Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is
being amended, the text of the existing provision will appear in this style type, additions
will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that
adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.
Be it enacted by the General Assembly of the State of Indiana:
JULY 1, 2007]: Sec. 9. (a) Subject to subsection (c), a taxpayer that
makes a qualified investment is entitled to a deduction from the
assessed value of the taxpayer's enterprise zone property located at the
enterprise zone location for which the taxpayer made the qualified
investment. The amount of the deduction is equal to the remainder of:
(1) the total amount of the assessed value of the taxpayer's
enterprise zone property assessed at the enterprise zone location
on a particular assessment date; minus
(2) the total amount of the base year assessed value for the
enterprise zone location.
(b) To receive the deduction allowed under subsection (a) for a
particular year, a taxpayer must comply with the conditions set forth in
this chapter.
(c) A taxpayer that makes a qualified investment in an enterprise
zone established under IC 5-28-15-11 that is under the jurisdiction of
a military base reuse authority board created under IC 36-7-14.5 or
IC 36-7-30-3 is entitled to a deduction under this section only if the
deduction is approved by the military base reuse authority board.
(d) Except as provided in subsection (c), a taxpayer that makes
a qualified investment at an enterprise zone location that is located
within an allocation area, as defined by IC 12-19-1.5-1, is entitled
to a deduction under this section only if the deduction is approved
by the governing body of the allocation area.
SECTION 6. IC 6-1.1-45-10, AS ADDED BY P.L.214-2005,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 10. (a) A taxpayer that desires to claim the
deduction provided by section 9 of this chapter for a particular year
shall file a certified application, on forms prescribed by the department
of local government finance, with the auditor of the county where the
property for which the deduction is claimed was located on the
assessment date. The application may be filed in person or by mail. If
mailed, the mailing must be postmarked on or before the last day for
filing. Except as provided in subsections (c) and (d), the application
must be filed before May 10 15 of the assessment year to obtain the
deduction.
(b) A taxpayer shall include on an application filed under this
section all information that the department of local government finance
and the corporation require to determine eligibility for the deduction
provided under this chapter.
(c) The county auditor may grant a taxpayer an extension of not
more than thirty (30) days to file the taxpayer's application if:
(1) the taxpayer submits a written application for an extension
before May 15 of the assessment year; and
(2) the taxpayer is prevented from filing a timely application
because of sickness, absence from the county, or any other
good and sufficient reason.
(d) An urban enterprise association created under IC 5-28-15-13
may by resolution waive failure to file a:
(1) timely; or
(2) complete;
deduction application under this section. Before adopting a waiver
under this section, the urban enterprise association shall conduct
a public hearing on the waiver.
SECTION 7. IC 6-1.1-45-12, AS ADDED BY P.L.214-2005,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2007 (RETROACTIVE)]: Sec. 12. (a) Subject to
subsection (b), a taxpayer may claim a deduction under this
chapter for property other than property located in a consolidated
city for an assessment date that occurs after the expiration of the
enterprise zone in which the enterprise zone property for which the
taxpayer made the qualified investment is located.
(b) A taxpayer may not claim a deduction under this chapter for
more than ten (10) years.
SECTION 8. IC 6-2.3-6-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE DECEMBER 16, 2007]: Sec. 1. (a) Except
as provided in subsections (c) through (e), a taxpayer shall file utility
receipts tax returns with, and pay the taxpayer's utility receipts tax
liability to, the department by the due date of the estimated return. A
taxpayer who uses a taxable year that ends on December 31 shall file
the taxpayer's estimated utility receipts tax returns and pay the tax to
the department on or before April 20, June 20, September 20, and
December 20 of the taxable year. If a taxpayer uses a taxable year
which does not end on December 31, the due dates for filing estimated
utility receipts tax returns and paying the tax are on or before the
twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year.
(b) With each return filed, with each payment by cashier's check,
certified check, or money order delivered in person or by overnight
courier, and with each electronic funds transfer made, a taxpayer shall
pay to the department twenty-five percent (25%) of the estimated or the
exact amount of utility receipts tax that is due.
(c) If a taxpayer's estimated annual utility receipts tax liability does
not exceed one two thousand five hundred dollars ($1,000), ($2,500)
the taxpayer is not required to file an estimated utility receipts tax
return.
(d) If the department determines that a taxpayer's:
(1) estimated quarterly utility receipts tax liability for the current
year; or
(2) average estimated quarterly utility receipts tax liability for the
preceding year;
exceeds ten five thousand dollars ($10,000), ($5,000), the taxpayer
shall pay the estimated utility receipts taxes due by electronic funds
transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by
overnight courier a payment by cashier's check, certified check, or
money order to the department. The transfer or payment shall be made
on or before the date the tax is due.
(e) If a taxpayer's utility receipts tax payment is made by electronic
funds transfer, the taxpayer is not required to file an estimated utility
receipts tax return.
(f) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed
by the department on taxpayers failing to make payments as required
in subsection (b) or (d). However, a penalty may not be assessed as to
any estimated payments of utility receipts tax that equal or exceed:
(1) twenty percent (20%) of the final tax liability for the taxable
year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated
return shall be assessed only on the difference between the actual
amount paid by the taxpayer on the estimated return and twenty-five
percent (25%) of the taxpayers's final utility receipts tax liability for the
taxable year.
SECTION 9. IC 6-2.5-3-2, AS AMENDED BY P.L.162-2006,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 2. (a) An excise tax, known as the use tax, is
imposed on the storage, use, or consumption of tangible personal
property in Indiana if the property was acquired in a retail transaction,
regardless of the location of that transaction or of the retail merchant
making that transaction.
(b) The use tax is also imposed on the storage, use, or consumption
of a vehicle, an aircraft, or a watercraft, if the vehicle, aircraft, or
watercraft:
(1) is acquired in a transaction that is an isolated or occasional
sale; and
(2) is required to be titled, licensed, or registered by this state for
use in Indiana.
(c) The use tax is imposed on the addition of tangible personal
property to a structure or facility, if, after its addition, the property
becomes part of the real estate on which the structure or facility is
located. However, the use tax does not apply to additions of tangible
personal property described in this subsection, if:
(1) the state gross retail or use tax has been previously imposed
on the sale or use of that property; or
(2) the ultimate purchaser or recipient of that property would have
been exempt from the state gross retail and use taxes if that
purchaser or recipient had directly purchased the property from
the supplier for addition to the structure or facility.
(d) The use tax is imposed on a person who:
(1) manufactures, fabricates, or assembles tangible personal
property from materials either within or outside Indiana; and
(2) uses, stores, distributes, or consumes tangible personal
property in Indiana.
(e) Notwithstanding any other provision of this section, the use tax
is not imposed on the keeping, retaining, or exercising of any right or
power over tangible personal property, if:
(1) the property is delivered into Indiana by or for the purchaser
of the property;
(2) the property is delivered in Indiana for the sole purpose of
being processed, printed, fabricated, or manufactured into,
attached to, or incorporated into other tangible personal property;
and
(3) the property is subsequently transported out of state for use
solely outside Indiana.
(f) As used in this subsection, "prepurchase evaluation" means
an examination of an aircraft by a potential purchaser for the
purpose of obtaining information relevant to the potential
purchase of the aircraft. Notwithstanding any other provision of
this section, the use tax is not imposed on the keeping, retaining, or
exercising of any right or power over an aircraft, if:
(1) the aircraft is titled, registered, or based (as defined in
IC 6-6-6.5-1(m)) in another state or country;
(2) the aircraft is delivered to Indiana by or for a nonresident
owner or purchaser of the aircraft;
(3) the aircraft is delivered to Indiana for the sole purpose of
being repaired, refurbished, remanufactured, or subjected to
a prepurchase evaluation; and
(4) after completion of the repair, refurbishment,
remanufacture, or prepurchase evaluation, the aircraft is
transported to a destination outside Indiana.
SECTION 10. IC 6-2.5-3-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) A person who
acquires tangible personal property from a retail merchant for delivery
in Indiana is presumed to have acquired the property for storage, use,
or consumption in Indiana. However, unless the person or the retail
merchant can produce evidence to rebut that presumption.
(b) A retail merchant is not required to produce evidence of
nontaxability under subsection (a) if the retail merchant receives from
the person who acquired the property an exemption certificate which
certifies, in the form prescribed by the department, that the acquisition
is exempt from the use tax.
(c) A retail merchant that sells tangible personal property to a
person that purchases the tangible personal property for use or
consumption in providing public transportation under
IC 6-2.5-5-27 may verify the exemption by obtaining the person's:
(1) name;
(2) address; and
(3) motor carrier number, United States Department of
Transportation number, or any other identifying number
authorized by the department.
The person engaged in public transportation shall provide a
signature to affirm under penalties of perjury that the information
provided to the retail merchant is correct and that the tangible
personal property is being purchased for an exempt purpose.
SECTION 11. IC 6-2.5-4-14, AS AMENDED BY SEA 526-2007,
SECTION 118, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 14. The department of
administration and each purchasing agent for a state educational
institution shall provide the department with a list of every person who
desires to enter into a contract to sell tangible personal property or
services to an agency (as defined in IC 4-13-2-1) or a state educational
institution. The department shall notify the department of
administration or the purchasing agent of the state educational
institution if a person on the list does not have a registered retail
merchant certificate or is delinquent in remitting or paying amounts
due to the department under this article.
for rental or leasing in the ordinary course of the person's
business.
(d) The rental or leasing of accommodations to a promoter by a
political subdivision (including a capital improvement board) or the
state fair commission is not exempt from the state gross retail tax, if the
rental or leasing of the property by the promoter is exempt under
IC 6-2.5-4-4.
