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Indiana General Assembly
House Bill 1447


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House Bill 1447

ARCHIVE (2009)

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DIGEST OF HB1447 (Updated April 15, 2009 11:54 am - DI 84)

Taxation. Provides that a county may continue to use an optical scan ballot card voting system or an electronic voting system whose approval or certification expired on or before October 1, 2009 if the voting system meets certain requirements. Provides that the Indiana election commission may approve a voting system for use in Indiana if the voting system meets the Voluntary Voting System Guidelines adopted by the United States Election Assistance Commission on December 13, 2005. Specifies that the maximum term of bonds is to be determined based on the date the bonds are issued. Provides that the maximum term or repayment period for obligations issued after June 30, 2009, that are wholly or partially payable from lease rental payments is 20 years after the date of the first lease rental payment. Provides that bonds issued for a hospital for the health and hospital corporation are not subject to the 20 year maximum term. Deletes the statute requiring a general reassessment to begin in 2009. Requires the county assessor of each county to prepare and submit to the department of local government finance (DLGF) a reassessment plan for the county. Specifies that the reassessment plan is subject to approval by the DLGF. Provides that the reassessment plan must divide all parcels of real property in the county into different groups of parcels. Requires that each group of parcels must contain at least 20% of the parcels within each class of real property in the county. Provides that the reassessment of the first group of parcels under a county's reassessment plan must begin on July 1, 2010, and must be completed on or before March 1, 2011. Provides that if a county is more than 12 months behind in submitting certified net assessed valuations to the DLGF, the county shall have a trending factor based on property class and location developed and applied to the assessed values of properties within the county. Requires the DLGF to develop the trending factors. Specifies that the trending factor shall be applied to expedite the property assessment to the property tax billing cycle so that the county may achieve current and regular assessments and billing before the start of the next reassessment cycle. Provides that a petition for reassessment of a group of parcels must be signed by not less than 100 real property owners or 5% of real property owners and must be filed with the DLGF not later than 45 days after notice of assessment is provided. Provides that the county assessor determines the values of all classes of land in the county. Provides that a petition for the review of the land values determined by the county assessor may be filed with the DLGF. Requires the petition to be signed by at least the lesser of: (1) 100 property owners in the county; or (2) 5% of the property owners in the county. Requires the DLGF to be a party to any addendum to a contract: (1) between a county assessor and a professional appraiser; and (2) between a county and providers of assessment software. Specifies assessment procedures for golf courses. Provides that if an assessing official assesses or reassesses any real property, a tax statement or, if applicable, a reconciling property tax statement is notice to the taxpayer of the amount of the assessment or reassessment. For real property with new additions or improvements since the previous assessment date, requires a separate notice to be provided within 90 days after the assessor completes the appraisal of a parcel or receives a report for a parcel from a professional appraiser. Eliminates the requirement that a property tax exemption application be filed every two years for certain property owned, occupied, and used by a person for educational, literary, scientific, religious, or charitable purposes. Provides that a change in ownership of tangible property that continues to be used for an exempt purpose does not terminate an exemption but requires an owner notify the county assessor of the change in ownership. Establishes procedures concerning property tax deductions. Specifies when a mobile or manufactured home may be treated as inventory, and permits the waiver of property taxes on an abandoned mobile or manufactured home, upon petition by the title holder, when the property tax liability exceeds the resale value of the property. Extends the model home property tax assessed value deduction to 2008 assessments of model homes for property taxes first due and payable in 2009. Defines "registered voter" for purposes of the statute specifying who is eligible to sign a petition requesting a referendum for a controlled project. Allows the legislative body of a political subdivision to adopt a resolution withdrawing a controlled project from consideration at a referendum. Specifies that if a public question on a controlled project is withdrawn, a referendum on the same controlled project or a substantially similar controlled project may not be submitted to the voters earlier than one year after the date the resolution withdrawing the referendum is adopted. Requires the DLGF to post certain information regarding a proposed controlled project on the department's Internet web site. Provides that an elected or appointed public official of the political subdivision may advocate for or against a position on the petition or remonstrance or local public question for a controlled project so long as it is not done during the official's normal working hours or paid overtime or by using public funds. Provides that a public utility company's tangible personal property that is locally assessed as fixed property is instead assessed as distributable property. Exempts public utility and governmental easement documents from the property sale disclosure filing requirement. Provides that levy limits do not apply to a civil taxing unit in the