From the Journal-Gazette:
A $25 million project will put a FedEx state-of-the-art regional distribution center in New Haven.
The international shipping company is asking Allen County officials for a tax break on the project. Savings could total $1.5 million during a five-year period.
The vacant 40 acres at 11039 Lincoln Highway East is owned by Setzer Properties ZFWY LLC.
Setzer has agreed to invest about $12.5 million to construct a 178,000-square-foot warehouse/distribution center.
FedEx Ground Package System Inc., which has a long-term lease on the facility, plans to invest $12.5 million in new mechanical and electrical equipment.
FedEx plans to create 87 part-time jobs at the new distribution center. The most common position, package handler, will pay $11.31 an hour, according to a tax abatement filing. Plans call for 82 of those jobs.
...
http://journalgazette.net/article/20130301/BIZ/130309973/0/SEARCH
Marquis ID Systems is planning a $3 million investment in technology to upgrade a vacant building on Fort Wayne’s northwest side.
Marquis ID, which employs eight, makes secure identification cards for government and state agencies. Plans call for creating four additional positions: a software developer, a general manager and two computer operators.
The 11,200-square-foot building at 2914 Independence Drive will be upgraded to include a secure loading dock.
Mark Steigmeyer and Chris Nichter are equal partners in the business.
Local economic development officials expect to introduce a request for a tax break at the March 12 Fort Wayne City Council meeting. If approved, the 10-year tax abatement would save the company an estimated $245,452.
http://journalgazette.net/article/20130301/BIZ/130309969/0/SEARCH
Friday, March 1, 2013
Revenue Finds Taxpayer Had "Reasonable Cause" for Failing to Timely File Returns
Excerpts of Revenue's decision follow:
Taxpayer is a company doing business in Indiana. Taxpayer failed to timely file returns required by the Department. Taxpayer was assessed a penalty for 2010 and 2011. Taxpayer filed a protest regarding the penalty.
Taxpayer is a company doing business in Indiana. Taxpayer failed to timely file returns required by the Department. Taxpayer was assessed a penalty for 2010 and 2011. Taxpayer filed a protest regarding the penalty.
...
Taxpayer argues that it had reasonable cause for failing to timely file the returns based upon the fact that Taxpayer was in bankruptcy. Taxpayer states that his accountant had his pertinent paperwork, and that the accountant would not turn over the information to Taxpayer. Taxpayer states that Taxpayer "had to have my bankruptcy attorney and trustee threaten legal action against the accounting firm to get my returns." Taxpayer provided the Department with a copy of a letter that was sent from Taxpayer's attorney to Taxpayer's accountant. The letter, in part, requests Taxpayer's "documentation and the records...." Based upon the information Taxpayer has provided, the Department finds that Taxpayer has established reasonable cause under 45 IAC 15-11-2 .
DLGF Publishes Memorandum on Soil Productivity Factors
MEMORANDUM
TO: Assessing Officials and Vendors
FROM: Barry Wood, Assessment Division Director
RE: 2013 Soil Productivity Factors
DATE: March 1, 2013
Senate Enrolled Act #319 was signed into law by Governor Pence on February 27, 2013. The legislation contains two sections (see below):
SECTION 1. IC 6-1.1-4-13, AS AMENDED BY P.L.112-2012, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2013 (RETROACTIVE)]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date and for the March 1, 2013, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1,2012. 2013.
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date and for the March 1, 2013, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1,
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
SECTION 2. [EFFECTIVE UPON PASSAGE] (a) The department of local government finance, in cooperation with the Purdue University College of Agriculture, shall before November 1, 2013, submit the following 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 under IC 6-1.1-4-13.
(2) An explanation of the methodology used to determine the proposed soil productivity factors.
(3) Data, from each county, used to determine the proposed soil productivity factors.
(4) Evidence of oral testimony and written comments provided to the department of local government finance by taxpayers and other stakeholders concerning the proposed soil productivity factors.
(b) This SECTION expires July 1, 2014.
(1) Proposed soil productivity factors to be used in the assessment of agricultural land under IC 6-1.1-4-13.
(2) An explanation of the methodology used to determine the proposed soil productivity factors.
(3) Data, from each county, used to determine the proposed soil productivity factors.
(4) Evidence of oral testimony and written comments provided to the department of local government finance by taxpayers and other stakeholders concerning the proposed soil productivity factors.
(b) This SECTION expires July 1, 2014.
Therefore, for the March 1, 2013 assessment date, assessing officials shall use the soil productivity factors that were in effect for the March 1, 2011 assessment date.
http://www.in.gov/dlgf/files/130301_-_Wood_Memo_-_2013_Soil_Productivity_Factor_Guidance.pdf
http://www.in.gov/dlgf/files/130301_-_Wood_Memo_-_2013_Soil_Productivity_Factor_Guidance.pdf
Two Hearings Scheduled in Tax Court in March
| Indiana Department of State Revenue, Inheritance Tax Division v. The Estate of Orville J. Rauch (View) |
| Friday, March 01, 2013 12:00 PM - 1:00 PM |
| 49T10-1207-TA-38 Whether executors should have been designated Class C beneficiaries or Class A beneficiaries due to a in loco parentis relation with decedent. Location: Culver Cove Reosrt & Conference Center 319 E. Jefferson St. Ballroom C Culver, IN 46511 |
| Vern R. Grabbe v. Carroll County Assessor, Neda K. Duff (View) |
| Friday, March 08, 2013 10:00 AM - 11:00 AM |
| 49T10-1206-TA-35 The taxpayer challenges whether the Indiana Board of Tax Review erred when it concluded the taxpayer failed to prima facie show that his property's 2009 assessment did not accurately reflect its market value-in-use. Location: State House, Room 413 Indianapolis, IN 46204 |
http://www.in.gov/activecalendar/EventList.aspx?fromdate=3/1/2013&todate=3/31/2013&display=Month&view=DateTime
Appeals Filed in Tax Court in February
http://www.in.gov/judiciary/opinions/taxsumm.html
Board Finds Respondent Failed to Support Property's Assessed Value with Comparable Sales
Excerpts of the Board's Determination follow:
Turning to the case at hand, both parties agree the 2011 assessment under appeal increased over 5% from the 2010 assessment. They further agree the Respondent has the burden of proof.
Turning to the case at hand, both parties agree the 2011 assessment under appeal increased over 5% from the 2010 assessment. They further agree the Respondent has the burden of proof.
Mr. McDavid testified that he
made a site visit on April 22, 2010, to pick up an addition to the residence.
He failed to point out or explain to what extent the addition made the property
different or how it affected the true tax value of the property. This
information could have been important in determining which party had the burden
of proof had it been provided. I. C. § 6-1.1-15-17 states the 5% increase from
year to year is compared to the same property. I. C. § 6-1.1-15-17 would
not apply to a property that had been sufficiently changed. The Respondent,
therefore, has the burden of proving that the subject’s March 1, 2011,
assessment is correct.