(e) A transaction in which a person acquires an aircraft for
rental or leasing in the ordinary course of the person's business is
not exempt from the state gross retail tax unless the person
establishes, under guidelines adopted by the department in the
manner provided in IC 4-22-2-37.1 for the adoption of emergency
rules, that the annual amount of the lease revenue derived from
leasing the aircraft is equal to or greater than:
(1) ten percent (10%) of the greater of the original cost or the
book value of the aircraft, if the original cost of the aircraft
was less than one million dollars ($1,000,000); or
(2) seven and five-tenths percent (7.5%) of the greater of the
original cost or the book value of the aircraft, if the original
cost of the aircraft was at least one million dollars
($1,000,000).
SECTION 14. IC 6-2.5-5-35 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 35. (a) Except as
provided in subsection (b), transactions involving tangible personal
property are exempt from the state gross retail tax if:
(1) the:
(A) person acquires the property to facilitate the service or
consumption of food and food ingredients that is not exempted
from the state gross retail tax under section 20 of this chapter;
and
(B) property is:
(i) used, consumed, or removed in the service or
consumption of the food and food ingredients; and
(ii) made unusable for further service or consumption of
food and food ingredients after the property's first use for
service or consumption of food and food ingredients; or
(2) the:
(A) person acquiring the property is engaged in the business
of renting or furnishing rooms, lodgings, or accommodations
in a commercial hotel, motel, inn, tourist camp, or tourist
cabin; and
not meet the requirements of subdivision (5) is not exempt from the
state gross retail tax.
(d) A purchaser must claim an exemption under this section by
submitting to the retail merchant an affidavit stating the purchaser's
intent to:
(1) transport the cargo trailer or recreational vehicle or aircraft to
a destination outside Indiana within thirty (30) days after delivery;
and
(2) title or register the cargo trailer or recreational vehicle or
aircraft for use in another state or country.
The department shall prescribe the form of the affidavit, which must
include an affirmation by the purchaser under the penalties for perjury
that the information contained in the affidavit is true. The affidavit
must identify the state or country in which the cargo trailer or
recreational vehicle or aircraft will be titled or registered.
(e) The department shall provide the information necessary to
determine a purchaser's eligibility for an exemption claimed under this
section to retail merchants in the business of selling cargo trailers or
recreational vehicles.
SECTION 16. IC 6-2.5-5-42 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 42. (a) A transaction involving an aircraft is exempt
from the state gross retail tax if:
(1) the purchaser is a nonresident;
(2) the purchaser transports the aircraft to a destination
outside Indiana within thirty (30) days after:
(A) accepting delivery of the aircraft; or
(B) a repair, refurbishment, or remanufacture of the
aircraft is completed, if the aircraft remains in Indiana
after the purchaser accepts delivery for the purpose of
accomplishing the repair, refurbishment, or
remanufacture of the aircraft;
(3) the aircraft will be:
(A) titled or registered in another state or country; or
(B) based (as defined in IC 6-6-6.5-1(m)) in that state or
country, if a state or country does not require a title or
registration for aircraft; and
(4) the aircraft will not be titled or registered in Indiana.
(b) A purchaser must claim an exemption under subsection (a)
by submitting to the seller an affidavit affirming the elements
required by subsection (a). In addition, the affidavit must identify
the state or country in which the aircraft will be titled, registered,
or based.
(c) Within sixty (60) days after:
(1) a purchaser who claims an exemption under this section
accepts delivery of the aircraft; or
(2) a repair, refurbishment, or remanufacture of the aircraft
subject to an exemption under this section is completed, if the
aircraft remains in Indiana after the purchaser accepts
delivery for the purpose of accomplishing the repair,
refurbishment, or remanufacture of the aircraft;
the purchaser shall provide the seller with a copy of the
purchaser's title or registration of the aircraft outside Indiana. If
the state or country in which the aircraft is based does not require
the aircraft to be titled or registered, the purchaser shall provide
the seller with a copy of the aircraft registration application for the
aircraft as filed with the Federal Aviation Administration.
(d) The department shall prescribe the form of the affidavit
required by subsection (b).
SECTION 17. IC 6-2.5-6-1, AS AMENDED BY P.L.153-2006,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 1. (a) Except as otherwise provided in this
section, each person liable for collecting the state gross retail or use tax
shall file a return for each calendar month and pay the state gross retail
and use taxes that the person collects during that month. A person shall
file the person's return for a particular month with the department and
make the person's tax payment for that month to the department not
more than thirty (30) days after the end of that month, if that person's
average monthly liability for collections of state gross retail and use
taxes under this section as determined by the department for the
preceding calendar year did not exceed one thousand dollars ($1,000).
If a person's average monthly liability for collections of state gross
retail and use taxes under this section as determined by the department
for the preceding calendar year exceeded one thousand dollars
($1,000), that person shall file the person's return for a particular month
and make the person's tax payment for that month to the department not
more than twenty (20) days after the end of that month.
(b) If a person files a combined sales and withholding tax report and
either this section or IC 6-3-4-8.1 requires sales or withholding tax
reports to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(c) Instead of the twelve (12) monthly reporting periods required by
subsection (a), the department may permit a person to divide a year into
a different number of reporting periods. The return and payment for
each reporting period is due not more than twenty (20) days after the
end of the period.
(d) Instead of the reporting periods required under subsection (a),
the department may permit a retail merchant to report and pay the
merchant's state gross retail and use taxes for a period covering:
(1) a calendar year, if the retail merchant's average monthly state
gross retail and use tax liability in the previous calendar year does
not exceed ten dollars ($10);
(2) a calendar half year, if the retail merchant's average monthly
state gross retail and use tax liability in the previous calendar year
does not exceed twenty-five dollars ($25); or
(3) a calendar quarter, if the retail merchant's average monthly
state gross retail and use tax liability in the previous calendar year
does not exceed seventy-five dollars ($75).
A retail merchant using a reporting period allowed under this
subsection must file the merchant's return and pay the merchant's tax
for a reporting period not later than the last day of the month
immediately following the close of that reporting period.
(e) If a retail merchant reports the merchant's adjusted gross income
tax, or the tax the merchant pays in place of the adjusted gross income
tax, over a fiscal year or fiscal quarter not corresponding to the
calendar year or calendar quarter, the merchant may, without prior
departmental approval, report and pay the merchant's state gross retail
and use taxes over the merchant's fiscal period that corresponds to the
calendar period the merchant is permitted to use under subsection (d).
However, the department may, at any time, require the retail merchant
to stop using the fiscal reporting period.
(f) If a retail merchant files a combined sales and withholding tax
report, the reporting period for the combined report is the shortest
period required under:
(1) this section;
(2) IC 6-3-4-8; or
(3) IC 6-3-4-8.1.
(g) If the department determines that a person's:
(1) estimated monthly gross retail and use tax liability for the
current year; or
(2) average monthly gross retail and use tax liability for the
preceding year;
exceeds ten five thousand dollars ($10,000), ($5,000), the person shall
pay the monthly gross retail and use taxes due by electronic funds
transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by
overnight courier a payment by cashier's check, certified check, or
money order to the department. The transfer or payment shall be made
on or before the date the tax is due.
(h) If a person's gross retail and use tax payment is made by
electronic funds transfer, the taxpayer is not required to file a monthly
gross retail and use tax return. However, the person shall file a
quarterly gross retail and use tax return before the twentieth day after
the end of each calendar quarter.
(i) A person:
(1) who has voluntarily registered as a seller under the
Streamlined Sales and Use Tax Agreement;
(2) who is not a Model 1, Model 2, or Model 3 seller (as defined
in the Streamlined Sales and Use Tax Agreement); and
(3) whose liability for collections of state gross retail and use
taxes under this section for the preceding calendar year as
determined by the department does not exceed one thousand
dollars ($1,000);
is not required to file a monthly gross retail and use tax return.
SECTION 18. IC 6-2.5-6-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 10. (a) In order to
compensate retail merchants for collecting and timely remitting the
state gross retail tax and the state use tax, every retail merchant, except
a retail merchant referred to in subsection (c), is entitled to deduct and
retain from the amount of those taxes otherwise required to be remitted
under IC 6-2.5-7-5 or under this chapter, if timely remitted, a retail
merchant's collection allowance.
(b) The allowance equals eighty-three hundredths percent (0.83%)
a percentage of the retail merchant's state gross retail and use tax
liability accrued during a reporting period. calendar year, specified as
follows:
(1) Eighty-three hundredths percent (0.83%), if the retail
merchant's state gross retail and use tax liability accrued
during the state fiscal year ending on June 30 of the
immediately preceding calendar year did not exceed sixty
thousand dollars ($60,000).
(2) Six-tenths percent (0.6%), if the retail merchant's state
gross retail and use tax liability accrued during the state fiscal
year ending on June 30 of the immediately preceding calendar
year:
(A) was greater than sixty thousand dollars ($60,000); and
(B) did not exceed six hundred thousand dollars ($600,000).
(3) Three-tenths percent (0.3%), if the retail merchant's state
gross retail and use tax liability accrued during the state fiscal
year ending on June 30 of the immediately preceding calendar
year was greater than six hundred thousand dollars
($600,000).
(c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not
entitled to the allowance provided by this section.
SECTION 19. IC 6-3-1-3.5, AS AMENDED BY P.L.184-2006,
SECTION 3, AND AS AMENDED BY P.L.162-2006, SECTION 24,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2008]: Sec. 3.5. When used in this article,
the term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) for taxable years beginning after December 31, 2004, one
thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code for taxable years beginning after December 31,
1996 (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
Section 172 of the Internal Revenue Code.
(21) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20)
for the taxable year that reduced the corporation's taxable
income (as defined in Section 63 of the Internal Revenue Code)
for federal income tax purposes.
(10) Add an amount equal to any deduction for dividends paid
(as defined in Section 561 of the Internal Revenue Code) to
shareholders of a captive real estate investment trust (as
defined in section 34.5 of this chapter).
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).
SECTION 20. IC 6-3-1-34.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 34.5. (a) Except as provided in subsection
(b), "captive real estate investment trust" means a corporation, a
trust, or an association:
(1) that is considered a real estate investment trust for the
taxable year under Section 856 of the Internal Revenue Code;
(2) that is not regularly traded on an established securities
market; and
(3) in which more than fifty percent (50%) of the:
(A) voting power;
(B) beneficial interests; or
(C) shares;
are owned or controlled, directly or constructively, by a single
entity that is subject to Subchapter C of Chapter 1 of the
Internal Revenue Code.
