 10 of this chapter.
        Persons requesting forms may not be required to identify themselves and may be allowed to pick up additional copies to distribute to other property owners or tenants of residential property. The county auditor may not issue a petition or remonstrance form earlier than twenty-nine (29) days after the notice is given under subdivision (1). The county auditor shall certify the date of issuance on each petition or remonstrance form that is distributed under this subdivision.
        (4) The petitions, and remonstrances, and affidavits must be verified in the manner prescribed by the state board of accounts

and filed with the county auditor within the sixty (60) day period described in subdivision (2) in the manner set forth in section 3.1 of this chapter relating to requests for a petition and remonstrance process.
        (5) The county auditor must file a certificate and the petition or remonstrance with the body of the political subdivision charged with issuing bonds or entering into leases within fifteen (15) business days of the filing of a petition or remonstrance under subdivision (4), whichever applies, containing ten thousand (10,000) signatures or less. The county auditor may take an additional five (5) days to review and certify the petition or remonstrance for each additional five thousand (5,000) signatures up to a maximum of sixty (60) days. The certificate must state the number of petitioners and remonstrators that are owners of real property and the number of petitioners and remonstrators who are tenants of residential property within the political subdivision.
        (6) If a greater number of owners of real property plus tenants of residential property within the political subdivision sign a remonstrance than the number that signed a petition, the bonds petitioned for may not be issued or the lease petitioned for may not be entered into. The proper officers of the political subdivision may not make a preliminary determination to issue bonds or enter into a lease for the controlled project defeated by the petition and remonstrance process under this section or any other controlled project that is not substantially different within one (1) year after the date of the county auditor's certificate under subdivision (5). Withdrawal of a petition carries the same consequences as a defeat of the petition.
        (7) After a political subdivision has gone through the petition and remonstrance process set forth in this section, the political subdivision is not required to follow any other remonstrance or objection procedures under any other law (including section 5 of this chapter) relating to bonds or leases designed to protect owners of real property and tenants of residential property within the political subdivision from the imposition of property taxes to pay debt service or lease rentals. However, the political subdivision must still receive the approval of the department of local

government finance required by IC 6-1.1-18.5-8 or IC 6-1.1-19-8.

SOURCE: IC 6-1.1-20.6; (05)CR049601.16. -->     SECTION 16. IC 6-1.1-20.6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]:
     Chapter 20.6. Property Tax Credits
    Sec. 1. As used in this chapter:
        (1) "2002 liability" means the amount of property taxes imposed on a homestead first due and payable in 2002;
        (2) "2003 increase" means the amount by which the 2003 liability exceeds the 2002 liability;
        (3) "2003 liability" means the amount of property taxes
imposed on a homestead first due and payable in 2003;
        (4) "fiscal body" has the meaning set forth in IC 36-1-2-6;

        (5) "homestead" has the meaning set forth in IC 6-1.1-20.9-1;
        (6) "property tax liability" means liability for the tax imposed on property under this article determined after application of all credits and deductions under this article, except a credit under this chapter, but does not include any interest or penalty imposed under this article; and
        (7) "qualifying homestead" means a homestead with respect to which:
            (A) the 2003 increase:
                (i) exceeds the 2002 liability; and
                (ii) is at least five hundred dollars ($500); and
            (B) the person liable for the 2003 liability is the same person liable for the property taxes for the year in which a credit under this chapter applies.
    Sec. 2. Subject to section 6 of this chapter:
        (1) for property taxes first due and payable in 2005, 2006, 2007, and 2008, a county fiscal body may adopt an ordinance to:
            (A) apply the credit under section 3 of this chapter; or
            (B) apply the credit under section 4 of this chapter; and
        (2) for property taxes first due and payable in a year that follows 2008, a county fiscal body may adopt an ordinance to apply the credit under section 3 of this chapter.
    Sec. 3. If a credit is authorized under section 2(1)(A) or 2(2) of this chapter for property taxes first due and payable in a calendar

