Tax Bills that have Passed the the Senate and Moved to the House

Senate Bill 0090

DIGEST OF SB 90 (Updated February 12, 2013 2:44 pm - DI 84) Marion County auto rental and admissions taxes. Provides that any increase after January 1, 2013, and before March 1, 2013, in the Marion County supplemental auto rental excise tax rate or the Marion County admissions tax rate may not continue in effect after February 28, 2023.

Senate Bill 0091

DIGEST OF SB 91 (Updated February 19, 2013 3:22 pm - DI 84) Motorsports investment district. Provides that the Indiana finance authority (authority) may adopt a resolution establishing a motorsports investment district. Specifies that the budget committee shall review and make a recommendation to the budget agency regarding a resolution establishing a motorsports investment district. Provides that if a resolution establishing a motorsports investment district is approved by the budget agency, state sales tax and state individual income tax generated in the district shall be allocated to the authority. Specifies that the maximum amount of covered taxes that may be captured from the motorsports investment district and allocated to the authority in a state fiscal year may not exceed $5,000,000. Provides that covered taxes may be captured from the motorsports investment district only for 20 years. Provides that the authority may issue bonds for the purpose of obtaining money to pay the cost of improving, constructing, reconstructing, renovating, acquiring, or equipping structures and capital improvements within a qualified motorsports facility.

Senate Bill 0152

DIGEST OF SB 152 (Updated February 4, 2013 2:49 pm - DI 84) Property tax assessments. Provides that in the case of real property that is the subject of a property tax appeal in which the gross assessed value is determined by the property tax assessment board of appeals (PTABOA), if the assessed value is increased above the amount determined by the PTABOA the assessor has the burden of proving that the assessment is correct. Specifies that this provision does not apply to real property that was valued using the income capitalization approach in an appeal. Specifies, however, that the assessed value is to be adjusted for the annual adjustment factor, the general reassessment of real property, and any physical change to the property. Provides that the assessed value may be changed if the ownership of the property changes.

Senate Bill 0162

DIGEST OF SB 162 (Updated February 26, 2013 11:59 am - DI 84) Provides that an incentive agreement between the Indiana economic development corporation (IEDC) and an incentive recipient is available after the date the agreement is executed, regardless of whether negotiations may be in progress with that recipient after that date. Provides that a recipient must provide information about its financial investment if a financial investment was a condition for an incentive. Requires the IEDC to include in its annual compliance report aggregate information on performance goals, the total number of actual jobs created and the number of jobs expected, as reviewed by an independent auditing firm chosen by the corporation, recaptured incentives, total number of recipients, and tax credits claimed for the reporting period. Provides that the compliance report is to include the county or municipality of the recipient instead of the recipient's address. Requires the compliance report to include a certification by the corporation that each recipient is complying with the terms of the incentive agreement (current law requires a certification of whether each recipient is meeting the program requirements and representations made in the recipient's application concerning the wages and compensation provided to employees, other benefits to be provided to employees, and the extent to which the recipient has complied with the representations). Changes the timing of the IEDC's annual compliance report from a state fiscal year to a calendar year and specifies that the report is to include cumulative information on active recipients from 2005 instead of 2007. Adds cross- references to recently enacted tax credits. Repeals a duplicate statute concerning the requirement that the IEDC disclose the terms of a final incentive offer.

Senate Bill 0165

DIGEST OF SB 165 (Updated January 29, 2013 2:39 pm - DI 84) Veterans' property tax deductions. Provides that the following apply to the property tax deduction for veterans with a service connected disability of at least 10% and to the property tax deduction for a veteran who has a total disability or has at least a 10% disability and is at least 62 years of age: (1) A deceased veteran's surviving spouse is eligible for the deduction if the deceased veteran satisfied the requirements for the deduction at the time of death and the surviving spouse owns the property at the time the deduction statement is filed (regardless of whether the property for which the deduction is claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran's death). (2) A deceased veteran's surviving spouse who first applies for the deduction after 2012 is eligible for the deduction only if the property is the surviving's spouse's homestead. Increases the assessed value cap (from $143,160 to $195,600) that applies to the property tax deduction for a veteran who has a total disability or has at least a 10% disability and is at least 62 years of age.