(b) The term does not include a corporation, a trust, or an
association in which more than fifty percent (50%) of the entity's
voting power, beneficial interests, or shares are owned by a single
entity described in subsection (a)(3) that is owned or controlled,
directly or constructively, by:
(1) a corporation, a trust, or an association that is considered
a real estate investment trust under Section 856 of the
Internal Revenue Code;
(2) a person exempt from taxation under Section 501 of the
Internal Revenue Code; or
(3) a real estate investment trust that:
(A) is intended to become regularly traded on an
established securities market; and
(B) satisfies the requirements of Section 856(a)(5) and
Section 856(a)(6) of the Internal Revenue Code under
Section 856(h) of the Internal Revenue Code.
(c) For purposes of this section, the constructive ownership rules
of Section 318 of the Internal Revenue Code, as modified by
Section 856(d)(5) of the Internal Revenue Code, apply to the
determination of the ownership of stock, assets, or net profits of
any person.
SECTION 21. IC 6-3-2-20, AS ADDED BY P.L.162-2006,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 20. (a) The following definitions apply throughout
this section:
(1) "Affiliated group" has the meaning provided in Section 1504
of the Internal Revenue Code, except that the ownership
percentage in Section 1504(a)(2) of the Internal Revenue Code
shall be determined using fifty percent (50%) instead of eighty
percent (80%).
(2) "Directly related intangible interest expenses" means interest
expenses that are paid to, or accrued or incurred as a liability to,
a recipient if:
(A) the amounts represent, in the hands of the recipient,
income from making one (1) or more loans; and
(B) the funds loaned were originally received by the recipient
from the payment of intangible expenses by any of the
following:
(i) The taxpayer.
(ii) A member of the same affiliated group as the taxpayer.
(iii) A foreign corporation.
(3) "Foreign corporation" means a corporation that is organized
under the laws of a country other than the United States and
would be a member of the same affiliated group as the taxpayer
if the corporation were organized under the laws of the United
States.
(4) "Intangible expenses" means the following amounts to the
extent these amounts are allowed as deductions in determining
taxable income under Section 63 of the Internal Revenue Code
before the application of any net operating loss deduction and
special deductions for the taxable year:
(A) Expenses, losses, and costs directly for, related to, or in
connection with the acquisition, use, maintenance,
management, ownership, sale, exchange, or any other
disposition of intangible property.
(B) Royalty, patent, technical, and copyright fees.
(C) Licensing fees.
(D) Other substantially similar expenses and costs.
(5) "Intangible property" means patents, patent applications, trade
names, trademarks, service marks, copyrights, trade secrets, and
substantially similar types of intangible assets.
(6) "Interest expenses" means amounts that are allowed as
deductions under Section 163 of the Internal Revenue Code in
determining taxable income under Section 63 of the Internal
Revenue Code before the application of any net operating loss
deductions and special deductions for the taxable year.
(7) "Makes a disclosure" means a taxpayer provides the following
information regarding a transaction with a member of the same
affiliated group or a foreign corporation involving an intangible
expense and any directly related intangible interest expense with
the taxpayer's tax return on the forms prescribed by the
department:
(A) The name of the recipient.
(B) The state or country of domicile of the recipient.
(C) The amount paid to the recipient.
(D) A copy of federal Form 851, Affiliation Schedule, as filed
with the taxpayer's federal consolidated tax return.
reasonable rate and at terms comparable to an arm's length
transaction; and
(C) the transactions giving rise to the intangible expenses and
any directly related intangible interest expenses between the
taxpayer and the recipient did not have Indiana tax avoidance
as a principal purpose.
(3) The taxpayer makes a disclosure and, at the request of the
department, can establish by a preponderance of the evidence
that:
(A) the recipient regularly engages in transactions involving
intangible property with one (1) or more unrelated parties on
terms substantially similar to those of the subject transaction;
and
(B) the transaction giving rise to the intangible expenses and
any directly related intangible interest expenses between the
taxpayer and the recipient did not have Indiana tax avoidance
as a principal purpose.
(4) The taxpayer makes a disclosure and, at the request of the
department, can establish by a preponderance of the evidence
that:
(A) the payment was received from a person or entity that is an
unrelated party, and on behalf of that unrelated party, paid that
amount to the recipient in an arm's length transaction; and
(B) the transaction giving rise to the intangible expenses and
any directly related intangible interest expenses between the
taxpayer and the recipient did not have Indiana tax avoidance
as a principal purpose.
(5) The taxpayer makes a disclosure and, at the request of the
department, can establish by a preponderance of the evidence
that:
(A) the recipient paid, accrued, or incurred a liability to an
unrelated party during the taxable year for an equal or greater
amount that was directly for, related to, or in connection with
the same intangible property giving rise to the intangible
expenses; and
(B) the transactions giving rise to the intangible expenses and
any directly related intangible interest expenses between the
taxpayer and the recipient did not have Indiana tax avoidance
as a principal purpose.
(6) The taxpayer makes a disclosure and, at the request of the
department, can establish by a preponderance of the evidence
that:
(A) the recipient is engaged in:
(i) substantial business activities from the acquisition, use,
licensing, maintenance, management, ownership, sale,
exchange, or any other disposition of intangible property; or
(ii) other substantial business activities separate and apart
from the business activities described in item (i);
as evidenced by the maintenance of a permanent office space
and an adequate number of full-time, experienced employees;
(B) the transactions giving rise to the intangible expenses and
any directly related intangible interest expenses between the
taxpayer and the recipient did not have Indiana tax avoidance
as a principal purpose; and
(C) the transactions were made at a commercially reasonable
rate and at terms comparable to an arm's length transaction.
(7) The taxpayer and the department agree, in writing, to the
application or use of an alternative method of allocation or
appointment apportionment under section 2(l) or 2(m) of this
chapter.
(8) Upon request by the taxpayer, the department determines that
the adjustment otherwise required by this section is unreasonable.
(d) For purposes of this section, intangible expenses or directly
related intangible interest expenses shall be considered to be at a
commercially reasonable rate or at terms comparable to an arm's length
transaction if the intangible expenses or directly related intangible
interest expenses meet the arm's length standards of United States
Treasury Regulation 1.482-1(b).
(e) If intangible expenses or directly related intangible expenses are
determined not to be at a commercially reasonable rate or at terms
comparable to an arm's length transaction for purposes of this section,
the adjustment required by subsection (b) shall be made only to the
extent necessary to cause the intangible expenses or directly related
intangible interest expenses to be at a commercially reasonable rate and
at terms comparable to an arm's length transaction.
(f) For purposes of this section, transactions giving rise to intangible
expenses and any directly related intangible interest expenses between
the taxpayer and the recipient shall be considered as having Indiana tax
avoidance as the principal purpose if:
(1) there is not one (1) or more valid business purposes that
independently sustain the transaction notwithstanding any tax
benefits associated with the transaction; and
savings plan.
(b) (h) As used in this section, "taxpayer" means:
(1) an individual filing a single return; or
(2) a married couple filing a joint return.
(c) (i) A taxpayer is entitled to a credit against the taxpayer's
adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7 for a
taxable year equal to the least of the following:
(1) Twenty percent (20%) of the amount of each contribution the
total contributions made by the taxpayer to an account or
accounts of a college choice 529 education savings plan during
the taxable year.
(2) One thousand dollars ($1,000).
(3) The amount of the taxpayer's adjusted gross income tax
imposed by IC 6-3-1 through IC 6-3-7 for the taxable year,
reduced by the sum of all credits (as determined without regard to
this section) allowed by IC 6-3-1 through IC 6-3-7.
(d) (j) A taxpayer is not entitled to a carryback, carryover, or refund
of an unused credit.
(e) (k) A taxpayer may not sell, assign, convey, or otherwise transfer
the tax credit provided by this section.
(f) (l) To receive the credit provided by this section, a taxpayer must
claim the credit on the taxpayer's annual state tax return or returns in
the manner prescribed by the department. The taxpayer shall submit to
the department all information that the department determines is
necessary for the calculation of the credit provided by this section.
(m) An account owner of an account of a college choice 529
education savings plan must repay all or a part of the credit in a
taxable year in which any non-qualified withdrawal is made from
the account. The amount the taxpayer must repay is equal to the
lesser of:
(1) twenty percent (20%) of the total amount of non-qualified
withdrawals made during the taxable year from the account;
or
(2) the excess of:
(A) the cumulative amount of all credits provided by this
section that are claimed by any taxpayer with respect to
the taxpayer's contributions to the account for all prior
taxable years beginning on or after January 1, 2007; over
(B) the cumulative amount of repayments paid by the
account owner under this subsection for all prior taxable
years beginning on or after January 1, 2008.
(n) Any required repayment under subsection (m) shall be
reported by the account owner on the account owner's annual state
income tax return for any taxable year in which a non-qualified
withdrawal is made.
(o) The executive director of the Indiana education savings
authority shall submit or cause to be submitted to the department
a copy of all information returns or statements issued to account
owners, account beneficiaries, and other taxpayers for each taxable
year with respect to:
(1) non-qualified withdrawals made from accounts of a college
choice 529 education savings plan for the taxable year; or
(2) account closings for the taxable year.
SECTION 23. IC 6-3-4-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 1.5. If a professional preparer files more than one
hundred (100) returns in a calendar year for persons described in
section 1(1) or 1(2) of this chapter, in the immediately following
calendar year the professional preparer shall file returns for
persons described in section 1(1) or 1(2) of this chapter in an
electronic format specified by the department.
SECTION 24. IC 6-3-4-4.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE DECEMBER 16, 2007]: Sec. 4.1. (a) This
section applies to taxable years beginning after December 31, 1993.
