Text Box
Adopted Rejected
[
]
COMMITTEE REPORT
YES:
20
NO:
4
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred Senate Bill 19 ,
has had the same under consideration and begs leave to report the same back to the House
with the recommendation that said bill be amended as follows:
Replace the effective dates in SECTIONS 1 through 2 with
"[EFFECTIVE JULY 1, 2002]".
SOURCE: Page 1, line 12; (02)CR001901.1. -->
Page 1, line 12, reset in roman "(1)".
Page 1, line 13, delete "." and insert ";".
Page 1, line 13, reset in roman "and".
Page 1, reset in roman line 14.
Page 1, line 14, after "exceed" delete ":" and insert " fifty (50)
acres.".
Page 2, line 8, delete "and".
Page 2, reset in roman line 9.
Page 2, line 9, after "exceed" delete ":" and insert " fifty (50) acres;
and".
Page 2, line 17, reset in roman "(3)".
Page 2, line 17, delete "(2)".
Page 5, line 29, reset in roman "not exceeding".
Page 5, line 29, after "(15)" insert " fifty (50)".
Page 5, line 29, reset in roman "acres,"
Page 6, between lines 9 and 10, begin a new paragraph and insert:
SOURCE: IC 6-1.1-10-25; (02)CR001901.3. -->
"SECTION 3.
IC 6-1.1-10-25
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 25. (a) Subject
to the limitations contained in subsection (b) of this section, section
36.3 of this chapter, tangible property is exempt from property
taxation if it is owned by and used for the exempt purposes of any
of the following organizations:
(1) The Young Men's Christian Association.
(2) The Salvation Army, Inc.
(3) The Knights of Columbus.
(4) The Young Men's Hebrew Association.
(5) The Young Women's Christian Association.
(6) A chapter or post of Disabled American Veterans of World
War I or II.
(7) A chapter or post of the Veterans of Foreign Wars.
(8) A post of the American Legion.
(9) A post of the American War Veterans.
(10) A camp of United States Spanish War Veterans.
(11) The Boy Scouts of America, one (1) or more of its
incorporated local councils, or a bank or trust company in trust
for the benefit of one (1) or more of its local councils.
(12) The Girl Scouts of the U.S.A., one (1) or more of its
incorporated local councils, or a bank or trust company in trust
for the benefit of one (1) or more of its local councils.
(b) This exemption does not apply unless the property is
exclusively used, and in the case of real property actually occupied,
for the purposes and objectives of the organization.
SOURCE: IC 6-1.1-10-36.3; (02)CR001901.4. -->
SECTION 4.
IC 6-1.1-10-36.3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 36.3. (a) For
purposes of this section, property is predominantly used or occupied
for one (1) or more stated purposes if it is used or occupied for one (1)
or more of those purposes during:
(1) less than one hundred percent (100%); but
(2) more than fifty percent (50%);
of the time that it is used or occupied in the year that ends on the
assessment date of the property.
(b) If a section of this chapter
or another statute states one (1) or
more purposes for which property must be
owned, held in trust, used,
or occupied in order to qualify for an exemption
then from property
tax under IC 6-1.1 or one (1) or more purposes for which a
taxpayer must exist, be organized, or be operated in order for the
taxpayer's property to be exempt from property tax under
IC 6-1.1, the exemption applies as follows:
(1) One hundred percent (100%) of the assessed value of
property that is exclusively used or occupied for one (1) or more
of the stated purposes is totally exempt under that section. from
property tax.
(2) Property that is predominantly used, or occupied for one (1)
or more of the stated purposes by a church religious society or
not-for-profit school is totally exempt under that section.
(3) (2) If property is used for a purpose that is not exempt from
property tax under this chapter or another law but is
predominantly used or occupied for one (1) or more of the stated
purposes, by a person other than a church religious society or
not-for-profit school only part of the assessed value of the
property is exempt under that section from property tax. on the
part of the assessment of the property that bears the same
proportion to the total assessment of the property as Subject to
subsection (d), the amount of the deduction is equal to the
assessed value of the property multiplied by a fraction. The
numerator of the fraction is the amount of time that the property
was used or occupied for one (1) or more of the stated purposes
during the year that ends on the assessment date of the property.
bears to The denominator of the fraction is the amount of time
that the property was used or occupied for any purpose during
that year.
(4) (3) None of the assessed value of property that is
predominantly used or occupied for a purpose other than one (1)
of the stated purposes is not exempt from any part of the property
tax.
(c) Property is not used or occupied for one (1) or more of the stated
purposes during the time that a predominant part of the For purposes
of subsection (b), property is not being used or occupied for a stated
exempt purpose if it is used or occupied in connection with a trade or
business that is not substantially directly related to the exercise or
performance of one (1) or more of the stated purposes.