Senate Bill 0229

DIGEST OF SB 229 (Updated February 25, 2013 2:45 pm - DI 84) Adjustment for township firefighting fund levy. Provides that in the case of a township and a municipality in the township in which: (1) the township provides fire protection to the municipality; and (2) the municipality does not pay the township for any part of the township's cost in providing fire protection services; the department of local government finance shall make an adjustment to the maximum property tax levies of the township and municipality, if the adjustment is agreed to by the fiscal bodies of the township and municipality. Provides that the municipality's maximum property tax levy shall be reduced by the average annual amount budgeted by the municipality for fire protection services during the preceding three years, and that the maximum property tax levy for the township's firefighting fund shall be increased by the product of: (1) the average annual amount budgeted by the municipality for fire protection services during the preceding three years; multiplied by (2) the assessed value growth quotient. Specifies that the tax rate for the township's firefighting fund shall also be imposed within the corporate boundaries of the municipality.

Senate Bill 0239

DIGEST OF SB 239 (Updated February 25, 2013 2:55 pm - DI 73) Tax credit for quality child care. Establishes the paths to quality income tax credit. Provides that an individual is entitled to a nonrefundable income tax credit for each dependent child of the individual who is at least three years of age and less than six years of age and who is attending a child care facility that voluntarily participates in the paths to quality rating system (qualified child care facility) and that has a quality rating of level 2 or higher. Provides that the amount of the credit is based on the number of months the dependent child attends the qualified child care facility and the quality rating of the qualified child care facility. Requires the division of family resources to adopt rules to administer the paths to quality rating system.

Senate Bill 0244

DIGEST OF SB 244 (Updated February 4, 2013 3:17 pm - DI 84) Hoosier business investment income tax credit. Adds logistics investments as a specific type of qualified investment under the Hoosier business investment tax credit. Specifies in detail the expenditures that qualify as a logistics investment. Requires the Indiana economic development corporation to find that an applicant's logistics investment project will enhance the logistics industry by creating new jobs, preserving existing jobs that otherwise would be lost, increasing wages in Indiana, or improving the overall Indiana economy in order to approve the applicant's project for a tax credit. Makes conforming changes to the credit application and agreement provisions. Provides that the percentage credit maximum is 25% (instead of 10%) if a qualified investment is a logistics investment. Provides that for logistics investments, the qualified investments used to determine the credit are based on growth in qualified investments by the taxpayer using 105% of the investments made by the taxpayer during the immediately preceding two years. Adds a $50,000,000 state fiscal year ceiling for tax credits that are not based on logistics investments. Provides a $10,000,000 state fiscal year ceiling for tax credits that are based on logistics investments. Requires the department of state revenue to annually report to the budget committee on the use of the tax credit for logistics investments.

Senate Bill 0275

DIGEST OF SB 275 (Updated February 14, 2013 2:48 pm - DI 84) Property tax payments. Provides that a county auditor shall (rather than may, under current law) remove real property from the tax sale list if the county treasurer and the taxpayer agree to a mutually satisfactory arrangement for the payment of the delinquent taxes. Adds a requirement that the county treasurer must have provided a copy of the written agreement for the arrangement to the county auditor. Provides that if a county council does not adopt an ordinance allowing taxpayers to make installment payments of property taxes, the county treasurer shall develop and implement a plan to accept partial payments of property taxes. Specifies that the county treasurer shall notify taxpayers on the property tax bill or envelope used to mail property taxes that the county has adopted a plan to accept partial payments.

