HB 1072-1_ Filed 02/22/2012, 09:00
Adopted 2/23/2012

COMMITTEE REPORT




MADAM PRESIDENT:

    The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1072, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 1; (12)AM107214.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 4-10-13-0.1; (12)AM107214.1. -->     "SECTION 1. IC 4-10-13-0.1 IS REPEALED [EFFECTIVE JULY 1, 2012]. Sec. 0.1. The amendments made to section 5 of this chapter by P.L.98-1989 apply to boating years beginning after December 31, 1989.".
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SOURCE: IC 6-1.1-3-24; (12)AM107214.16. -->     "SECTION 16. IC 6-1.1-3-24 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2011 (RETROACTIVE)]: Sec. 24. (a) In determining the assessed value of various sizes of outdoor advertising signs for the 2011 through 2014 assessment dates, a taxpayer and assessing official shall use the following table without any adjustments:
    Single Pole Structure
Type of Sign    Value Per Structure
At least 48 feet, illuminated    $5,000
At least 48 feet, non-illuminated    $4,000
At least 26 feet and under 48 feet, illuminated    $4,000
At least 26 feet and under 48 feet,
non-illuminated    $3,300
Under 26 feet, illuminated    $3,200
Under 26 feet, non-illuminated    $2,600
    Other Types of Outdoor Signs
At least 50 feet, illuminated    $2,500
At least 50 feet, non-illuminated    $1,500
At least 40 feet and under 50 feet, illuminated    $2,000
At least 40 feet and under 50 feet,
non-illuminated    $1,300
At least 30 feet and under 40 feet, illuminated    $2,000
At least 30 feet and under 40 feet,
non-illuminated    $1,300
At least 20 feet and under 30 feet, illuminated    $1,600
At least 20 feet and under 30 feet,
non-illuminated    $1,000
Under 20 feet, illuminated    $1,600
Under 20 feet, non-illuminated    $1,000
    (b) During the 2012 legislative interim, the commission on state tax and financing policy shall study the assessment of outdoor signs. Before January 1, 2013, the commission shall report to the general assembly on any suggested changes in the law with regard to assessing outdoor signs.
    (c) This section expires July 1, 2015.

SOURCE: IC 6-1.1-4-40; (12)AM107214.17. -->     SECTION 17. IC 6-1.1-4-40 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 40. The value of federal income tax credits awarded under Section 42 of the Internal Revenue Code after December 31, 2012, may not shall be considered in determining the assessed value of low income housing tax credit property.".
SOURCE: Page 10, line 40; (12)AM107214.10. -->     Page 10, between lines 40 and 41, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12-26.1; (12)AM107214.19. -->     "SECTION 19. IC 6-1.1-12-26.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 26.1. (a) This section applies only to a solar power device that is installed after December 31, 2011.
    (b) This section does not apply to a solar power device that is owned or operated by a person that provides electricity at wholesale or retail for consideration other than a person that:
        (1) participates in a net metering or feed-in-tariff program

offered by an electric utility with respect to the solar power device; or
        (2) is the owner or host of the solar power device site and a person consumes on the site the equivalent amount of electricity that is generated by the solar power device on an annual basis even if the electricity is sold to a public utility, including a solar power device directly serving a public utility's business operations site.
    (c) For purposes of this section, "solar power device" means a device, such as a solar thermal, a photovoltaic, or other solar energy system, that is designed to use the radiant light or heat from the sun to produce electricity.
    (d) The owner of real property equipped with a solar power device that is assessed as a real property improvement may have deducted annually from the assessed value of the real property an amount equal to:
        (1) the assessed value of the real property with the solar power device included; minus
        (2) the assessed value of the real property without the solar power device.
    (e) The owner of a solar power device that is assessed as:
        (1) distributable property under IC 6-1.1-8; or
        (2) personal property;
may have deducted annually the assessed value of the solar power device.

SOURCE: IC 6-1.1-12-27.1; (12)AM107214.20. -->     SECTION 20. IC 6-1.1-12-27.1, AS AMENDED BY P.L.113-2010, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 27.1. Except as provided in sections 36 and 44 of this chapter and subject to section 45 of this chapter, a person who desires to claim the deduction provided by section 26 or 26.1 of this chapter must file a certified statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, or mobile home, manufactured home, or solar power device is subject to assessment. With respect to real property or a solar power device that is assessed as distributable property under IC 6-1.1-8 or as personal property, the person must file the statement during the year for which the person desires to obtain the deduction. Except as provided in sections 36 and 44 of this chapter and subject to section 45 of this chapter, with respect to a mobile home which is not assessed as real property, the person must file the statement during the twelve (12) months before March 31 of each year for which the person desires to

obtain the deduction. The person must:
        (1) own the real property, mobile home, or manufactured home or own the solar power device; or
        (2) be buying the real property, mobile home, or manufactured home, or solar power device under contract; or
        (3) be leasing the real property from the real property owner and be subject to assessment and property taxation with respect to the solar power device;

on the date the statement is filed under this section. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. On verification of the statement by the assessor of the township in which the real property, or mobile home, manufactured home, or solar power device is subject to assessment, or the county assessor if there is no township assessor for the township, the county auditor shall allow the deduction.".

SOURCE: Page 12, line 26; (12)AM107214.12. -->     Page 12, delete lines 26 through 42.
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    Page 27, run in lines 2 through 6.
    Page 27, line 17, after "chapter." insert " to the city or town fiscal body in the manner prescribed by the department of local government finance before September 2 of a year.".
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    Page 27, line 24, reset in roman "or town.".
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SOURCE: IC 6-2.3-4-7; (12)AM107214.40. -->     "SECTION 40. IC 6-2.3-4-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 7. Gross receipts are exempt from the utility receipts tax if the gross receipts are received by a taxpayer from an electricity supplier (as defined in IC 8-1-2.3-2) as payment of severance damages or other compensation resulting from a

change in assigned service area boundaries under IC 8-1-2.3-6(1), IC 8-1-2.3-6(2), or IC 8-1-2.3-6(3).