…
As stated
above, Mr. McDavid testified that he made a site visit on April 22, 2010, to
pick up an addition to the residence. He failed to explain how the value he
arrived at after the visit demonstrates the current assessment is an accurate
market value-in-use.
Mr. McDavid
claimed the Petitioner presented no evidence to justify a change in the
assessment, and therefore, the PTABOA made no change to the assessment. Again,
this is not probative evidence to support the contention that current
assessment is an accurate market value-in-use.
Mr. McDavid
asserted the Petitioner contacted him by phone on July 17, 2012, to agree with
the changes in the assessment that decreased the assessment to $308,500. He
also stated he mailed Mr. Whipp a Form 11 with the $308,500 assessment shown on
it. The Form 11 is dated September 17, 2012. Mr. Whipp’s petition to the Board
is dated November 21, 2011. Mr. Whipp testified he did not withdraw his
petition to the Board at any time. There is nothing in the record, with the
exception of Mr. McDavid’s testimony which Mr. Whipp rebutted, that supports
the allegation that Mr. Whipp agreed to the amount of $308,500 as suggested by
the Respondent. The Board did not receive notice from Mr. Whipp that he wanted
to withdrawal his petition.
The Petitioner
presented several properties he claimed had sold with the exception of one,
from values of $110,000 to $193,000. The sale dates range from May 27, 2011 to
June 28, 2012. While the Petitioner brought out a few isolated facts about how
the subject property and the sold properties compared to one another, the
Petitioner failed to provide the kind of detailed facts and analysis that would
be required to establish how the value-in-use of the properties truly compares.
A party is responsible for explaining the characteristics of the subject
property, how those characteristics compared to those of the purportedly
comparable property, and how any differences affected the relevant market
values-in-use of the properties. Without sufficient, meaningful facts and
analysis, conclusory comparisons are not probative evidence. See Long,
821 N.E.2d at 470-471; Fidelity Federal Savings & Loan v. Jennings Co.
Assessor, 836 N.E.2d 1075, 1082 (Ind. Tax Ct. 2005). The Petitioner did not
provide a prima facie case to support his contended value.
…
In other cases
where the Respondent had the burden to prove the assessment is correct and the
Respondent failed to carry that burden, the Board has ordered that the
assessment be returned to the assessed value of the year before. In this case
doing so reduces the assessment to $239,800.
To the extent
that the Petitioner sought an even lower assessed value, he had the burden to
prove it. He did not do so. His evidence regarding the alleged comparables and
his interpretation of the income approach were not probative and did not
support his request to lower the assessment to $190,347.
Revenue Motor Carrier Division Launches Mobile Version of Unified Carrier Registration System
FOR IMMEDIATE RELEASE
Contact: Chetrice Mosley
(317) 232-2379
With this unique mobile version, motor carriers can now register and pay for their Unified Carrier Registration using their smart phones 24/7, 365 days a year.
“This is another way that the Indiana Department of Revenue’s motor carrier services division is providing high-quality customer service,” said Deputy Commissioner Jim Poe. “Indiana is the first to offer this type of on-the-go service, which allows motor carriers to be compliant while on the road with an easy-to-use mobile application.”
In addition to being able to register and pay on their smart phones, other benefits include:
If a motor carrier is using a smart phone and goes to www.ucr.in.gov, the UCR system will automatically default to the mobile version. There is no need to download an app from an online store and, there is no extra cost when using the mobile version of the UCR system.
Individuals and companies who operate commercial motor vehicles across state lines are required to register for a UCR and pay an annual fee based on the size of their fleet. For more information about the UCR, visit www.in.gov/dor/4236.htm.
This new mobile application makes the process easy and immediately available, and continues to make the trucking industry in Indiana and the nation more efficient and effective.
http://www.in.gov/dor/4814.htm
Contact: Chetrice Mosley
(317) 232-2379
Indiana Motor Carrier Services Launches First of Its Kind Mobile App
INDIANAPOLIS (Feb. 28, 2013) — After several months of development and thorough user testing, the Indiana Department of Revenue launched the first mobile version of the Unified Carrier Registration (UCR) system.With this unique mobile version, motor carriers can now register and pay for their Unified Carrier Registration using their smart phones 24/7, 365 days a year.
“This is another way that the Indiana Department of Revenue’s motor carrier services division is providing high-quality customer service,” said Deputy Commissioner Jim Poe. “Indiana is the first to offer this type of on-the-go service, which allows motor carriers to be compliant while on the road with an easy-to-use mobile application.”
In addition to being able to register and pay on their smart phones, other benefits include:
- Convenient for motor carriers, especially because many have smart phones in lieu of laptops while on the road
- Accessible on most smart phones
- User friendly and easy-to-pay system
- A way to avoid violations and being ticketed by enforcement because it allows motor carriers to register and pay their fees before crossing state lines
If a motor carrier is using a smart phone and goes to www.ucr.in.gov, the UCR system will automatically default to the mobile version. There is no need to download an app from an online store and, there is no extra cost when using the mobile version of the UCR system.
Individuals and companies who operate commercial motor vehicles across state lines are required to register for a UCR and pay an annual fee based on the size of their fleet. For more information about the UCR, visit www.in.gov/dor/4236.htm.
This new mobile application makes the process easy and immediately available, and continues to make the trucking industry in Indiana and the nation more efficient and effective.
http://www.in.gov/dor/4814.htm
News and Tribune Reports Floyd County Facing $2.4 Million Budget Deficit
From the Clark County News and Tribune:
...
http://newsandtribune.com/floydcounty/x986699001/Floyd-facing-2-4M-deficit
Floyd County is facing a $2.4 million budget deficit, and unless action is taken in the next few weeks, money to fund the government will run out in September.
The Floyd County Council held a special meeting Thursday at the Pine View Government Center to inform officeholders and the public of the situation and what is being done to correct it. Until a plan is unveiled later in the month, Council President John Schellenberger said there would be a county hiring freeze for 30 days.
There is also a spending freeze and each officeholder was asked to cut 10 percent of their budget by the end of the day Monday. The council will look at the recommendations and help make the cuts before coming up with a final plan to solve the problem in a week or two.
“Until we get a handle on the situation, the general fund is frozen, EDIT is frozen and [the] riverboat [fund] is frozen,” Schellenberger said. “Once we come up with a plan for savings, then hopefully we can get back on track. We know the situation is frustrating, but we are doing the best we can do.”
Schellenberger said there would be no layoffs or furloughs involved in the plan. He also said a committee has been formed that includes Director of County Operations Don Lopp, his assistant and former auditor Teresa Plaiss, and Amanda Ault, the new chief deputy auditor for Floyd County, to help make recommendations to fix the budget problem. He said they already found $2 million in cuts/savings, but another $400,000 will have to be found in the next few weeks.
Council members said the problem began when they received the wrong figures last fall from the auditor’s office when they were preparing the 2013 budget. They said they were told they had $11.1 million to work with in the general fund, but only had $9.4 million. They also thought they had $4.2 in CAGIT funds, but in reality had $3.4 million.