Senate Bill 0319

DIGEST OF SB 319 (Updated February 18, 2013 2:16 pm - DI 84) Soil productivity factors. Provides that the soil productivity factors used for the March 1, 2011, assessment of agricultural land must be used for the March 1, 2013, assessment date. Requires the department of local government finance, in cooperation with the Purdue University College of Agriculture, to submit the following in 2013 to the commission on state tax and financing policy and to any interim study committee established to study agriculture issues or assigned the topic of studying agriculture issues: (1) Proposed soil productivity factors to be used in the assessment of agricultural land. (2) An explanation of the methodology used to determine the proposed soil productivity factors. (3) Data, from each county, that was used to determine the proposed soil productivity factors. (4) Testimony and comments provided to the department of local government finance by taxpayers and other stakeholders concerning the proposed soil productivity factors. Senate Bill 0339 DIGEST OF SB 339 (Updated February 25, 2013 2:55 pm - DI 84) State gross retail tax. Provides a sales tax exemption for feed purchased to produce food and food ingredients that are for personal consumption. Senate Bill 0343 DIGEST OF SB 343 (Updated February 7, 2013 2:59 pm - DI 84) Local government reorganization. Eliminates the requirement that a reorganization committee must be appointed to prepare the reorganization plan as part of a proposed local government reorganization, effective January 1, 2014. Provides that the legislative bodies of the reorganizing political subdivisions (rather than a reorganization committee) shall prepare the reorganization plan that must be adopted by the legislative bodies before the proposed reorganization is placed on the ballot. Requires that a reorganization plan must include a fiscal impact analysis. Specifies the required contents of the fiscal impact analysis. Provides that the fiscal impact analysis must specify any estimated effects on political subdivisions in the county that are not participating in the reorganization and on taxpayers located in those political subdivisions. Requires that the fiscal impact analysis must be submitted to the department of local government finance (DLGF) at least six months before the election in which the public question will be on the ballot. Requires the DLGF to do the following within a reasonable time, but not later than 30 days before the election on the public question: (1) Review the fiscal impact analysis. (2) Make any comments concerning the fiscal impact analysis that the DLGF considers appropriate. (3) Provide comments to the legislative body of the reorganizing political subdivisions and post the comments on the DLGF's Internet web site. Requires the reorganizing political subdivisions to pay the expenses incurred by the DLGF in carrying out the review and preparing the comments. Requires that a brief description of the reorganized political subdivision that will succeed the reorganizing political subdivisions must be placed on the ballot containing the public question. Provides that for a public question voted on by voters after June 30, 2013, the county election board shall submit the language to the DLGF for review. Requires the DLGF to review the language of the public question to: (1) evaluate whether the description of the reorganized political subdivision is accurate and not biased; and (2) approve or make binding recommendations to the county election board regarding the ballot language. Requires the county election board to take final action to approve the ballot language. Provides that certification of a public question on a proposed local government reorganization must occur as required for other public questions under the election law. Provides that in the case of a proposed reorganization between a municipality and a township that is voted on by voters after December 31, 2013: (1) the voters residing within the municipality shall be included only in the tally of votes for the municipality and shall not be included in the tally of votes for the township; and (2) the voters who reside within the township but do not reside within the municipality shall be included only in the tally of votes for the township and shall not be included in the tally of votes for the municipality. Requires (rather than allows) the use of an "approval threshold" in the case of a proposed local government reorganization involving: (1) a county and a municipality; or (2) a municipality and a township; for reorganizations voted on after December 31, 2013. (Under current law, "rejection thresholds" are optional and may be used only in a reorganization between a county and a municipality.) Provides that for a reorganization that is voted on after December 31, 2013, between a county and a municipality to be approved, the number of voters voting to approve the reorganization must equal or exceed the approval thresholds set in the reorganization plan: (1) for the municipality; (2) for the area of the county outside the municipality; and (3) countywide. Provides that the approval threshold for the municipality and area of the county outside the municipality must be greater than 50% but not more than 55%. (Under current law the approval percentage for the countywide vote must be greater than 50%.) Specifies that in order for a reorganization that is voted on after December 31, 2013, between a municipality and a township to be approved, the number of voters voting to approve the reorganization must equal or exceed the approval thresholds set in the reorganization plan: (1) for the municipality; (2) for the area of the township outside the municipality; and (3) for the combined area of the township and the municipality. Provides that the approval threshold for the municipality and the area of the township outside the municipality must be greater than 50% but not more than 55%. Provides that the approval percentage for the combined area of the municipality and the township must be greater than 50%. Allows the legislative body of a reorganizing political subdivision to adopt a resolution rescinding the plan of reorganization previously adopted and certified by the legislative body. Requires the resolution to be certified not later than July 15 to the clerk of each reorganizing political subdivision, and to the county fiscal officer and county recorder of each county in which a reorganizing political subdivision is located. Provides that a petition filed by voters after December 31, 2013 to: (1) initiate a reorganization; or (2) conduct a public question on a plan of reorganization that was not adopted by the political subdivisions; must contain each petitioner's signature, printed name, and residence mailing address. Provides that if a political subdivision is located in whole or in part within one or more other political subdivisions that reorganize and the first political subdivision does not participate in or does not approve the reorganization: (1) the reorganization does not affect the rights, powers, and duties of the first political subdivision; and (2) the reorganized political subdivision may not exercise within the first political subdivision any right, power, or duty unless that right, power, or duty was exercised within the first political subdivision before the reorganization by at least one of the reorganizing political subdivisions. Provides that a plan of reorganization may establish within a reorganized political subdivision territories or districts: (1) in which specified services provided by the reorganized political subdivision will be provided at different levels, quantities, or amounts; and (2) in which the fees, charges, or taxes imposed by the reorganized political subdivision will vary depending on the level, quantity, or amount of the services. Requires a reorganized political subdivision to continue to carry out the duties imposed by Indiana law on the reorganizing political subdivisions that combined to form the reorganized political subdivision. Specifies that a reorganized political subdivision created from two or more townships and at least one municipality that have reorganized: (1) may exercise park and recreation powers and establish a park and recreation board if the reorganized political subdivision's plan of reorganization authorizes the reorganized political subdivision to exercise those powers; and (2) may exercise planning and zoning power if the reorganized political subdivision's plan of reorganization authorizes the reorganized political subdivision to exercise those powers. Provides that such a reorganized political subdivision shall, by resolution or in the plan of reorganization, determine the number of members to be appointed to the reorganized political subdivision's park and recreation board, advisory plan commission, and board of zoning appeals. Provides that a political subdivision may not take certain actions within a reorganizing political subdivision after the date on which a plan of reorganization is finally adopted by all reorganizing political subdivisions unless one of the following occurs: (1) All reorganizing political subdivisions agree to allow the action by adopting identical resolutions. (2) The plan is rejected by voters in a referendum. (3) The plan is approved by voters and one of the following occurs: (A) The plan is implemented. (B) One year elapses from the date on which the plan was approved. Requires a town legislative body to adopt a resolution not later than 30 days after a petition is filed for a referendum on changing the town into a city. Provides that the date of the referendum must not be later than the date of the next general election or the date of the next municipal election, whichever is earlier, at which the question can be placed on the ballot. If the referendum passes, requires the first election of city officers to be held on the date of the next general election or municipal election, whichever is earlier, following the date of the referendum. Provides that notwithstanding the statute setting out the classification of municipalities, for purposes of local government administration a municipality reorganized under the local government reorganization statutes may, subject to the approval of the department of local government finance: (1) be classified and described as set forth in the reorganization plan; and (2) maintain characteristics of any of the reorganizing political subdivisions. Senate Bill 0360 DIGEST OF SB 360 (Updated February 25, 2013 3:02 pm - DI 84) Tax increment financing. Specifies that in the case of certain tax increment financing (TIF) allocation areas, the expiration date of any allocation provisions for the allocation area may not be more than 30 years after the date on which the allocation area was last expanded.