year:
        (1) a person is entitled to a credit against the person's property tax liability for property taxes first due and payable in that calendar year attributable to the person's
tangible property located in the county; and
        (2) the amount of the credit is the amount by which the person's property tax liability attributable to the person's tangible property for property taxes first due and payable in that calendar year exceeds two percent (2%) of the gross assessed value that is the basis for determination of property taxes on the tangible property for property taxes first due and payable in that calendar year.
    Sec. 4. If a credit is authorized under section 2(1)(B) of this chapter for property taxes first due and payable in a calendar year, a person is entitled to a credit against the person's property tax liability with respect to the person's qualifying homestead located in the county in the amount of the product of:
        (1) the 2003 increase; multiplied by
        (2) the percentage from the following table corresponding to the year in which property taxes are first due and payable:
            YEAR    PERCENTAGE
            2005            80%
            2006            60%
            2007            40%
            2008            20%
    Sec. 5. (a) A person is not required to file an application for the credit under this chapter. The county auditor shall:
        (1) identify property in the county eligible for a credit under this chapter; and
        (2) apply the credit.
    (b) The county auditor and county treasurer may apply the credit under this chapter for property taxes first due and payable in 2005 by adjustment of the statement for the property tax installment due November 10, 2005.
    Sec. 6. (a) A county fiscal body adopting an ordinance to apply a credit under this chapter must adopt the ordinance before July 1 of a calendar year to authorize the credit for property taxes first due and payable in the immediately succeeding calendar year.


    (b) An ordinance adopted under section 2(1) of this chapter may identify which of the credits applies for one (1) or more of the years referred to in section 2(1) of this chapter.
    (c) An ordinance adopted under section 2(2) of this chapter may apply the credit permitted in section 2(2) of this chapter for one (1) or more of the years referred to in section 2(2) of this chapter.
    (d) A county fiscal body may amend an ordinance adopted under this chapter before July 1 of a year to change the application of the credits under this chapter for subsequent years.
    Sec. 7. (a) A political subdivision may use any source of revenue available to the political subdivision to offset a revenue loss that would otherwise result from the application of credits under this chapter.
    (b) A political subdivision may not appeal for an excessive levy in a year succeeding a year in which a credit under this chapter applies to make up for a revenue loss that results from the application of the credit.
".
SOURCE: Page 29, line 1; (05)CR049601.29. -->     Page 29, delete lines 1 through 7.
    Page 29, line 12, delete "the information in" and insert " each political subdivision's total amount of expenditures per person during the immediately preceding calendar year, based on the political subdivision's population determined by the most recent federal decennial census;".
    Page 29, delete line 13.
    Page 29, line 14, delete "information" and insert " report".
    Page 29, line 15, after "finance;" insert " and".
    Page 29, line 19, delete "; and" and insert " .".
    Page 29, delete lines 20 through 31.
    Page 29, line 32, delete "(c)" and insert " (b)".
    Page 29, line 34, delete "under subsection (b)".
    Page 29, delete lines 36 through 42, begin a new paragraph and insert:
SOURCE: IC 6-1.5-5-2; (05)CR049601.18. -->     "SECTION 18. IC 6-1.5-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) After receiving a petition for review that is filed under a statute listed in section 1(a) of this chapter, the Indiana board shall, at its earliest opportunity:
        (1) conduct a hearing; or
        (2) cause a hearing to be conducted by an administrative law judge.
The Indiana board may determine to conduct the hearing under subdivision (1) on its own motion or on request of a party to the appeal.
    (b) In its resolution of a petition, the Indiana board may:
        (1) assign:
            (A) full;
            (B) limited; or
            (C) no;
        evidentiary value to the assessed valuation of tangible property determined by stipulation submitted as evidence of a comparable sale; and
        (2) correct any errors that may have been made, and adjust the assessment in accordance with the correction.
    (c) The Indiana board shall give notice of the date fixed for the hearing and send a copy of the petition filed under section 1 of this chapter, by mail, to:
        (1) the taxpayer;
        (2) the department of local government finance; and
        (3) the appropriate:
            (A) township assessor;
            (B) county assessor; and
            (C) county auditor.
     (d) With respect to an appeal of the assessment of real property or personal property filed after June 30, 2005, the notices required under subsection (c) must include the following:
        (1) The assessed value of the appealed items for the assessment date immediately preceding the assessment date for which the appeal was filed under section 1 of this chapter.
        (2) The action of the department of local government finance with respect to the appealed items.
        (3) A statement that a taxing unit receiving the notice from the county auditor under subsection (e) may:
            (A) attend the hearing;
            (B) offer testimony; and
            (C) file an amicus curiae brief in the proceeding.