(b) (a) Any individual required by the Internal Revenue Code to file
estimated tax returns and to make payments on account of such
estimated tax shall file estimated tax returns and make payments of the
tax imposed by this article to the department at the time or times and
in the installments as provided by Section 6654 of the Internal Revenue
Code. However, in applying Section 6654 of the Internal Revenue Code
for the purposes of this article, "estimated tax" means the amount
which the individual estimates as the amount of the adjusted gross
income tax imposed by this article for the taxable year, minus the
amount which the individual estimates as the sum of any credits against
the tax provided by IC 6-3-3.
(c) (b) Every individual who has adjusted gross income subject to
the tax imposed by this article and from which tax is not withheld
under the requirements of section 8 of this chapter shall make a
declaration of estimated tax for the taxable year. However, no such
declaration shall be required if the estimated tax can reasonably be
expected to be less than four hundred dollars ($400). one thousand
dollars ($1,000). In the case of an underpayment of the estimated tax
as provided in Section 6654 of the Internal Revenue Code, there shall
be added to the tax a penalty in an amount prescribed by
IC 6-8.1-10-2.1(b).
(d) (c) Every corporation subject to the adjusted gross income tax
liability imposed by this article shall be required to report and pay an
estimated tax equal to the lesser of:
(1) twenty-five percent (25%) of such corporation's estimated
adjusted gross income tax liability for the taxable year; or
(2) the annualized income installment calculated in the
manner provided by Section 6655(e) of the Internal Revenue
Code as applied to the corporation's liability for adjusted
gross income tax.
A taxpayer who uses a taxable year that ends on December 31 shall file
the taxpayer's estimated adjusted gross income tax returns and pay the
tax to the department on or before April 20, June 20, September 20,
and December 20 of the taxable year. If a taxpayer uses a taxable year
that does not end on December 31, the due dates for filing estimated
adjusted gross income tax returns and paying the tax are on or before
the twentieth day of the fourth, sixth, ninth, and twelfth months of the
taxpayer's taxable year. The department shall prescribe the manner and
forms for such reporting and payment.
(e) (d) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be
assessed by the department on corporations failing to make payments
as required in subsection (d) (c) or (g). (f). However, no penalty shall
be assessed as to any estimated payments of adjusted gross income tax
which equal or exceed:
(1) twenty percent (20%) of the final tax liability for such taxable
year; the annualized income installment calculated under
subsection (c); or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated
return shall only be assessed on the difference between the actual
amount paid by the corporation on such estimated return and
twenty-five percent (25%) of the corporation's final adjusted gross
income tax liability for such taxable year.
(f) (e) The provisions of subsection (d) (c) requiring the reporting
and estimated payment of adjusted gross income tax shall be applicable
only to corporations having an adjusted gross income tax liability
which, after application of the credit allowed by IC 6-3-3-2 (repealed),
shall exceed one thousand dollars ($1,000) two thousand five
hundred dollars ($2,500) for its taxable year.
(g) (f) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for the
current year; or
(2) average estimated quarterly adjusted gross income tax liability
for the preceding year;
exceeds before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten five thousand dollars ($10,000),
($5,000), after the credit allowed by IC 6-3-3-2 (repealed), the
corporation shall pay the estimated adjusted gross income taxes due by
electronic funds transfer (as defined in IC 4-8.1-2-7) or by delivering
in person or overnight by courier a payment by cashier's check,
certified check, or money order to the department. The transfer or
payment shall be made on or before the date the tax is due.
(h) (g) If a corporation's adjusted gross income tax payment is made
by electronic funds transfer, the corporation is not required to file an
estimated adjusted gross income tax return.
SECTION 25. IC 6-3-4-8.1, AS AMENDED BY P.L.111-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 8.1. (a) Any entity that is required to file a
monthly return and make a monthly remittance of taxes under sections
8, 12, 13, and 15 of this chapter shall file those returns and make those
remittances twenty (20) days (rather than thirty (30) days) after the end
of each month for which those returns and remittances are filed, if that
entity's average monthly remittance for the immediately preceding
calendar year exceeds one thousand dollars ($1,000).
(b) The department may require any entity to make the entity's
monthly remittance and file the entity's monthly return twenty (20) days
(rather than thirty (30) days) after the end of each month for which a
return and payment are made if the department estimates that the
entity's average monthly payment for the current calendar year will
exceed one thousand dollars ($1,000).
(c) If the department determines that a withholding agent is not
withholding, reporting, or remitting an amount of tax in accordance
with this chapter, the department may require the withholding agent:
(1) to make periodic deposits during the reporting period; and
(2) to file an informational return with each periodic deposit.
(d) If a person files a combined sales and withholding tax report and
either this section or IC 6-2.5-6-1 requires the sales or withholding tax
report to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(e) If the department determines that an entity's:
(1) estimated monthly withholding tax remittance for the current
year; or
(2) average monthly withholding tax remittance for the preceding
year;
exceeds ten five thousand dollars ($10,000), ($5,000), the entity shall
remit the monthly withholding taxes due by electronic fund transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or before
the date the remittance is due.
(f) If an entity's withholding tax remittance is made by electronic
fund transfer, the entity is not required to file a monthly withholding
tax return.
SECTION 26. IC 6-3-4-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 12. (a) Every
partnership shall, at the time that the partnership pays or credits
amounts to any of its nonresident partners on account of their
distributive shares of partnership income, for a taxable year of the
partnership, deduct and retain therefrom the amount prescribed in the
withholding instructions referred to in section 8 of this chapter. Such
partnership so paying or crediting any nonresident partner:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be deducted and retained under this section and shall
not be liable to such partner for the amount deducted from such
payment or credit and paid over in compliance or intended
compliance with this section; and
(2) shall make return of and payment to the department monthly
whenever the amount of tax due under IC 6-3 and IC 6-3.5
exceeds an aggregate amount of fifty dollars ($50) per month with
such payment due on the thirtieth day of the following month,
unless an earlier date is specified by section 8.1 of this chapter.
Where the aggregate amount due under IC 6-3 and IC 6-3.5 does not
exceed fifty dollars ($50) per month, then such partnership shall make
return and payment to the department quarterly, on such dates and in
such manner as the department shall prescribe, of the amount of tax
which, under IC 6-3 and IC 6-3.5, it is required to withhold.
(b) Every partnership shall, at the time of each payment made by it
to the department pursuant to this section, deliver to the department a
return upon such form as shall be prescribed by the department
showing the total amounts paid or credited to its nonresident partners,
the amount deducted therefrom in accordance with the provisions of
this section, and such other information as the department may require.
Every partnership making the deduction and retention provided in this
section shall furnish to its nonresident partners annually, but not later
than thirty (30) days after the end of its taxable year, a record of the
amount of tax deducted and retained from such partners on forms to be
prescribed by the department.
(c) All money deducted and retained by the partnership, as provided
in this section, shall immediately upon such deduction be the money of
the state of Indiana and every partnership which deducts and retains
any amount of money under the provisions of IC 6-3 shall hold the
same in trust for the state of Indiana and for payment thereof to the
department in the manner and at the times provided in IC 6-3. Any
partnership may be required to post a surety bond in such sum as the
department shall determine to be appropriate to protect the state of
Indiana with respect to money deducted and retained pursuant to this
section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to partnerships subject to the
provisions of this section, and for these purposes any amount deducted,
or required to be deducted and remitted to the department under this
section, shall be considered to be the tax of the partnership, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts deducted from payments or credits to a nonresident
partner during any taxable year of the partnership in accordance with
the provisions of this section shall be considered to be in part payment
of the tax imposed on such nonresident partner for his taxable year
within or with which the partnership's taxable year ends. A return made
by the partnership under subsection (b) shall be accepted by the
department as evidence in favor of the nonresident partner of the
amount so deducted for his distributive share.
(f) This section shall in no way relieve any nonresident partner from
his obligations of filing a return or returns at the time required under
IC 6-3 or IC 6-3.5, and any unpaid tax shall be paid at the time
prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a partnership to file one (1) return and
payment each year if the partnership pays or credits amounts to its
nonresident partners only one (1) time each year. The return and
payment are due not more than thirty (30) days after the end of the
year.
(h) A partnership shall file a composite adjusted gross income
tax return on behalf of all nonresident individual partners. The
composite return must include each nonresident individual partner
regardless of whether or not the nonresident individual partner has
other Indiana source income.
(i) If a partnership does not include all nonresident partners in
the composite return, the partnership is subject to the penalty
imposed under IC 6-8.1-10-2.1(j).
SECTION 27. IC 6-3-4-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 13. (a) Every
corporation which is exempt from tax under IC 6-3 pursuant to
IC 6-3-2-2.8(2) shall, at the time that it pays or credits amounts to any
of its nonresident shareholders as dividends or as their share of the
corporation's undistributed taxable income, withhold the amount
prescribed by the department. Such corporation so paying or crediting
any nonresident shareholder:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be withheld under this section and shall not be liable
to such shareholder for the amount withheld and paid over in
compliance or intended compliance with this section; and
(2) when the aggregate amount due under IC 6-3 and IC 6-3.5
exceeds one hundred fifty dollars ($150) per quarter, then such
corporation shall make return and payment to the department
quarterly, on such dates and in such manner as the department
shall prescribe, of the amount of tax which, under IC 6-3 and
IC 6-3.5, it is required to withhold.
(b) Every corporation shall, at the time of each payment made by it
to the department pursuant to this section, deliver to the department a
return upon such form as shall be prescribed by the department
showing the total amounts paid or credited to its nonresident
shareholders, the amount withheld in accordance with the provisions
of this section, and such other information as the department may
require. Every corporation withholding as provided in this section shall
furnish to its nonresident shareholders annually, but not later than the
fifteenth day of the third month after the end of its taxable year, a
record of the amount of tax withheld on behalf of such shareholders on
forms to be prescribed by the department.