(d) For purposes of subsection (b)(2), if only part of a building
or structure is used for an exempt purpose or a nonexempt
purpose, the deduction for the building or structure shall be
adjusted to reflect the area in the building devoted to the exempt
and nonexempt purposes under the procedures prescribed by the
department of local government finance.
SOURCE: IC 6-1.1-11-3; (02)CR001901.5. -->
SECTION 5.
IC 6-1.1-11-3
, AS AMENDED BY P.L.198-2001,
SECTION 32, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.
(a) An owner of tangible
property who wishes to obtain an exemption from property taxation
shall file a certified application in duplicate with the auditor of the
county in which the property that is the subject of the exemption is
located. The application must be filed annually on or before May 15 on
forms prescribed by the department of local government finance. The
county auditor shall immediately forward a copy of the certified
application to the county assessor. Except as provided in sections 1,
3.5, and 4 of this chapter, the application applies only for the taxes
imposed for the year for which the application is filed.
(b) The authority for signing an exemption application may not be
delegated by the owner of the property to any other person except by
an executed power of attorney.
(c) An exemption application which is required under this chapter
shall contain the following information:
(1) A description of the property claimed to be exempt in
sufficient detail to afford identification.
(2) A statement showing the ownership, possession, and use of
the property.
(3) The grounds for claiming the exemption.
(4)
The percentage of the exemption to which the person is
entitled under
IC 6-1.1-10-36.3.
(5) The full name and address of the applicant.
(5) (6) Any additional information which the department of local
government finance may require.
(d) A person who signs an exemption application shall attest in
writing and under penalties of perjury that, to the best of the person's
knowledge and belief, a predominant part of the property claimed to be
exempt is not being used or occupied in connection with a trade or
business that is not substantially directly related to the exercise or
performance of the organization's exempt purpose.
SOURCE: IC 6-2.1-3-23; (02)CR001901.6. -->
SECTION 6.
IC 6-2.1-3-23
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. The
exemptions provided by sections 19, 20, 21, and 22 of this chapter do
not apply to gross income received by a taxpayer that:
(1) is derived from an unrelated a trade or business as defined in
Section 513 of the Internal Revenue Code. that is not directly
related to the purposes for which the taxpayer is exempt
under section 19, 20, 21, or 22 of this chapter; and
(2) does not qualify as receipts from a charitable contribution
(as defined in Section 170 of the Internal Revenue Code).
SOURCE: IC 6-2.5-5-25; (02)CR001901.7. -->
SECTION 7.
IC 6-2.5-5-25
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 25. (a)
Transactions involving tangible personal property or service are
exempt from the state gross retail tax, if the person acquiring the
property or service:
(1) is an organization which is granted a gross income tax
exemption under
IC 6-2.1-3-20
,
IC 6-2.1-3-21
, or
IC 6-2.1-3-22
;
(2) primarily directly uses the property or service to carry on or
to raise money obtain charitable contributions (as defined in
Section 170 of the Internal Revenue Code) to carry on the
not-for-profit purpose for which it receives the gross income tax
exemption; and
(3) is not an organization operated predominantly for social
purposes.
(b) Transactions occurring after December 31, 1976, and involving
tangible personal property or service are exempt from the state gross
retail tax, if the person acquiring the property or service:
(1) is a fraternity, sorority, or student cooperative housing
organization which is granted a gross income tax exemption
under
IC 6-2.1-3-19
; and
(2) uses the property or service to carry on its ordinary and usual
activities and operations as a fraternity, sorority, or student
cooperative housing organization.
SOURCE: IC 6-3-1-3.5; (02)CR001901.8. -->
SECTION 8.
IC 6-3-1-3.5
, AS AMENDED BY P.L.14-2000,
SECTION 16, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2003]: Sec. 3.5. When used in IC 6-3, the
term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under IC 6-3 by
the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) one thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code for taxable years beginning after December 31,
1996; and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Internal Revenue Code Section 111 as a recovery
of items previously deducted as an itemized deduction from
adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a
taxpayer's federal gross income by Section 86 of the Internal
Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), (5), and (6) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(14) In the case of an individual who is a recipient of assistance
under
IC 12-10-6-1
,
IC 12-10-6-2
,
IC 12-15-2-2
, or
IC 12-15-7
,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in
IC 12-15-39.6-5
) for the taxpayer or the
taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) two thousand five hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under IC 6-3 by
the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add an amount equal to the net amount excluded from
taxable income under Section 501(a) of the Internal Revenue
Code from a trade or business that is not directly related to
the purposes for which the corporation is exempt from federal
income taxation, after subtracting:
(A) any deductions from gross income that would be
available under the Internal Revenue Code if the income
was not exempt from taxation under Section 501(a) of the
Internal Revenue Code; and
(B) income resulting from investment of contributions for
which a deduction is allowable under Section 170 of the
Internal Revenue Code or the earnings on these
contributions in marketable securities, savings accounts, or
other cash equivalents if the money is restricted for direct
use for an exempt purpose.