SOURCE: IC 6-2.5-4-5; (12)AM107214.41. -->     SECTION 41. IC 6-2.5-4-5, AS AMENDED BY P.L.32-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 5. (a) As used in this section, a "power subsidiary" means a corporation which is owned or controlled by one (1) or more public utilities that furnish or sell electrical energy, natural or artificial gas, water, steam, or steam heat and which produces power exclusively for the use of those public utilities.
    (b) A power subsidiary or a person engaged as a public utility is a retail merchant making a retail transaction when the subsidiary or person furnishes or sells electrical energy, natural or artificial gas, water, steam, or steam heating service to a person for commercial or domestic consumption.
    (c) Notwithstanding subsection (b), a power subsidiary or a person engaged as a public utility is not a retail merchant making a retail transaction in any of the following transactions:
        (1) The power subsidiary or person provides, installs, constructs, services, or removes tangible personal property which is used in connection with the furnishing of the services or commodities listed in subsection (b).
        (2) The power subsidiary or person sells the services or commodities listed in subsection (b) to another public utility or power subsidiary described in this section or a person described in section 6 of this chapter.
        (3) The power subsidiary or person sells the services or commodities listed in subsection (b) to a person for use in manufacturing, mining, production, processing (after December 31, 2012), repairing (after December 31, 2012), refining, recycling (as defined in IC 6-2.5-5-45), oil extraction, mineral extraction, irrigation, agriculture, floriculture (after December 31, 2012), arboriculture (after December 31, 2012), or horticulture. However, this exclusion for sales of the services and commodities only applies if the services are consumed as an essential and integral part of an integrated process that produces tangible personal property and those sales are separately metered for the excepted uses listed in this subdivision, or if those sales are not separately metered but are predominately used by the purchaser for the excepted uses listed in this subdivision.
        (4) The power subsidiary or person sells the services or commodities listed in subsection (b) and all the following

conditions are satisfied:
            (A) The services or commodities are sold to a business that after June 30, 2004:
                (i) relocates all or part of its operations to a facility; or
                (ii) expands all or part of its operations in a facility;
            located in a military base (as defined in IC 36-7-30-1(c)), a military base reuse area established under IC 36-7-30, the part of an economic development area established under IC 36-7-14.5-12.5 that is or formerly was a military base (as defined in IC 36-7-30-1(c)), a military base recovery site designated under IC 6-3.1-11.5, or a qualified military base enhancement area established under IC 36-7-34.
            (B) The business uses the services or commodities in the facility described in clause (A) not later than five (5) years after the operations that are relocated to the facility or expanded in the facility commence.
            (C) The sales of the services or commodities are separately metered for use by the relocated or expanded operations.
            (D) In the case of a business that uses the services or commodities in a qualified military base enhancement area established under IC 36-7-34-4(1), the business must satisfy at least one (1) of the following criteria:
                (i) The business is a participant in the technology transfer program conducted by the qualified military base (as defined in IC 36-7-34-3).
                (ii) The business is a United States Department of Defense contractor.
                (iii) The business and the qualified military base have a mutually beneficial relationship evidenced by a memorandum of understanding between the business and the United States Department of Defense.
            (E) In the case of a business that uses the services or commodities in a qualified military base enhancement area established under IC 36-7-34-4(2), the business must satisfy at least one (1) of the following criteria:
                (i) The business is a participant in the technology transfer program conducted by the qualified military base (as defined in IC 36-7-34-3).
                (ii) The business and the qualified military base have a mutually beneficial relationship evidenced by a memorandum of understanding between the business and the qualified military base (as defined in IC 36-7-34-3).


        However, this subdivision does not apply to a business that substantially reduces or ceases its operations at another location in Indiana in order to relocate its operations in an area described in this subdivision, unless the department determines that the business had existing operations in the area described in this subdivision and that the operations relocated to the area are an expansion of the business's operations in the area.
        (5) The power subsidiary or person sells services or commodities that:
            (A) are referred to in subsection (b); and
            (B) qualify as home energy (as defined in IC 6-2.5-5-16.5);
        to a person who acquires the services or commodities after June 30, 2006, and before July 1, 2009, through home energy assistance (as defined in IC 6-2.5-5-16.5).
SOURCE: IC 6-2.5-5-5.1; (12)AM107214.42. -->     SECTION 42. IC 6-2.5-5-5.1, AS AMENDED BY P.L.172-2011, SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5.1. (a) As used in this section, "tangible personal property" includes electrical energy, natural or artificial gas, water, steam, and steam heat.
    (b) Transactions involving tangible personal property are exempt from the state gross retail tax if the person acquiring the property acquires it for direct consumption as a material to be consumed in the direct production of other tangible personal property in the person's business of manufacturing, processing, refining, repairing, mining, agriculture, horticulture, floriculture, or arboriculture. This exemption includes transactions involving acquisitions of tangible personal property used in commercial printing.
    (c) A refund claim based on the exemption provided by this section for electrical energy, natural or artificial gas, water, steam, and steam heat may not cover transactions that occur more than eighteen (18) thirty-six (36) months before the date of the refund claim.
SOURCE: IC 6-2.5-5-9; (12)AM107214.43. -->     SECTION 43. IC 6-2.5-5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) As used in this section, "returnable containers" means containers customarily returned by the buyer of the contents for reuse as containers.
    (b) Sales of returnable containers are exempt from the state gross retail tax if the transaction constitutes selling at retail as defined in IC 6-2.5-4-1 and if the returnable containers contain contents.
    (c) Sales of returnable containers are exempt from the state gross retail tax if the containers are transferred empty for the purpose of refilling.
    (d) Sales of wrapping material and empty containers are exempt

from the state gross retail tax if the person acquiring the material or containers acquires them for use as nonreturnable packages for:
         (1) selling the contents that he the person adds; or
        (2) shipping or delivering tangible personal property that:
            (A) is owned by another person;
            (B) is processed or serviced for the owner; and
            (C) will be sold by that owner either in the same form or as a part of other tangible personal property produced by that owner in the owner's business of manufacturing, assembling, constructing, refining, or processing.

