HB 1546-1_ Filed 04/03/2013, 12:03
COMMITTEE REPORT
MADAM PRESIDENT:
The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1546,
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 16, line 20; (13)CR154602.16. -->
Page 16, between lines 20 and 21, begin a new paragraph and insert:
SOURCE: IC 6-3.5-1.1-2.5; (13)CR154602.12. -->
"SECTION 12. IC 6-3.5-1.1-2.5, AS AMENDED BY P.L.119-2012,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2.5. (a) This section applies only to Jackson
County.
(b) As used in this section, "fiscal year" means a twelve (12) month
period beginning July 1 and ending June 30.
(c) (b) The county council may, by ordinance, determine that
additional county adjusted gross income tax revenue is needed in the
county to fund the operation and maintenance of a jail and juvenile
detention center opened after July 1, 1998.
(d) (c) Notwithstanding section 2 of this chapter, if the county
council adopts an ordinance under subsection
(c), (b), the county
council may impose the county adjusted gross income tax at a rate of
one and one-tenth percent (1.1%) on adjusted gross income for
fiscal
calendar years
beginning ending before
July 1, 2011. January 1,
2024. For
fiscal calendar years beginning after
June 30, 2011,
December 31, 2023, the rate is reduced to one percent (1%). If the
county council imposes the county adjusted gross income tax at a rate
of one and one-tenth percent (1.1%), the county council may decrease
the rate or rescind the tax in the manner provided under this chapter.
(e) (d) If the county imposes the county adjusted gross income tax
at a rate of one and one-tenth percent (1.1%) under this section, the
revenue derived from a tax rate of one-tenth percent (0.1%) on adjusted
gross income:
(1) shall be paid to the county treasurer;
(2) may be used only to pay the costs of operating a jail and
juvenile detention center opened after July 1, 1998; and
(3) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5.
SOURCE: IC 6-3.5-1.1-27; (13)CR154602.13. -->
SECTION 13. IC 6-3.5-1.1-27 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 27. (a) This section applies only
to an additional tax rate imposed in Jackson County under section
2.5 of this chapter.
(b) This subsection applies to an additional tax rate imposed
after June 30, 2011, and before July 1, 2013. Notwithstanding
section 2.5 of this chapter (as in effect on January 1, 2013), the
imposition, collection, and distribution of county adjusted gross
income taxes attributable to the additional tax rate is legalized and
validated.
(c) Any action described in subsection (b) of:
(1) the department;
(2) the budget agency; or
(3) an officer or employee of Jackson County;
is legalized and validated.
(d) The additional tax rate:
(1) authorized by the county council under section 2.5 of this
chapter (as in effect on January 1, 2013); and
(2) legalized and validated by subsection (c);
remains in effect for the calendar years specified in section 2.5(c)
of this chapter without additional county council action. However,
this subsection may not be construed to limit the ability of the
county council to decrease the rate or rescind the tax in the manner
provided under this chapter.".
SOURCE: Page 22, line 30; (13)CR154602.22. -->
Page 22, line 30, after "0" strike "lbs".
Page 26, line 30, delete "or".
Page 27, line 27, after "from" insert " the following during the
disaster period:".
Page 27, line 27, delete "paying state or local income taxes during
the disaster".
Page 27, line 28, delete "period,", begin a new line block indented
and insert:
" (1) Paying any state or local taxes, including ad valorem and
payroll taxes,".
Page 27, between lines 35 and 36, begin a new line block indented
and insert:
" (2) Paying state gross retail and use tax on equipment used
or consumed during the disaster period.
(3) Complying with any state or local business, occupational
licensing, or registration requirements.
(4) Providing worker's compensation insurance under
IC 22-3-5.
(5) Making employer contributions to the unemployment
compensation system under IC 22-4-10.".
Page 27, line 39, after ";" delete "or".
Page 27, line 40, delete "become" and insert " be".
Page 27, line 40, after ";" insert " or".
Page 27, between lines 40 and 41, begin a new line block indented
and insert:
" (3) file and pay any other state or local tax or fee;".
Page 28, line 3, after "emergency" insert " related".
Page 28, delete line 8.
Page 28, line 9, delete "(3)" and insert " (2)".