Senate Bill 0376

DIGEST OF SB 376 (Updated February 12, 2013 3:21 pm - DI 84) Gross assessed value limit on annexations. Provides that for annexations adopted after June 30, 2013, a municipality may not annex territory that would result in an increase in the total gross assessed value of the municipality by more than 15% in the ensuing calendar year (as compared to the total gross assessed value of the municipality before the effective date of the annexation ordinance), regardless of whether the increase in assessed value results from one or more than one annexation. Provides that for annexations adopted after June 30, 2013, the effective date of an annexation ordinance may not be more than one year after the date the annexation ordinance is adopted. (Current law provides that the effective date of an annexation ordinance in some annexations may be postponed for not more than three years.)

Senate Bill 0389

DIGEST OF SB 389 (Updated January 29, 2013 3:33 pm - DI 84) County excise surtax and wheel tax. Permits a county income tax council to impose a motor vehicle excise surtax and a wheel tax for a county. (Current law permits the county council to impose these taxes.) Specifies that the body that initially imposes the excise surtax and wheel tax is the body that is empowered to increase, decrease, or rescind the excise surtax and wheel tax.

Senate Bill 0459

DIGEST OF SB 459 (Updated February 25, 2013 6:03 pm - DI 84) Local government reorganization. Specifies that the following apply in the case of a reorganization that includes a township and another political subdivision: (1) The rate-controlled property taxes imposed by the reorganized political subdivision for a township cumulative firefighting building and equipment fund remain outside of the property tax levy limits. (2) If the township borrowed money from a township fund to pay the operating expenses of the township fire department or a volunteer fire department before the reorganization, the reorganized political subdivision may repay the loan in installments during the following five years. (3) The reorganized political subdivision continues to be responsible after the reorganization for providing township services in all areas of the township, including within the territory of a municipality in the township that does not participate in the reorganization. (4) If all or part of a municipality in the township is not participating in the reorganization, then ten township taxpayers who reside within territory that is not participating in the reorganization may file a petition remonstrating against the reorganized political subdivision's township assistance levy. Specifies the new maximum property tax levy for such a reorganized political subdivision's firefighting fund that applies after a reorganization, and provides that the reorganized political subdivision may not borrow money under the statutes in current law that authorize certain township emergency loans.

Senate Bill 0479

DIGEST OF SB 479 (Updated February 18, 2013 4:20 pm - DI 84) Use tax on gasoline. Provides a new collection procedure for imposing and collecting state gross retail and use tax on the sale of gasoline based on gallons sold and a rolling four week average retail price per gallon. Specifies that the collection point is moved to the first purchaser of gasoline from a refiner, a terminal operator, or supplier. Requires the department of state revenue to monthly determine a use tax rate per gallon using the 7% gross retail and use tax rate. Requires all reports of gasoline use tax to be filed electronically and the taxes remitted using the department's online tax system. Changes from 25% to 15% the amount the retail price of gasoline must change before a new use tax rate may be set at a time other than at the time of the monthly rate setting. Provides that if the department changes the use tax rate determined for a month because the statewide average retail price per gallon of gasoline has increased by more than 15%, the new rate may not take effect earlier than 10 days after publication of the new rate. Requires the department to publish a tax notice on its Internet web site and provide notices to registered distributors, refiners, and terminal operators using electronic mail with a direct link. Requires the notice to specify the source of the data used to determine the gasoline use tax rate and the statewide average retail price per gallon of gasoline. Makes corresponding changes.

Senate Bill 0494

DIGEST OF SB 494 (Updated February 25, 2013 4:09 pm - DI 84) State and local taxation. Provides that for purposes of the property tax circuit breaker credits, a "homestead" eligible for the 1% cap means a homestead that has actually been granted a standard deduction. Provides that real property leased to a state agency is exempt from property taxes if the lease requires the state agency to reimburse the owner for property taxes. Provides a property tax exemption for signs manufactured for the Indiana department of transportation to comply with federal highway funding requirements under federal law. Provides that the $50 penalty that may be imposed against a taxpayer in certain property tax appeal circumstances may not be added as an amount owed on the property tax statement. Provides for a school corporation whose voters adopted a referendum after November 1, 2009, and before May 1, 2010, that the property tax revenue from the referendum is to be distributed to the school corporation instead of the redevelopment commission having taxable property within the school corporation (applies to revenue received after 2013). Specifies that the department of local government finance (department) shall annually review each coefficient of dispersion study and each sales assessment ratio study that are submitted by a county. Creates a five year pilot program to require the department to review and analyze certain improved residential property data submitted for North Township in Lake County and for Center, Wayne, and Washington townships in Marion County. Requires the department to separate the parcels in these townships into four comparable groups and separately review and analyze data for each of the four groups and to prepare a coefficient of dispersion study and a property sales assessment ratio study for each group. Provides a sales tax exemption for fuel used in powering an aircraft. Removes the requirements that aircraft be registered out of the United States and be of a certain size for the sales and use tax exemption regarding tangible personal property used for the repair, maintenance, refurbishment, remodeling, or remanufacturing of an aircraft or an avionics system of an aircraft. Restores provisions inadvertently repealed in 2012 concerning sales tax on gasoline. Specifies that counties are entitled to an inheritance tax replacement amount distribution regardless of whether the county received a distribution in state fiscal year 2012. Provides that the Indiana economic development corporation may designate not more than two new certified technology parks during any state fiscal year. Provides that the designation of a new certified technology park is subject to review by the budget committee and approval of the budget agency. Permits a local airport authority to annually transfer up to 5% of the authority's property tax levy for operating and maintenance to the authority's cumulative building fund. Specifies that the department of local government finance (DLGF) may make various adjustments to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets of political subdivisions that enter into a reorganization. Upon the request of Zionsville in Boone County, requires the DLGF to establish a cumulative building and equipment fund for fire protection and related services and make related levy adjustments. Upon the request of the Frankfort Airport Authority, requires the DLGF to establish a cumulative building fund. Legalizes the actions of the DLGF with regard to levies by Barkley and Union Townships in Jasper County for township fire protection and emergency services. Forgives property taxes, penalties, or interest for the 2007 and 2008 assessment dates for a church that: (1) purchased real property in June 2007; (2) has used the real property for church purposes since purchasing the real property; and (3) filed a property tax exemption application for the real property in June 2007. Forgives property taxes, penalties, or interest for the 2011 and 2012 assessment dates for several parcels of a nonprofit corporation that: (1) owned, occupied, and used the property for exempt purpose; and (2) failed to timely file a property tax exemption application for one of those parcels.

Senate Bill 0517

DIGEST OF SB 517 (Updated February 19, 2013 4:25 pm - DI 84) Local government finance. Authorizes the department of local government finance (DLGF) to establish a three year pilot program concerning nonbinding review of budgets, property tax rates, and property tax levies. Provides that for a county to be eligible for designation as a pilot county, the county fiscal body must adopt a resolution and submit an application to the DLGF. Allows the DLGF to designate not more than three counties as pilot counties. Specifies that the following apply in 2014 and thereafter in a pilot county: (1) Each taxing unit in the pilot county must file with the DLGF the taxing unit's proposed budgets, property tax rates, and property tax levies. (2) When formulating the taxing unit's estimated budget, property tax rate, and property tax levy, each taxing unit shall consider estimated consequences of the circuit breaker property tax credits. (3) The DLGF shall prepare an analysis of the proposed budgets, property tax rates, and property tax levies submitted by taxing units in the pilot county and provide the analysis to the county fiscal body and to the fiscal body of each taxing unit in the pilot county. (4) Upon request by the county fiscal body, representatives of the DLGF shall appear before the county fiscal body to review the analysis. (5) The county fiscal body shall review the proposed budgets, property tax rates, and property tax levies of each taxing unit in the pilot county and the total tax rate of each taxing district in the county, and shall issue a nonbinding recommendation to each taxing unit. For all taxing units, provides that the maximum amount allowed for an operating balance for a debt service fund is 25% of the budget estimate for the fund. Specifies, for purposes of protecting debt service funds under the property tax circuit breaker credit, that the political subdivision may determine the allocation of property tax reductions from the circuit breaker credit to funds receiving only unprotected taxes using only the funds of the political subdivision that incurred the debt and not other political subdivisions. Specifies that the allocation is to be made using only the taxing districts for which there was an impact from granting the circuit breaker credit. Specifies that the revenue for a fund receiving protected taxes is also reduced if the revenue reallocation from funds receiving only unprotected taxes is insufficient to offset the amount of the circuit breaker. Permits a political subdivision to transfer money to meet debt service obligations from any other available source if a fund receiving protected taxes also has to be reduced. Limits the amount of the transfer to the shortfall, and requires that the transfer must be specifically identified as a debt service obligation transfer for each affected fund. Allows a political subdivision to transfer money received as miscellaneous revenue from one fund to one or more other funds of the political subdivision if certain conditions are met. Permits a school corporation to make a transfer from its general fund to its transportation fund or school bus replacement fund if more than 75% of its transportation fund levy or bus replacement fund levy is lost due to: (1) the application of the circuit breaker credit; plus (2) the tax allocations made to protect taxes that are protected from the circuit breaker credit. Limits the general fund transfer to 50% of the revenue lost by the impacted fund. Specifies that an eligible school corporation may adopt a resolution before January 1, 2014, to use certain debt restructuring statutes. Provides that in the case of a school corporation designated after June 30, 2013, as distressed by the distressed unit appeal board (board) upon submission of a petition by the school corporation requesting the designation, the board shall appoint an emergency manager for the school corporation. (Under current law, the board is required to appoint an emergency manager for each political subdivision, other than a school corporation, that is designated as distressed.) Allows the board to approve a petition submitted jointly by the governing body and the superintendent of a school corporation requesting authority to transfer before July 1, 2015, excess funds in the school corporation's debt service fund to the school corporation's transportation fund.

Senate Bill 0521

DIGEST OF SB 521 (Updated February 18, 2013 4:34 pm - DI 84) Indiana new markets job act. Provides for an Indiana new markets tax credit similar to the federal new markets tax credit. Excludes from the definition of a qualified active low income community business a business that is primarily engaged in providing home ownership services. Excludes from the definition of a qualified active low income community business a business that is primarily engaged in providing child care services, unless the business is a licensed child care center, child care home, or child care ministry that has the highest rating in the paths to quality program. Requires a qualified community development entity to pay the state a conditionally refundable fee of $500,000 and a nonrefundable application fee of $5,000 for each qualified equity investment that the qualified community development entity seeks to have approved by the Indiana economic development corporation (IEDC). Provides that a denial of an application by the Indiana economic development corporation (IEDC) does not create a private right of action for the applicant. Limits fees that may be charged to a qualified active low income community business. Provides that an equity investment has to be made before January 1, 2016, to qualify for the new markets tax credit. Provides that the IEDC may not approve more than $10,000,000 of qualified equity investments that are eligible for the Indiana new markets tax credit per state fiscal year. Provides that the IEDC is required to issue letter rulings requested by taxpayers, similar to private letter rulings issued by the Internal Revenue Service at the federal level, regarding the Indiana new markets tax credit. Establishes the paths to quality voluntary child care rating system program. Requires the division of family resources to adopt rules to administer the paths to quality program. Requires an annual report to the state budget committee by the IEDC on the credit program.