SOURCE: IC 6-2.5-5-30; (12)AM107214.44. -->     SECTION 44. IC 6-2.5-5-30, AS AMENDED BY P.L.42-2011, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 30. (a) Sales of tangible personal property are exempt from the state gross retail tax if:
        (1) the property constitutes, is incorporated into, or is consumed in the operation of, a device, facility, or structure predominantly used and acquired for the purpose of complying with any state, local, or federal environmental quality statutes, regulations, or standards; and
        (2) the person acquiring the property is engaged in the business of manufacturing, processing, refining, mining, recycling (as defined in section 45 of this chapter), or agriculture.
    (b) The portion of the sales price of tangible personal property which is exempt from state gross retail and use taxes under this section equals the product of:
        (1) the total sales price; multiplied by
        (2) one hundred percent (100%).
SOURCE: IC 6-2.5-5-45; (12)AM107214.45. -->     SECTION 45. IC 6-2.5-5-45 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 45. (a) For purposes of this section, IC 6-2.5-4-5, and section 30 of this chapter, the following definitions apply:
        (1) "Recycling" means the processing of recycling materials and other tangible personal property into a product for sale if the product is predominantly composed of recycling materials. The term does not include the following:
            (A) The demolition of improvements to real estate.
            (B) The processing of tangible personal property primarily for disposal in a licensed solid waste disposal facility rather than for sale.
            (C) The collection of recycling materials by licensed motor vehicles.
        (2) "Recycling materials" means tangible personal property, including metal, paper, glass, plastic, textile, or rubber, that:
            (A) is considered "scrap" by industry standards or has no more than scrap value;
            (B) is a byproduct of another person's manufacturing or production process;
            (C) was previously manufactured or incorporated into a product;
            (D) would otherwise reasonably be expected to be destined for disposal in a licensed solid waste disposal facility; or
            (E) has been removed or diverted from the solid waste stream for sale, use, or reuse as raw materials, regardless of whether or not the materials require subsequent processing or separation from each other.
        (3) "Processing of recycling materials" means:
            (A) the activities involved in collecting or otherwise receiving recycling materials and other tangible personal property; and
            (B) creating a product for sale by changing the original form, use, or composition of the property (whether manually, mechanically, chemically, or otherwise) through weighing, sorting, grading, separating, shredding, crushing, compacting, breaking, cutting, baling, shearing, torching, wire-stripping, or other means.
    (b) Transactions involving machinery, tools, supplies, and equipment are exempt from the state gross retail tax if:
        (1) the person acquiring that property acquires it for use in recycling; and
        (2) the person acquiring that property is occupationally engaged in recycling.
    (c) Transactions involving recycling materials and other tangible personal property to be consumed in the processing of recycling materials or to become a part of the product produced by the processing of recycling materials are exempt from the state gross retail tax if:
        (1) the person acquiring that property acquires it for use in recycling; and
        (2) the person acquiring that property is occupationally engaged in recycling.
".
SOURCE: Page 43, line 16; (12)AM107214.43. -->     Page 43, line 16, delete "P.L.229-2011" and insert "HEA 1009-2012, SECTION 47,".
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SOURCE: IC 6-3.1-24-9; (12)AM107214.45. -->     "SECTION 45. IC 6-3.1-24-9, AS AMENDED BY P.L.172-2011, SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: 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, 2014. 2016. However, this subsection may not be construed to prevent a taxpayer from carrying over to a taxable year beginning after December 31, 2014, 2016, an unused tax credit attributable to an investment occurring before January 1, 2015. 2017.".
SOURCE: Page 65, line 30; (12)AM107214.65. -->     Page 65, line 30, delete "2015." and insert " 2016.".
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SOURCE: IC 6-3.1-31.9-23; (12)AM107214.47. -->     "SECTION 47. IC 6-3.1-31.9-23, AS ADDED BY P.L.223-2007, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 23. (a) This chapter applies to taxable years beginning after December 31, 2006.
    (b) Notwithstanding the other provisions of this chapter, the corporation may not approve a an alternative fuel vehicle manufacturing credit for a qualified investment made after December 31, 2012. 2016. However, this section may not be construed to prevent a taxpayer from carrying an unused tax credit attributable to a qualified investment made before January 1, 2012, 2017, forward to a taxable year beginning after December 31, 2011, 2016, in the manner provided by section 13 of this chapter.
SOURCE: IC 6-3.1-33-9; (12)AM107214.48. -->     SECTION 48. IC 6-3.1-33-9, AS ADDED BY P.L.110-2010,

SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) Before January 1, 2013, 2017, a corporation or pass through entity that desires to qualify for the new employer credit provided by this chapter may submit an application to the IEDC in the form and manner specified by the IEDC.
    (b) The IEDC shall promptly review all applications submitted to the IEDC under this chapter.
    (c) If the IEDC determines that an applicant for the tax credit provided by this chapter has furnished reliable evidence, as determined by the IEDC, that the applicant is reasonably capable of:
        (1) employing at least ten (10) qualified employees in each month of the period specified in section 10(b) of this chapter during the taxable year; and
        (2) meeting the requirements for the tax credit provided by this chapter;
the IEDC may issue the applicant a certificate of approval. If a certificate of approval is issued, the IEDC shall provide a copy of the certificate to the department.
    (d) In making a determination of whether an applicant is qualified for a credit under this chapter, the IEDC may consider the following:
        (1) The applicant's employment levels in previous years to determine if the applicant is hiring new individuals or rehiring individuals.
        (2) Whether the applicant is the successor to part or all of the assets or business operations of another corporation or pass through entity that conducted business operations in Indiana in the same line of business to determine if the applicant is a new Indiana business under this chapter.
    (e) If the IEDC determines that the applicant will not employ at least ten (10) qualified employees in each month of the period specified in section 10(b) of this chapter during the taxable year, is not a new Indiana business, or does not meet, or is unlikely to meet, any other requirements for the tax credit provided by this chapter, the IEDC shall notify the applicant of the IEDC's determination.
    (f) The IEDC may not issue a certificate of approval under this chapter after December 31, 2012. 2016.".

SOURCE: Page 66, line 37; (12)AM107214.66. -->     Page 66, delete lines 37 through 42.
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SOURCE: IC 6-3.5-1.1-9; (12)AM107214.57. -->     "SECTION 57. IC 6-3.5-1.1-9, AS AMENDED BY P.L.229-2011, SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 9. (a) Revenue derived from the imposition of the county adjusted gross income tax shall, in the manner prescribed by this section, be distributed to the county that imposed it. The amount to be distributed to a county during an ensuing calendar year equals the amount of county adjusted gross income tax revenue that the budget agency determines has been:
        (1) received from that county for a taxable year ending before the calendar year in which the determination is made; and
        (2) reported on an annual return or amended return processed by the department in the state fiscal year ending before July 1 of the calendar year in which the determination is made;
as adjusted for refunds of county adjusted gross income tax made in the state fiscal year.
    (b) Before August 2 of each calendar year, the budget agency shall certify to the county auditor of each adopting county the amount determined under subsection (a) plus the amount of interest in the county's account that has accrued and has not been included in a certification made in a preceding year. The amount certified is the county's "certified distribution" for the immediately succeeding calendar year. The amount certified shall be adjusted under subsections (c), (d), (e), (f), and (g). and (h). The budget agency shall provide the county council with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:
        (1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;
        (2) adjustments for over distributions in prior years;
        (3) adjustments for clerical or mathematical errors in prior years;
        (4) adjustments for tax rate changes; and
        (5) the amount of excess account balances to be distributed under IC 6-3.5-1.1-21.1.
The budget agency shall also certify information concerning the part of the certified distribution that is attributable to a tax rate under section 24, 25, or 26 of this chapter. This information must be certified to the county auditor, the department, and the department of local government finance not later than September 1 of each calendar year. The part of the certified distribution that is attributable to a tax rate under section

24, 25, or 26 of this chapter may be used only as specified in those provisions.
    (c) The budget agency shall certify an amount less than the amount determined under subsection (b) if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.
    (d) The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.
    (e) The budget agency shall adjust the certified distribution of a county to provide the county with the distribution required under section 10(b) of this chapter.
    (f) (e) This subsection applies to a county that initially imposes, increases, decreases, or rescinds a tax or tax rate under this chapter before November 1 in the same calendar year in which the budget agency makes a certification under this section. The budget agency shall adjust the certified distribution of a county to provide for a distribution in the immediately following calendar year and in each calendar year thereafter. The budget agency shall provide for a full transition to certification of distributions as provided in subsection (a)(1) through (a)(2) in the manner provided in subsection (c). If the county imposes, increases, decreases, or rescinds a tax or tax rate under this chapter after the date for which a certification under subsection (b) is based, the budget agency shall adjust the certified distribution of the county after August 1 of the calendar year. The adjustment shall reflect any other adjustment required under subsections (c), (d), (e), (f), and (g). and (h). The adjusted certification shall be treated as the county's "certified distribution" for the immediately succeeding calendar year. The budget agency shall certify the adjusted certified distribution to the county auditor for the county and provide the county council with an informative summary of the calculations that revises the informative summary provided in subsection (b) and reflects the changes made in the adjustment.
    (g) (f) The budget agency shall adjust the certified distribution of a county to provide the county with the distribution required under section 3.3 of this chapter beginning not later than the tenth month after