A taxing unit that receives a notice from the county auditor under subsection (e) is not a party to the appeal.
     (e) If, after receiving notice of a hearing under subsection (c), the county auditor determines that the assessed value of the appealed

items constitutes at least one percent (1%) of the total gross certified assessed value of a particular taxing unit for the assessment date immediately preceding the assessment date for which the appeal was filed, the county auditor shall send a copy of the notice to the affected taxing unit. Failure of the county auditor to send a copy of the notice to the affected taxing unit does not affect the validity of the appeal or delay the appeal.
    (d) (f) The Indiana board shall give the notices required under subsection (c) at least thirty (30) days before the day fixed for the hearing.

SOURCE: IC 6-1.5-5-5; (05)CR049601.19. -->     SECTION 19. IC 6-1.5-5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. After the hearing, the Indiana board shall give the petitioner, the township assessor, the county assessor, the county auditor, the affected taxing units required to be notified under section 2(e) of this chapter, and the department of local government finance:
        (1) notice, by mail, of its final determination, findings of fact, and conclusions of law; and
        (2) notice of the procedures the petitioner or the department of local government finance must follow in order to obtain court review of the final determination of the Indiana board.".
SOURCE: Page 30, line 1; (05)CR049601.30. -->     Page 30, delete lines 1 through 25.
    Page 30, delete lines 37 through 38.
    Page 30, line 39, delete "(6)" and insert " (5)".
    Page 30, line 40, delete "(7)" and insert " (6)".
    Page 30, line 42, delete "(8)" and insert " (7)".
    Page 31, line 1, delete "(9)" and insert " (8)".
    Page 32, line 37, strike "at least one dollar and fifty cents ($1.50) of".
    Page 32, line 38, strike "for every three".
    Page 32, line 39, strike "dollars ($3) in credits provided under this chapter." and insert " in an amount determined by the corporation.".
    Page 33, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 6-3.1-13-18; (05)CR049601.24. -->     "SECTION 24. IC 6-3.1-13-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 18. (a) The board corporation shall determine the amount and duration of a tax credit awarded under this chapter. The duration of the credit may not exceed ten (10) taxable years. The credit may be stated as a percentage of the incremental income tax withholdings attributable to the applicant's

project and may include a fixed dollar limitation. In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's state tax liability for the taxable year, in which case the excess shall be refunded to the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following two (2) taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. A taxpayer is not entitled to a carryback or refund of any unused credit amount.
    (b) For state fiscal years 2004, and 2005, 2006, and 2007, the aggregate amount of credits awarded under this chapter for projects to retain existing jobs in Indiana may not exceed five million dollars ($5,000,000) per year.

SOURCE: IC 6-3.1-13-19; (05)CR049601.25. -->     SECTION 25. IC 6-3.1-13-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19. In the case of a credit awarded for a project to create new jobs in Indiana, the board corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the project that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the taxpayer shall maintain operations at the project location for at least two (2) times the number of years as the term of following the last taxable year in which the applicant claims the tax credit or carries over an unused portion of the tax credit under section 18 of this chapter. A taxpayer is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.
        (6) A requirement that the taxpayer shall annually report to the

board corporation the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the director needs to perform the director's duties under this chapter.
        (7) A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
        (8) A requirement that the taxpayer shall provide written notification to the director and the board corporation not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.
        (9) Any other performance conditions that the board corporation determines are appropriate.