Page 28, line 10, delete "(4)" and insert " (3)".
Page 28, delete lines 11 through 21, begin a new line block indented
and insert:
" (4) gross retail taxes or use taxes on a purchase of materials
or services by the out-of-state business or out-of-state
employee for use or consumption during the disaster period,
unless the purchase is otherwise exempt during a disaster
period.".
Page 28, line 39, strike "the United States mail".
Page 28, line 40, strike "in".
Page 28, line 41, after "(1)" insert " United States".
Page 28, line 42, after "(2)" insert " United States".
Page 29, line 1, after "(3)" insert " United States".
Page 29, line 2, after "(4)" insert " a".
Page 35, between lines 26 and 27, begin a new paragraph and insert:
SOURCE: IC 6-8.1-9.7; (13)CR154602.38. -->
"SECTION 38. IC 6-8.1-9.7 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]:
Chapter 9.7. Treasury Offset Program
Sec. 1. As used in this chapter, "debt" means a delinquent state
tax or non-tax debt certified by the treasurer of state or a federal
non-tax debt certified by a federal official. The term includes, but
is not limited to, fines, fees, penalties, and other non-tax
assessments imposed by or payable to the state or federal
government that are finally determined to be due and owing.
Sec. 2. As used in this chapter, "federal official" means a unit or
official of the federal government that:
(1) is charged with the collection of non-tax liabilities payable
to the federal government; and
(2) has the authority to make offsets under an offset
agreement.
Sec. 3. As used in this chapter, "offset agreement" means an
agreement between the office of management and budget and the
Secretary of the Treasury of the United States authorized by this
chapter.
Sec. 4. As used in this chapter, "person" means an individual,
vendor, contractor, partnership, society, association, joint stock
company, limited liability company, corporation, estate, receiver,
trustee, or assignee, any other person acting in a fiduciary or
representative capacity whether appointed by a court or otherwise,
or any combination of such individuals or entities.
Sec. 5. (a) As used in this chapter, "state payments" includes tax
refunds and any vendor or contractor payments made by the state
to any person, including expense reimbursements to an employee
of the state.
(b) The term does not include salary, wages, pension payments,
and any other type, class, or amount of payment that the office of
management and budget determines has an impact on the health
or welfare of the citizens of Indiana and should not be subject to an
offset agreement.
Sec. 6. As used in this chapter, "tax refund" means an amount
described as a refund of tax under the provision of the state tax law
that authorized the payment of the refund.
Sec. 7. Notwithstanding any other law, the office of management
and budget may enter into an offset agreement with the Secretary
of the Treasury of the United States government to participate in
a reciprocal Treasury Offset Program under 31 U.S.C. 3716 for the
collection of any debts owed to the state or to state agencies from
federal payments to vendors, contractors, and taxpayers. The
offset agreement may provide for the federal government to submit
non-tax debts owed to federal agencies for offset against state
payments otherwise due and owing to taxpayers and to vendors
and contractors providing goods or services to the state or to the
state's departments, agencies, or institutions.
Sec. 8. If the office of management and budget enters into an
offset agreement, a federal official may do the following as
provided in the offset agreement:
(1) Certify to the office of management and budget the
existence of a person's delinquent non-tax debt owed by the
person to the federal government, by providing:
(A) the full name and address of the person and any other
names known to be used by the person;
(B) the person's Social Security number or federal tax
identification number;
(C) the amount of the person's federal non-tax debt;
(D) a statement certifying that the person's federal non-tax
debt is past due, that due process has been provided to the
person, and that the person's federal non-tax debt is legally
enforceable in the amount certified, which may be
provided in procedures for certifying payments as
specified in the offset agreement; and
(E) any other information required by the offset
agreement.
(2) Request the office of management and budget to withhold
any state payment to which the person is entitled.
(3) Retain a part of the proceeds of any federal administrative
setoff authorized by the federal offset program.
Sec. 9. The following apply if the office of management and
budget enters into an offset agreement:
(1) The office of management and budget shall do the
following as provided in the offset agreement:
(A) Determine if a person whose name has been certified
by a federal official as provided in the offset agreement is
due a state payment.