the month in which additional revenue from the tax authorized under section 3.3 of this chapter is initially collected.
    (h) (g) This subsection applies in the year in which a county initially imposes a tax rate under section 24 of this chapter. Notwithstanding any other provision, the budget agency shall adjust the part of the county's certified distribution that is attributable to the tax rate under section 24 of this chapter to provide for a distribution in the immediately following calendar year equal to the result of:
        (1) the sum of the amounts determined under STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which the county initially imposes a tax rate under section 24 of this chapter; multiplied by
        (2) two (2).
    (i) (h) The budget agency shall before May 1 of every odd-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following two (2) calendar years.
    (j) (i) The budget agency shall before May 1 of every even-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following calendar year.
    (k) (j) The estimates under subsections (h) and (i) and (j) must specify the amount of the estimated certified distributions that are attributable to the additional rate authorized under section 24 of this chapter, the additional rate authorized under section 25 of this chapter, the additional rate authorized under section 26 of this chapter, and any other additional rates authorized under this chapter.".

SOURCE: Page 80, line 12; (12)AM107214.80. -->     Page 80, line 12, delete "P.L.77-2011," and insert "HEA 2009-2012, SECTION 54,".
    Page 80, delete line 13.
    Page 80, line 14, delete "CORRECTED AND".
    Page 93, between lines 9 and 10, begin a new paragraph and insert:
SOURCE: IC 6-3.5-6-1.5; (12)AM107214.60. -->     "SECTION 60. IC 6-3.5-6-1.5, AS ADDED BY P.L.113-2010, SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)]: Sec. 1.5. (a) Notwithstanding any other provision of this chapter, a power granted by this chapter to adopt an ordinance to:
        (1) impose, increase, decrease, or rescind a tax or tax rate; or
        (2) grant, increase, decrease, rescind, or change a homestead credit or property tax replacement credit authorized under this chapter;
may be exercised at any time in a year before November 1 of that year.
    (b) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that imposes or increases a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect October 1 of the current year.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect November 1 of the current year.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (c) Notwithstanding any other provision of this chapter, an ordinance authorized by this chapter that decreases or rescinds a tax or a tax rate takes effect as follows:
        (1) An ordinance adopted after December 31 of the immediately preceding year and before October 1 of the current year takes effect on the later of October 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (2) An ordinance adopted after September 30 and before October 16 of the current year takes effect on the later of November 1 of the current year or the first day of the month in the current year as the month in which the last increase in the tax or tax rate occurred.
        (3) An ordinance adopted after October 15 and before November 1 of the current year takes effect December 1 of the current year.
    (d) Notwithstanding any other provision of this chapter, Except as provided in subsection (e), an ordinance authorized by this chapter that grants, increases, decreases, rescinds, or changes a homestead credit or property tax replacement credit authorized under this chapter takes effect for and initially applies to property taxes first due and payable in the year immediately following the year in which the ordinance is adopted.
     (e) This subsection applies only to Miami County. A county income tax council may adopt an ordinance in 2012 to select a different combination of uses specified in section 32(f) of this chapter for tax revenue distributed to the county from a tax rate imposed under section 32 of this chapter (county option income tax rate to provide property tax relief to taxpayers). The county income tax council may provide in the ordinance that the ordinance initially takes effect for and applies to property taxes first due and payable in 2012. This subsection expires January 1, 2013.".
SOURCE: Page 115, line 10; (12)AM107214.115. -->     Page 115, delete lines 10 through 27.
    Page 121, between lines 29 and 30, begin a new paragraph and insert:
    " (z) This subsection applies to Starke County. Except as provided in subsection (o), if an ordinance is adopted under section 27.6 of this chapter, the county economic development income tax rate plus the county adjusted gross income tax rate that is in effect on January 1 of a year may not exceed two percent (2%).".
    Page 123, line 2, after "(f)" delete "," and insert " and".
    Page 123, line 2, after "(g)" delete "," and insert ".".
    Page 123, line 2, strike "and (h).".
    Page 123, strike lines 26 through 28.
    Page 123, line 29, strike "(g)" and insert " (f)".
    Page 123, line 33, strike "(h)" and insert " (g)".
    Page 124, line 4, after "(e)" delete "," and insert " and".
    Page 124, line 4, after "(f)" delete "," and insert ".".
    Page 124, line 4, strike "and (g).".
    Page 124, line 12, strike "(i)" and insert " (h)".
    Page 124, line 16, strike "(j)" and insert " (i)".
    Page 124, line 20, strike "(k)" and insert " (j)".
    Page 124, line 20, strike "(i) and (j)" and insert " (h) and (i)".
    Page 124, line 26, after "27.5," insert " 27.6,".
    Page 126, line 23, strike "and".
    Page 126, line 23, after "27.5" insert ", and 27.6".
    Page 126, line 28, strike "and".
    Page 126, line 28, after "27.5" insert ", and 27.6".
    Page 134, delete lines 38 through 42.
    Delete pages 135 through 139.
    Page 140, delete lines 1 through 20.
    Page 143, line 20, strike "16(c)" and insert " 16".
    Page 143, line 28, strike "16(c)" and insert " 16".
    Page 144, line 8, strike "16(c)" and insert " 16".
    Page 148, between lines 7 and 8, begin a new paragraph and insert:
SOURCE: IC 6-3.5-7-27.6; (12)AM107214.57. -->     "SECTION 57. IC 6-3.5-7-27.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27.6. (a) This section applies to Starke County.
    (b) Starke County possesses unique governmental and economic development challenges due to:
        (1) the county's predominantly rural geography, demography, and economy;
        (2) the county's relatively low tax base and relatively high

property tax rates;
        (3) the current maximum capacity of the county jail, which was constructed in 1976; and
        (4) pending federal class action litigation seeking a mandate to address capacity and living conditions in the county jail.
The use of county economic development income tax revenue under this section is necessary for the county to address jail capacity and appropriate inmate living conditions and to maintain low property tax rates essential to economic development.
The use of the economic development income tax revenue under this section for the purposes described in subsections (c) and (d) promotes that purpose.
    (c) The county council may, by ordinance, determine that additional county economic development income tax revenue is needed in the county to:
        (1) finance, construct, acquire, and equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.

     (d) The county council may, by ordinance, determine that additional county economic development income tax revenue is needed in the county to operate or maintain the facilities described in subsection (c)(1) that are located in the county. The county council may make a determination under this subsection and under subsection (c).
    (e) In addition to the rates permitted by section 5 of this chapter, the county council may, subject to subsections (f) and (g), impose the county economic development income tax at a rate not to exceed sixty-five hundredths percent (0.65%) on the adjusted gross income of county taxpayers if the county council:
        (1) makes the determination described in subsection (c); or
        (2) makes both the determination described in subsection (c) and the determination described in subsection (d).