“It is not our job to do the work of the auditor’s office, but we were tasked to come up with a plan and see what the county’s financial state is ... and with the information we received, this is where we are,” Lopp said. “The recommendation regarding a hiring freeze is not something done without thought, but it does provide some savings.”
...
http://newsandtribune.com/floydcounty/x986699001/Floyd-facing-2-4M-deficit
Thursday, February 28, 2013
Reporter Reports Abatement Approved for Subaru Investment in Lebanon
From the Lebanon Reporter:
A request for a non-traditional tax abatement for Subaru had Lebanon Mayor Huck Lewis asking the city council Monday for a second on a motion to approve it and initially finding none.
The council considered a tax abatement for developer Pro Logis and client Subaru America, who may develop land off Interstate 65 behind Hattie B. Stokes Elementary. Pro Logis has held ownership of the land for 12 years. If Subaru decides to relocate to Lebanon from its current Whitestown facility, it will have a 10-year tax abatement from the city.
But the road to the approved abatement was difficult. - See more at: http://reporter.net/local/x36432593/Council-hesitantly-approves-Subaru-abatement-request#sthash.u7JUefAI.dpuf
A request for a non-traditional tax abatement for Subaru had Lebanon Mayor Huck Lewis asking the city council Monday for a second on a motion to approve it and initially finding none.
The council considered a tax abatement for developer Pro Logis and client Subaru America, who may develop land off Interstate 65 behind Hattie B. Stokes Elementary. Pro Logis has held ownership of the land for 12 years. If Subaru decides to relocate to Lebanon from its current Whitestown facility, it will have a 10-year tax abatement from the city.
But the road to the approved abatement was difficult. - See more at: http://reporter.net/local/x36432593/Council-hesitantly-approves-Subaru-abatement-request#sthash.u7JUefAI.dpuf
Courier & Press Reports Both Evansville and Vanderburgh County Oppose Casino Bill Changes
From the Evansville Courier & Press:
In an attempt to keep Indiana riverboat casinos competitive with casinos in neighboring states, the Indiana state Senate recently passed a bill that would essentially cut in half city and county governments’ slice of taxes generated by riverboats.
The city of Evansville and Vanderburgh County stand to see up to $1 million cut from each of their general fund budgets by 2015 if the Indiana House approves Senate Bill 528 and it becomes law.
“The state is cutting back on something the residents of Vanderburgh County voted very strongly for,” Vanderburgh County Councilman Mike Goebel said during a council meeting Wednesday afternoon. “I don’t think we should let this happen without putting up a very strong fight.”
Both the County Commission and the County Council have passed resolutions this week opposing the proposed legislation. The county may send a representative to speak to the House when it hears the bill next month.
The county uses riverboat tax money for infrastructure improvements, drainage projects and to fund its initiative-based assistance program, which helps people with day care costs and work training so they can become gainfully employed, said County Auditor Joe Gries. The city uses it for capital improvements, including new vehicles for the fire and police departments, said City Controller Russel Lloyd.
When Casino Aztar opened in 1996 “this body made a decision at that point in time that we weren’t going to use the riverboat money as operations money, and we haven’t,” said Councilman Jim Raben. “But it is going to have an affect on these programs. We’ll lose the initiative based program. That might never pick back up.”
But the bill’s author, Sen. Phil Boots, R-Crawfordsville, said the changes are needed if riverboats are going to remain in business at all.
“Overall, this is designed to help riverboats compete with surrounding communities,” Boots said. “Evansville is not facing that right now because Kentucky’s not doing it. But Ohio has built many casinos, and Illinois is doing it. Riverboats are being competitively disadvantaged at this point. This bill will give them some tools to compete.”
One of those tools is a change in the way riverboat casinos are taxed. Riverboats currently pay a $3 head tax for every person that enters the casino; The new law would instead tax casinos on the amount of money gambled, which is estimated to lower the casino’s annual taxes by an several hundred thousand dollars.
The bill will also allow the casinos to move operations onto land, give them other tax deductions, and authorize table gaming at so-called racinos, horse racing tracks that now limited to electronic gaming.
The part of Boots’s bill that will cost local governments the most is a proposal to eliminate a decade-old supplemental payment the state has made to riverboat municipalities since 2002.
...
See the full article here:
http://www.courierpress.com/news/2013/feb/27/30pt-hed1-10-hed1-10-inches-p/
In an attempt to keep Indiana riverboat casinos competitive with casinos in neighboring states, the Indiana state Senate recently passed a bill that would essentially cut in half city and county governments’ slice of taxes generated by riverboats.
The city of Evansville and Vanderburgh County stand to see up to $1 million cut from each of their general fund budgets by 2015 if the Indiana House approves Senate Bill 528 and it becomes law.
“The state is cutting back on something the residents of Vanderburgh County voted very strongly for,” Vanderburgh County Councilman Mike Goebel said during a council meeting Wednesday afternoon. “I don’t think we should let this happen without putting up a very strong fight.”
Both the County Commission and the County Council have passed resolutions this week opposing the proposed legislation. The county may send a representative to speak to the House when it hears the bill next month.
The county uses riverboat tax money for infrastructure improvements, drainage projects and to fund its initiative-based assistance program, which helps people with day care costs and work training so they can become gainfully employed, said County Auditor Joe Gries. The city uses it for capital improvements, including new vehicles for the fire and police departments, said City Controller Russel Lloyd.
When Casino Aztar opened in 1996 “this body made a decision at that point in time that we weren’t going to use the riverboat money as operations money, and we haven’t,” said Councilman Jim Raben. “But it is going to have an affect on these programs. We’ll lose the initiative based program. That might never pick back up.”
But the bill’s author, Sen. Phil Boots, R-Crawfordsville, said the changes are needed if riverboats are going to remain in business at all.
“Overall, this is designed to help riverboats compete with surrounding communities,” Boots said. “Evansville is not facing that right now because Kentucky’s not doing it. But Ohio has built many casinos, and Illinois is doing it. Riverboats are being competitively disadvantaged at this point. This bill will give them some tools to compete.”
One of those tools is a change in the way riverboat casinos are taxed. Riverboats currently pay a $3 head tax for every person that enters the casino; The new law would instead tax casinos on the amount of money gambled, which is estimated to lower the casino’s annual taxes by an several hundred thousand dollars.
The bill will also allow the casinos to move operations onto land, give them other tax deductions, and authorize table gaming at so-called racinos, horse racing tracks that now limited to electronic gaming.
The part of Boots’s bill that will cost local governments the most is a proposal to eliminate a decade-old supplemental payment the state has made to riverboat municipalities since 2002.
...
See the full article here:
http://www.courierpress.com/news/2013/feb/27/30pt-hed1-10-hed1-10-inches-p/
Journal & Courier Reports Pence Signs First Bill into Law Delaying Farmland Tax Change
From the Lafayette Journal & Courier:
New calculations for property taxes on Indiana farmland will be delayed for another year under a bill that on Wednesday became the first to be signed into law by Gov. Mike Pence.