first year in which the civil taxing unit becomes a participating unit in a fire protection territory. Specifies that in the first year in which a civil taxing unit becomes a participating unit in a fire protection territory, the civil taxing unit shall submit its proposed budget, proposed property tax levy, and proposed property tax rate for the fire protection territory to the DLGF for approval. Specifies that participating units in a fire protection territory may agree to change the provider unit of the territory. Eliminates the authority of a county assessor to appeal an assessment of industrial property by the DLGF. Permits a county that wants to impose a property tax levy for the first time after 2008 for a community mental health center or a community mental retardation and other developmental disabilities center to submit a first year budget for approval by the department of local government finance. Provides that the first year levy for the approved budget is outside the property tax levy limit. Provides that in the case of a taxing unit that is governed by a nonelected board and is required to submit its proposed budget and property tax levy to a municipal fiscal body for approval, the proposed budget and property tax levy must be submitted at least 30 days (rather than 14 days, under current law) before the municipal fiscal body is required to hold budget approval hearings. Makes changes to local budgeting deadlines. Removes the expiration date for the county boards of tax adjustment. Eliminates the local government tax control board and the school property tax control board. Changes the tax increment replacement amount for a tax increment financing (TIF) district in Marion County so that the personal property increment may be used regarding obligations issued before May 8, 1989. Eliminates the state board of accounts approval of the property tax statement. Removes the tax rate and percentage change in liability from the property tax statement. Provides that in the case of property taxes billed under a provisional tax statement: (1) the first installment is due on the later of May 10 of the year following the year of the assessment date or 30 days after the mailing of the provisional tax statement; and (2) the second installment is due on the later of November 10 of the year following the year of the assessment date or a date determined by the county treasurer that is not later than December 31 of the year following the year of the assessment date. Requires provisional tax statements and reconciling tax statements to be on forms prescribed by the DLGF. Provides that the tax liability under a provisional tax statement may be up to 100% of the tax liability that was payable in the same year as the assessment date for the property for which the provisional tax statement is issued. Requires a provisional tax statement to include any adjustments to the tax liability as prescribed by the DLGF. Provides that the county assessor is a nonvoting member of the property tax assessment board of appeals. Provides that the county commissioners make three (rather than two) appointments to the property tax assessment board of appeals. Provides a sales tax exemption for certain property acquired by a person that furnishes video service and uses the property to provide telecommunications services. Provides a sales tax exemption for equipment and devices used to monitor blood glucose level. Provides an individual income tax deduction of up to $1,000 for the installation of solar powered roof vents or fans. Specifies that for research expense incurred after December 31, 2009, a taxpayer may choose to have the amount of the research expense tax credit determined under the existing calculation or under an alternative calculation providing the amount of the credit is equal to 10% of the part of the taxpayer's Indiana qualified research expense for the year that exceeds 50% of the taxpayer's average Indiana qualified research expense for the preceding three years. Legalizes the method used by the DLGF to reduce the 2009 maximum permissible ad valorem property tax levy of taxing units that paid benefits to members of the 1925 police pension fund, the 1937 firefighters' pension fund, or the 1953 police pension fund. Allows townships to provide fire protection or emergency services within a municipality that lies at least in part in the township and does not have a full- time, paid fire department without contracts if both legislative bodies approve. (Current law requires a municipality to lie entirely within the township to permit the arrangement.) Specifies that the provisions requiring the calculation and use of school assessment ratios and adjustment factors apply only to school corporations in counties in which a supplemental county levy is imposed. Repeals a provision requiring the calculation of a state average assessment ratio. Provides that a school corporation is to receive its proportionate share of any delinquent property taxes paid that are attributable to a year in which the school corporation did not receive 100% of its general fund distribution because of unpaid taxes. Exempts nonelected school boards from the law requiring taxing units with nonelected governing bodies to have bond issues and leases approved by the fiscal body of a county, city, or town. Provides that the budgets, tax levies, and bond issuance of a taxing unit in Marion County that: (1) is entirely within an excluded city; and (2) has an unelected governing body; are reviewable by the fiscal body of the excluded city. Requires a county income tax council to hold at least one public meeting in each odd-numbered year at which the council discusses whether the county option income tax rate should be adjusted. Provides that the board of a conservancy district may, subject to any required budget review and approval, increase the conservancy district's budget by not more than 10% for contingencies. (Current law requires the budget to be increased by 10% for contingencies.) Specifies the interest rate paid on certain conservancy district assessments after June 30, 