Senate Bill 0522

DIGEST OF SB 522 (Updated February 25, 2013 4:47 pm - DI 51) Property tax deadlines and procedures. Changes for property taxation purposes: (1) the date a reassessment of a group of parcels in a particular class of real property begins to May 1; (2) the assessment and valuation date for property to January 1; (3) the personal property tax return filing date to May 1; (4) the date after which changes on an amended property tax roll over as a credit to a subsequent year to April 1; (5) the exemption filing date to April 1; (6) the deduction application filing date to June 1 (if the application is required by law to be filed with the county auditor) and April 1 (if the property is a mobile home or the application is required by law to be filed with a public official other than the county auditor); (7) the date assessment records are transferred to the auditor to June 1; and (8) the property tax installment dates to May 20 and November 20. Requires that property tax statements must be sent at least 30 days before the first installment is due. Requires the department of local government finance to certify to each county the assessed values tentatively determined for public utilities by June 1. Changes dates for the delivery of certain reports to the department of local government finance. Organizes deduction application procedures in a new chapter of law. Provides that eligibility for a deduction or exemption is determined on the assessment date and subsequent changes in owners or the property do not affect eligibility. Allows a county fiscal body to adopt an ordinance to authorize a homestead to receive a standard deduction (and any other deduction or credit that is available to property that has a standard deduction) if the homestead becomes eligible for a standard deduction after a change in ownership. Requires the legislative council to provide for the introduction of legislation in the 2014 session of the general assembly to make conforming amendments to provisions of the law not included in this act.

Senate Bill 0531

DIGEST OF SB 531 (Updated February 19, 2013 2:28 pm - DI 84) Property tax assessments and appeals. Provides that land is to be assessed as agricultural if the land could be devoted to agricultural use (if not zoned for industrial, commercial, or residential use) or if a building or other real property improvement that is devoted to agricultural purposes is located on the land. Provides that land that is zoned for (instead of purchased for) residential, commercial, or industrial use is not to be assessed as agricultural land unless the land is devoted to agricultural use. Provides that for land that is being used for various right of way purposes, the value is be subtracted from the assessed value of a parcel without any action having to be taken by the property owner. Provides that the department of local government finance rules concerning tax representatives may not restrict a residential property owner who is an individual from appointing another individual as an agent to act on the owner's behalf in a property tax appeal to the property tax assessment board of appeals so long as the agent serves without payment of any consideration. Repeals an outdated property tax appeal deadline law.

Senate Bill 0544

DIGEST OF SB 544 (Updated February 21, 2013 3:41 pm - DI 84) State and local tax administration. Specifies the dates by which an ordinance to impose, increase, decrease, or rescind a county income tax must be adopted and the date the ordinance takes effect. Specifies that county auditors shall send a certified copy of ordinances to impose, increase, decrease, or rescind a county income tax rate to the department of state revenue (department), the budget agency, and the department of local government finance in an electronic format approved by the director of the budget agency. Provides that if the commissioner of the department determines that an ordinance to impose, increase, decrease, or rescind a county income tax rate was not adopted according to the statutory requirements: (1) the commissioner shall notify the county auditor that the ordinance was not adopted according to the requirements of the statute and shall specify the corrective action that must be taken for the ordinance to be in compliance with the statute; and (2) the ordinance may not take effect until the corrective action is taken. Provides that before August 2 of each calendar year, the budget agency shall provide to each county auditor an estimate of the amount of county income tax that will be distributed to the county, based on known tax rates. Requires the budget agency to certify before October 1 the amount of a county's certified distribution of county income tax for the following year. Provides that a county is entitled to a supplemental distribution of county income tax if the budget agency determines that the balance in the county's trust account exceeds 50% (rather than 150%, under current law) of the certified distributions to be made in the following year. Specifies that the auditor of state shall transfer one-half of a county's financial institutions tax revenue to the county auditor in May and November of each year. Provides that the total amount of financial institutions tax supplemental distributions to be made for a year is equal to one-half of the financial institutions taxes that the department determines were paid during the preceding fiscal year, minus the sum of all guaranteed distributions. Provides that the bureau of motor vehicles (rather than the auditor of state) shall make required distributions and transfers of boat excise tax revenue. Requires the auditor of state to recalculate the state welfare and tuition support allocation amount to be recaptured by the state from certain excise tax distributions if a new taxing district is established or if the boundaries of a taxing district change. Requires the bureau of motor vehicles to verify the accuracy and completeness of certain information on vehicle registration forms. Specifies that if the department makes a refund of sales taxes, cigarette taxes, tobacco products taxes, or alcoholic beverage taxes, the department shall charge each fund into which the taxes have been allocated or distributed with that fund's proportionate share of the amount of taxes refunded. Requires the department to provide information concerning county road mileage to the auditor of state before April 1 of each year, for purposes of determining distributions from the motor vehicle highway account. Provides that if the alcohol and tobacco commission or the bureau of motor vehicles notifies the professional licensing agency that a person has an outstanding balance due, the professional licensing agency shall not issue or renew the person's license until the person provides to the licensing agency a statement from the commission or the bureau indicating that the outstanding balance has been satisfied. Requires businesses operating in certain special tax areas and districts to annually report information that the department determines necessary to calculate the incremental taxes that will be captured by the district or area. Requires taxpayers that file consolidated tax returns also to file annually an informational return for each business location of the taxpayer within such a district or area. Provides that if taxpayers located in such special tax areas or districts fail to report required information or file required informational returns, the department shall use the best information available in calculating the amount of incremental taxes in the area or district. Provides that the department may release information concerning total incremental tax revenue from such a district or area to the fiscal officer of the political subdivision or other entity that established the district or area, if that fiscal officer enters into an agreement with the department specifying that the information will be used solely for official purposes.