SOURCE: IC 6-3.1-13-19.5; (05)CR049601.26. -->     SECTION 26. IC 6-3.1-13-19.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 19.5. (a) In the case of a credit awarded for a project to retain existing jobs in Indiana, the board corporation shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the business that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the applicant shall maintain operations at the project location for at least two (2) times the number of years as the term of following the last taxable year in which the applicant claims the tax credit or carries over an unused portion of the tax credit under section 18 of this chapter. An applicant is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A requirement that the applicant shall annually report the following to the board: corporation:
            (A) The number of employees who are employed in Indiana by the applicant.
            (B) The compensation (including benefits) paid to the applicant's employees in Indiana.
            (C) The amount of the:
                (i) facility improvements;
                (ii) equipment and machinery upgrades, repairs, or retrofits; or
                (iii) other direct business related investments, including training.
        (6) A requirement that the applicant shall provide written notification to the director and the board corporation not more than thirty (30) days after the applicant makes or receives a proposal that would transfer the applicant's state tax liability obligations to a successor taxpayer.
        (7) A requirement that the chief executive officer of the company applying for a credit under this chapter must verify under penalty of perjury that the disparity between projected costs of the applicant's project in Indiana compared with the costs for the project in a competing site is real and actual.
        (8) Any other performance conditions that the board corporation determines are appropriate.
    (b) An agreement between an applicant and the board corporation must be submitted to the budget committee for review and must be approved by the budget agency before an applicant is awarded a credit under this chapter for a project to retain existing jobs in Indiana.".
SOURCE: Page 34, line 7; (05)CR049601.34. -->     Page 34, delete lines 7 through 42, begin a new paragraph and insert:
SOURCE: IC 6-3.1-26-14; (05)CR049601.28. -->     "SECTION 28. IC 6-3.1-26-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 14. (a) The total amount of a tax credit claimed for a taxable year under this chapter equals thirty ten percent (30%) (10%) of the amount of a qualified investment made by the taxpayer in Indiana during that taxable year.
    (b) In the taxable year in which a taxpayer makes a qualified investment, the taxpayer may claim a credit under this chapter in an amount equal to the lesser of:
        (1) thirty percent (30%) of the amount of the qualified investment; or
        (2) the taxpayer's state tax liability growth.
The taxpayer may carry forward any unused credit.
SOURCE: IC 6-3.1-26-15; (05)CR049601.29. -->     SECTION 29. IC 6-3.1-26-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. (a) A taxpayer may

carry forward an unused credit for not more than nine (9) five (5) consecutive taxable years beginning with the taxable year after the taxable year in which the taxpayer makes the qualified investment.
    (b) The amount that a taxpayer may carry forward to a particular taxable year under this section equals the lesser of the following:
        (1) The taxpayer's state tax liability growth.
        (2) The unused part of a credit allowed under this chapter.
    (c) A taxpayer may:
        (1) claim a tax credit under this chapter for a qualified investment; and
        (2) carry forward a remainder for one (1) or more different qualified investments;
in the same taxable year.
    (d) The total amount of each tax credit claimed under this chapter may not exceed thirty ten percent (30%) (10%) of the qualified investment for which the tax credit is claimed.

SOURCE: IC 6-3.1-26-16; (05)CR049601.30. -->     SECTION 30. IC 6-3.1-26-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 16. If a pass through entity does not have state tax liability growth against which the tax credit may be applied, a shareholder or partner of the pass through entity is entitled to a tax credit equal to:
        (1) the tax credit determined for the pass through entity for the taxable year; multiplied by
        (2) the percentage of the pass through entity's distributive income to which the shareholder or partner is entitled.
SOURCE: IC 6-3.1-26-18; (05)CR049601.31. -->     SECTION 31. IC 6-3.1-26-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 18. After receipt of an application, the board corporation may enter into an agreement with the applicant for a credit under this chapter if the board corporation determines that all the following conditions exist:
        (1) The applicant has conducted business in Indiana for at least one (1) year immediately preceding the date the application is received.
        (2) (1) The applicant's project will raise the total earnings of employees of the applicant in Indiana.
        (3) (2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana.
        (4) (3) Receiving the tax credit is a major factor in the applicant's

decision to go forward with the project and not receiving the tax credit will result in the applicant not raising the total earnings of employees in Indiana.
        (5) (4) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
        (6) (5) The credit is not prohibited by section 19 of this chapter.
        (7) (6) The average wage that will be paid by the taxpayer to its employees (excluding highly compensated employees) at the location after the credit is given will be at least equal to one hundred fifty percent (150%) of the hourly minimum wage under IC 22-2-2-4 or its equivalent.

