Introduced Version






HOUSE BILL No. 1147

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-12; IC 6-6-5; IC 10-17-5-4.

Synopsis: Motor vehicle license tax credit for veterans. Allows certain disabled veterans, surviving spouses, and World War I veterans to claim a credit against the annual motor vehicle license excise tax regardless of whether the veteran or surviving spouse owns or is buying other real or personal property against which the veteran or surviving spouse may claim a property tax deduction for disabled veterans, surviving spouses, or World War I veterans. Provides that the Indiana department of veterans' affairs is the agency responsible for substantiating the military service and disability requirements specified for various tax benefits available to veterans, and requires the department to issue certificates of eligibility for those tax benefits.

Effective: July 1, 2013; January 1, 2014.





Niezgodski, Baird, Moseley




    January 23, 2013, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 118th General Assembly (2013)


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.
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HOUSE BILL No. 1147



    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 6-1.1-12-13; (13)IN1147.1.1. -->     SECTION 1. IC 6-1.1-12-13, AS AMENDED BY P.L.1-2010, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 13. (a) Except as provided in section 40.5 of this chapter, an individual may have twenty-four thousand nine hundred sixty dollars ($24,960) deducted from the assessed value of the taxable tangible property that the individual owns, or real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home, if the contract or a memorandum of the contract is recorded in the county recorder's office and if:
        (1) the individual served in the military or naval forces of the United States during any of its wars;
        (2) the individual received an honorable discharge;
        (3) the individual has a disability with a service connected disability of ten percent (10%) or more;
        (4) the individual's disability is evidenced by:
            (A) for verifications of eligibility performed before January 1, 2014, a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs; or
            (B) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a deduction under this section; and
        (5) the individual:
            (A) owns the real property, mobile home, or manufactured home; or
            (B) is buying the real property, mobile home, or manufactured home under contract;
        on the date the statement required by section 15 of this chapter is filed.
    (b) The surviving spouse of an individual may receive the deduction provided by this section if the individual would qualify for the deduction if the individual were alive.
    (c) One who receives the deduction provided by this section may not receive the deduction provided by section 16 of this chapter. However, the individual may receive any other property tax deduction which the individual is entitled to by law.
    (d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property, mobile home, or manufactured home may not claim the deduction provided under this section against that real property, mobile home, or manufactured home.
SOURCE: IC 6-1.1-12-14; (13)IN1147.1.2. -->     SECTION 2. IC 6-1.1-12-14, AS AMENDED BY P.L.1-2009, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 14. (a) Except as provided in subsection (c) and except as provided in section 40.5 of this chapter, an individual may have the sum of twelve thousand four hundred eighty dollars ($12,480) deducted from the assessed value of the tangible property that the individual owns (or the real property, mobile home not assessed as real property, or manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home if the contract or a memorandum of the

contract is recorded in the county recorder's office) if:
        (1) the individual served in the military or naval forces of the United States for at least ninety (90) days;
        (2) the individual received an honorable discharge;
        (3) the individual either:
            (A) has a total disability; or
            (B) is at least sixty-two (62) years old and has a disability of at least ten percent (10%);
        (4) the individual's disability is evidenced by:
            (A) for verifications of eligibility performed before January 1, 2014, a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs; or
            (B) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a deduction under this section; and
        (5) the individual:
            (A) owns the real property, mobile home, or manufactured home; or
            (B) is buying the real property, mobile home, or manufactured home under contract;
        on the date the statement required by section 15 of this chapter is filed.
    (b) Except as provided in subsection (c), the surviving spouse of an individual may receive the deduction provided by this section if the individual would qualify for the deduction if the individual were alive.
    (c) No one is entitled to the deduction provided by this section if the assessed value of the individual's tangible property, as shown by the tax duplicate, exceeds one hundred forty-three thousand one hundred sixty dollars ($143,160).
    (d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property, mobile home, or manufactured home may not claim the deduction provided under this section against that real property, mobile home, or manufactured home.