Senate Bill 0585

DIGEST OF SB 585 (Updated February 25, 2013 5:15 pm - DI 84) State and local administration. Provides that the maximum property tax levies for civil taxing units in Lake County are frozen unless a total aggregate tax rate of 1% will be in effect in the county under any combination of the county adjusted gross income tax (CAGIT), the county option income tax (COIT), and the county economic development income tax (CEDIT). (Current law specifies that the maximum levies are frozen unless a local option income tax for property tax relief of 1% is in effect in the county.) Provides that if CAGIT, COIT, or CEDIT is imposed in Lake County, the initial total county income tax rate may not be increased, decreased, or rescinded. Provides that if COIT is imposed in Lake County, the total COIT rate (including any COIT rate for levy freeze, public safety, or property tax relief) may be imposed at any rate that does not exceed 0.75%. Provides that the total CEDIT rate imposed in Lake County plus: (1) the total CAGIT rate imposed in Lake County; or (2) the total COIT rate imposed in Lake County; may not exceed 1%. Requires the department of local government finance to increase the maximum property tax levy of the city of Gary. Provides that the adjustment to the maximum property tax levy of the city of Gary apply to property taxes first due and payable after December 31, 2012. Decreases the maximum property tax levy of the Gary Sanitary District to zero, and provides that beginning with property taxes first due and payable after December 31, 2012, the district may not impose a property tax levy for its general fund. Terminates on September 1, 2013, the term of each existing member serving on the board of the Gary airport authority (board). Provides that appointments to the board must also be approved by the governor. Requires that each person appointed to the board must have knowledge of and at least five years professional work experience in aviation, regional economic development, or business or finance. Specifies that the office of management and budget shall contract with a certified public accountant for an annual financial audit of the airport authority. Provides that the state board of accounts may at any time conduct an audit of any phase of the operations of the Gary airport authority. Requires the board to submit an annual report of the board's activities to the budget agency and the legislative council. Requires the ports of Indiana commission to report to the budget committee not later than December 1, 2013, on the feasibility and economic impact of establishing a second port to serve Lake Michigan. Requires the state department of health to investigate and study whether there is a need for a level 1 trauma center and academic medical center in northwestern Indiana.

Senate Bill 0608

DIGEST OF SB 608 (Updated February 4, 2013 3:38 pm - DI 84) Sales tax exemption and SSUTA compliance. Provides a sales tax exclusion for postage. Revises the sourcing rules under the sales and use tax for advertising and promotional direct mail and other direct mail by creating two distinct categories of direct mail in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA). Adds corresponding definitions. Removes the separate sales tax exemption for blood glucose monitoring equipment and devices that are otherwise covered by the durable medical equipment exemption, under which durable medical equipment is exempt only if sold or rented under a prescription to comply with SSUTA. (The exemption for blood glucose monitoring equipment will require a prescription.) Restates the sales tax exemption for blood glucose monitoring supplies, including measuring strips, lancets, and other similar diabetic supplies, to maintain the current exemption for these supplies regardless of whether they are sold under a prescription.