The measure — the first to reach the governor — unanimously cleared both the House and Senate in the past month in order to beat a March 1 deadline for when local assessors were to start using updated soil quality figures to determine tax bills for agricultural lands. Those changes were projected to lead to an average 25 percent increase in tax payments for farm owners.
Pence, who took office Jan. 14, signed the bill during a ceremony in his Statehouse office in front of a couple dozen farmers and legislative sponsors.
Pence said the proposal allows for “lowering taxes” on Indiana farmers, although the new calculations haven’t been put into effect — and were also delayed by the legislature during the 2012 session.
The bill requires the state Department of Local Government Finance and Purdue University agriculture researchers to prepare a review of the soil productivity measurement for the legislature to consider next year.
Pence and others said it was important to head off the estimated $57 million increase in property taxes for the roughly 62,000 farms in the state.
The governor said the bill is important because it will help keep Indiana farms competitive and allow the state to “avoid an unnecessary tax increase by the imposition of an assessment that doesn’t take in the unique challenges that Hoosier agriculture faces.”
Assessors use the soil productivity measurement from the U.S. Department of Agriculture as one of the factors in determining the property tax bills for agricultural land.
The higher bills for farmers wouldn’t mean greater overall tax collections for local governments, as the bills for other property such as residential, commercial and industrial would go down by a similar amount, said Rep. Robert Cherry, one of the farmland tax delay’s sponsors.
Cherry said it was important for state officials to understand the changes in farmland tax assessment before farm owners see such a big increase.
“It’s not favoring one sector,” said Cherry, R-Greenfield. “All we’re doing is to make sure we do it right before the shift happens, because the worst thing would be to do it and end up in a lawsuit or with wrong information.”
Randy Kron, vice president of the Indiana Farm Bureau, said the organization believes the soil quality information is flawed and that having it studied more closely is among its top priorities.
“If it needs updating, it should go through the right authorities and the right people,” said Kron, who farms about 2,000 acres near Evansville. “I think they’ll find out, most likely, that there does not need to be a change to the factors right now.”
http://www.jconline.com/viewart/20130227/NEWS02/302270020/Pence-signs-first-bill-delays-farmland-tax-change
New calculations for property taxes on Indiana farmland will be delayed for another year under a bill that on Wednesday became the first to be signed into law by Gov. Mike Pence.
The measure — the first to reach the governor — unanimously cleared both the House and Senate in the past month in order to beat a March 1 deadline for when local assessors were to start using updated soil quality figures to determine tax bills for agricultural lands. Those changes were projected to lead to an average 25 percent increase in tax payments for farm owners.
Pence, who took office Jan. 14, signed the bill during a ceremony in his Statehouse office in front of a couple dozen farmers and legislative sponsors.
Pence said the proposal allows for “lowering taxes” on Indiana farmers, although the new calculations haven’t been put into effect — and were also delayed by the legislature during the 2012 session.
The bill requires the state Department of Local Government Finance and Purdue University agriculture researchers to prepare a review of the soil productivity measurement for the legislature to consider next year.
Pence and others said it was important to head off the estimated $57 million increase in property taxes for the roughly 62,000 farms in the state.
The governor said the bill is important because it will help keep Indiana farms competitive and allow the state to “avoid an unnecessary tax increase by the imposition of an assessment that doesn’t take in the unique challenges that Hoosier agriculture faces.”
Assessors use the soil productivity measurement from the U.S. Department of Agriculture as one of the factors in determining the property tax bills for agricultural land.
The higher bills for farmers wouldn’t mean greater overall tax collections for local governments, as the bills for other property such as residential, commercial and industrial would go down by a similar amount, said Rep. Robert Cherry, one of the farmland tax delay’s sponsors.
Cherry said it was important for state officials to understand the changes in farmland tax assessment before farm owners see such a big increase.
“It’s not favoring one sector,” said Cherry, R-Greenfield. “All we’re doing is to make sure we do it right before the shift happens, because the worst thing would be to do it and end up in a lawsuit or with wrong information.”
Randy Kron, vice president of the Indiana Farm Bureau, said the organization believes the soil quality information is flawed and that having it studied more closely is among its top priorities.
“If it needs updating, it should go through the right authorities and the right people,” said Kron, who farms about 2,000 acres near Evansville. “I think they’ll find out, most likely, that there does not need to be a change to the factors right now.”
http://www.jconline.com/viewart/20130227/NEWS02/302270020/Pence-signs-first-bill-delays-farmland-tax-change
NWI Reports Lake County Tax Sale Scheduled for April 23-April 25
From the Northwest Indiana Times:
Lake County commissioners are preparing to sell more than 13,500 real estate parcels up for public auction this year to recover millions of dollars in unpaid property taxes.
The Board of Commissioners have scheduled two tax sales, planned to take place April 23 to 25 and July 23 to 25 at the Sydney Garner Auditorium in the Lake County Government Complex, 2293 N. Main St.
State law permits Indiana counties to recover unpaid taxes by taking ownership of the land and buildings on which the tax is due and selling them to the highest bidder.
The legal notice, published Wednesday in The Times, indicates 80 percent of the properties on the auction block are in the depressed city of Gary. Hundreds more are in Cedar Lake, East Chicago, Hammond and Lake Station.
There is a scattering of other delinquent properties in Crown Point, Hobart, Lowell, Merrillville, New Chicago, St. John and Schneider.
The sales reduce the burden of supporting local government on law-abiding property owners by prompting the tardy to settle up to avoid losing their property. The sales also generate millions of dollars more from real estate speculators buying the remaining parcels on offer.
...
http://www.nwitimes.com/news/local/lake/cedar-lake/lake-county-commissioners-schedule-tax-sales/article_649628eb-0835-51f7-82f0-321cbe82f78c.html
Lake County commissioners are preparing to sell more than 13,500 real estate parcels up for public auction this year to recover millions of dollars in unpaid property taxes.
The Board of Commissioners have scheduled two tax sales, planned to take place April 23 to 25 and July 23 to 25 at the Sydney Garner Auditorium in the Lake County Government Complex, 2293 N. Main St.
State law permits Indiana counties to recover unpaid taxes by taking ownership of the land and buildings on which the tax is due and selling them to the highest bidder.
The legal notice, published Wednesday in The Times, indicates 80 percent of the properties on the auction block are in the depressed city of Gary. Hundreds more are in Cedar Lake, East Chicago, Hammond and Lake Station.
There is a scattering of other delinquent properties in Crown Point, Hobart, Lowell, Merrillville, New Chicago, St. John and Schneider.
The sales reduce the burden of supporting local government on law-abiding property owners by prompting the tardy to settle up to avoid losing their property. The sales also generate millions of dollars more from real estate speculators buying the remaining parcels on offer.