(c) All money withheld by a corporation, pursuant to this section,
shall immediately upon being withheld be the money of the state of
Indiana and every corporation which withholds any amount of money
under the provisions of this section shall hold the same in trust for the
state of Indiana and for payment thereof to the department in the
manner and at the times provided in IC 6-3. Any corporation may be
required to post a surety bond in such sum as the department shall
determine to be appropriate to protect the state of Indiana with respect
to money withheld pursuant to this section.
(d) The provisions of IC 6-8.1 relating to additions to tax in case of
delinquency and penalties shall apply to corporations subject to the
provisions of this section, and for these purposes any amount withheld,
or required to be withheld and remitted to the department under this
section, shall be considered to be the tax of the corporation, and with
respect to such amount it shall be considered the taxpayer.
(e) Amounts withheld from payments or credits to a nonresident
shareholder during any taxable year of the corporation in accordance
with the provisions of this section shall be considered to be a part
payment of the tax imposed on such nonresident shareholder for his
taxable year within or with which the corporation's taxable year ends.
A return made by the corporation under subsection (b) shall be
accepted by the department as evidence in favor of the nonresident
shareholder of the amount so withheld from the shareholder's
distributive share.
(f) This section shall in no way relieve any nonresident shareholder
from the shareholder's obligation of filing a return or returns at the time
required under IC 6-3 or IC 6-3.5, and any unpaid tax shall be paid at
the time prescribed by section 5 of this chapter.
(g) Instead of the reporting periods required under subsection (a),
the department may permit a corporation to file one (1) return and
payment each year if the corporation pays or credits amounts to its
nonresident shareholders only one (1) time each year. The withholding
return and payment are due on or before the fifteenth day of the third
month after the end of the taxable year of the corporation.
(h) If a distribution will be made with property other than money or
a gain is realized without the payment of money, the corporation shall
not release the property or credit the gain until it has funds sufficient
to enable it to pay the tax required to be withheld under this section. If
necessary, the corporation shall obtain such funds from the
shareholders.
(i) If a corporation fails to withhold and pay any amount of tax
required to be withheld under this section and thereafter the tax is paid
by the shareholders, such amount of tax as paid by the shareholders
shall not be collected from the corporation but it shall not be relieved
from liability for interest or penalty otherwise due in respect to such
failure to withhold under IC 6-8.1-10.
(j) A corporation described in subsection (a) may shall file a
composite adjusted gross income tax return on behalf of some or all
nonresident shareholders. if it complies with the requirements
prescribed by the department for filing a The composite return must
include each nonresident individual shareholder regardless of
whether or not the nonresident individual shareholder has other
Indiana source income.
(k) If a corporation described in subsection (a) does not include
all nonresident shareholders in the composite return, the
corporation is subject to the penalty imposed under
IC 6-8.1-10-2.1(j).
SECTION 28. IC 6-3.1-24-9, AS AMENDED BY P.L.193-2005,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 9. (a) The total amount of tax credits that may be
allowed under this chapter in a particular calendar year for qualified
investment capital provided during that calendar year may not exceed
twelve million five hundred thousand dollars ($12,500,000). The
Indiana economic development corporation may not certify a proposed
investment plan under section 12.5 of this chapter if the proposed
investment would result in the total amount of the tax credits certified
for the calendar year exceeding twelve million five hundred thousand
dollars ($12,500,000). An amount of an unused credit carried over by
a taxpayer from a previous calendar year may not be considered in
determining the amount of proposed investments that the Indiana
economic development corporation may certify under this chapter.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for providing qualified investment capital to
a qualified Indiana business after December 31, 2008. 2012. However,
this subsection may not be construed to prevent a taxpayer from
carrying over to a taxable year beginning after December 31, 2008,
2012, an unused tax credit attributable to an investment occurring
before January 1, 2009. 2013.
SECTION 29. IC 6-3.1-31.5-13, AS ADDED BY HEA 1722-2007,
IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY
1, 2008]: Sec. 13. (a) The total amount of tax credits allowed under this
chapter may not exceed one million dollars ($1,000,000) in a state
fiscal year.
(b) A taxpayer may not be awarded a credit under this chapter
for taxable years beginning after December 31, 2010.
SECTION 30. IC 6-3.5-5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. As used in this
chapter:
"Branch office" means a branch office of the bureau of motor
vehicles.
"Bus" has the meaning set forth in IC 9-13-2-17(a).
"Commercial motor vehicle" has the meaning set forth in
IC 6-6-5.5-1(c).
"County council" includes the city-county council of a county that
contains a consolidated city of the first class.
"In-state miles" has the meaning set forth in IC 6-6-5.5-1(i).
"Political subdivision" has the meaning set forth in IC 34-6-2-110.
"Recreational vehicle" has the meaning set forth in IC 9-13-2-150.
"Semitrailer" has the meaning set forth in IC 9-13-2-164(a).
"State agency" has the meaning set forth in IC 34-4-16.5-2.
IC 34-6-2-141.
"Tractor" has the meaning set forth in IC 9-13-2-180.
"Trailer" has the meaning set forth in IC 9-13-2-184(a).
"Truck" has the meaning set forth in IC 9-13-2-188(a).
"Wheel tax" means the tax imposed under this chapter.
SECTION 31. IC 6-3.5-5-9.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 9.5. (a) This section applies to a
wheel tax adopted after June 30, 2007.
(b) An owner of one (1) or more commercial vehicles paying an
apportioned registration to the state under the International
Registration Plan that is required to pay a wheel tax shall pay an
apportioned wheel tax calculated by dividing in-state actual miles
by total fleet miles generated during the preceding year. If in-state
miles are estimated for purposes of proportional registration, these
miles are divided by total actual and estimated fleet miles. The
apportioned wheel tax under this section shall be paid at the same
time and in the same manner as the commercial motor vehicle
excise tax under IC 6-6-5.5.
(c) A voucher from the department of state revenue showing
payment of the wheel tax may be accepted by the bureau of motor
vehicles in lieu of the payment required under section 9 of this
chapter.
SECTION 32. IC 6-3.5-5-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13. (a) If the wheel tax
is collected directly by the bureau of motor vehicles, instead of at a
branch office, the commissioner of the bureau shall:
(1) remit the wheel tax to, and file a wheel tax collections report
with, the appropriate county treasurer; and
(2) file a wheel tax collections report with the county auditor;
in the same manner and at the same time that a branch office manager
is required to remit and report under section 11 of this chapter.
(b) If the wheel tax for a commercial vehicle is collected directly
by the department of state revenue, the commissioner of the
department of state revenue shall:
(1) remit the wheel tax to, and file a wheel tax collections
report with, the appropriate county treasurer; and
(2) file a wheel tax collections report with the county auditor;
in the same manner and at the same time that a branch office
manager is required to remit and report under section 11 of this
chapter.
SECTION 33. IC 6-4.1-10-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. (a) A person may file
with the department of state revenue a claim for the refund of
inheritance or Indiana estate tax which has been erroneously or
illegally collected. Except as provided in section 2 of this chapter, the
person must file the claim within three (3) years after the tax is paid or
within one (1) year after the tax is finally determined, whichever is
later.
(b) The amount of the refund that a person is entitled to receive
under this chapter equals the amount of the erroneously or illegally
collected tax, plus interest at the rate of six percent (6%) per annum
computed from the date the tax was paid to the date it is refunded.
calculated as specified in subsection (c).
(c) If a tax payment that has been erroneously or illegally
collected is not refunded within ninety (90) days after the date on
which the refund claim is filed with the department of state
revenue, interest accrues at the rate of six percent (6%) per annum
computed from the date the refund claim is filed until the tax
payment is refunded.
SECTION 34. IC 6-5.5-6-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 3. (a) Each
taxpayer subject to taxation under this article shall report and pay
quarterly an estimated tax equal to twenty-five percent (25%) of the
taxpayer's total estimated tax liability imposed by this article for the
taxable year. A taxpayer that uses a taxable year that ends on December
31 shall file the taxpayer's estimated quarterly financial institutions tax
return and pay the tax to the department on or before April 20, June 20,
September 20, and December 20 of the taxable year, without
assessment or notice and demand from the department. If a taxpayer
uses a taxable year that does not end on December 31, the due dates for
filing the estimated quarterly financial institutions tax return and
paying the tax are on or before the twentieth day of the fourth, sixth,
ninth, and twelfth months of the taxpayer's taxable year. The
department shall prescribe the manner and furnish the forms for
reporting and payment.
(b) Subsection (a) is applicable only to taxpayers having a tax
liability imposed under this article that exceeds one two thousand five
hundred dollars ($1,000) ($2,500) for the taxable year.
(c) If the department determines that a taxpayer's:
(1) estimated quarterly financial institutions tax liability for the
current year; or
(2) average quarterly financial institutions tax payment for the
preceding year;
exceeds ten five thousand dollars ($10,000), ($5,000), the taxpayer
shall pay the quarterly financial institutions taxes due by electronic
fund transfer (as defined in IC 4-8.1-2-7) or by delivering in person or
by overnight courier a payment by cashier's check, certified check, or
money order to the department. The transfer or payment shall be made
on or before the date the tax is due.
(d) If a taxpayer's financial institutions tax payment is made by
electronic fund transfer, the taxpayer is not required to file a quarterly
financial institutions tax return.
SECTION 35. IC 6-6-1.1-502 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 502. (a) Except
as provided in subsection (b), at the time of filing each monthly report,
each distributor shall pay to the administrator the full amount of tax
due under this chapter for the preceding calendar month, computed as
follows:
(1) Enter the total number of invoiced gallons of gasoline
received during the preceding calendar month.
(2) Subtract the number of gallons for which deductions are
provided by sections 701 through 705 of this chapter from the
number of gallons entered under subdivision (1).
(3) Subtract the number of gallons reported under section 501(3)
of this chapter.
(4) Multiply the number of invoiced gallons remaining after
making the computation in subdivisions (2) and (3) by the tax rate
prescribed by section 201 of this chapter to compute that part of
the gasoline tax to be deposited in the highway, road, and street
fund under section 802(2) of this chapter or in the motor fuel tax
fund under section 802(3) of this chapter.