SOURCE: IC 6-1.1-12-15; (13)IN1147.1.3. -->     SECTION 3. IC 6-1.1-12-15, AS AMENDED BY P.L.144-2008, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 15. (a) Except as provided in section 17.8 of

this chapter and subject to section 45 of this chapter, an individual who desires to claim the deduction provided by section 13 or section 14 of this chapter must file a statement with the auditor of the county in which the individual resides. With respect to real property, the statement must be filed during the year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of each year for which the individual wishes to obtain the deduction. 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. The statement shall contain a sworn declaration that the individual is entitled to the deduction.
    (b) In addition to the statement, the individual shall submit to the county auditor for the auditor's inspection:
        (1) for verifications of eligibility performed before January 1, 2014, a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 13 of this chapter;
        (2) for verifications of eligibility performed before January 1, 2014, a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 14 of this chapter; or
        (3) the appropriate certificate of eligibility issued to the individual by the Indiana department of veterans' affairs if the individual claims the deduction provided by section 13 or 14 of this chapter.
    (c) If the individual claiming the deduction is under guardianship, the guardian shall file the statement required by this section.
    (d) If the individual claiming a deduction under section 13 or 14 of this chapter is buying real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property under a contract that provides that the individual is to pay property taxes for the real estate, mobile home, or manufactured home, the statement required by this section must contain the record number and page where the contract or memorandum of the contract is recorded.

SOURCE: IC 6-1.1-12-17; (13)IN1147.1.4. -->     SECTION 4. IC 6-1.1-12-17, AS AMENDED BY P.L.144-2008, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2014]: Sec. 17. (a) Except as provided in section 17.8 of this chapter and subject to section 45 of this chapter, a surviving spouse who desires to claim the deduction provided by section 16 of this chapter must file a statement with the auditor of the county in which

the surviving spouse resides. With respect to real property, the statement must be filed during the year for which the surviving spouse wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of each year for which the individual wishes to obtain the deduction. 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. The statement shall contain:
        (1) a sworn statement that the surviving spouse is entitled to the deduction; and
        (2) the record number and page where the contract or memorandum of the contract is recorded, if the individual is buying the real property on a contract that provides that the individual is to pay property taxes on the real property.
     (b) In addition to the statement required by subsection (a), the surviving spouse shall submit to the county auditor for the auditor's inspection:
         (1) for verifications performed before January 1, 2014, a letter or certificate from the United States Department of Veterans Affairs; or
        (2) a certificate from the Indiana department of veterans' affairs;

establishing the service of the deceased spouse in the military or naval forces of the United States before November 12, 1918.

SOURCE: IC 6-6-5-5; (13)IN1147.1.5. -->     SECTION 5. IC 6-6-5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) The amount of tax imposed by this chapter shall be based upon the classification of the vehicle, as provided in section 4 of this chapter, and the age of the vehicle, in accordance with the schedule set out in subsection (b) or (c). or (d).
    (b) A person who owns a vehicle and who is entitled to a property tax deduction under IC 6-1.1-12-13, IC 6-1.1-12-14, IC 6-1.1-12-16, or IC 6-1.1-12-17.4 is entitled to a credit against the annual license excise tax as follows: Any remaining deduction from assessed valuation to which the person is entitled, applicable to property taxes payable in the year in which the excise tax imposed by this chapter is due, after allowance of the deduction on real estate and personal property owned by the person, shall reduce the annual excise tax in the amount of two dollars ($2) on each one hundred dollars ($100) of taxable value or major portion thereof. The county auditor shall, upon request, furnish a certified statement to the person verifying the credit allowable under this section and the statement shall be presented to and retained by the

bureau to support the credit.
    (c) (b) After January 1, 1996, the tax schedule is as follows:
    Year of
Manufacture    I     II     III     IV     V
1st    $12     $36     $50     $50     $66
2nd    12     30     50     50     57
3rd    12     27     42     50     50
4th    12     24     33     50     50
5th    12     18     24     48     50
6th    12     12     18     36     50
7th    12     12     12     24     42
8th    12     12     12     18     24
9th    12     12     12     12     12
10th    12     12     12     12     12
and thereafter
    Year of
Manufacture    VI     VII     VIII     IX     X
1st    $84     $103     $123     $150     $172
2nd    74     92     110     134     149
3rd    63     77     93     115     130
4th    52     64     78     98     112
5th    50     52     64     82     96
6th    50     50     50     65     79
7th    49     50     50     52     65
8th    30     40     50     50     53
9th    18     21     34     40     50
10th    12     12     12     12     12
and thereafter
    Year of
Manufacture    XI     XII     XIII     XIV     XV
1st    $207     $250     $300     $350     $406
2nd    179     217     260     304     353
3rd    156     189     225     265     307
4th    135     163     184     228     257
5th    115     139     150     195     210
6th    94     114     121     160     169
7th    78     94     96     132     134
8th    64     65     65     91     91
9th    50     50     50     50     50
10th    21     26     30     36     42
and thereafter
    Year of