    (f) If the county council makes only the determination under subsection (c), the county council may adopt a tax rate under subsection (e). The tax rate may not exceed the lesser of:
        (1) sixty-five hundredths percent (0.65%); or


        (2) the tax rate that is necessary to pay the costs of financing, acquiring, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.
    (g) If the county council makes both the determination under subsection (c) and the determination under subsection (d), the county council may adopt a tax rate under subsection (e). The tax rate may not exceed the lesser of:
        (1) sixty-five hundredths percent (0.65%); or
        (2) the tax rate that is necessary to:
            (A) pay the costs of financing, acquiring, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs; and
            (B) provide sufficient annual revenues to operate and maintain the facilities described in subsection (c)(1).
    (h) A tax rate imposed under this section may be imposed only until the later of:
        (1) the date on which the last of any bonds issued or leases entered into to finance the facilities are fully paid; or
        (2) the date on which the ordinance under subsection (c) or (d) is repealed or rescinded.
The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (c)(2) may not exceed twenty-five (25) years.

    (i) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. County economic development income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (j) County economic development income tax revenues derived from the tax rate imposed under this section:
        (1) may be used only for the purposes described in this section;
        (2) may not be considered by the department of local government finance in determining the county's maximum permissible ad valorem property tax levy limit under IC 6-1.1-18.5; and
        (3) may be pledged to the repayment of bonds issued or leases

entered into for the purposes described in subsection (c).".

SOURCE: Page 149, line 23; (12)AM107214.149. -->     Page 149, delete lines 23 through 42, begin a new paragraph and insert:
SOURCE: IC 6-7-2-6; (12)AM107214.95. -->     "SECTION 95. IC 6-7-2-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. As used in this chapter, "wholesale price" means the net price shown on an invoice and at which the manufacturer of the tobacco products sells tobacco products to distributors, excluding any discount or other reduction that is not shown on the invoice.
SOURCE: IC 6-8.1-9-1; (12)AM107214.96. -->     SECTION 96. IC 6-8.1-9-1, AS AMENDED BY P.L.172-2011, SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) If a person has paid more tax than the person determines is legally due for a particular taxable period, the person may file a claim for a refund with the department. Except as provided in subsections (f) and (g), and (h), in order to obtain the refund, the person must file the claim with the department within three (3) years after the latter of the following:
        (1) The due date of the return.
        (2) The date of payment.
For purposes of this section, the due date for a return filed for the state gross retail or use tax, the gasoline tax, the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum severance tax is the end of the calendar year which contains the taxable period for which the return is filed. The claim must set forth the amount of the refund to which the person is entitled and the reasons that the person is entitled to the refund.
    (b) After considering the claim and all evidence relevant to the claim, the department shall issue a decision on the claim, stating the part, if any, of the refund allowed and containing a statement of the reasons for any part of the refund that is denied. The department shall mail a copy of the decision to the person who filed the claim. If the person disagrees with a part of the decision, the person may file a protest and request a hearing with the department. The department shall mail a copy of the decision to the person who filed the protest. If the department allows the full amount of the refund claim, a warrant for the payment of the claim is sufficient notice of the decision.
    (c) If the person disagrees with any part of the department's decision, the person may appeal the decision, regardless of whether or not the person protested the tax payment or whether or not the person has accepted a refund. The person must file the appeal with the tax court. The tax court does not have jurisdiction to hear a refund appeal suit, if:
        (1) the appeal is filed more than three (3) years after the date the claim for refund was filed with the department;
        (2) (1) the appeal is filed more than ninety (90) days after the later of the date the department mails:
            (A) the decision of denial of the claim to the person; or
            (B) the decision made on the protest filed under subsection (b); or
        (3) (2) the appeal is filed both before the decision is issued and before the one hundred eighty-first day after the date the person files the claim for refund with the department.
    (d) The tax court shall hear the appeal de novo and without a jury, and after the hearing may order or deny any part of the appealed refund. The court may assess the court costs in any manner that it feels is equitable. The court may enjoin the collection of any of the listed taxes under IC 33-26-6-2. The court may also allow a refund of taxes, interest, and penalties that have been paid to and collected by the department.
    (e) With respect to the motor vehicle excise tax, this section applies only to penalties and interest paid on assessments of the motor vehicle excise tax. Any other overpayment of the motor vehicle excise tax is subject to IC 6-6-5.
    (f) If a taxpayer's federal income tax liability for a taxable year is modified by the Internal Revenue Service, and the modification would result in a reduction of the tax legally due, the due date by which the taxpayer must file a claim for refund with the department is the later of:
        (1) the date determined under subsection (a); or
        (2) the date that is one hundred eighty (180) days after the date on which the taxpayer is notified of the modification by the Internal Revenue Service.
    (g) If an agreement to extend the assessment time period is entered into under IC 6-8.1-5-2(h), 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.
    (h) If a taxpayer's claim for a refund of gross retail or use tax is based on:
        (1) IC 6-2.5-4-5(c)(3); or
        (2) the exemption provided by IC 6-2.5-5-5.1 for electrical energy, natural or artificial gas, water, steam, and steam heat;
the person must file the claim with the department within eighteen (18) months after the date of payment.".
    Delete pages 150 through 154.
SOURCE: Page 155, line 1; (12)AM107214.155. -->     Page 155, delete lines 1 through 22, begin a new paragraph and

insert:

SOURCE: IC 6-9-33-8; (12)AM107214.105. -->     "SECTION 105. IC 6-9-33-8, AS AMENDED BY P.L.229-2011, SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the county treasurer shall establish a supplemental coliseum improvement fund. The county treasurer shall deposit in this fund all amounts received from the tax imposed under this chapter. Money in this fund:
        (1) may be appropriated only to retire or advance refund bonds issued, loans obtained, or lease payments incurred under IC 36-1-10 (referred to in this chapter as "obligations") to remodel, expand, improve, or acquire an athletic and exhibition coliseum in existence before the effective date of an ordinance adopted under section 3 of this chapter; and
        (2) shall be used to make transfers required by subsection (b).
    (b) There is established a food and beverage tax fund, with a food and beverage tax reserve account, both to be administered by the capital improvement board of managers (IC 36-10-8). The money that is deposited in the supplemental coliseum improvement fund after December 31, 2009, and is not needed in a year to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009, shall be transferred to the capital improvement board. The county treasurer shall make the transfer before February 1 of the following year. The capital improvement board shall deposit the money it receives in the board's food and beverage tax fund reserve account. Money in the reserve account may not be withdrawn or transferred during the year it is received except to make transfers back to the county to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009. However, the capital improvement board may transfer:
        (1) interest earned on money in the reserve account; and
        (2) an amount equal to the balance that has been held in the reserve account for at least twelve (12) months;
to the board's capital improvement fund established by IC 36-10-8-12. food and beverage tax fund and used as provided in subsection (c).
    (c) Excess revenue transferred under subsection (b) to the capital improvement board of managers may be used to provide funding for:
        (1) the construction of a capital improvement (as defined in IC 36-10-1-4);
        (2) an economic development project as described in:
            (A) IC 6-3.5-7-13.1(c)(1) or IC 6-3.5-7-13.1(c)(2)(A) through IC 6-3.5-7-13.1(c)(2)(I); and
            (B) IC 6-3.5-7-13.1(c)(2)(K); or
        (3) financing a capital improvement or an economic development project described in subdivision (1) or (2).
In carrying out this subsection, the capital improvement board may borrow against future tax revenue that will be collected under this chapter. In addition, the capital improvement board may use an amount not to exceed one hundred thousand dollars ($100,000) annually from the tax revenue collected under this chapter to pay expenses related to investigating a potential capital improvement or economic development project, including feasibility and preliminary engineering studies related to such a capital improvement or economic development project.
    (d) Excess revenue transferred under subsection (b) to the capital improvement board of managers may not be used to:
        (1) provide funding for improvements initiated before January 1, 2009, that are located in the area bounded on the north by Jefferson Boulevard, on the east by Harrison Street, on the south by Breckenridge Street, and on the west by Ewing Street as those public ways were located on January 1 2009, as part of the Harrison Square project;
        (2) provide for debt service or lease payments for a project for which the obligations for the project were incurred before January 1, 2009; or
        (3) pay operational expenses for any facilities of the municipality.
SOURCE: IC 6-9-43; (12)AM107214.106. -->     SECTION 106. IC 6-9-43 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 43. Town of Fishers Food and Beverage Tax
    Sec. 1. This chapter applies to the Town of Fishers.

     Sec. 2. The definitions in IC 6-9-12-1 apply throughout this chapter.
    Sec. 3. (a) The fiscal body of the town may adopt an ordinance not later than September 30, 2012, to impose an excise tax, known as the town food and beverage tax, on transactions described in section 4 of this chapter.
    (b) If the town fiscal body adopts an ordinance under subsection (a), the town fiscal body shall immediately send a certified copy of the ordinance to the department of state revenue.
    (c) If the town fiscal body adopts an ordinance under subsection (a), the town food and beverage tax applies to transactions that occur after the last day of the month that succeeds the month in which the ordinance is adopted.
    Sec. 4. (a) Except as provided in subsection (c), a tax imposed under section 3 of this chapter applies to a transaction in which food or beverage is furnished, prepared, or served:
        (1) for consumption at a location or on equipment provided by a retail merchant;
        (2) in the town; and
        (3) by a retail merchant for consideration.
    (b) Transactions described in subsection (a)(1) include transactions in which food or beverage is:
        (1) served by a retail merchant off the merchant's premises;
        (2) food sold in a heated state or heated by a retail merchant;
        (3) made of two (2) or more food ingredients, mixed or combined by a retail merchant for sale as a single item (other than food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, subpart 3-401.11 of its Food Code so as to prevent food borne illnesses); or
        (4) food sold with eating utensils provided by a retail merchant, including plates, knives, forks, spoons, glasses, cups, napkins, or straws (for purposes of this subdivision, a plate does not include a container or package used to transport the food).
    (c) The town food and beverage tax does not apply to the furnishing, preparing, or serving of a food or beverage in a transaction that is exempt, or to the extent the transaction is exempt, from the state gross retail tax imposed by IC 6-2.5.
    Sec. 5. The town food and beverage tax imposed on a food or beverage transaction described in section 4 of this chapter equals one percent (1%) of the gross retail income received by the merchant from the transaction. For purposes of this chapter, the gross retail income received by the retail merchant from a transaction does not include the amount of tax imposed on the transaction under IC 6-2.5.

     Sec. 6. A tax imposed under this chapter shall be imposed, paid, and collected in the same manner that the state gross retail tax is imposed, paid, and collected under IC 6-2.5. However, the return to be filed with the payment of the tax imposed under this chapter may be made on a separate return or may be combined with the return filed for the payment of the state gross retail tax, as prescribed by the department of state revenue.
    Sec. 7. The amounts received from the tax imposed under this chapter shall be paid monthly by the treasurer of state to the town fiscal officer upon warrants issued by the auditor of state.
    Sec. 8. (a) If a tax is imposed under section 3 of this chapter by a town, the town fiscal officer shall
establish a food and beverage tax receipts fund.
    (b) The town fiscal officer shall deposit in this fund all amounts received under this chapter.
    (c) Money earned from the investment of money in the fund becomes a part of the fund.

     Sec. 9. Money in the food and beverage tax receipts fund shall be used by the town:
        (1) to reduce the town's property tax levy for a particular year at the discretion of the town, but this use does not reduce the maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for the town; or
        (2) for any legal or corporate purpose of the town, including the pledge of money to bonds, leases, or other obligations under IC 5-1-14-4.
Revenue derived from the imposition of a tax under this chapter may be treated by the town as additional revenue for the purpose of fixing its budget for the budget year during which the revenues are to be distributed to the town.
    Sec. 10. With respect to obligations for which a pledge has been made under section 9 of this chapter, the general assembly covenants with the holders of the obligations that this chapter will not be repealed or amended in a manner that will adversely affect the imposition or collection of the tax imposed under this chapter if the payment of any of the obligations is outstanding.

SOURCE: IC 8-14-1-5; (12)AM107214.107. -->     SECTION 107. IC 8-14-1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) All funds allocated to cities and towns from the motor vehicle highway account shall be used by the cities and towns for the construction, reconstruction, repair, maintenance, oiling, sprinkling, snow removal, weed and tree cutting, and cleaning of their highways as herein defined, and including also any curbs, and the city's or town's share of the cost of the separation of the grades of crossing of public highways and railroads, the purchase or lease of highway construction and maintenance equipment, the purchase, erection, operation and maintenance of traffic signs and signals, and safety zones and devices; and the painting of structures, objects, surfaces in highways for purposes of safety and traffic regulation. All of such funds shall be

budgeted as provided by law.
    (b) In addition to purposes for which funds may be expended under subsections subsection (a), and (c) of this section, monies allocated to cities and towns under this chapter may be expended for the following purposes:
        (1)
Law enforcement purposes, subject to the following limitations:
            (1) (A) For cities and towns with a population of less than five thousand (5,000), no more than fifteen percent (15%) may be spent for law enforcement purposes.
            (2) (B) For cities and towns other than those specified in subdivision (1) of this subsection, clause (A), no more than ten percent (10%) may be spent for law enforcement purposes.
         (2) The payment of principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects.
        (3) Any purpose for which money may be used under IC 8-14-2.

    (c) In addition to purposes for which funds may be expended under subsections (a) and (b) of this section, monies allocated to cities and towns under this chapter may be expended for the payment of principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects.