(5) Multiply the number of gallons subtracted under subdivision
(3) by the tax rate prescribed by section 201 of this chapter to
compute that part of the gasoline tax to be deposited in the fish
and wildlife fund under section 802(1) of this chapter.
(b) If the department determines that a distributor's:
(1) estimated monthly gasoline tax liability for the current year;
or
(2) average monthly gasoline tax liability for the preceding year;
exceeds ten five thousand dollars ($10,000), ($5,000), the distributor
shall pay the monthly gasoline taxes due by electronic fund transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or by overnight
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or before
the date the tax is due.
SECTION 36. IC 6-7-1-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 17. (a) Distributors
who hold certificates and retailers shall be agents of the state in the
collection of the taxes imposed by this chapter and the amount of the
tax levied, assessed, and imposed by this chapter on cigarettes sold,
exchanged, bartered, furnished, given away, or otherwise disposed of
by distributors or to retailers. Distributors who hold certificates shall
be agents of the department to affix the required stamps and shall be
entitled to purchase the stamps from the department at a discount of
one and two-tenths percent (1.2%) of the amount of the tax stamps
purchased, one and two-tenths cents ($0.012) per individual
package of cigarettes as compensation for their labor and expense.
(b) The department may permit distributors who hold certificates
and who are admitted to do business in Indiana to pay for revenue
stamps within thirty (30) days after the date of purchase. However, the
privilege is extended upon the express condition that:
(1) except as provided in subsection (c), a bond or letter of credit
satisfactory to the department, in an amount not less than the sales
price of the stamps, is filed with the department; and
(2) proof of payment is made of all local property, state income,
and excise taxes for which any such distributor may be liable. The
bond or letter of credit, conditioned to secure payment for the
stamps, shall be executed by the distributor as principal and by a
corporation duly authorized to engage in business as a surety
company or financial institution in Indiana.
(c) If a distributor has at least five (5) consecutive years of good
credit standing with the state, the distributor shall not be required to
post a bond or letter of credit under subsection (b).
SECTION 37. IC 6-7-1-17.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 17.5. (a) Except as otherwise provided in this section,
in determining the amount to pay for stamps purchased under this
chapter, a distributor is entitled to a credit against the cost of
stamps purchased in an amount equal to the distributor's
receivables that:
(1) are attributable to stamps purchased by the distributor
under this chapter and affixed to cigarettes that were
transferred to a retailer;
(2) resulted from a transfer of cigarettes to a retailer in which
the distributor did not collect the tax imposed by this chapter
from the retailer; and
(3) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code
after December 31, 2006.
(b) If a distributor claims a credit under subsection (a) and
subsequently collects all of the associated receivable, the
distributor shall remit the entire amount of the credit previously
claimed under subsection (a) to the department within thirty (30)
days of collection.
(c) If a distributor claims a credit under subsection (a) and
subsequently collects part of the associated receivable, the
distributor shall remit the amount determined under STEP SIX of
the following formula to the department within thirty (30) days
after collection:
STEP ONE: Determine the part of the associated receivable
before collection that is attributable to the taxable price of the
products subject to the tax imposed by this chapter.
STEP TWO: Determine the part of the associated receivable
before collection that is attributable to the amount paid by the
distributor for the stamps affixed to the products that were
transferred to the retailer.
STEP THREE: Determine the sum of:
(A) the STEP ONE result; plus
(B) the STEP TWO result.
STEP FOUR: Determine the lesser of:
(A) the amount collected; or
(B) the STEP THREE result.
STEP FIVE: Divide:
(A) the STEP TWO result; by
(B) the STEP THREE result.
STEP SIX: Multiply:
(A) the STEP FOUR result; by
(B) the STEP FIVE result.
(d) If the amount of the credit to which a distributor is entitled
under subsection (a) exceeds the cost of the stamps that the
distributor seeks to purchase, the remainder of the credit may be
applied to future purchases of stamps by the distributor. For any
uncollectible receivable used to establish a credit under subsection
(a), the amount of the credit that is available to be applied to a
purchase of stamps is the total amount of the credit determined
under subsection (a) reduced by the sum of partial credits applied
by the distributor to previous purchases of stamps.
(e) As used in this subsection, "affiliated group" means any
combination of the following:
(1) An affiliated group within the meaning provided in Section
1504 of the Internal Revenue Code (except that the ownership
percentage in Section 1504(a)(2) of the Internal Revenue Code
shall be determined using fifty percent (50%) instead of
eighty percent (80%)) or a relationship described in Section
267(b)(11) of the Internal Revenue Code.
(2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
including limited liability companies and limited liability
partnerships, that have the same degree of mutual ownership
as an affiliated group described in subdivision (1), as
determined under the rules adopted by the department.
The right to a credit under this section is not assignable to an
individual or entity that is not part of the same affiliated group as
the assignor.
SECTION 38. IC 6-7-2-14.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 14.5. (a) In determining the amount of tax imposed by
this chapter that a distributor must remit under section 12 of this
chapter, the distributor shall, subject to subsections (c) and (d),
deduct from the distributor's wholesale income subject to the tax
imposed by this chapter that is derived from wholesale
transactions made during a particular reporting period an amount
equal to the distributor's receivables that:
(1) resulted from wholesale transactions on which the
distributor has previously paid the tax imposed by this
chapter to the department; and
(2) were written off as an uncollectible debt for federal tax
purposes under Section 166 of the Internal Revenue Code
during the particular reporting period.
(b) If a distributor deducts a receivable under subsection (a) and
subsequently collects all or part of that receivable, the distributor
shall, subject to subsection (d)(5), include the amount collected as
part of the distributor's wholesale income subject to the tax
imposed by this chapter for the particular reporting period in
which the distributor makes the collection.
(c) As used in this subsection, "affiliated group" means any
combination of the following:
(1) An affiliated group within the meaning provided in Section
1504 of the Internal Revenue Code (except that the ownership
percentage in Section 1504(a)(2) of the Internal Revenue Code
shall be determined using fifty percent (50%) instead of
eighty percent (80%)) or a relationship described in Section
267(b)(11) of the Internal Revenue Code.
(2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
including limited liability companies and limited liability
partnerships, that have the same degree of mutual ownership
as an affiliated group described in subdivision (1), as
determined under the rules adopted by the department.
The right to a deduction under this section is not assignable to an
individual or entity that is not part of the same affiliated group as
the assignor.
(d) The following provisions apply to a deduction for a
receivable treated as uncollectible debt under subsection (a):
(1) The deduction does not include interest.
(2) The amount of the deduction shall be determined in the
manner provided by Section 166 of the Internal Revenue
Code for bad debts but shall be adjusted to exclude:
(A) financing charges or interest;
(B) uncollectible amounts on property that remain in the
possession of the distributor until the full purchase price is
paid;
Service.
(g) If an agreement to extend the assessment time period is entered
into under IC 6-8.1-5-2(f), the period during which a person may file
a claim for a refund under subsection (a) is extended to the same date
to which the assessment time period is extended.
SECTION 43. IC 6-8.1-10-1, AS AMENDED BY P.L.1-2006,
SECTION 147, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 1. (a) If a person fails to file a
return for any of the listed taxes, fails to pay the full amount of tax
shown on the person's return by the due date for the return or the
payment, or incurs a deficiency upon a determination by the
department, the person is subject to interest on the nonpayment.
(b) The interest for a failure described in subsection (a) is the
adjusted rate established by the commissioner under subsection (c),
from the due date for payment. The interest applies to:
(1) the full amount of the unpaid tax due if the person failed to
file the return;
(2) the amount of the tax that is not paid, if the person filed the
return but failed to pay the full amount of tax shown on the return;
or
(3) the amount of the deficiency.
(c) The commissioner shall establish an adjusted rate of interest for
a failure described in subsection (a) and for an excess tax payment on
or before November 1 of each year. For purposes of subsection (b), the
adjusted rate of interest shall be the percentage rounded to the nearest
whole number that equals two (2) percentage points above the average
investment yield on state money for the state's previous fiscal year,
excluding pension fund investments, as published in the auditor of
state's comprehensive annual financial report. determined by the
treasurer of state on or before October 1 of each year and reported
to the commissioner. For purposes of IC 6-8.1-9-2(c), the adjusted rate
of interest for an excess tax payment is the percentage rounded to the
nearest whole number that equals the average investment yield on state
money for the state's previous fiscal year, excluding pension fund
investments, as published in the auditor of state's comprehensive
annual financial report. must be the same as the adjusted rate of
interest determined under this subsection for a failure described in
subsection (a). The adjusted rates of interest established under this
subsection shall take effect on January 1 of the immediately succeeding
year.
(d) For purposes of this section, the filing of a substantially blank or
unsigned return does not constitute a return.
(e) Except as provided by IC 6-8.1-3-17(c) and IC 6-8.1-5-2, the
department may not waive the interest imposed under this section.
(f) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
SECTION 44. IC 6-8.1-10-2.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 2.1. (a) If a
person:
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's return
on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency that
is due to negligence;
(4) fails to timely remit any tax held in trust for the state; or
(5) is required to make a payment by electronic funds transfer (as
defined in IC 4-8.1-2-7), overnight courier, or personal delivery
and the payment is not received by the department by the due date
in funds acceptable to the department;
the person is subject to a penalty.
(b) Except as provided in subsection (g), the penalty described in
subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the
return;
(2) the amount of the tax not paid, if the person filed the return
but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely remitted;
(4) the amount of deficiency as finally determined by the
department; or
(5) the amount of tax due if a person failed to make payment by
electronic funds transfer, overnight courier, or personal delivery
by the due date.
(c) For purposes of this section, the filing of a substantially blank or
unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section can
show that the failure to file a return, pay the full amount of tax shown
on the person's return, timely remit tax held in trust, or pay the
deficiency determined by the department was due to reasonable cause
and not due to willful neglect, the department shall waive the penalty.