SOURCE: IC 6-3.5-7-25; (05)CR049601.32. -->     SECTION 32. IC 6-3.5-7-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 31, 2005 (RETROACTIVE)]: Sec. 25. (a) This section applies only to a county that has adopted an ordinance under IC 6-1.1-12-41(f).
    (b) For purposes of this section, "imposing entity" means the entity that adopted the ordinance under IC 6-1.1-12-41(f).
    (c) The imposing entity may adopt an ordinance to provide for the use of the certified distribution described in section 16(c) of this chapter for the purpose provided in subsection (e). A county income tax council that adopts an ordinance under this subsection shall use the procedures set forth in IC 6-3.5-6 concerning the adoption of an ordinance for the imposition of the county option income tax. Except as provided in subsection (j), an ordinance must be adopted under this subsection after January 1 but before April June 1 of a calendar year. The ordinance may provide for an additional rate under section 5(p) of this chapter. An ordinance adopted under this subsection:
        (1) first applies to the certified distribution described in section 16(c) of this chapter made in the calendar year that immediately succeeds the calendar year in which the ordinance is adopted;
        (2) must specify the calendar years to which the ordinance applies; and
        (3) must specify that the certified distribution must be used to provide for:
            (A) uniformly applied increased homestead credits as provided in subsection (f); or
            (B) allocated increased homestead credits as provided in

subsection (h).
An ordinance adopted under this subsection may be combined with an ordinance adopted under section 26 of this chapter.
    (d) If an ordinance is adopted under subsection (c), the percentage 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.
    (i) The county auditor shall retain from the payments of the county's certified distribution an amount equal to the revenue lost, if any, due to the increase of the homestead credit within the county. The money shall be distributed to the civil taxing units and school corporations of the county:
        (1) as if the money were from property tax collections; and
        (2) in such a manner that no civil taxing unit or school corporation will suffer a net revenue loss because of the allowance of an increased homestead credit.
    (j) An entity authorized to adopt:
        (1) an ordinance under subsection (c); and
        (2) an ordinance under IC 6-1.1-12-41(f);
may consolidate the two (2) ordinances. The limitation under subsection (c) that an ordinance must be adopted after January 1 of a calendar year does not apply if a consolidated ordinance is adopted under this subsection. However, notwithstanding subsection (c)(1), the ordinance must state that it first applies to certified distributions in the calendar year in which property taxes are initially affected by the deduction under IC 6-1.1-12-41.

