Introduced Version
HOUSE BILL No. 1171
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-1-11; IC 6-1.1-12-44.
Synopsis: Property tax deduction for farm security items. Provides a
property tax deduction not to exceed $25,000 assessed value per year
relating to secure storage of fertilizers and pesticides that could be used
for terrorism or illegal drug manufacturing. Specifies that the deduction
is available for certain chemical additives and for tangible personal
property that is: (1) installed or placed in service after March 1, 2007;
and (2) used to provide security for a fertilizer or pesticide by: (A)
restricting access to or control of; or (B) conducting surveillance on or
detecting unauthorized access to; the fertilizer or pesticide. Provides
that, in addition to a certified application statement, a person claiming
the deduction must file a certification by the state chemist that the
property for which the deduction is claimed has been installed or
placed in service. Specifies that a person may not receive the deduction
for security devices and the "automatic abatement deduction" for the
same property.
Effective: Upon passage.
Goodin
January 11, 2007, read first time and referred to Committee on Agriculture and Rural
Development.
Introduced
First Regular Session 115th General Assembly (2007)
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HOUSE BILL No. 1171
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 6-1.1-1-11; (07)IN1171.1.1. -->
SECTION 1. IC 6-1.1-1-11, AS AMENDED BY P.L.214-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) Subject to the limitation contained in
subsection (b), "personal property" means:
(1) nursery stock that has been severed from the ground;
(2) florists' stock of growing crops which are ready for sale as pot
plants on benches;
(3) billboards and other advertising devices which are located on
real property that is not owned by the owner of the devices;
(4) motor vehicles, mobile houses, airplanes, boats not subject to
the boat excise tax under IC 6-6-11, and trailers not subject to the
trailer tax under IC 6-6-5;
(5) foundations (other than foundations which support a building
or structure) on which machinery or equipment is installed;
(6) fences that are:
(A) installed or placed in service after March 1, 2007; and
(B) used to provide security for a fertilizer or pesticide by:
(i) restricting access to or control of; or
(ii) conducting surveillance on or detecting unauthorized
access to;
the fertilizer or pesticide; and
(6) (7) all other tangible property (other than real property) which
is being:
(A) held for sale in the ordinary course of a trade or business;
(B) held, used, or consumed in connection with the production
of income; or
(C) held as an investment.
(b) Personal property does not include the following:
(1) Commercially planted and growing crops while they are in the
ground.
(2) Computer application software that is not held as inventory (as
defined in IC 6-1.1-3-11).
SOURCE: IC 6-1.1-12-44; (07)IN1171.1.2. -->
SECTION 2. IC 6-1.1-12-44 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 44. (a) The following definitions apply
throughout this section:
(1) "Facility" means real property improvements or personal
property, or both, that are used in a person's agricultural,
commercial, or industrial operation at a single location.
(2) "Fertilizer" refers to a fertilizer that:
(A) is subject to the fertilizer storage rules adopted by the
state chemist under IC 15-3-3-12; and
(B) could be used for terrorism or illegal drug
manufacturing.
(3) "Pesticide" refers to a pesticide that:
(A) is subject to the pesticide storage rules adopted by the
state chemist under IC 15-3-3.5-11; and
(B) could be used for terrorism or illegal drug
manufacturing.
(b) Subject to subsection (d), a person is entitled to an annual
property tax deduction in an amount equal to the assessed value of
any tangible personal property that is:
(1) installed or placed in service after March 1, 2007; and
(2) used to provide security for a fertilizer or pesticide by:
(A) restricting access to or control of; or
(B) conducting surveillance on or detecting unauthorized
access to;
the fertilizer or pesticide.
(c) Subject to subsection (d), a person is entitled to an annual
property tax deduction in an amount equal to the part of the
assessed value of a fertilizer or pesticide located at a facility that is
attributable to a chemical:
(1) added to; and
(2) designed to deter the theft of;
the fertilizer or pesticide.
(d) The total annual amount of the deduction that a person may
receive under:
(1) subsection (b) for tangible personal property installed or
placed in service; and
(2) subsection (c) for the assessed value of a chemical added to
and designed to deter the theft of a fertilizer or pesticide;
at a facility may not exceed twenty-five thousand dollars ($25,000).
(e) To obtain a deduction under this section, a person 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 property is subject to assessment. In addition
to the certified statement, the person must file a certification by the
state chemist that the property for which the deduction is claimed
has been installed or placed in service. The statement and
certification must be filed not later than:
(1) the personal property return due date for the assessment
year; or
(2) if the person obtains a personal property return filing
extension under IC 6-1.1-3-7(b), the extended due date for the
assessment year.
Upon the verification of the statement by the assessor of the
township in which the property is subject to assessment, the county
auditor shall allow the deduction.
(f) A person that qualifies for a deduction for a year under this
section and under IC 6-1.1-12.4 with respect to the same property
may not receive a deduction under both this section and
IC 6-1.1-12.4 for the property.
SOURCE: ; (07)IN1171.1.3. -->
SECTION 3. [EFFECTIVE UPON PASSAGE] IC 6-1.1-12-44, as
added by this act, applies to property taxes first due and payable
after December 31, 2008.
SOURCE: ; (07)IN1171.1.4. -->
SECTION 4.
An emergency is declared for this act.