(e) A person who wishes to avoid the penalty imposed under this
section must make an affirmative showing of all facts alleged as a
reasonable cause for the person's failure to file the return, pay the
amount of tax shown on the person's return, pay the deficiency, or
timely remit tax held in trust, in a written statement containing a
declaration that the statement is made under penalty of perjury. The
statement must be filed with the return or payment within the time
prescribed for protesting departmental assessments. A taxpayer may
also avoid the penalty imposed under this section by obtaining a ruling
from the department before the end of a particular tax period on the
amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe the
circumstances that constitute reasonable cause and negligence for
purposes of this section.
(g) A person who fails to file a return for a listed tax that shows no
tax liability for a taxable year, other than an information return (as
defined in section 6 of this chapter), on or before the due date of the
return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
($250).
(h) A corporation which otherwise qualifies under IC 6-3-2-2.8(2)
but fails to withhold and pay any amount of tax required to be withheld
under IC 6-3-4-13 shall pay a penalty equal to twenty percent (20%) of
the amount of tax required to be withheld under IC 6-3-4-13. This
penalty shall be in addition to any penalty imposed by section 6 of this
chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
(j) If a partnership or an S corporation fails to include all
nonresidential individual partners or nonresidential individual
shareholders in a composite return as required by IC 6-3-4-12(h)
or IC 6-3-4-13(j), a penalty of five hundred dollars ($500) per
partnership or S corporation is imposed on the partnership or S
corporation.
SECTION 45. IC 6-9-2-2, AS AMENDED BY P.L.168-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 2. (a) The revenue received by the county
treasurer under this chapter shall be allocated to the Lake County
convention and visitor bureau, Indiana University-Northwest, Purdue
University-Calumet, municipal public safety departments, municipal
physical and economic development divisions, and the cities and towns
in the county as provided in this section. Subsections (b) through (g) do
not apply to the distribution of revenue received under section 1 of this
chapter from hotels, motels, inns, tourist camps, tourist cabins, and
other lodgings or accommodations built or refurbished after June 30,
1993, that are located in the largest city of the county.
(b) The Lake County convention and visitor bureau shall establish
a convention, tourism, and visitor promotion fund (referred to in this
chapter as the "promotion fund"). The county treasurer shall transfer to
the Lake County convention and visitor bureau for deposit in the
promotion fund thirty-five thirty-six percent (35%) (36%) of the first
one million two hundred fifty thousand dollars ($1,200,000)
($1,250,000) of revenue received from the tax imposed under this
chapter in each year. The promotion fund consists of:
(1) money in the promotion fund on June 30, 2005;
(2) revenue deposited in the promotion fund under this subsection
after June 30, 2005; and
(3) investment income earned on the promotion fund's assets.
Money in the promotion fund may be expended only to promote and
encourage conventions, trade shows, special events, recreation, and
visitors within the county. Money may be paid from the promotion fund
by claim in the same manner as municipalities may pay claims under
IC 5-11-10-1.6.
(c) This subsection applies to the first one million two hundred fifty
thousand dollars ($1,200,000) ($1,250,000) of revenue received from
the tax imposed under this chapter in each year. During each year, the
county treasurer shall transfer to Indiana University-Northwest
forty-four forty-two and thirty-three seventy-seven hundredths percent
(44.33%) (42.77%) of the revenue received under this chapter for that
year to be used as follows:
(1) Seventy-five percent (75%) of the revenue received under this
subsection may be used only for the university's medical
education programs.
(2) Twenty-five percent (25%) of the revenue received under this
subsection may be used only for the university's allied health
education programs.
The amount for each year shall be transferred in four (4) approximately
equal quarterly installments.
(d) This subsection applies to the first one million two hundred fifty
thousand dollars ($1,200,000) ($1,250,000) of revenue received from
the tax imposed under this chapter in each year. During each year, the
county treasurer shall allocate among the cities and towns throughout
the county nine and sixty-eight hundredths percent (9%) (9.68%) of
the revenue received under this chapter for that year. The amount of
each city's or town's allocation is as follows:
(90,000).
Money transferred under this subsection may be used only for
convention facilities located within the city. In addition, the money may
be used only for facility marketing, sales, and public relations
programs. Money transferred under this subsection may not be used for
salaries, facility operating costs, or capital expenditures related to the
convention facilities. The county treasurer shall make the transfers on
or before December 1 of each year.
(g) This subsection applies to the revenue received from the tax
imposed under this chapter in each year that exceeds one million two
hundred fifty thousand dollars ($1,200,000). ($1,250,000). During each
year, the county treasurer shall distribute money in the promotion fund
as follows:
(1) Eighty-five percent (85%) of the revenue covered by this
subsection shall be deposited in the convention, tourism, and
visitor promotion fund. The money deposited in the fund under
this subdivision may be used only for the purposes for which
other money in the fund may be used.
(2) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Purdue University-Calumet. The money
received by Purdue University-Calumet under this subdivision
may be used by the university only for nursing education
programs.
(3) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's medical education programs.
(4) Five percent (5%) of the revenue covered by this subsection
shall be transferred to Indiana University-Northwest. The money
received by Indiana University-Northwest under this subdivision
may be used only for the university's allied health education
programs.
(h) The county treasurer may estimate the amount that will be
received under this chapter for the year to determine the amount to be
transferred under this section.
(i) This subsection applies only to the distribution of revenue
received from the tax imposed under section 1 of this chapter from
hotels, motels, inns, tourist camps, tourist cabins, and other lodgings or
accommodations built or refurbished after June 30, 1993, that are
located in the largest city of the county. During each year, the county
treasurer shall transfer:
chapter must be repay the loan within thirty-six (36) months of the
date on which the loan is made.
Sec. 7. An eligible school corporation that obtains a loan under
this chapter may annually levy a tax in the debt service fund to
repay the loan.
Sec. 8. If the state board recommends that an eligible school
corporation receive a loan under this chapter, the eligible school
corporation may not request an excessive tax levy for the same
amount.
Sec. 9. This chapter may not be construed to prohibit an eligible
school corporation from repaying a loan under this chapter before
the date specified in section 6(b) of this chapter.
Sec. 10. This chapter expires December 31, 2010.
SECTION 47. IC 36-2-7-10, AS AMENDED BY SEA 526-2007,
SECTION 384, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 10. (a) The county recorder shall
tax and collect the fees prescribed by this section for recording, filing,
copying, and other services the recorder renders, and shall pay them
into the county treasury at the end of each calendar month. The fees
prescribed and collected under this section supersede all other
recording fees required by law to be charged for services rendered by
the county recorder.
(b) The county recorder shall charge the following:
(1) Six dollars ($6) for the first page and two dollars ($2) for each
additional page of any document the recorder records if the pages
are not larger than eight and one-half (8 1/2) inches by fourteen
(14) inches.
(2) Fifteen dollars ($15) for the first page and five dollars ($5) for
each additional page of any document the recorder records, if the
pages are larger than eight and one-half (8 1/2) inches by fourteen
(14) inches.
(3) For attesting to the release, partial release, or assignment of
any mortgage, judgment, lien, or oil and gas lease contained on a
multiple transaction document, the fee for each transaction after
the first is the amount provided in subdivision (1) plus the amount
provided in subdivision (4) and one dollar ($1) for marginal
mortgage assignments or marginal mortgage releases.
(4) One dollar ($1) for each cross-reference of a recorded
document.
(5) One dollar ($1) per page not larger than eight and one-half (8
1/2) inches by fourteen (14) inches for furnishing copies of
records and two dollars ($2) per page that is larger than eight and
one-half (8 1/2) inches by fourteen (14) inches.
(6) Five dollars ($5) for acknowledging or certifying to a
document.
(7) Five dollars ($5) for each deed the recorder records, in
addition to other fees for deeds, for the county surveyor's corner
perpetuation fund for use as provided in IC 21-47-3-3 or
IC 36-2-12-11(e).
(8) A fee in an amount authorized under IC 5-14-3-8 for
transmitting a copy of a document by facsimile machine.
(9) A fee in an amount authorized by an ordinance adopted by the
county legislative body for duplicating a computer tape, a
computer disk, an optical disk, microfilm, or similar media. This
fee may not cover making a handwritten copy or a photocopy or
using xerography or a duplicating machine.
(10) A supplemental fee of three dollars ($3) for recording a
document that is paid at the time of recording. The fee under this
subdivision is in addition to other fees provided by law for
recording a document.
(11) Three dollars ($3) for each mortgage on real estate recorded,
in addition to other fees required by this section, distributed as
follows:
(A) Fifty cents ($0.50) is to be deposited in the recorder's
record perpetuation fund.
(B) Two dollars and fifty cents ($2.50) is to be distributed to
the auditor of state on or before June 20 and December 20 of
each year as provided in IC 24-9-9-3.
(12) This subdivision applies in a county only if at least one (1)
unit in the county has established an affordable housing fund
under IC 5-20-5-15.5 and the county fiscal body adopts an
ordinance authorizing the fee described in this subdivision. An
ordinance adopted under this subdivision may authorize the
county recorder to charge a fee of:
(A) two dollars and fifty cents ($2.50) for the first page;
and
(B) one dollar ($1) for each additional page;
of each document the recorder records.
(13) This subdivision applies in a county containing a
consolidated city that has established a housing trust fund
under IC 36-7-15.1-35.5(e). The county fiscal body may adopt
an ordinance authorizing the fee described in this subdivision.
An ordinance adopted under this subdivision may authorize
the county recorder to charge a fee of:
(A) two dollars and fifty cents ($2.50) for the first page;
and
(B) one dollar ($1) for each additional page;
of each document the recorder records.
(c) The county recorder shall charge a two dollar ($2) county
identification security protection fee for recording or filing a document.
This fee shall be deposited under IC 36-2-7.5-6.
(d) The county treasurer shall establish a recorder's records
perpetuation fund. All revenue received under subsection (b)(5), (b)(8),
(b)(9), and (b)(10), and fifty cents ($0.50) from revenue received under
subsection (b)(11), shall be deposited in this fund. The county recorder
may use any money in this fund without appropriation for the
preservation of records and the improvement of record keeping systems
and equipment.