2009, that are paid in installments. Increases the maximum amount of bonds that may be outstanding for a state educational institution's qualified energy savings projects from $10,000,000 to $15,000,000. Provides that under the statute authorizing political subdivisions to borrow from a financial institution to finance a public work project, the maximum term of the loan is ten years (rather than six years, under current law). Allows county option income tax revenue to be used to pay certain redevelopment bonds. Provides that for the first year that a property tax will be imposed by a solid waste management district, the district's board must present identical resolutions to each of the county fiscal bodies within the district seeking approval for the use of the property tax revenue. Provides that a district is subject to the statute that requires an entity with a nonelected board to get county council approval of the entity's proposed property tax levies and budget when the entity's budget is growing faster than the assessed value growth quotient. Requires the district's annual budget to be approved by a majority vote of all members of the board. Provides that in the case where all but one of the counties participating in a joint district have withdrawn from the joint district or have been removed from the joint district, the county that did not withdraw or was not removed from the joint district must designate itself as a new county district, join one or more other counties to form a new joint district, or join an existing joint district. Makes other changes concerning solid waste management districts. Makes changes to bring Indiana in conformance with the Streamlined Sales and Use Tax Agreement as amended through September 5, 2008. Requires the use tax to be paid at the time of registering a watercraft that is a United States Coast Guard documented vessel. Requires new retail merchants to file returns and remit sales tax electronically. Provides relief for retail merchants if there is a change in the sales and use tax rate. Provides that the sale of Internet access service or certain ancillary service telecommunication services are sourced to the customer's place of primary use. Requires refiners, terminal operators, and qualified distributors to remit prepaid state gross retail taxes through the department's online tax filing system. Requires the department of state revenue to determine a new sales tax prepayment rate on gasoline every three months. Makes other changes concerning sales tax. Eliminates the requirement to publish the prepayment rate change in the Indiana Register. Allows the department of state revenue, subject to office of management and budget approval, to make a new prepayment rate determination if the price of gasoline has changed by at least 25% since the most recent determination. Uses 80% instead of 90% of the estimated tax liability in making the determination. Provides that an inheritance tax lien terminates on the earlier of: (1) the date the inheritance tax is paid; (2) when certain affidavits are filed specifying that no tax is due; or (3) ten years (rather than five years, under current law) after the date of the decedent's death. Changes the inheritance tax interest accrual date. Provides that September 1 is the deadline for International Fuel Tax Agreement applications to be filed in order to receive the permit by January 1. Allows a repair and maintenance permit to be used by unregistered off-road vehicles to move from and to a quarry or mine for the purpose of repair. Requires the department of state revenue (department) to post on the department's web site the name of every registered retail merchant that has not renewed its retail merchant certificate or whose certificate has been revoked. Provides that a foreign real estate investment trust that has a tax treaty with the United States or a listed property trust will not be included in the add back to adjusted gross income as a captive REIT. Adds a definition of "pass through entity". Provides that income from a pass through entity shall be characterized in a manner consistent with the income's characterization for federal income tax purposes and attributed to Indiana as if the person, corporation, or pass through entity that received the income had directly engaged in the income producing activity. Provides that an individual may claim a deduction for state income tax purposes for property taxes that: (1) were imposed on the individual's principal place of residence for the March 1, 2007, assessment date or the January 15, 2008, assessment date; (2) are due after December 31, 2008; and (3) are paid in 2009 on or before the due date for the property taxes. For purposes of the tax credit for contributions to the college choice 529 education savings plan: (1) defines "contribution" to exclude rollovers from other 529 savings plans; and (2) excludes value added to the account through earnings of bonus points. Allows the department of state revenue to disallow the 529 savings plan income tax credit if tax avoidance is the principal purpose of the contribution. Includes vehicles that operate on biodiesel or diesel fuel for purposes of the Hoosier alternative fuel vehicle manufacturer income tax credit. Provides that the ability to opt out of electronic filing when using a paid tax preparer is available only to a taxpayer who claims the additional exemption for the elderly or who has opted out of participating in federal Social Security programs because of religious beliefs. Requires all new withholding tax registrants to file returns and remit the withholding taxes electronically through the department's online tax filing program. Provides that for winnings that exceed $1,200 on gambling games at racetracks, the operator is required to withhold adjusted gross income tax from the winnings. Amends the county adjusted gross income tax, county option income tax, and county economic development income tax statutes to provide that the budget agency (rather than the department) certifies the revenue distribution to counties. Requires the department to provide relief under the gasoline tax statutes where a shipment of gasoline is legitimately diverted from the represented destination state after the shipping paper has been issued by the terminal operator or where the terminal operator failed to cause proper information to be printed on the shipping paper. Repeals the requirement that a person must obtain an import verification number in certain circumstances to import special fuel into Indiana. Specifies that road tractors are included in the definition of "commercial vehicle" for purposes of the commercial vehicle excise tax. Provides that a taxing unit's calendar year commercial motor vehicle excise tax distribution is based on the amount of tax collected in the preceding state calendar year (rather than 105% of the prior year's base revenue). Provides that a county's base revenue for purposes of the commercial motor vehicle excise tax is equal to its distribution percentage multiplied by the amount of tax revenue collected in the preceding state fiscal year. Requires an airport operator to submit reports to the department listing aircraft stationed at the airport. Provides that if the airport operator submits an incomplete report, the airport operator is subject to a civil penalty of $100 per aircraft not properly included in the report. Makes other changes related to department of state revenue administration of tax laws. Adds the utility receipts tax to the taxes for which a six, versus a three, year limit on assessment applies if gross receipts are understated by at least 25%. Exempts beer brand and packaged type from the department's confidentiality law. Provides a refund of gross income taxes erroneously paid for 2003 and 2004 by a town if the town also paid the utilities receipts tax for the same year. Provides that before January 1, 2013, a designating body may adopt a resolution providing the exemption to an eligible business for enterprise information technology equipment. Requires that the designating body and the eligible business enter into an agreement concerning the property tax exemption, which must specify the duration of the property tax exemption and may specify that a transferee is entitled to the exemption on the same terms as the transferor. Specifies that the exemption continues for the period specified in the agreement, notwithstanding the January 1, 2013, deadline to adopt a resolution granting an exemption. Provides that any administrative fees charged by a fire department's agent must be paid only from fees that are collected and allowed by Indiana law and the fire marshal's schedule of fees. Specifies that an agent who processes fees on behalf of a fire department shall send all bills, notices, and other related materials to both the fire department and the person being billed for services. Provides that certain parental reimbursement obligation shall be paid directly to the department of child services and not to the local court clerk so long as the child in need of services case, juvenile delinquency case, or status offense case is open. Specifies certain requirements for contracts between the department of child services regarding collection of parental reimbursement amounts. Provides that the population of the town of Fairland for purposes of certain Indiana laws is 325. Extends the Hoosier business investment tax credit through 2015. Adds Wabash County to the counties that may annex noncontiguous property to be used as an industrial park. Specifies that the maximum term of bonds or leases in a TIF district is to be determined based on the date the obligation is entered into (applies to districts created and obligations entered into after June 30, 2008). Provides for two semiannual installments of revenue replacing homestead credits granted to taxpayers in 2009 and 2010. Provides a school in Marion County additional time to file for a property tax exemption for taxes payable in 2007, 2008, and 2009, and authorizes a refund of taxes paid for 2007 and 2008. Provides a church in Marion County additional time to file for a property tax exemption for taxes imposed for the 2008 assessment date for land that it purchased in 2007 that is adjacent to the church's already exempt property. Allows borrowing by a fire protection district that was initially established in 2006, has experienced significant revenue shortfalls due to cumulative mathematical errors in the calculation of its maximum permissible property tax levies in 2007 and 2008, and may experience a significant revenue shortfall in 2009 and 2010 requiring the district to seek funds in addition to the amounts certified for the district's current budget to provide fire protection to district residents. Permits a county to transfer to the county's rainy day fund any money that was transferred from the county's family and children's fund and from the county's children's psychiatric residential treatment services fund to the county's levy excess fund as required in 2008. Allows the Pendleton Library to impose annual capital project fund levies that exceed the usual limits. Provides that a county that had $10,000,000 transferred to the county's levy excess fund from the county's family and children's fund and the county's children's psychiatric residential treatment services fund to the county's levy excess fund, as required by P.L.146-2008, may distribute the money transferred to the county's levy excess fund as follows: (1) $1,000,000 must be distributed to the county's rainy day fund; (2) two-thirds of the remainder must be distributed to the civil taxing units in the county using the same allocation used for local income taxes. Requires the commission on state tax and financing policy to study the allocation of local option income tax revenues to taxing units and report its findings and any recommendations to the legislative council before November 1, 2009. Makes other changes concerning property taxation. (The introduced version of this bill was prepared by the commission on state tax and financing policy.)
Current Status:
 In Conference Committee
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