SOURCE: IC 6-3.5-7-25.5; (05)CR049601.33. -->     SECTION 33. IC 6-3.5-7-25.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 25.5. Subject to the approval of the imposing entity, the county auditor may adjust the increased percentage of homestead credit determined under section 25(h)(2) of this chapter if the county auditor determines that the adjustment is necessary to achieve an equitable reduction of property taxes among the homesteads in the county.".
    Delete page 35.
SOURCE: Page 36, line 1; (05)CR049601.36. -->     Page 36, delete lines 1 through 16.
    Page 38, line 14, delete "The" and insert " Subject to the approval of the imposing entity, the".
    Page 40, delete lines 10 through 17.
    Page 48, line 39, after "Federal" insert " tax".
    Page 48, line 39, delete "numbers" and insert " number".
    Page 49, line 27, delete "sales" and insert " gross retail, use,".
    Page 49, delete lines 33 through 42.
    Delete pages 50 through 65.
    Page 66, delete lines 1 through 5.
    Page 67, between lines 18 and 19, begin a new paragraph and insert:
SOURCE: IC 36-7-32-6.5; (05)CR049601.46. -->     "SECTION 46. IC 36-7-32-6.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 6.5. As used in this chapter, "gross retail incremental amount" means the remainder of:
        (1) the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by businesses operating in the territory comprising a certified technology park during a state fiscal year; minus
        (2) the gross retail base period amount;
as determined by the department of state revenue.
".
SOURCE: Page 67, line 40; (05)CR049601.67. -->     Page 67, delete lines 40 through 41, begin a new paragraph and insert:
SOURCE: IC 5-3-1-3; IC 6-3.1-26-10.".
; (05)CR049601.48. -->     "SECTION 48. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2005]: IC 5-3-1-3; IC 6-3.1-26-10.".
SOURCE: Page 68, line 5; (05)CR049601.68. -->     Page 68, line 5, delete "and".
    Page 68, line 5, after "IC 6-3.1-13-17," insert " IC 6-3.1-13-19, and IC 6-3.1-13-19.5,".
    Page 68, line 6, after "by the" insert " Indiana".
    Page 68, line 7, delete "for a growing economy board" and insert " corporation under IC 6-3.1-13".
    Page 68, line 8, after "2005." insert " Credits awarded under IC 6-3.1-13 before July 1, 2005, remain subject to the provisions of IC 6-3.1-13 as in effect on June 30, 2005.".
    Page 68, between lines 16 and 17, begin a new paragraph and insert:
    " (d) IC 6-3.1-26-14, IC 6-3.1-26-15, IC 6-3.1-26-16, and IC 6-3.1-26-18, all as amended by this act, apply only to credits awarded by the Indiana economic development corporation under IC 6-3.1-26 after June 30, 2005. Credits awarded under IC 6-3.1-26 before July 1, 2005, remain subject to the provisions of IC 6-3.1-26 as in effect on June 30, 2005.".
    Page 68, line 17, delete "(d)" and insert " (e)".
    Page 68, line 23, delete "(e)" and insert " (f)".
    Page 68, line 26, delete "(f)" and insert " (g)".
    Page 68, between lines 27 and 28, begin a new paragraph and insert:
SOURCE: ; (05)CR049601.51. -->     "SECTION 51. [EFFECTIVE UPON PASSAGE] (a) An ordinance that:
        (1) is adopted under IC 6-1.1-12-41 or IC 6-3.5-7-25 after March 30, 2004, and before the passage of this act; and
        (2) would have been valid if this act had been enacted before the time the ordinance was adopted;
shall be treated as valid to the same extent as if this act had been enacted before the ordinance was adopted.
    (b) The department of local government finance may adopt interim rules in the manner provided for the adoption of emergency rules under IC 4-22-2-37.1 to govern the determination of deductions, the processing of personal property tax returns, and the calculation of the assessed valuation of each taxpayer in cases in which:
        (1) the personal property of the taxpayer is eligible for a deduction under IC 6-1.1-12-41, as amended by this act, as the result of the adoption of an ordinance under IC 6-1.1-12-41, as amended by this act,
after March 30, 2004; and
        (2) the taxpayer did not take the deduction on the taxpayer's personal property tax return.
The rules may include special procedures and filing dates for filing an amended return.
    (c) An interim rule adopted under subsection (b) expires on the 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.
".
    Page 68, delete line 34.
SOURCE: Page 68, line 34.
    Page; (05)CR049601.68. -->     Page 68, line 35, delete "(2) IC 6-3.5-7-25, as amended by this act;" and insert " (1) IC 6-3.5-7-25.5, as added by this act;".
    Page 68, line 36, delete "(3)" and insert " (2)".
    Page 69, between lines 19 and 20, begin a new paragraph and insert:
SOURCE: ; (05)CR049601.55. -->     "SECTION 55. [EFFECTIVE JULY 1, 2005] IC 6-1.1-20-3.2, as amended by this act, does not apply to a petition and remonstrance procedure that is commenced before July 1, 2005.
SOURCE: ; (05)CR049601.56. -->     SECTION 56. [EFFECTIVE UPON PASSAGE] IC 6-1.1-20.6, as added by this act, applies only to property taxes first due and payable after December 31, 2004.
SOURCE: ; (05)CR049601.57. -->     SECTION 57. [EFFECTIVE UPON PASSAGE] (a) The definitions in IC 6-1.1-1 apply throughout this SECTION.
    (b) For purposes of this SECTION:
        (1) "fiscal body" has the meaning set forth in IC 36-1-2-6;
        (2) "settlement amount" means an amount that:
            (A) exceeds ten million dollars ($10,000,000); and
            (B) is received by the county auditor on behalf of a county and the political subdivisions in the county in 2005 or 2006 as a result of the settlement
of one (1) or more cases before the Indiana tax court concerning the property tax assessments of tangible property that are the basis for determination of property taxes payable by a taxpayer in the county for one (1) or more calendar years that precede 2006; and
        (3) "subsequent year's taxes" means the property taxes imposed by a political subdivision on tangible property in the political subdivision, other than property taxes imposed on tangible property for which a taxpayer that paid all or part of the settlement amount is liable, for property taxes first due and payable in the calendar year that immediately succeeds the calendar year in which the settlement amount is received.
    (c) The fiscal body of a political subdivision may adopt an ordinance:
        (1) before September 1, 2005, to direct the county auditor to use the part of a settlement amount attributable to the political subdivision to apply a credit against the subsequent year's taxes for property taxes first due and payable in 2006; and
        (2) before September 1, 2006, to direct the county auditor to