(c) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code):
(1) reduced by income that is exempt from taxation under IC 6-3
by the Constitution and statutes of the United States; and
(2) increased by an amount equal to the net amount excluded
from taxable income under Section 501(a) of the Internal
Revenue Code from a trade or business that is not directly
related to the purposes for which the corporation is exempt
from federal income taxation, after subtracting:
(A) any deductions from gross income that would be
available under the Internal Revenue Code if the income
was not exempt from taxation under Section 501(a) of the
Internal Revenue Code; and
(B) income resulting from investment of contributions for
which a deduction is allowable under Section 170 of the
Internal Revenue Code or the earnings on these
contributions in marketable securities, savings accounts, or
other cash equivalents if the money is restricted for direct
use for an exempt purpose.
SOURCE: IC 6-3-2-2.8; (02)CR001901.9. -->
SECTION 9.
IC 6-3-2-2.8
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2.8.
Notwithstanding any provision of
IC 6-3-1
through
IC 6-3-7
, there
shall be no tax on the adjusted gross income of the following:
(1) Any organization described in Section 501(a) of the Internal
Revenue Code, except: that any
(A) income of such organization which is subject to income
tax under the Internal Revenue Code; and
(B) the net amount excluded from taxable income under
Section 501(a) of the Internal Revenue Code from a trade
or business that is not directly related to the purposes for
which the corporation is exempt from federal income
taxation, after subtracting:
(i) any deductions from gross income that would be
available under the Internal Revenue Code if the income
was not exempt from taxation under Section 501(a) of
the Internal Revenue Code; and
(ii) income resulting from investment of contributions
for which a deduction is allowable under Section 170 of
the Internal Revenue Code or the earnings on these
contributions in marketable securities, savings accounts,
or other cash equivalents if the money is restricted for
direct use for an exempt purpose;
shall be subject to the tax under
IC 6-3-1
through
IC 6-3-7.
(2) Any corporation which is exempt from income tax under
Section 1363 of the Internal Revenue Code and which complies
with the requirements of
IC 6-3-4-13.
However, income of a
corporation described under this subdivision that is subject to
income tax under the Internal Revenue Code is subject to the tax
under
IC 6-3-1
through
IC 6-3-7.
A corporation will not lose its
exemption under this section because it fails to comply with
IC 6-3-4-13
but it will be subject to the penalties provided by
IC 6-8.1-10.
(3) Banks and trust companies, national banking associations,
savings banks, building and loan associations, and savings and
loan associations.
(4) Insurance companies subject to tax under
IC 27-1-18-2.
(5) International banking facilities (as defined in Regulation D of
the Board of Governors of the Federal Reserve System (12 CFR
204)).
SOURCE: IC 6-3-2-3.1; (02)CR001901.10. -->
SECTION 10.
IC 6-3-2-3.1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3.1. (a) Except as
otherwise provided in subsection (b), Income is not of the following
entities is exempt from the adjusted gross income tax or (IC 6-3-1
through
IC 6-3-7
) and the supplemental net income tax under section
2.8(1) of this chapter if the income is derived by the exempt
organization from an unrelated trade or business, as defined in Section
513 of the Internal Revenue Code.
(b) This section does not apply to: (IC 6-3-8):
(1) The United States government.
(2) An agency or instrumentality of the United States
government.
(3) This state.
(4) A state agency, as defined in
IC 34-6-2-141.
(5) A political subdivision, as defined in
IC 34-6-2-110.
or
(6) A county solid waste management district or a joint solid
waste management district established under IC 13-21 or
IC 13-9.5-2
(before its repeal).".
SOURCE: Page 6, line 18; (02)CR001901.6. -->
Page 6, line 18, after "land" insert " not exceeding fifty (50) acres,".
Page 6, block indent lines 41 through 42.
Page 6, after line 42, begin a new paragraph and insert:
SOURCE: IC 6-1.1-10-36.5; (02)CR001901.4. -->
"SECTION 4.
IC 6-1.1-10-36.5
IS REPEALED [EFFECTIVE
JANUARY 1, 2003].
