DIGEST OF SB 19 (Updated March 9, 2012 12:50 pm - DI 73)
Property taxes. Requires the county assessor of each county before July 1, 2013, and before July 1 of every fourth year thereafter 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. Requires the DLGF to complete its review and approval of the reassessment plan before March 1 of the year following the year in which the reassessment plan is submitted by the county. Provides that subject to review and approval by the DLGF, the county assessor may modify a reassessment plan. 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 25% of the parcels within each class of real property in the county. Requires the assessor to submit land values to the county property tax assessment board of appeals by the dates specified in the county's reassessment plan. Requires the reassessment of the first group of parcels under a county's reassessment plan to begin July 1, 2014, and be completed on or before March 1, 2015. Specifies procedures for taxpayers to petition the DLGF for reassessment of parcels in a group and a schedule for completion of reassessment of parcels in a group. Provides that the notice of assessment that must be sent to taxpayers by assessing officials is in addition to any required notice of assessment included in a property tax statement. Specifies that the assessing official may provide the notice by mail or by using electronic mail that includes a secure Internet link to the information in the notice. Specifies that the soil productivity factors used for March 1, 2011, shall be used for the March 1, 2012, assessment date, instead of the new values determined by the DLGF for March 1, 2012. Specifies that any required provisional statement shall be based on the latest assessed values certified by the DLGF, as adjusted under the procedures specified by the DLGF. Specifies procedures for resolving multiyear delays in the issuance of tax bills for counties that are at least three years behind in issuing tax bills. Provides that these provisions expire December 31, 2016. Provides that the county executive of a covered county may employ one or more special masters to carry out substantially all of the duties of: (1) the county auditor; (2) the county treasurer; or (3) the county assessor; or any combination of these offices, as is necessary to issue property tax bills in each year that the county is a covered county. Specifies that local income taxes withheld to pay state expenses incurred to issue expedited tax bills in these counties reduces only the share of local income taxes that would be distributable to the county unit of government. Specifies that money must be set aside to reimburse eligible taxing units for interest costs on the schedule specified by the Indiana bond bank. Indicates that some or all of the required set aside is waived if certain are met. Requires that the extension of time to file for credits or deductions related to reconciliation issued in a covered county for a past tax year must be explained in the tax bill. Provides that the extension is the later of July 1 in the year the county becomes a covered county or 45 days after the reconciliation bill is issued. Permits the current owner of property to file the deduction or credit application. Specifies additional reporting requirements for redevelopment commissions. Requires redevelopment commissions to submit copies of the required reports to the DLGF.
DIGEST OF SB 98 (Updated March 1, 2012 10:38 am - DI 84)
County highway maintenance funding. Provides that a county may use property taxes and miscellaneous revenue deposited in the county general fund for the maintenance of county highways. (Current law permits property taxes to be used for highway maintenance only in an emergency and by unanimous vote of the county fiscal body, and the county general fund to be used only for county highway department employees' personal services.) Allows a city department, officer, or employee to obligate the city beyond the amount of money appropriated for that department, officer, or employee if: (1) the obligation is made under a multi-year interlocal cooperation agreement entered into by the city and one or more political subdivisions or governmental entities; and (2) the agreement is approved by the city fiscal body.
DIGEST OF SB 147 (Updated March 6, 2012 2:18 pm - DI 84)
Local government financial matters. Specifies that a county may provide notices of property tax information by electronic mail that provides a secure Internet link for the recipient to obtain the information. Allows a person to request electronic transmissions in an online format developed by a county and approved by the department of local government finance. Requires the county treasurer to record whether electronic mail to a person was undeliverable. Specifies that a monthly payment plan may include an automatic monthly deduction from a taxpayer's financial institution account or monthly payments made by written instrument or electronically. Specifies that the payment cycle for a property tax payment plan may be up to 12 months and may begin in December of the year preceding the year the taxes would be due under the May and November installment method and end in the following November. Clarifies that penalties do not apply if the amount due under a monthly payment plan is paid by the due date in November that is designated by the taxpayer. Provides that a real property parcel is not to be listed on a tax sale notice if the delinquent property taxes or special assessments are $25 or less. Provides that the interest rate owed on property tax refunds or when a taxpayer owes more property taxes because of an assessment increase after the tax due date, an appeal, or when collection has been enjoined by court order is equal to the rate established by the commissioner of the department of state revenue for refunds on excess state tax payments. Requires county treasurers and county auditors to attend training sessions approved by the state board of accounts. Provides that money in the county elected officials training fund may be used to provide this training. (Under current law, the fund is used to provide training to county recorders and surveyors.)
DIGEST OF SB 293 (Updated March 9, 2012 8:03 pm - DI 92)
Inheritance tax. Reclassifies a spouse, widow, or widower of a child of the
transferor as a Class A transferee instead of a Class B transferee.
Reclassifies a spouse, widow, or widower of a stepchild of the transferor as a
Class A transferee instead of a Class C transferee. Increases the inheritance
tax exemption amount for Class A transferees from $100,000 to $250,000 with
respect to taxable transfers resulting from the deaths of individuals dying
after December 31, 2011. Phases out the inheritance tax over 9 years beginning
in 2013. Phases out the inheritance tax replacement amounts payable to counties
over 10 years beginning with amounts payable for the state fiscal year
beginning July 1, 2012.
DIGEST OF HB 1072 (Updated March 10, 2012 12:31 am - DI 51)
Tax administration. Changes dates for budget and levy adoption actions. Changes property tax, sales tax, and income tax reporting and filing requirements. Specifies the assessed value for outdoor signs. Changes the formula for applying the circuit breaker among debt and nondebt levies, permits the department of local government finance to authorize the exclusion of more than 2% of the assessed value of a taxing unit for purposes of calculating property tax rates, and changes the formula for calculating adjustments to the maximum permissible tax rate for cumulative funds and capital project funds to reflect changes in the total assessed value in a taxing unit. Provides for a loan to replace revenue lost from applying the prior adjustment formula. Expands the circumstances under which the budgets and supplemental budgets of a political subdivision with a nonelected governing body (other than a library) is subject to review by a county, city, or town fiscal body. Exempts from the utility receipts tax any payments of severance damages or other compensation resulting from a change in assigned service area boundaries. Provides a sales tax exemption for sales of wrapping material and empty containers that are acquired for shipping or delivery and a sales tax exemption concerning recycling. Provides a property tax deduction for solar power devices. Extends the Hoosier business investment tax credit, the venture capital investment tax credit, the alternative fuel vehicle manufacturer tax credit, and the new employer tax credit. Removes (from current law) the prohibition of taking a case to the tax court if the department of state revenue takes longer than three years to settle a claim. Permits an additional local income tax rate in Starke County. Provides for an adjustment of certain maximum levy limits for two townships in Jasper County and the Frontier School Corporation. Makes changes in the administration of local income tax laws. Changes the date that a Miami County resolution related to the use of local income taxes for property tax credits takes effect. Eliminates certain local income tax rates for Tippecanoe County and Parke County. Makes changes related to the allocation of certain taxes in Allen County. Updates certain internal references to population and the Internal Revenue Code. Provides that the projection of the jobs to be created by a project funded from the Indiana twenty- first century research and technology fund may not be kept confidential. Provides for a continuous abatement notice regarding weeds and vegetation. Permits a political subdivision or municipally owned utility to collect a fee for a credit or bank card payment. Permits a political subdivision or the board of a municipally owned utility to use an electronic funds transfer method of payment of claims. Provides that a county auditor may require an individual to provide evidence proving that the individual's residence is the individual's principal place of residence for purposes of the homestead standard deduction. Requires various legislative studies.
DIGEST OF HB 1090 (Updated March 5, 2012 6:27 pm - DI 84)
Payment of delinquent property taxes. Applies statewide the authority that currently applies only in Lake County allowing the county auditor to remove real property from a tax sale if the county treasurer and the taxpayer agree to a mutually satisfactory arrangement for the payment of the delinquent taxes. Establishes a period during which a taxpayer who fails to make a payment under the delinquent property tax payment arrangement may not enter into another arrangement. Allows the county treasurer to extend the tax sale redemption period applicable to real property if a tract or item of real property did not sell at a tax sale and the county treasurer and the taxpayer agree to an arrangement for payment of the amount required for redemption before the expiration of the extended redemption period. Provides for cancellation of the agreement and the extension if the taxpayer fails to meet the terms of the agreement. Provides that the total amount required for redemption includes all taxes, special assessments, interest, penalties, and fees on property that accrued after the tax sale. Provides that the fiscal body of a county may adopt an ordinance authorizing the county treasurer to accept a minimum bid on real property subject to sale for delinquent taxes equal to the lesser of: (1) the delinquent taxes, penalties, and other related costs; or (2) 75% of the gross assessed value of the real property. Provides that the fiscal body of a county may adopt an ordinance to establish an property tax amnesty program and require waiver of interest and penalties added before January 1, 2012, on delinquent taxes and special assessments on real property in the county if: (1) all of the delinquent taxes and special assessments on the real property were first due and payable before January 1, 2012; and (2) before July 1, 2013, the taxpayer has paid all of these delinquent taxes and special assessments and has also paid all of the taxes and special assessments that are first due and payable after December 31, 2011. Requires the waiver of interest and penalties in these circumstances, notwithstanding any payment arrangement entered into by the county treasurer and the taxpayer.
DIGEST OF HB 1192 (Updated March 9, 2012 7:58 pm - DI 73)
School corporation and local government finances. Provides that before January 1, 2014, a school corporation may use the debt restructuring statutes if the school corporation has a circuit breaker impact of at least 20%, as certified by the department of local government finance (DLGF) (rather than 30%, under current law). Requires that such a school corporation must either: (1) have the distressed unit appeal board (DUAB) approve the school corporation's financial plan for paying any refunding bonds; or (2) meet certain criteria concerning debt-ADM ratios, debt-assessed value ratios, and the amount of homestead assessed valuation in the school corporation. Provides that a school corporation that meets these requirements may restructure its debt without going through the petition and remonstrance process requirements and referendum requirements that would otherwise apply under current law. Specifies that if a school corporation restructures its debt under these provisions, any extension of the debt repayment period may not exceed ten years after the latest maturity date for any of the bonds being retired or refunded by the school corporation. Provides that a school corporation is eligible to obtain a loan from the rainy day fund if the school corporation is designated as distressed by the DUAB or the school corporation is otherwise approved for a loan by the DUAB. Provides that in the case of a school corporation that petitions the DUAB, the DUAB shall make a recommendation to the state board of finance concerning the loan. Provides that the state board of finance may not after December 31, 2017, approve such loans to a school corporation from the rainy day fund. Specifies that at the time the DUAB designates a school corporation as distressed or otherwise recommends that a loan from the rainy day fund be approved for the school corporation, the DUAB may also recommend to the state board of finance that a loan from the rainy day fund to the school corporation be contingent upon any of the following: (1) The sale of specified unused property by the school board. (2) The school corporation modifying one or more specified contracts entered into by the school corporation. Provides that in making a loan from the rainy day fund to a school corporation, the state board of finance may make the loan contingent upon any such condition recommended by the DUAB. Provides that a school corporation's loan may not exceed the lesser of $5,000,000 or the result of multiplying the school corporation's ADM by $1,000. Provides for the interception of revenues otherwise payable to the school corporation if the school corporation fails to pay an obligation associated with the loan. Specifies that the treasurer of state may not impair the rights of the school corporation's bondholders regarding rainy day fund loan payments. Provides that the interest rate on rainy day fund loans to a school corporation is equal to the interest rate on state taxes, minus 2%, but in no case shall the interest rate be less than 1%. Changes the membership of the DUAB. Provides that a political subdivision may file a petition with the DUAB seeking designation of the political subdivision as a distressed political subdivision, based on any one of several failures by the political subdivision to meet its financial obligations. Specifies that the DUAB may consider whether a political subdivision has exercised all of its local options. Provides that if the DUAB designates a political subdivision as a distressed political subdivision, the board shall (except in the case of a school corporation that is designated as distressed) appoint an emergency manager for the distressed political subdivision. Provides that an emergency manager of a distressed political subdivision has broad powers to effect the financial rehabilitation of the distressed political subdivision. Provides that a school corporation that is designated as distressed may not carry out certain actions without the approval of the DUAB. Provides that if a school corporation that covers its active and retired employees under a state employee health plan consolidates, reorganizes, or merges after May 1, 2012, with a school corporation that does not cover its active and retired employees under a state employee health plan, the school corporation that results from the consolidation, reorganization, or merger must allow an individual for whom the first school corporation had (as of the effective date of the consolidation, reorganization, or merger) health insurance liability under a state employee health plan to continue the individual's coverage under the state employee health plan for at least five years, as long as the individual otherwise remains eligible for coverage under the plan. Provides that a school corporation that carried out a general program in at least one school year beginning after June 30, 2010, to provide transportation to and from school for eligible students must carry out a program to provide transportation to and from school, unless the governing body of the school corporation: (1) approves the termination of the transportation program; and (2) provides public notice of the termination; at least three years before the date after which the transportation will no longer be provided. Allows the department of education to waive these requirements if the department determines that a transportation plan presented by the school corporation, with or without revisions required by the department: (1) will protect the safety of eligible students enrolled in the school corporation; and (2) is otherwise in accordance with applicable law. Provides that before January 1, 2018, costs attributable to transportation may be budgeted in and paid from a school corporation's general fund. Provides that the DLGF may upon petition by a school corporation adjust the school corporation's levy for the school bus replacement fund to reflect the school corporation's school bus acquisition plan. Reduces (by 75% in 2013, 50% in 2014, and 25% in 2015) the amount by which a school corporation must otherwise reduce the school corporation's other levies to offset a pension debt levy, if the school corporation adopts a resolution to apply such a reduction. Requires the DUAB to report to the budget committee before certain dates concerning actions taken by the DUAB under the statute allowing a school corporation with a circuit breaker impact to restructure its debt.
DIGEST OF HB 1195 (Updated March 10, 2012 12:42 am - DI 73)
Property taxes. Delays the date after which a current county assessor must attain certification as a level three assessor-appraiser. Requires the department of local government finance to establish a program to approve sponsors of courses and courses that qualify a candidate for certification as a level three assessor-appraiser. Provides that if a taxpayer wishes to have the income capitalization method or the gross rent multiplier method used in the initial assessment of the taxpayer's property, the taxpayer must submit the necessary information to the assessor not later than the March 1 assessment date. Specifies that the taxpayer is not prejudiced or restricted in filing an appeal, if the data is not submitted by March 1. Provides a taxpayer the right to a continuance of a property tax assessment board of appeals hearing for just cause. Permits a taxpayer to request that the board make a decision based upon submitted evidence without the presence of the taxpayer. Sets a deadline for filing a notice of withdrawal of a petition. Imposes a $50 penalty if a request for continuance, a request for the board to take action without the taxpayer being present, or a withdrawal is not timely filed and the taxpayer or representative fails to appear at the hearing. Permits an appeal of the assessment of the penalty. Provides that in the case of an assessment that is decreased by the Indiana board or the Indiana tax court, the taxpayer is not entitled to the greater of $500 or 20% of the interest to which the taxpayer would otherwise be entitled on a refund if substantive evidence supporting the taxpayer's position was not presented by the taxpayer to the assessor before or at the hearing of the county property tax assessment board of appeals. Provides that an appraisal may not be required by the county board or the assessor in a proceeding before the county board or in the preliminary informal conference. Specifies that a taxpayer and an assessing official may introduce certain evidence of the assessment of comparable properties. Permits various entities to file a late property tax exemption application for previous assessment years and provides for refunds regarding these exempt properties.
DIGEST OF HB 1249 (Updated March 8, 2012 11:46 am - DI 84)
Land banks and tax sales process. Urges the legislative council to assign to an existing study committee, for study during the 2012 interim, the following topics: (1) Land banks. (2) Indiana's tax sales process. If the topics are assigned to a study committee, requires the committee to study: (1) the use and effectiveness of Indiana's current land bank statute; (2) issues relating to creation of land banks at the municipal level, as opposed to the county level; (3) the implications that land banks would have for Indiana's current tax sale process; (4) the effect of Indiana's current tax sale process on the disposition of vacant and abandoned property; (5) the effect that creation of municipal land banks would have for local revenues; (6) land bank issues unique to Marion County; (7) reducing the amount of time needed to complete the tax sales process; and (8) other issues related to land banks and the tax sales process.
DIGEST OF HB 1264 (Updated February 29, 2012 3:30 pm - DI
84)
Flood control in Lake County. Expands the Little Calumet River basin development commission (LCRBDC) from five members to nine members. Requires the LCRBDC to levy a special assessment on parcels of land within the Little Calumet River and Burns Waterway watershed in Lake County. Specifies that the special assessment applies only to parcels that are not exempt from property taxation. Specifies the permissible uses of the assessments, including the repayment of bonds. Specifies that projects for which bonds are payable from special assessments are not controlled projects. Specifies that certain procedural laws apply to the issuance of bonds payable from special assessments. Provides for the repayment of money to the Northwest Indiana Regional Redevelopment Authority. Requires the LCRBDC to meet at least four times per year and to submit annual reports to the board of county commissioners of Lake County. Establishes the Little Calumet River basin project advisory board.
DIGEST OF HB 1325 (Updated March 8, 2012 8:50 pm - DI 84)
Sales and use tax exemptions. Specifies the use tax exemption for certain
aircraft when there is an addition to or reconfiguration of the interior of an
aircraft. Specifies when delivery occurs. Provides a sales and use tax
exemption for transactions involving tangible personal property by a company
that is engaged in offering a competitive racing experience in a two-seater
Indianapolis 500 style race car during a competitive racing event. Provides an
exemption from the state gross retail tax for tangible personal property
acquired for the exclusive purpose of complying with the state tobacco tax
laws. Provides a sales and use tax exemption for transactions involving
tangible personal property related to the repair, maintenance, refurbishment,
remodeling, or remanufacturing of an aircraft or an avionics systems of an
aircraft with a country of registration that is outside the United States and
that either: (1) has a minimum landing weight of at least 5,000 pounds; or (2)
is equipped with a turboprop or turbojet power plant. Requires the commission
on state tax and financing policy to study issues related to whether the
exemption should be made to apply to all aircraft and avionic devices.
DIGEST OF HB 1376 (Updated March 10, 2012 1:34 am - DI 51)
State and local administration. Provides that for purposes of the automatic taxpayer refund statutes, the amount of the refund for qualifying taxpayers is determined on a per capita basis by dividing the total amount of excess state reserves available to provide automatic taxpayer refunds by the total number of qualifying taxpayers. Provides that a taxpayer qualifies for the refund if the taxpayer filed a resident tax return in the preceding year. Effective January 1, 2013, makes the threshold for use of excess reserves 12.5% (rather than 10%, under current law) of general revenue appropriations for the state fiscal year. Specifies that: (1) if the amount of the excess reserves, including any carryover amounts, are less than $50,000,000, the excess reserves shall be carried over to the next year; and (2) if the excess reserves are $50,000,000 or more, 50% of the excess reserves shall be transferred to certain pension funds and 50% of the excess reserves shall be used for the purposes of providing an automatic taxpayer refund. Provides that beginning in 2013, the office of management and budget shall calculate, after the end of each odd-numbered state fiscal year, the total amount of state reserves. ... Defines "parcel" for purposes of the statute allowing Little Calumet River basin development commission (commission) to levy a special assessment on parcels of land within the Little Calumet River and Burns Waterway watershed in Lake County. Specifies areas in which the commission may operate. Specifies the total amount of the loan repayment by the commission to the Northwest Indiana RDA. Provides that none of the four members from a unit that borders the Little Calumet River may be from the same municipality. ... Provides that distributions to the estates of persons whose death was caused by the accident at the state fair are exempt from inheritance tax. ...