...
http://www.nwitimes.com/news/local/lake/cedar-lake/lake-county-commissioners-schedule-tax-sales/article_649628eb-0835-51f7-82f0-321cbe82f78c.html
Tribune Reports Chrysler Investing $300 Million in Tipton and Kokomo
From the Kokomo Tribune:
Chrysler CEO Sergio Marchionne announced late Thursday morning Tipton and Kokomo would collectively bring in more than 1,000 jobs and more than $300 million in investment dollars through the production 8- and 9-speed transmissions, a new technology that increases fuel efficiency in larger vehicles.
Governor Mike Pence was on hand for the announcement that stated Tipton will produce 9-speed transmissions, a move that will add 850 jobs and $162 million worth of investments.
...
In December, the Kokomo City Council voted to approve property tax breaks requested by Chrysler for $212 million in new equipment for its factories in the city. Tipton County officials also endorsed a similar request on Chrysler's $162 million plans to complete a sprawling factory along U.S. 31 that has never been occupied. German auto parts maker Getrag stopped construction in 2008.
...
Chrysler's request to Kokomo officials said the investment will help retain 3,400 jobs in the city.
- See more at: http://kokomotribune.com/local/x564665464/Chrysler-to-announce-investment-in-Kokomo-plants#sthash.7DJHvUvP.dpuf
Chrysler CEO Sergio Marchionne announced late Thursday morning Tipton and Kokomo would collectively bring in more than 1,000 jobs and more than $300 million in investment dollars through the production 8- and 9-speed transmissions, a new technology that increases fuel efficiency in larger vehicles.
Governor Mike Pence was on hand for the announcement that stated Tipton will produce 9-speed transmissions, a move that will add 850 jobs and $162 million worth of investments.
...
In December, the Kokomo City Council voted to approve property tax breaks requested by Chrysler for $212 million in new equipment for its factories in the city. Tipton County officials also endorsed a similar request on Chrysler's $162 million plans to complete a sprawling factory along U.S. 31 that has never been occupied. German auto parts maker Getrag stopped construction in 2008.
...
Chrysler's request to Kokomo officials said the investment will help retain 3,400 jobs in the city.
Star Reports Governor will Push Tax Cut "Relentlessly"
From the Indianapolis Star:
Gov. Mike Pence said Wednesday he’ll push “cheerfully, respectfully and relentlessly” for a 10 percent cut in personal income taxes to convince a so-far reluctant legislature to enact it.
The budget that passed the Republican-controlled Indiana House on Monday night did not include the tax cut, which Pence made a key part of his election campaign and legislative agenda.
And the Indiana Senate has not committed to including it either, as legislative leaders in both chambers have said they have concerns about the long-term sustainability of the cuts at a time of national fiscal uncertainty. The House also preferred its tax cut choice: Speeding the demise of the inheritance tax.
Pence, a Republican, said he is “still disappointed that the House passed a budget that had significant increases in spending and not one cent of new tax relief for individuals, for working families and for most small businesses.”
Pence said he’s been traveling the state “at a pretty brisk pace, talking to Hoosiers in diners and at dinners and at everywhere in between” about the tax cut.
He hinted that he might be taking that case to a mass audience, as he did not rule out using campaign funds to run TV ads to pitch the tax plan.
“Look, I’m very committed” to making sure Hoosiers know the state can cut taxes and fund priorities, Pence said. “And I don’t want to comment on how we’re going to be communicating or whether we’re going to be communicating but I can tell you we’re burning up a lot of miles around Indiana carrying this case... I’m on the phone, I’m in meetings, I’m talking to people all the time.”
Democrats in the Indiana House tried to get Pence a vote on the tax cut plan during the budget debates, but Republicans blocked them.
Pence gave the Democrats a nod, saying: “I welcome the bipartisan support for income tax relief that we’ve seen in recent days. I’ve been watching from a distance what’s been happening in one chamber of the General Assembly and I appreciate the fact now that members of both political parties in the General Assembly have expressed support for income tax relief, and I look forward to working with Republicans and Democrats to bringing income tax relief to Hoosiers as part of the final budget package.”
...
See the full article here:
http://www.indystar.com/apps/pbcs.dll/article?AID=2013302270065&nclick_check=1
Gov. Mike Pence said Wednesday he’ll push “cheerfully, respectfully and relentlessly” for a 10 percent cut in personal income taxes to convince a so-far reluctant legislature to enact it.
The budget that passed the Republican-controlled Indiana House on Monday night did not include the tax cut, which Pence made a key part of his election campaign and legislative agenda.
And the Indiana Senate has not committed to including it either, as legislative leaders in both chambers have said they have concerns about the long-term sustainability of the cuts at a time of national fiscal uncertainty. The House also preferred its tax cut choice: Speeding the demise of the inheritance tax.
Pence, a Republican, said he is “still disappointed that the House passed a budget that had significant increases in spending and not one cent of new tax relief for individuals, for working families and for most small businesses.”
Pence said he’s been traveling the state “at a pretty brisk pace, talking to Hoosiers in diners and at dinners and at everywhere in between” about the tax cut.
He hinted that he might be taking that case to a mass audience, as he did not rule out using campaign funds to run TV ads to pitch the tax plan.
“Look, I’m very committed” to making sure Hoosiers know the state can cut taxes and fund priorities, Pence said. “And I don’t want to comment on how we’re going to be communicating or whether we’re going to be communicating but I can tell you we’re burning up a lot of miles around Indiana carrying this case... I’m on the phone, I’m in meetings, I’m talking to people all the time.”
Democrats in the Indiana House tried to get Pence a vote on the tax cut plan during the budget debates, but Republicans blocked them.
Pence gave the Democrats a nod, saying: “I welcome the bipartisan support for income tax relief that we’ve seen in recent days. I’ve been watching from a distance what’s been happening in one chamber of the General Assembly and I appreciate the fact now that members of both political parties in the General Assembly have expressed support for income tax relief, and I look forward to working with Republicans and Democrats to bringing income tax relief to Hoosiers as part of the final budget package.”
...
See the full article here:
http://www.indystar.com/apps/pbcs.dll/article?AID=2013302270065&nclick_check=1
Board Finds Respondent with Burden Failed to Support Property's Assessed Value
Excerpts of the Board's Determination follow:
Turning to the case at hand, both parties agree the Respondent has the burden of proof. The Respondent, therefore, had the burden of proving the March 1, 2006, assessment is correct.
…
Ms. Gaiter claimed the subject property was assessed using the same trending factors as the other properties in subject neighborhood. This assertion is not helpful in determining the subject property’s market value-in-use as of the valuation date of January 1, 2005.
Ms. Gaiter complained the burden of proof was on the Assessor due to a technicality. Actually, the burden of proof lies with Ms. Gaiter due to change in the Indiana Code. See ¶12 above.
Ms. Gaiter avowed she did not bring any evidence that would help support the 2006 assessment. Ms. Gaiter’s de minimis evidence is not sufficient to make a prima facie case.
The Respondent did not support the accuracy of the existing assessment with any meaningful market value-in-use evidence.