SOURCE: ; (02)CR001901.5. -->
SECTION 5. [EFFECTIVE UPON PASSAGE] (a)
IC 6-1.1-10-36.3
and
IC 6-1.1-11-3
, both as amended by this act, and the repeal of
IC 6-1.1-10-36.5
by this act, apply only to property taxes first due
and payable after December 31, 2002. The department of local
government finance shall prescribe and make available forms to
comply with
IC 6-1.1-11-3
, as amended by this act, as soon as
practicable after the effective date of this SECTION.
Notwithstanding
IC 6-1.1-11-3
, as amended by this act:
(1) a taxpayer that:
(A) qualifies for a one hundred percent (100%) property
tax exemption under
IC 6-1.1-10-36.3
(b)(1) as amended by
this act; and
(B) is exempt under
IC 6-1.1-11-3.5
or
IC 6-1.1-11-4
from
filing a certified property tax exemption application in
calendar year 2002;
is not required by the amendment to
IC 6-1.1-11-3
by this act
to file an exemption application until required by
IC 6-1.1-11-3.5
or
IC 6-1.1-11-4
; and
(2) a taxpayer whose property tax exemption is changed by
the amendment to
IC 6-1.1-10-36.3
by this act, or the repeal
of
IC 6-1.1-10-36.5
has until September 1, 2002, to file a
certified application under
IC 6-1.1-11-3
, as amended by this
act, that correctly states the amount of the exemption.
(b)
IC 6-2.1-3-23
,
IC 6-2.5-5-25
,
IC 6-3-1-3.5
,
IC 6-3-2-2.8
,
IC 6-3-2-3.1
, and
IC 6-5.5-2-7
, all as amended by this act, apply
only to taxable years beginning after December 31, 2003.
(c) The department of local government finance may adopt
temporary rules in the manner provided for the adoption of
emergency rules under
IC 4-22-2-37.1
to implement
IC 6-1.1-10-36.3
and
IC 6-1.1-11-3
, both as amended by this act,
and the repeal of
IC 6-1.1-10-36.5
by this act. A temporary rule
adopted under this subsection expires on the earliest of the
following:
(1) The date that another temporary rule adopted under this
subsection supersedes the prior temporary rule.
(2) The date that permanent rules adopted under
IC 4-22-2
supersede the temporary rule.
(3) July 1, 2004.
(d) The department of state revenue may adopt temporary rules
in the manner provided for the adoption of emergency rules under
IC 4-22-2-37.1
to implement
IC 6-2.1-3-23
,
IC 6-3-1-3.5
,
IC 6-3-2-2.8
,
IC 6-3-2-3.1
, and
IC 6-5.5-2-7
, all as amended by this
act. A temporary rule adopted under this subsection expires on the
earliest of the following:
(1) The date that another temporary rule adopted under this
subsection supersedes the prior temporary rule.
(2) The date that permanent rules adopted under
IC 4-22-2
supersede the temporary rule.
(3) July 1, 2004.".
SOURCE: Page 7, line 1; (02)CR001901.7. -->
Page 7, line 1, delete "Pursuant to" and insert "
Notwithstanding".
Page 7, line 2, delete "IC 6-1.1-10-16, as amended by this act," and
insert "
IC 6-1.1-10-16 as it existed before January 1, 2002,".
Page 7, line 8, delete "." and insert " , instead of as set forth in
IC 6-1.1-10-16
as it existed at the time of the assessment of the
church or religious institution's property.".
Page 7, between lines 19 and 20, begin a new paragraph and insert:
SOURCE: ; (02)CR001901.4. -->
"SECTION 4. [EFFECTIVE UPON PASSAGE]
(a) As used in this
SECTION, "committee" refers to the interim study committee on
the assessment of property owned by educational, religious, and
other nonprofit organizations.
(b) There is established the interim study committee on the
assessment of property owned by educational, religious, and other
nonprofit organizations. The committee shall study:
(1) the assessment of property owned by educational,
religious, and other nonprofit organizations; and
(2) the property tax exemptions provided to the organizations
described in subdivision (1).
(c) The committee shall operate under the policies governing
study committees adopted by the legislative council.
(d) The affirmative vote of a majority of the voting members
appointed to the committee are required for the committee to take
action on any measure, including final reports.
(e) Notwithstanding any other provision of this SECTION, the
legislative council may assign the study required under this
SECTION to any other interim study committee.
(f) This SECTION expires November 1, 2002.".
Renumber all SECTIONS consecutively.
(Reference is to SB 19 as reprinted February 5, 2002.)
and when so amended that said bill do pass.
__________________________________
CR001901/DI 103 2002