(e) As used in this section, "record" or "recording" includes the
functions of recording, filing, and filing for record.
(f) The county recorder shall post the fees set forth in subsection (b)
in a prominent place within the county recorder's office where the fee
schedule will be readily accessible to the public.
(g) The county recorder may not tax or collect any fee for:
(1) recording an official bond of a public officer, a deputy, an
appointee, or an employee; or
(2) performing any service under any of the following:
(A) IC 6-1.1-22-2(c).
(B) IC 8-23-7.
(C) IC 8-23-23.
(D) IC 10-17-2-3.
(E) IC 10-17-3-2.
(F) IC 12-14-13.
(G) IC 12-14-16.
(h) The state and its agencies and instrumentalities are required to
pay the recording fees and charges that this section prescribes.
(i) This subsection applies to a county other than a county
containing a consolidated city. The county treasurer shall
distribute money collected by the county recorder under subsection
(b)(12) as follows:
(1) Sixty percent (60%) of the money collected by the county
recorder under subsection (b)(12) shall be distributed to the
units in the county that have established an affordable
housing fund under IC 5-20-5-15.5 for deposit in the fund. The
amount to be distributed to a unit is the amount available for
distribution multiplied by a fraction. The numerator of the
fraction is the population of the unit. The denominator of the
fraction is the population of all units in the county that have
established an affordable housing fund. The population to be
used for a county that establishes an affordable housing fund
is the population of the county outside any city or town that
has established an affordable housing fund.
(2) Forty percent (40%) of the money collected by the county
recorder under subsection (b)(12) shall be distributed to the
treasurer of state for deposit in the affordable housing and
community development fund established under IC 5-20-4-7
for the purposes of the fund.
Money shall be distributed under this subsection before the
sixteenth day of the month following the month in which the money
is collected from the county recorder.
(j) This subsection applies to a county described in subsection
(b)(13). The county treasurer shall distribute money collected by
the county recorder under subsection (b)(13) as follows:
(1) Sixty percent (60%) of the money collected by the county
recorder under subsection (b)(13) shall be deposited in the
housing trust fund established under IC 36-7-15.1-35.5(e) for
the purposes of the fund.
(2) Forty percent (40%) of the money collected by the county
recorder under subsection (b)(13) shall be distributed to the
treasurer of state for deposit in the affordable housing and
community development fund established under IC 5-20-4-7
for the purposes of the fund.
Money shall be distributed under this subsection before the
sixteenth day of the month following the month in which the money
is collected from the county recorder.
SECTION 48. IC 36-7-15.1-35.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 35.5. (a) The general
assembly finds the following:
(1) Federal law permits the sale of a multiple family housing
project that is or has been covered, in whole or in part, by a
contract for project based assistance from the United States
Department of Housing and Urban Development without
requiring the continuation of that project based assistance.
(2) Such a sale displaces the former residents of a multiple family
housing project described in subdivision (1) and increases the
shortage of safe and affordable housing for persons of low and
moderate income within the county.
(3) The displacement of families and individuals from affordable
housing requires increased expenditures of public funds for crime
prevention, public health and safety, fire and accident prevention,
and other public services and facilities.
(4) The establishment of a supplemental housing program under
this section will do the following:
(A) Benefit the health, safety, morals, and welfare of the
county and the state.
(B) Serve to protect and increase property values in the county
and the state.
(C) Benefit persons of low and moderate income by making
affordable housing available to them.
(5) The establishment of a supplemental housing program under
this section and sections 32 through 35 of this chapter is:
(A) necessary in the public interest; and
(B) a public use and purpose for which public money may be
spent and private property may be acquired.
(b) In addition to its other powers with respect to a housing program
under sections 32 through 35 of this chapter, the commission may
establish a supplemental housing program. Except as provided by this
section, the commission has the same powers and duties with respect
to the supplemental housing program that the commission has under
sections 32 through 35 of this chapter with respect to the housing
program.
(c) One (1) allocation area may be established for the supplemental
housing program. The commission is not required to make the findings
required under section 34(5) through 34(8) of this chapter with respect
to the allocation area. However, the commission must find that the
property contained within the boundaries of the allocation area consists
solely of one (1) or more multiple family housing projects that are or
have been covered, in whole or in part, by a contract for project based
assistance from the United States Department of Housing and Urban
Development or have been owned at one time by a public housing
agency. The allocation area need not be contiguous. The definition of
"base assessed value" set forth in section 35(a) of this chapter applies
to the special fund established under section 26(b) of this chapter for
the allocation area.
(d) The special fund established under section 26(b) of this chapter
for the allocation area established under this section may be used only
for the following purposes:
(1) Subject to subdivision (2), on January 1 and July 1 of each
year the balance of the special fund shall be transferred to the
housing trust fund established under subsection (e).
(2) The commission may provide each taxpayer in the allocation
area a credit for property tax replacement in the manner provided
by section 35(b)(7) of this chapter. Transfers made under
subdivision (1) shall be reduced by the amount necessary to
provide the credit.
(e) The commission shall, by resolution, establish a housing trust
fund to be administered, subject to the terms of the resolution, by:
(1) the housing division of the consolidated city; or
(2) the department, division, or agency that has been designated
to perform the public housing function by an ordinance adopted
under IC 36-7-18-1.
(f) The housing trust fund consists of:
(1) amounts transferred to the fund under subsection (d);
(2) payments in lieu of taxes deposited in the fund under
IC 36-3-2-11;
(3) gifts and grants to the fund;
(4) investment income earned on the fund's assets; and
(5) money deposited in the fund under IC 36-2-7-10(j); and
(5) (6) other funds from sources approved by the commission.
(g) The commission shall, by resolution, establish uses for the
housing trust fund. However, the uses must be limited to:
(1) providing financial assistance to those individuals and
families whose income is at or below eighty percent (80%) of the
county's median income for individuals and families, respectively,
to enable those individuals and families to purchase or lease
residential units within the county;
(2) paying expenses of administering the fund;
(3) making grants, loans, and loan guarantees for the
development, rehabilitation, or financing of affordable housing
for individuals and families whose income is at or below eighty
percent (80%) of the county's median income for individuals and
families, respectively, including the elderly, persons with
disabilities, and homeless individuals and families; and
(4) providing technical assistance to nonprofit developers of
affordable housing.
(h) At least fifty percent (50%) of the dollars allocated for
production, rehabilitation, or purchase of housing must be used for
units to be occupied by individuals and families whose income is at or
below fifty percent (50%) of the county's area median income for
individuals and families, respectively.
(i) The low income housing trust fund advisory committee is
established. The low-income housing trust fund advisory committee
consists of eleven (11) members. The membership of the low income
housing trust fund advisory committee is comprised of:
(1) one (1) member appointed by the mayor, to represent the
interests of low income families;
(2) one (1) member appointed by the mayor, to represent the
interests of owners of subsidized, multifamily housing
communities;
(3) one (1) member appointed by the mayor, to represent the
interests of banks and other financial institutions;
(4) one (1) member appointed by the mayor, of the department of
metropolitan development;
(5) three (3) members representing the community at large
appointed by the commission, from nominations submitted to the
commission as a result of a general call for nominations from
neighborhood associations, community based organizations, and
other social services agencies;
(6) one (1) member appointed by and representing the Coalition
for Homeless Intervention and Prevention of Greater Indianapolis;
(7) one (1) member appointed by and representing the Local
Initiatives Support Corporation;
(8) one (1) member appointed by and representing the
Indianapolis Coalition for Neighborhood Development; and
(9) one (1) member appointed by and representing the
Indianapolis Neighborhood Housing Partnership.
Members of the low income housing trust fund advisory committee
serve for a term of four (4) years, and are eligible for reappointment. If
a vacancy exists on the committee, the appointing authority who
appointed the former member whose position has become vacant shall
appoint an individual to fill the vacancy. A committee member may be
removed at any time by the appointing authority who appointed the
committee member.
(j) The low income housing trust fund advisory committee shall
make recommendations to the commission regarding:
(1) the development of policies and procedures for the uses of the
low income housing trust fund; and
information contained in form ST-135 for the transaction.
(c) If a retail merchant provides the department with the
information from form ST-135 to verify that a sale described in
subsection (b) is exempt from taxation under IC 6-2.5, the retail
merchant may request:
(1) a refund of gross retail tax plus any penalties and interest
paid to the department; or
(2) that the department satisfy any outstanding gross retail
tax liabilities, including any penalties and interest for tax
liabilities;
for the tangible personal property used or consumed in providing
public transportation.
(d) This SECTION expires December 31, 2008.
SECTION 55. [EFFECTIVE JANUARY 1, 2008] IC 6-3-1-3.5, as
amended by this act, applies to taxable years beginning after
December 31, 2007.
SECTION 56. [EFFECTIVE JULY 1, 2007] (a) IC 6-2.5-6-10, as
amended by this act, applies to reporting periods beginning after
June 30, 2007.
(b) The amount of a retail merchant's state gross retail and use
tax liability under IC 6-2.5 accrued during the period beginning
after December 31, 2006, and ending before July 1, 2007, must be
used to determine the applicable percentage applied under
IC 6-2.5-6-10(b), as amended by this act, for a reporting period
beginning after June 30, 2007, and ending before January 1, 2008.
SECTION 57. [EFFECTIVE JANUARY 1, 2007
(RETROACTIVE)] IC 6-1.1-45-12, as amended by this act, applies
to assessment dates occurring after February 28, 2007, for
property taxes first due and payable after December 31, 2007.
SECTION 58. [EFFECTIVE JANUARY 1, 2008] IC 6-3-4-12,
IC 6-3-4-13, and IC 6-8.1-10-2.1, all as amended by this act, apply
to taxable years beginning after December 31, 2007.
SECTION 59. An emergency is declared for this act.
Date: