Friday, February 15, 2013

Farm Bureau Reports on Progress of Various Tax and Budget Bills

From the Farm Bureau Public Policy Dispatch:

SOIL PRODUCTIVITY CORRECTION MOVING IN HOUSE  Following last week’s announcement by House Speaker Brian Bosma (R-Indianapolis) that SB 319 would be fast-tracked through the House, the House Ways & Means Committee heard and approved it on Monday morning. SB 319 was presented to the committee on Monday by its author, Sen. Jean Leising (R-Oldenburg), and House sponsors Reps. Don Lehe (R-Brookston) and Bob Cherry (R-Greenfield) and supported by Katrina Hall of Farm Bureau. The bill will retain the 2011 soil productivity factors for the 2013 assessment of farmland and direct the Department of Local Government Finance, in cooperation with the Purdue College of Agriculture, to develop and submit to the General Assembly recommendations and justifications for any proposed changes in the methodology used to establish soil productivity adjustments to the base value of farmland.

The House Rules state that there may be no more than three co-authors or co-sponsors of a bill. Occasionally, this rule is waived and additional co-sponsors are added to a bill. Rep. Cherry has obtained such a waiver from Speaker Bosma for SB 319 and by noon on Friday the bill had 66 sponsors and co-sponsors.

The bill passed second reading without amendment on Thursday and will be eligible for final action in the House next week.

BILL TO PROTECT AG AND INDUSTRIAL OPERATIONS FROM UNAUTHORIZED PHOTOGRAPHY MOVING IN SENATE  The Senate Corrections & Criminal Law Committee met on Tuesday and approved an amended version of SB 373, which will make it illegal to record an agricultural or industrial operation without the operator’s consent. The bill was amended by committee to reduce the penalty and add an exception for transferring the recording to appropriate law enforcement officials. The committee also discussed protecting an individual who transferred a recording to a media outlet. It is expected that an effort will be made to amend the bill on second reading. SB 373 was presented to the committee by its author, Sen. Travis Holdman (R-Markle), and supported by Farm Bureau’s Bob Kraft as well as Indiana Pork, the Indiana Poultry Association, Indiana Manufacturer’s Association and the Indiana Chamber of Commerce. It was opposed by the Humane Society of the United States, the Sierra Club, the Hoosier Press Association and several individuals.

PROPOSAL TO ELIMINATE PUBLIC HEARINGS ON LOCAL GOVERNMENT BUDGETS CONSIDERED   HB 1116 authored by Rep. Dan Leonard R-Huntington), makes numerous changes concerning the administration of property taxes. As presented to the committee, the bill would have required binding approval of a library’s budget by the fiscal body of a county or a city. Due to complaints by library officials, that portion of the bill was deleted. Katrina Hall testified against portions of the bill that eliminated DLGF budget hearings for next year, suggesting that this idea might have merit but it needs to be studied first so that the rights of taxpayers are preserved in the process that approves local budgets and sets property tax rates. The bill was held by the Government Reform & Regulatory Committee until next week.

ANOTHER PERSONAL PROPERTY TAX PROPOSAL GETS A HEARING  HB 1544  Rep. Eric Turner’s (R-Cicero) bill would permit a county, city or town to authorize a 100% property tax deduction for all personal property or, alternatively, to grant a tax credit for all property taxes imposed on all personal property in the county, city or town. The bill provides local government with additional flexibility when granting tax abatements. At the request of the Apartment Association, Turner included language that extends the 2% circuit breaker to common areas owned by apartment complexes. Katrina Hall testified in favor of the part of the bill which would give local officials the opportunity to act on personal property taxes, noting that this may not be something all counties could afford to do but it would be a start. She also noted that flexibility in tax abatements should extend to agricultural enterprises. The bill was amended to also allow personal property exemptions and credits at levels less than 100% and was voted out of the Ways & Means Committee on Thursday afternoon.
 
COMMERCIAL VEHICLE EXCISE ADMINISTRATION  Another bill introduced by Rep. Eric Turner (R-Cicero), HB 1546, makes a number of technical changes to various state taxes including the commercial vehicle excise tax (CVET). It makes permanent the registration of commercial trucks in fleets of 25 or more. Katrina Hall expressed concerns that because CVET has a revenue guarantee for local governments, any changes to the fees paid by fleets of trucks would make CVET paid by farmers higher. She was assured that the bill did not change any registration fees, but Indiana Farm Bureau will be watching this bill closely and urges members to remind legislators how high the CVET paid by farmers are already.

SENATE CONSIDERS DIRECTING PORTION OF GASOLINE SALES TAX TO ROAD MAINTENANCE  The Senate Fiscal Policy Committee considered but did not vote on SB 440, a bill introduced by Sen. Tim Skinner (D-Terre Haute) that would allow part of the sales tax collected on gasoline to be allocated among counties, cities and towns for road and street projects. It specifies that when the retail price of fuel, including federal fuel taxes and state fuel, sales, and use taxes, exceeds $3, the sales tax collected on the amount above $3 is distributed to counties, cities and towns. These dollars would be distributed on a quarterly basis and used for road construction and maintenance only. Katrina Hall supported the bill, stating that because the local road funding need is so great, there must be some state dollars provided especially to smaller counties that cannot raise enough of the wheel tax and motor vehicle surtax to make a substantial dent in their road maintenance problem.  

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