SOURCE: IC 8-14-2-5; (12)AM107214.108. -->     SECTION 108. IC 8-14-2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. Except as provided in section 5.5 of this chapter, money from the local road and street account shall be used exclusively by the cities, towns, and counties for:
        (1) engineering, land acquisition, construction, resurfacing, maintenance, restoration, or rehabilitation of both local and arterial road and street systems;
        (2) the payment of principal and interest on bonds sold primarily to finance road, street, or thoroughfare projects;
        (3) any local costs required to undertake a recreational or reservoir road project under IC 8-23-5; or
        (4) the purchase, rental, or repair of highway equipment.
SOURCE: IC 8-14-2-5.5; (12)AM107214.109. -->     SECTION 109. IC 8-14-2-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.5. In addition to the purposes described in section 5 of this chapter, money from the local road and street account allocated to cities and towns may be used for any purpose for which money may be used under IC 8-14-1.".
SOURCE: Page 156, line 21; (12)AM107214.156. -->     Page 156, delete lines 21 through 42.
    Delete pages 157 through 160.
    Page 161, delete lines 1 through 27.
    Page 163, between lines 24 and 25, begin a new paragraph and insert:
SOURCE: IC 36-7-15.1-16; (12)AM107214.117. -->     "SECTION 117. IC 36-7-15.1-16, AS AMENDED BY P.L.146-2008, SECTION 750, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 16. (a) For the purpose of raising money to carry out this chapter or IC 36-7-15.3, the city-county legislative body may levy each year a special tax upon all property in the redevelopment district. The tax so levied each year shall be certified to the fiscal officers of the city and the county before September 2 November 1 of each year. The tax shall be estimated and entered upon the tax duplicates by the county auditor, and shall be collected and enforced by the county treasurer in the same manner as state and county taxes are estimated, entered, collected, and enforced.
    (b) As the tax is collected by the county treasurer, it shall be accumulated and kept in a separate fund to be known as the redevelopment district fund and shall be expended and applied only for the purposes of this chapter or IC 36-7-15.3.
    (c) The amount of the special tax levy shall be based on the budget of the department but may not exceed one and sixty-seven hundredths cents ($0.0167) on each one hundred dollars ($100) of taxable valuation in the redevelopment district, except as otherwise provided in this chapter.
    (d) The budgets and tax levies under this chapter are subject to review and modification in the manner prescribed by IC 36-3-6.
SOURCE: IC 36-7-31.3-10; (12)AM107214.118. -->     SECTION 118. IC 36-7-31.3-10, AS AMENDED BY P.L.182-2009(ss), SECTION 511, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. (a) A tax area must be established by resolution. A resolution establishing a tax area must provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the professional sports and convention development area fund established for the city or county. The allocation provision must apply to the entire tax area. However, for all tax areas located in a county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000), The following apply to Allen County:
        (1) The fund required by this subsection is the coliseum professional sports and convention development area fund. This fund shall be administered by the Allen County Memorial Coliseum board of trustees.
        (2)
The allocation each year must be as follows:
            (1) (A) The first two million six hundred thousand dollars ($2,600,000) shall be transferred to the county treasurer for deposit in the supplemental coliseum improvement professional sports and convention development area fund.
            (2) (B) The remaining amount shall be transferred to the treasurer of the joint county-city capital improvement board in the county.
The resolution must provide the tax area terminates not later than December 31, 2027.
    (b) In addition to subsection (a), all of the salary, wages, bonuses, and other compensation that are:
        (1) paid during a taxable year to a professional athlete for professional athletic services;
        (2) taxable in Indiana; and
        (3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is a member of a team that plays the majority of the professional athletic events that the team plays in Indiana in the tax area.
    (c) For a tax area that is:
        (1) not located in a county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000); and
        (2) not located in a city having a population of more than one hundred five thousand (105,000) and (100,000) but less than one hundred twenty ten thousand (120,000); (110,000);
the total amount of state revenue captured by the tax area may not exceed five dollars ($5) per resident of the city or county per year for twenty (20) consecutive years.
    (d) For a tax area that is located in a city having a population of more than one hundred five thousand (105,000) and (100,000) but less than one hundred twenty ten thousand (120,000), (110,000), the total amount of state revenue captured by the tax area may not exceed six dollars and fifty cents ($6.50) per resident of the city per year for twenty (20) consecutive years.
    (e) The resolution establishing the tax area must designate the facility or proposed facility and the facility site for which the tax area is established.
    (f) The department may adopt rules under IC 4-22-2 and guidelines to govern the allocation of covered taxes to a tax area.
SOURCE: IC 36-7-37.2; (12)AM107214.119. -->     SECTION 119. IC 36-7-37.2 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS

[EFFECTIVE JULY 1, 2013]:
     Chapter 37.2. Residential Historic Rehabilitation Grant Program
    Sec. 1. This chapter applies to any county (in the case of the unincorporated area of the county), city, or town in which a Section 42 of the Internal Revenue Code low income housing tax credit property is located.
    Sec. 2. The definitions set forth in IC 6-3.1-22 apply throughout this chapter.
    Sec. 3. (a) The fiscal body of a county, city, or town may adopt an ordinance to establish a residential historic rehabilitation grant program.
    (b) The grant program shall be administered by the redevelopment commission of the county, city, or town.
    (c) Grants may be made only to pay for qualified expenditures of a taxpayer that qualifies for a residential historic rehabilitation income tax credit under IC 6-3.1-22.
    (d) A redevelopment commission may require a taxpayer to apply for a grant on a form prescribed by the redevelopment commission.
    Sec. 4. (a) If the fiscal body of a county, city, or town adopts an ordinance to establish a residential historic rehabilitation grant program, the fiscal body shall also establish a residential historic rehabilitation grant fund.
    (b) The fund consists of money attributable to the increment determined under section 5 of this chapter. Interest earned on money in the fund shall be credited to the fund.
    (c) Money in the fund must be appropriated by the county's, city's, or town's fiscal body before the money may be used to provide a grant under this chapter.
    Sec. 5. (a) If the fiscal body of a county, city, or town adopts an ordinance to establish a residential historic rehabilitation grant program, the auditor of the county shall determine the amount of property taxes attributable to any increase in the assessed value of each low income housing tax credit property located in the unincorporated area of the county, city, or town as a result of considering the value of federal income tax credits awarded under Section 42 of the Internal Revenue Code after December 31, 2012, in determining the assessed value of low income housing tax credit property as provided in IC 6-1.1-4-40.
    (b) The amount of property taxes determined under subsection (a) shall be treated as a property tax levy separate from the

county's, city's, or town's property tax levy and in the same manner as if the amount were a tax increment finance levy for the redevelopment commission.
    (c) The amount of property taxes determined under this section shall be deposited in the county's, city's, or town's residential historic rehabilitation grant fund.