Since the Respondent failed to provide probative evidence that the current assessment is correct, the Petitioner’s duty to provide substantial evidence to support a more accurate assessment is not triggered. See Lacy Diversified Indus. v. Dep’t of Local Gov’t Fin., 799 N.E.2d 1215, 1221-1222 (Ind. Tax Ct. 2003); Whitley Products, Inc. v. State Bd. of Tax Comm’rs, 704 N.E.2d 1113,1119 (Ind. Tax Ct. 1998)
In other cases where the Respondent had the burden to prove the assessment is correct and the Respondent failed to carry that burden, the Board has ordered that the assessment be returned to the assessed value of the year before. In this case doing so reduces the assessment to $109,000.
Wednesday, February 27, 2013
Revenue Helps Hoosiers Report Tax Fraud Anonymously
FOR IMMEDIATE RELEASE
Contact: Chetrice Mosley
(317) 232-2379
In fiscal year 2012, the IRS initiated approximately 900 identity theft-related criminal investigations, tripling the number of investigations initiated in fiscal year 2011. Direct investigative time applied to identity theft-related investigations increased by 129 percent over that same period.
The Indiana Department of Revenue also is seeing impersonation scams increasing during this tax season. They can take the form of email, phone calls, websites, letters and even tweets. Scammers might also use a phone or fax to reach their victims. If you receive a paper letter or notice via mail claiming to be the Indiana Department of Revenue but you suspect it is a scam, contact the department immediately.
Although the department recognizes that most taxpayers are honest and seek to pay their fair share for the services they receive from the state, the department knows there are others who work hard to avoid their tax responsibilities. And, there are those who actively seek to gain tax refunds they are not entitled to receive – often using others’ identification information.
To help taxpayers avoid fraud, and to help taxpayers report suspected fraud, the department has launched a new fraud section to its website. Hoosier taxpayers can learn more about tax fraud and identity theft, read examples of how they can be affected, and report suspected tax fraud anonymously. This information and the fraud reporting tools can be found at www.in.gov/dor/4792.htm.
There are three ways to report tax fraud:
Fraudulent tax activities and identity theft are attempts to steal money from Indiana taxpayers. If you are suspicious of anyone or any activity, please do not hesitate to notify the department.
http://www.in.gov/dor/4810.htm
Contact: Chetrice Mosley
(317) 232-2379
Revenue Department Helps Hoosiers Report Tax Fraud Anonymously
INDIANAPOLIS (Feb. 27, 2013) — Fraud and identity theft continue to be the number one concern of all tax agencies in 2013. Incidents are on the rise, and efforts to combat those illegal activities are also on the rise.In fiscal year 2012, the IRS initiated approximately 900 identity theft-related criminal investigations, tripling the number of investigations initiated in fiscal year 2011. Direct investigative time applied to identity theft-related investigations increased by 129 percent over that same period.
The Indiana Department of Revenue also is seeing impersonation scams increasing during this tax season. They can take the form of email, phone calls, websites, letters and even tweets. Scammers might also use a phone or fax to reach their victims. If you receive a paper letter or notice via mail claiming to be the Indiana Department of Revenue but you suspect it is a scam, contact the department immediately.
Although the department recognizes that most taxpayers are honest and seek to pay their fair share for the services they receive from the state, the department knows there are others who work hard to avoid their tax responsibilities. And, there are those who actively seek to gain tax refunds they are not entitled to receive – often using others’ identification information.
To help taxpayers avoid fraud, and to help taxpayers report suspected fraud, the department has launched a new fraud section to its website. Hoosier taxpayers can learn more about tax fraud and identity theft, read examples of how they can be affected, and report suspected tax fraud anonymously. This information and the fraud reporting tools can be found at www.in.gov/dor/4792.htm.
There are three ways to report tax fraud:
- Call the 24-hour Indiana Tax Fraud Hotline at 317-232-2271.
- Complete an online form at www.in.gov/dor/4788.htm.
- Download and mail or fax the Tax Fraud Referral form to the department, available at www.in.gov/dor/4796.htm.
Fraudulent tax activities and identity theft are attempts to steal money from Indiana taxpayers. If you are suspicious of anyone or any activity, please do not hesitate to notify the department.
http://www.in.gov/dor/4810.htm
Courier & Press Reports Evansville Considers Rental Property Fee in Advance of Legislation Prohibiting Such Fees
From the Evansville Courier & Press:
Leaders of the Property Owners & Managers Association (POMA) of Evansville agree with a proposed city ordinance’s goals of less crime and better communication between landlords and law enforcement.
But they say such goals can be achieved in other ways, and they plan to speak against adoption of the ordinance at today’s called meeting of the Evansville City Council. It begins at 5:25 p.m. in Room 301 of the Civic Center.
Evansville Police Chief Billy Bolin said this morning that the license fee, originally $50, has been sliced to $10.
Karan Woods, treasurer of POMA, said on Tuesday that the $50 fee originally in the license "is simply a tax. We don’t get anything for it. There’s no set of standards. It’s basically, we pay a fee, and they get contact information, and contact information is dynamic. There’s no value from a landlord’s perspective.”
POMA President Monte Fetter said the ordinance was crafted without input from landlords. He and Woods said POMA has long advocated a voluntary licensure program that would create incentives for property owners to participate.
For instance, they said signing up for the voluntary program would enable property owners to do up to $2,500 worth of remodeling work on their own, without having to obtain a city permit.
“It would basically do the same thing as the registry they are pushing now,” Woods said. “That’s an opportunity for the city to make some money and the landlords to get something in return.”
...
Police say their proposal is a tool to bring accountability to absentee landlords — those who live outside the region and can’t be found by tenants or authorities.
“The ordinance is not because we don’t have any good landlords. But there is a big problem with landlords and rental companies that aren’t from here,” said Sgt. Jason Cullum, an Evansville Police Department spokesman. “We can go to them and write a code violation and put a flag in their yard. But it’s a very tough fight to get things taken care of when we don’t have anyone to assist us.”
Local, responsible landlords “probably feel they are being lumped into the same basket” as those who live elsewhere and neglect their properties, Cullum said. But police don’t believe a fee for a license is unreasonable, since fees already are required to operate numerous types of businesses.
Revenue from the fee would go toward a training initiative for landlords touching on crime prevention, safety and legal issues.
Police say they have built support for the measure at the neighborhood level, where several renters are neglected by their missing landlords.
Leaders of POMA respond that a voluntary registry, with incentives to join, is a better solution. Woods said the group had been working with the City-County Building Commission on a program, but that process “seems to have gotten stalled” because of the city police department’s push for a mandatory license program.
...
Although Evansville Police Department has worked for months to develop their program, they pushed for quick action this week by City Council because of a move by the General Assembly to restrict such local ordinances effecting property owners.
If the moratorium clears both houses of the legislature, it would take effect on Thursday, City Council Attorney Scott Danks said.