use the part of a settlement amount attributable to the political subdivision to apply a credit against the subsequent year's taxes for property taxes first due and payable in 2007.
The total amount of the credits applied under this subsection must equal the part of the settlement amount received by the political subdivision in the immediately preceding calendar year. The settlement amount received must be used to replace the amount of property tax revenue lost due to the allowance of the credit in the political subdivision. The county auditor shall retain the settlement amount and distribute the money to the political subdivisions in the county as though the money were property tax collections and in such a manner that a political subdivision does not suffer a net revenue loss due to the allowance of the credit under this subsection.
    (d) A credit under subsection (c) applies as a percentage of the liability for property taxes before the application of the credits under IC 6-1.1-20.9 and IC 6-1.1-21. The percentage applicable in a taxing district that is attributable to a political subdivision in which the taxing district is located is determined under the last STEP of the following STEPS:
        STEP ONE: Determine the total assessed value of tangible property (after the application of all applicable deductions under IC 6-1.1), other than tangible property for which a taxpayer that paid all or part of the settlement amount is liable for property taxes, in the political subdivision that is the basis for the subsequent year's taxes.
        STEP TWO: Determine the total assessed value of tangible property (after the application of all applicable deductions under IC 6-1.1), other than tangible property for which a taxpayer that paid all or part of the settlement amount is liable for property taxes, in the taxing district that constitutes a part of the total assessed value that is the basis for the subsequent year's taxes.
        STEP THREE: Determine the quotient of the total assessed value determined under STEP TWO divided by the total assessed value determined under STEP ONE.
        STEP FOUR: Determine the product of:
            (A) the part of a settlement amount attributable to the

political subdivision; multiplied by
            (B) the quotient determined in STEP THREE.
        STEP FIVE: Determine the total property tax levy in the taxing district for the subsequent year's taxes, before the application of the credits under IC 6-1.1-20.9 and IC 6-1.1-21.
        STEP SIX: Determine the quotient of:
            (A) the product determined under STEP FOUR; divided by
            (B) the remainder determined under STEP FIVE;
        expressed as a percentage.
The total credit percentage applicable in a taxing district is the sum of the percentages determined under STEP SIX with respect to all political subdivisions in which the taxing district is located.
    (e) If a fiscal body adopts an ordinance under subsection (c):
        (1) the part of the settlement amount attributable to the political subdivision is set aside in a separate fund of the political subdivision for the sole purpose of dedicating the money in the fund to providing credits under subsection (c);
        (2) money in the separate fund does not become part of the political subdivision's levy excess fund under IC 6-1.1-18.5-17 or IC 6-1.1-19-1.7; and
        (3) for the year in which the subsequent year's taxes are first due and payable, the total county tax levy under IC 6-1.1-21-2(g) is reduced by the part of the settlement amount attributable to the political subdivision that, notwithstanding subdivisions (1) and (2), would have been deposited in the political subdivision's levy excess fund under


IC 6-1.1-18.5-17 or IC 6-1.1-19-1.7.
    (f) This SECTION expires January 1, 2008.
".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 496 as introduced.)

and when so amended that said bill do pass.

Committee Vote: Yeas 11, Nays 0.

____________________________________

    Kenley
Chairperson


CR049601/DI 44    2005