SOURCE: IC 36-8-15-19; (12)AM107214.120. -->     SECTION 120. IC 36-8-15-19, AS AMENDED BY P.L.182-2009(ss), SECTION 440, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 19. (a) This subsection applies to a county that has a population of more than one hundred eighty-two eighty-five thousand seven hundred ninety (182,790) (185,000) but less than two hundred fifty thousand (200,000). (250,000). For the purpose of raising money to fund the operation of the district, the county fiscal body may impose, for property taxes first due and payable during each year after the adoption of an ordinance establishing the district, an ad valorem property tax levy on property within the district. The property tax rate for that levy may not exceed five cents ($0.05) on each one hundred dollars ($100) of assessed valuation.
    (b) This subsection applies to a county having a consolidated city. The county fiscal body may elect to fund the operation of the district from part of the certified distribution, if any, that the county is to receive during a particular calendar year under IC 6-3.5-6-17. To make such an election, the county fiscal body must adopt an ordinance before September November 1 of the immediately preceding calendar year. The county fiscal body must specify in the ordinance the amount of the certified distribution that is to be used to fund the operation of the district. If the county fiscal body adopts such an ordinance, it shall immediately send a copy of the ordinance to the county auditor.
    (c) Subject to subsections (d), (e), and (f), if an ordinance or resolution is adopted changing the territory covered by the district or the number of public agencies served by the district, the department of local government finance shall, for property taxes first due and payable during the year after the adoption of the ordinance, adjust the maximum permissible ad valorem property tax levy limits of the district and the units participating in the district.
    (d) If a unit by ordinance or resolution joins the district or elects to have its public safety agencies served by the district, the department of local government finance shall reduce the maximum permissible ad valorem property tax levy of the unit for property taxes first due and payable during the year after the adoption of the ordinance or resolution. The reduction shall be based on the amount budgeted by the

unit for public safety communication services in the year in which the ordinance was adopted. If such an ordinance or resolution is adopted, the district shall refer its proposed budget, ad valorem property tax levy, and property tax rate for the following year to the department of local government finance, which shall review and set the budget, levy, and rate as though the district were covered by IC 6-1.1-18.5-7.
    (e) If a unit by ordinance or resolution withdraws from the district or rescinds its election to have its public safety agencies served by the district, the department of local government finance shall reduce the maximum permissible ad valorem property tax levy of the district for property taxes first due and payable during the year after the adoption of the ordinance or resolution. The reduction shall be based on the amounts being levied by the district within that unit. If such an ordinance or resolution is adopted, the unit shall refer its proposed budget, ad valorem property tax levy, and property tax rate for public safety communication services to the department of local government finance, which shall review and set the budget, levy, and rate as though the unit were covered by IC 6-1.1-18.5-7.
    (f) The adjustments provided for in subsections (c), (d), and (e) do not apply to a district or unit located in a particular county if the county fiscal body of that county does not impose an ad valorem property tax levy under subsection (a) to fund the operation of the district.
    (g) A county that has adopted an ordinance under section 1(3) of this chapter may not impose an ad valorem property tax levy on property within the district to fund the operation or implementation of the district.

SOURCE: IC 36-9-4-42; (12)AM107214.121. -->     SECTION 121. IC 36-9-4-42 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 42. (a) A municipality or a public transportation corporation that expends money for the establishment or maintenance of an urban mass transportation system under this chapter may acquire the money for these expenditures:
        (1) by issuing bonds under section 43 or 44 of this chapter;
        (2) by borrowing money made available for such purposes by any source;
        (3) by accepting grants or contributions made available for such purposes by any source;
        (4) in the case of a municipality, by appropriation from the general fund of the municipality, or from a special fund that the municipal legislative body includes in the municipality's budget; or
        (5) in the case of a public transportation corporation, by levying a tax under section 49 of this chapter or by recommending an

election to use revenue from the county option income taxes, as provided in subsection (c).
    (b) Money may be acquired under this section for the purpose of exercising any of the powers granted by or incidental to this chapter, including:
        (1) studies under section 4, 9, or 11 of this chapter;
        (2) grants in aid;
        (3) the purchase of buses or real property by a municipality for lease to an urban mass transportation system, including the payment of any amount outstanding under a mortgage, contract of sale, or other security device that may attach to the buses or real property;
        (4) the acquisition by a public transportation corporation of property of an urban mass transportation system, including the payment of any amount outstanding under a mortgage, contract of sale, or other security device that may attach to the property;
        (5) the operation of an urban mass transportation system by a public transportation corporation, including the acquisition of additional property for such a system; and
        (6) the retirement of bonds issued and outstanding under this chapter.
    (c) This subsection applies only to a public transportation corporation located in a county having a consolidated city. In order to provide revenue to a public transportation corporation during a year, the public transportation corporation board may recommend and the county fiscal body may elect to provide revenue to the corporation from part of the certified distribution, if any, that the county is to receive during that same year under IC 6-3.5-6-17. To make the election, the county fiscal body must adopt an ordinance before September November 1 of the preceding year. The county fiscal body must specify in the ordinance the amount of the certified distribution that is to be used to provide revenue to the corporation. If such an ordinance is adopted, the county fiscal body shall immediately send a copy of the ordinance to the county auditor.

SOURCE: ; (12)AM107214.122. -->     SECTION 122. [EFFECTIVE JULY 1, 2013] (a) The executive of either of the following townships may, upon approval by the township fiscal body, submit a petition to the department of local government finance for an increase in the maximum permissible ad valorem property tax levy under IC 36-8-13 (for township fire protection and emergency services) for property taxes first due and payable in 2013:
        (1) Barkley Township in Jasper County.
        (2) Union Township
in Jasper County.
    (b) The department of local government finance shall increase the maximum permissible ad valorem property tax levy under IC 36-8-13 for a township that submits a petition under this SECTION by the lesser of:
        (1) the amount of the increase requested in the petition; or
        (2) the amount necessary to increase the township's maximum permissible ad valorem property tax levy under IC 36-8-13 for property taxes first due and payable in 2013 to the amount of the township's maximum permissible ad valorem property tax levy under IC 36-8-13 that applied to taxes first due and payable in 2003.
    (c) A township's maximum permissible ad valorem property tax levy under IC 36-8-13 for property taxes first due and payable in 2013, as adjusted under this SECTION, shall be used in the determination of the township's maximum permissible ad valorem property tax levy under IC 36-8-13 for property taxes first due and payable in 2014 and thereafter.
    (d) This SECTION expires January 1, 2015.

SOURCE: ; (12)AM107214.123. -->     SECTION 123. [EFFECTIVE JANUARY 1, 2012 (RETROACTIVE)] (a) IC 6-1.1-12-26.1, as added by this act, applies to property taxes first due and payable after 2012. A deduction statement filed before September 1, 2012, under IC 6-1.1-12-27.1, as amended by this act, is considered timely filed for purposes of obtaining the deduction under IC 6-1.1-12-26.1, as added by this act, in 2012 for property taxes first due and payable in 2013.
    (b) This SECTION expires January 1, 2014.

SOURCE: ; (12)AM107214.124. -->     SECTION 124. [EFFECTIVE JANUARY 1, 2013] (a) IC 6-2.3-4-7, as added by this act, applies to taxable years beginning after
December 31, 2012.
    (b) This SECTION expires January 1, 2015.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1072 as reprinted January 28, 2012.)

and when so amended that said bill do pass .

Committee Vote: Yeas 8, Nays 4.

____________________________________

Senator Hershman, Chairperson


AM 107214/DI 73    2012