Manufacture    XVI     XVII
1st    $469     $532
2nd    407     461
3rd    355     398
4th    306     347
5th    261     296
6th    214     242
7th    177     192
8th    129     129
9th    63     63
10th    49     50
and thereafter.
    (d) (c) Every vehicle shall be taxed as a vehicle in its first year of manufacture throughout the calendar year in which vehicles of that make and model are first offered for sale in Indiana, except that a vehicle of a make and model first offered for sale in Indiana after August 1 of any year shall continue to be taxed as a vehicle in its first year of manufacture until the end of the calendar year following the year in which it is first offered for sale. Thereafter, the vehicle shall be considered to have aged one (1) year as of January 1 of each year.
SOURCE: IC 6-6-5-5.7; (13)IN1147.1.6. -->     SECTION 6. IC 6-6-5-5.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5.7. (a) The following definitions apply throughout this section:
        (1) "Eligible veteran or surviving spouse" means any of the following:
            (A) A World War I veteran who is a resident of Indiana.
            (B) An individual described in subdivision (2), (3), or (4).
        (2) "Partially disabled veteran" means an individual who meets the conditions specified in IC 6-1.1-12-13(a)(1) through IC 6-1.1-12-13(a)(3).
        (3) "Surviving spouse" means a surviving spouse:
            (A) whose deceased spouse is described by subdivision (2) or (4) at the time of the deceased spouse's death; or
            (B) who is described in IC 6-1.1-12-16(a)(1) and IC 6-1.1-12-16(a)(2).
        (4) "Totally disabled veteran" means an individual who meets the conditions specified in IC 6-1.1-12-14(a)(1) through IC 6-1.1-12-14(a)(3).
    (b) Each year, an eligible veteran or surviving spouse to whom the Indiana department of veterans' affairs has issued a certificate of eligibility for the credit provided by this section is entitled to a

credit against the eligible veteran or surviving spouse's annual license excise tax in an amount determined in STEP FOUR of the following STEPS:
        STEP ONE: Determine one (1) of the following amounts:
            (A) If the eligible veteran or surviving spouse is a World War I veteran who is a resident of Indiana, the result of this STEP is the maximum deduction specified in IC 6-1.1-12-17.4(a).
            (B) If the eligible veteran or surviving spouse is a partially disabled veteran or the surviving spouse of a partially disabled veteran, the result of this STEP is the maximum deduction specified in IC 6-1.1-12-13(a).
            (C) If the eligible veteran or surviving spouse is a surviving spouse described in subsection (a)(3)(B), the result of this STEP is the maximum deduction specified in IC 6-1.1-12-16(a).
            (D) If the eligible veteran or surviving spouse is a totally disabled veteran or the surviving spouse of a totally disabled veteran, the result of this STEP is the maximum deduction specified in IC 6-1.1-12-14(a).
        STEP TWO: Determine the amount of the property tax deduction that the eligible veteran or surviving spouse is actually claiming for the year, if any, under IC 6-1.1-12-13, IC 6-1.1-12-14, IC 6-1.1-12-16, or IC 6-1.1-12-17.4, as applicable.

         STEP THREE: Determine:
            (A) the STEP ONE result; minus
            (B) the STEP TWO result.
        STEP FOUR: Multiply:
            (A) the STEP THREE result; by
            (B) two percent (2%);
        rounding the result to the nearest dollar.

SOURCE: IC 10-17-5-4; (13)IN1147.1.7. -->     SECTION 7. IC 10-17-5-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) The Indiana department of veterans' affairs shall issue certificates of eligibility to veterans and surviving spouses of veterans who qualify for various tax benefits that require verification of military service or disability, including:
        (1) the property tax deductions under IC 6-1.1-12
- 13, IC 6-1.1-12-14, and IC 6-1.1-12-16; and
        (2) the annual license excise tax credit under IC 6-6-5-5.7.
    (b) The Indiana department of veterans' affairs may maintain

a data base of the certificates of eligibility issued under subsection (a) and provide for access to the data base for purposes of verification by:
        (1) the county auditors;
        (2) the bureau of motor vehicles; and
        (3) any other governmental entity in Indiana that administers tax benefits for veterans.