(B) Withhold a state payment that is due a person whose
name has been certified by a federal official as provided in
the offset agreement.
(C) Notify the person from whom a state payment is
withheld under this section of the amount withheld in
accordance with the offset agreement.
(D) Pay to the federal official making the certification
under section 8 of this chapter the lesser of:
(i) the entire state payment withheld; or
(ii) the amount certified by the federal official.
If the amount certified by the federal official is less than a
state payment due to the person, the office of management
and budget shall pay to the person the part of the state
payment due to the person that exceeds the certified
amount, less any fee under section 10 of this chapter.
(2) If an individual filed a joint income tax return and the
debt certified by a federal official is not the liability of both
parties to the joint income tax return, the office of
management and budget may not withhold or pay to the
federal official the part of the income tax refund attributable
to the individual not owing the debt. The department shall
notify taxpayers filing a joint income tax return of a proposed
offset of a state income tax refund for a debt certified by a
federal official. A taxpayer that filed a joint income tax return
and that receives such a notice may, not more than sixty (60)
days after the notice is sent, notify the department in writing
that the taxpayer asserts that a part of the income tax refund
is attributable to the individual not owing the debt. If a
taxpayer that is a party to the joint income tax return does
not notify the department of such an assertion not more than
sixty (60) days after the department's notice is sent, all of the
income tax refund is considered attributable to the individual
owing the debt.
(3) The office of management and budget may do the
following as provided in the offset agreement:
(A) Certify to a federal official a person's delinquent debt
owed to the state by providing the federal official:
(i) the full name and address of the person and any other
names known to be used by the person;
(ii) the person's Social Security number or federal tax
identification number;
(iii) the amount of the person's debt owed to the state;
(iv) a statement certifying that the person's debt is past
due, that due process has been provided to the person,
and that the person's debt is legally enforceable in the
amount certified, which may be provided in procedures
for certifying payments as specified in the offset
agreement; and
(v) any other information required by state law or rules
applicable to the collection of the debt by offset of federal
payments or required by the offset agreement.
(B) Request that the federal official withhold from any
federal payment to which the person is entitled the lesser
of:
(i) the entire federal payment; or
(ii) the amount certified by the office of management and
budget;
as provided in the offset agreement. If the amount certified
by the office of management and budget is less than a
federal payment due to the person, the federal official may
pay to the person the part of the federal payment due to
the person that exceeds the certified amount, less any fee
under section 10 of this chapter.
Sec. 10. (a) The office of management and budget may, by rule,
establish a reasonable administrative fee to be charged to a person
for the provision of the state offset of a federal debt or the federal
offset of a state debt.
(b) A fee authorized by this section is a separate debt and may
be withheld from any refund, reimbursement, or other money held
for the person.
(c) The office of management and budget may charge the person
who is the subject of state offset of a federal debt or the federal
offset of a state debt the fee authorized by this section.
(d) Any fees collected under this section may be retained by the
office of management and budget and used for the costs of the
intercept program, including reporting, and for costs associated
with other revenue generation and cost savings initiatives as
determined by the office of management and budget.".
SOURCE: Page 40, line 1; (13)CR154602.40. -->
Page 40, between lines 1 and 2, begin a new paragraph and insert:
"
(f) The following apply to rules adopted by the bureau before
January 1, 2014, under subsection (e):
(1) The rules are transferred to the department of state
revenue on January 1, 2014, and are considered, after
December 31, 2013, rules of the department of state revenue.
(2) After December 31, 2013, the rules are treated as if they
had been adopted by the department of state revenue.".
Page 43, line 24, delete "IC 35-43-5-4.4(a)(1))" and insert
"
IC 35-43-5-4.6(a)(1))".
Page 43, line 25, delete "IC 35-43-5-4.4(a)(3))." and insert
"
IC 35-43-5-4.6(a)(3)).".
Page 44, line 24, delete "IC 35-43-5-4.4" and insert
"IC 35-43-5-4.6".
Page 44, line 26, delete "Sec. 4.4." and insert "
Sec. 4.6.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1546 as printed February 18, 2013.)
and when so amended that said bill do pass.
Committee Vote: Yeas 10, Nays 2.
____________________________________
Hershman CR154602/DI 73 2013