But he said Evansville would not be impacted by the state’s action if City Council passes its own measure today.
http://www.courierpress.com/news/2013/feb/26/no-headline---landlords/
See for example House Bill 1313
http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2013&session=1&request=getBill&doctype=HB&docno=1313
See for example House Bill 1313
DIGEST OF HB 1313 (Updated February 25, 2013 6:22 pm - DI 84)
Regulation of residential leases. Provides that a political subdivision may not adopt a regulation after February 28, 2013 relating to landlord and tenant relations, rental agreements, or real property subject to a rental agreement that: (1) requires an owner or landlord to be licensed or to obtain a permit from the political subdivision to lease a rental unit; (2) requires an owner or landlord to enroll or participate in a class or government program as a condition for leasing a rental unit; or (3) imposes a fee or other assessment for inspection of a rental unit, registration of an owner, landlord, or rental unit, or for any other purpose other than a fee relating to the construction of a rental unit, such as a building permit fee. Provides that this prohibition expires July 1, 2014. Urges the legislative council to assign the topic of regulation of residential leases by political subdivisions to a study committee during the 2013 legislative interim. |
http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2013&session=1&request=getBill&doctype=HB&docno=1313
Revenue Finds Taxpayer Failed to Sufficiently Support Claim for Research Expense Credit
Excerpts of Revenue's Determination follow:
Taxpayer files a joint income tax return with his spouse. Taxpayer is a one-hundred percent shareholder of an S corporation ("S Corp") which is a provider of sheet metal components and assemblies to a wide variety of industries, including medical, electronics, communications, appliances, transportation, government, computer, and lawn and garden. Services provided by S Corp consist of laser cutting, sheet metal fabrication, precision machining, welding and assembly.
In investigating the research expense credit taken by Taxpayer, the Department's auditor requested the documentation upon which S Corp had relied in claiming the credit. Taxpayer stated that the consulting firm conducted a "research expense credit" study at S Corp in the early 2000s. According to Taxpayer, the consulting firm it hired ("CF") interviewed S Corp's employees and determined the baseline of research expense credit that S Corp was entitled to. The majority of the credit represented wages.
Taxpayer files a joint income tax return with his spouse. Taxpayer is a one-hundred percent shareholder of an S corporation ("S Corp") which is a provider of sheet metal components and assemblies to a wide variety of industries, including medical, electronics, communications, appliances, transportation, government, computer, and lawn and garden. Services provided by S Corp consist of laser cutting, sheet metal fabrication, precision machining, welding and assembly.
The Indiana Department of Revenue ("Department") conducted an audit of S Corp for the years 2008 and 2009. S Corp claimed an increase in research activities for 2006 through 2008, which resulted in a "research expense credit" ("REC"). As the sole S Corp shareholder, Taxpayer claimed the REC on his joint individual income tax return. However, during the audit the Department determined that S Corp was unable to substantiate the claimed qualifying research activities and the related expenses and therefore disallowed the credit. The disallowance of the REC resulted in proposed tax assessments.
...
...
Taxpayer protests the elimination of RECs which it claimed on its 2008 and 2009 joint individual income tax returns, along with the resulting proposed assessments for additional adjusted gross income tax for those periods. Taxpayer argues that the RECs were properly claimed for both years.
...In investigating the research expense credit taken by Taxpayer, the Department's auditor requested the documentation upon which S Corp had relied in claiming the credit. Taxpayer stated that the consulting firm conducted a "research expense credit" study at S Corp in the early 2000s. According to Taxpayer, the consulting firm it hired ("CF") interviewed S Corp's employees and determined the baseline of research expense credit that S Corp was entitled to. The majority of the credit represented wages.
Taxpayer provided the following documentation to the Department's auditor: (1) a 4-page analysis by CF that found S Corp qualified for the research expense credit a few years prior to the audit (note that neither S Corp nor Taxpayer had retained the underlying documentation); (2) the job titles and job descriptions for all individuals listed on the wage workpaper; and (3) the workpaper showing the percentage of wages which were allocated to research. When queried by the Department's auditor as to the source of S Corp's wage percentages, Taxpayer stated that CF told him S Corp qualified for an 80 percent allocation. Taxpayer believed then that if S Corp used a percentage less than 80 percent, that would be acceptable.
The Department's auditor asked for S Corp's documentation and support justifying the percentage allocation. Taxpayer stated that he had none. Taxpayer stated that he knew what projects the engineers work on during the year, and he then estimated the percentages based on the baseline developed by CF. In response to questions the Department's auditor asked, Taxpayer stated that he would not be able to document what a particular employee did on a particular day, nor which projects a particular employee had worked on. None of CF's work papers were retained by S Corp.
After the hearing, Taxpayer provided additional documentation, along with a cover letter dated January 17, 2012. First, Taxpayer presented 2007 through 2010 R & D employee listings as well as project lists for each of those years. Second, Taxpayer provided a description of seven 2008 sample product development projects. The descriptions listed the product and industry that the research was intended to benefit, the scope of the research and development work performed by the engineers and skilled tradesmen generally assigned to the project (it should be noted, though, that there was no allocation or estimates of the time these employees spent on each project). Also included with each project was a Job Cost Detail sheet that showed costs related to direct labor (not the engineers), and material and outside services associated with the project. The direct labor information was identified by work center, but not individuals' names. Third, Taxpayer presented a 2008 Research and Development Employee List which included job titles. Attached to this list was a job description of each job title. Lastly, Taxpayer pointed out the list he provided of S Corp's research projects only reflect the product development projects. Taxpayer stated that S Corp's employees were also involved in testing processes the time allocations of which CF had included in its estimated wage allocation for the REC.
Taxpayer notes that "due to the decrease in time spent by the employees on product development and process improvement projects, [S Corp] did not qualify for the federal or state research and development credits in 2010." Taxpayer presents this information as evidence of its good faith and credibility relating to its REC claims for 2008 and 2009.
The use of its consultant's baseline percentages is inappropriate for two reasons: (1) the baseline percentages were developed with a particular set of data, which, according to Taxpayer's own evidence has significantly changed year to year; and (2) the underlying data for the baseline calculations is not available which means the Department has no way of verifying Taxpayer's variation from the baseline year to year.
Again, Indiana adopts the federal interpretation of "qualified services," which includes (1) services rendered in performing qualified research; (2) direct supervision of qualified research activities; and/or (3) direct support of qualified research activities. IC § 6-3.1-4-4; Treas. Reg. § 1.41-2(c)(1), (2), (3). "'Direct supervision' means the immediate supervision (first-line management) of qualified research (as in the case of a research scientist who directly supervises laboratory experiments, but who may not actually perform experiments)." Treas. Reg. § 1.41-2(c)(2). "'Direct supervision' does not include supervision by a higher-level manager to whom first-line managers report, even if that manager is a qualified research scientist."
If an employee has performed both qualified and non-qualified services, in the absence of another method of allocation that Taxpayer can demonstrate to be more appropriate, the amount of in-house qualifying research expense shall be determined by a ratio of "total time actually spent by the employee in the performance of qualified services" to the total time spent by the employee in the performance of all the services the employee performed. Treas. Reg. § 1.41-2(d).
