Introduced Version




Citations Affected: IC 6-1.1-2-7.

Synopsis: Elimination of personal property taxes. Eliminates property taxes on depreciable personal property.

Effective: Upon passage; March 1, 2010 (retroactive).

Cherry, Thompson, Stemler, Eberhart

    January 11, 2010, read first time and referred to Committee on Ways and Means.


Second Regular Session 116th General Assembly (2010)

PRINTING CODE. 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.
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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-2-7; (10)IN1217.1.1. -->     SECTION 1. IC 6-1.1-2-7, AS AMENDED BY P.L.1-2009, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2010 (RETROACTIVE)]: Sec. 7. (a) As used in this section, "nonbusiness personal property" means personal property that is not:
        (1) held for sale in the ordinary course of a trade or business;
        (2) held, used, or consumed in connection with the production of income; or
        (3) held as an investment.
    (b) The following property is not subject to assessment and taxation under this article:
        (1) A commercial vessel that is subject to the net tonnage tax imposed under IC 6-6-6.
        (2) A motor vehicle that is subject to the annual license excise tax imposed under IC 6-6-5.
        (3) A motorized boat or sailboat that is subject to the boat excise tax imposed under IC 6-6-11.
        (4) Property used by a cemetery (as defined in IC 23-14-33-7) if the cemetery:
            (A) does not have a board of directors, board of trustees, or other governing authority other than the state or a political subdivision; and
            (B) has had no business transaction during the preceding calendar year.
        (5) A commercial vehicle that is subject to the annual excise tax imposed under IC 6-6-5.5.
        (6) Inventory.
        (7) A recreational vehicle or truck camper that is subject to the annual excise tax imposed under IC 6-6-5.1.
        (8) The following types of nonbusiness personal property:
            (A) All-terrain vehicles.
            (B) Snowmobiles.
            (C) Rowboats, canoes, kayaks, and other human powered boats.
            (D) Invalid chairs.
            (E) Yard and garden tractors.
            (F) Trailers that are not subject to an excise tax under:
                (i) IC 6-6-5-5.5;
                (ii) IC 6-6-5.1; or
                (iii) IC 6-6-5.5.
         (9) This subdivision does not apply to personal property held for investment. For an assessment date after February 28, 2010, depreciable personal property, other than personal property otherwise described by this subsection, that:
            (A) is used in a trade or business or otherwise held, used, or consumed in connection with the production of income; and
            (B) has a useful life of more than one (1) year.

SOURCE: ; (10)IN1217.1.2. -->     SECTION 2. [EFFECTIVE UPON PASSAGE] (a) The legislative council shall, with the assistance of the code revision commission, provide for the preparation of legislation for introduction in the 2011 session of the general assembly to eliminate obsolete references in Indiana law to the property taxation of depreciable personal property described in IC 6-1.1-2-7(b)(9), as amended by this act, including provisions permitting the allocation to an allocation area (as defined in IC 6-1.1-21.2-3) of property taxes imposed on depreciable personal property.
    (b) This SECTION expires January 1, 2011.

SOURCE: ; (10)IN1217.1.3. -->     SECTION 3. An emergency is declared for this act.