Taxpayer provided some documentation about the product development projects in which S Corp was engaged during the years at issue. That information does not specifically describe each employee's involvement in the project such that there is documentary evidence of the actual time spent working on the project or the type of qualified service provided by each employee. Also, the employee lists for each of the years at issue contain the name of Taxpayer himself who is the CEO of the company. Unless Taxpayer demonstrates otherwise, he, as CEO, cannot be assumed to be engaged himself in qualified research activities, or of being a front-line supervisor or supporter of those activities.
...
It is entirely possible that Taxpayer performs qualified research activities such that it could qualify for the REC. As stated above, similar to deductions, exemptions, and exclusions, tax credits are matters of legislative grace. The taxpayer who claims a tax credit against any tax is required to retain records necessary to substantiate a claimed credit. In this instance, Taxpayer has not met its burden to show that the disallowance of S Corp's research expense credit was incorrect.
Herald-Times Argues Time to Implement Food and Beverage Tax in Monroe County
From the Bloomington Herald-Times:
See the full article here:
http://www.heraldtimesonline.com/stories/2013/02/27/digitalcity.dedicating-food-and-beverage-tax-to-convention-center-still-good-idea.sto
It’s time to implement a food and beverage tax in Monroe County, expand the convention center and reap the benefits.
It will take a while to get all that done, but that should be the prize at the end of the many steps ahead for the Monroe County Council.
The council began discussing the idea at a meeting Tuesday. Legislation to enable the council to pass such a tax was approved in 2009 by the General Assembly.
Officials estimate a 1 percent food and beverage tax could generate about $2.5 million per year to be used by the county for a dedicated purpose, in this case, presumably, to expand the convention center. However, an advisory council would be set up to decide how to divide revenue from the tax.
There undoubtedly will be a lot of opposition to the proposal, because, after all, it is a tax. And for many people, tax is a bad word.
But we’ve supported the notion of a food and beverage tax for a long time and continue to do so. The 1 percent would not be onerous for those who go to restaurants or bars to eat and drink. If someone had lunch out for $10, a dime would be added to a bill. Those who can afford to spend $100 for a dinner for two would be able to spend another $1.
People who buy groceries and eat at home would not be affected.
A reasonable question is: “What would these diners be getting for their money?”
The answer is, significantly increased economic activity from visitors who come to Bloomington and Monroe County.
A consultant’s report in 2011 estimated an expanded convention center could generate an estimated $19.7 million a year in direct and indirect spending from visitors who would use the new facility. The study noted the businesses that would be helped the most would be hotels, restaurants and bars. But other retail stores, service stations, arts and entertainment venues and other assorted establishments could also benefit from the additional number of visitors.
...
See the full article here:
http://www.heraldtimesonline.com/stories/2013/02/27/digitalcity.dedicating-food-and-beverage-tax-to-convention-center-still-good-idea.sto
Sun-Commercial Reports Vincennes Schools Contests "Flawed" DLGF Budget Formula
From the Vincennes Sun-Commercial:
Superintendent Greg Parsley reported to the school board Monday night that the state Department of Local Government Finance sent back the corporation’s proposed 2013 budget with a few reductions.
Parsley, however, said he’s confident the district will be able to operate on what the DLGF has allowed and that the only real battle he is prepared to fight is the rate tied to the capital projects fund from which the corporation draws to make repairs to its buildings.
The corporation asked to raise $3 million for CPF, but the state cut it by almost half.
Parsley said that decision is based on a “flawed” formula, and the corporation is owed at least another $125,000, which would bring the amount of that fund to more than $1.9 million.
He says the district was owed $125,000 last year as well.
In May, the school board voted to hire Barnes and Thornburg in Indianapolis to make its case to the DLGF and attempt to have the error in the state’s eight-step process corrected. If its not, Parsley said the corporation stands to lose $625,000 over the next five years.
• • •
Parsley had good news about the budget.
Assessed valuation is increasing. After remaining at about $555 million for two years, it was $656 million in 2012 and is expected to be over $708 million this year.
And even though an increase in AV hasn’t yet resulted, as it should, in more money for the corporation — or a lower tax rate for property owners — Parsley said that day could be just around the corner.
All it’s going to take, he said, is some consistency.
“What I need to happen is the AV to stop having these peaks and valleys,” he said.
The property tax caps passed by the General Assembly in 2008 have also affected how much the VCSC is able to raise. Before they were approved, the corporation received more than 100 percent of what it asked for each year, but beginning in 2009, that began to drop steadily.
Taxing entities can essentially ask for whatever they need in the way of revenue to operate, but once a property owner reaches the cap, no more can be collected. And not everyone pays their bill on time — or at all, for that matter.
So what school corporations, as well as municipalities and libraries, are able to collect is contingent on those factors. In 2012, the VCSC collected 84 percent of what it hoped to get. In 2011, it was only 75 percent.
And that, Parsley said, is another good sign.
“Yes, the tax caps are hurting us,” he said, “but that gap got a little bit more favorable this year to the VCSC.”
http://suncommercial.com/articles/2013/02/25/news/local_news/doc512c208883351435974187.txt
Superintendent Greg Parsley reported to the school board Monday night that the state Department of Local Government Finance sent back the corporation’s proposed 2013 budget with a few reductions.
Parsley, however, said he’s confident the district will be able to operate on what the DLGF has allowed and that the only real battle he is prepared to fight is the rate tied to the capital projects fund from which the corporation draws to make repairs to its buildings.
The corporation asked to raise $3 million for CPF, but the state cut it by almost half.
He says the district was owed $125,000 last year as well.
In May, the school board voted to hire Barnes and Thornburg in Indianapolis to make its case to the DLGF and attempt to have the error in the state’s eight-step process corrected. If its not, Parsley said the corporation stands to lose $625,000 over the next five years.
• • •
Parsley had good news about the budget.
Assessed valuation is increasing. After remaining at about $555 million for two years, it was $656 million in 2012 and is expected to be over $708 million this year.
And even though an increase in AV hasn’t yet resulted, as it should, in more money for the corporation — or a lower tax rate for property owners — Parsley said that day could be just around the corner.
All it’s going to take, he said, is some consistency.
“What I need to happen is the AV to stop having these peaks and valleys,” he said.
The property tax caps passed by the General Assembly in 2008 have also affected how much the VCSC is able to raise. Before they were approved, the corporation received more than 100 percent of what it asked for each year, but beginning in 2009, that began to drop steadily.
Taxing entities can essentially ask for whatever they need in the way of revenue to operate, but once a property owner reaches the cap, no more can be collected. And not everyone pays their bill on time — or at all, for that matter.
So what school corporations, as well as municipalities and libraries, are able to collect is contingent on those factors. In 2012, the VCSC collected 84 percent of what it hoped to get. In 2011, it was only 75 percent.
And that, Parsley said, is another good sign.
“Yes, the tax caps are hurting us,” he said, “but that gap got a little bit more favorable this year to the VCSC.”
http://suncommercial.com/articles/2013/02/25/news/local_news/doc512c208883351435974187.txt
Subscribe to:
Posts (Atom)