From the Lafayette Journal & Courier:
The Lafayette City Council found all 15 companies receiving tax abatements are in compliance with the investment and hiring commitments they made in exchange for tax breaks.
The council’s affirmation includes three businesses that have not yet added all of the jobs they pledged to create. However, representatives from Rea Magnet Wire and McKinney Corp. said their payrolls exceeded the promised level despite a decrease in orders during the economic downturn.
“We exceeded our salary commitment by more than $2.5 million last year,” said Burke Bovender, Rea Magnet plant manager. “Two times since the abatement was granted we reached our hiring goal, but we were unable to sustain it.”
Rea Magnet has 221 full-time employers, just four short of its goal. Bovender also pointed out that Rea Magnet purchases supplies from local companies and invested $2.8 million in equipment in 2012.
McKinney Corp. primarily fabricated components for race cars. When the economy sank in 2008, 95 percent of its customer base was in motor sports.
“We have diversified,” company president Murph McKinney said. “Now, 70 percent of our business is motor sports and 30 percent is commercial.”
McKinney said he added six employees last year. The company payroll totaled $8,000 more than promised for the abatement.
Mark Castell, Castle Coch president, built a warehouse near the Nanshan America aluminum plant on U.S. 52 south.
“The timing of this project was not the way we envisioned it,” Castell told the council. “We were recently able to put one tenant in on a long-term basis.”
...
http://www.jconline.com/apps/pbcs.dll/article?AID=2013306030040
Tuesday, June 4, 2013
NWI Reports Impact on Local Hiring a Factor in Tax Abatement Request in Dyer
From the Northwest Indiana Times:
While the Town Council has agreed to consider a recent request for a tax abatement, members also say that jobs for Dyer residents will be a factor in decision-making.
Tim Healy, senior vice president of Holladay Properties, appeared before the council during its May study session to ask about a possible two-year tax abatement for a 68,000-square-foot building his company owns on the Franciscan Alliance Dyer hospital campus.
The building is 25 percent full, and he has had contact with a potential client whose business would fill the remaining space and bring 387 jobs to Dyer.
Cost savings from the tax abatement would be something he could pass along to the client as an enticement to locate in Dyer, he said.
Councilwoman Debbie Astor said she’d be interested to know if the company would give precedence to qualified Dyer residents when job openings became available.
Councilman Jeff Dekker also said he’d be amenable to considering the tax abatement if qualified Dyer residents would be given a chance to work there.
Revenue Found Taxpayer Failed to Support Claim for Research and Development Credit Despite Granting Additional Time to Provide Documentation
Excerpts of Revenue's Determination follow:
Taxpayer is an out-of-state corporation with operations in Indiana. As the result of an audit, the Indiana Department of Revenue ("Department") determined that Taxpayer had claimed research and development ("R & D") credits without documentation supporting the claimed amounts of credits on its Indiana adjusted gross income tax ("AGIT") returns for the 2004, 2005, and 2006 tax years. The Department therefore removed those credits from its calculations of Taxpayer's AGIT for those years, which resulted in additional AGIT due for those years. The Department therefore issued proposed assessments for AGIT and interest.
...
Taxpayer is an out-of-state corporation with operations in Indiana. As the result of an audit, the Indiana Department of Revenue ("Department") determined that Taxpayer had claimed research and development ("R & D") credits without documentation supporting the claimed amounts of credits on its Indiana adjusted gross income tax ("AGIT") returns for the 2004, 2005, and 2006 tax years. The Department therefore removed those credits from its calculations of Taxpayer's AGIT for those years, which resulted in additional AGIT due for those years. The Department therefore issued proposed assessments for AGIT and interest.
...
Taxpayer protests the reduction of research and development credits which it claimed on its 2004, 2005, and 2006 Indiana AGIT returns, along with the resulting proposed assessments for additional AGIT for those years. Taxpayer states that the R & D credits were properly claimed. Taxpayer did not have documentation upon which it based its calculations of the credit it claimed. The Department denied Taxpayer's R & D credits in their entirety based on the determination that Taxpayer was unable to substantiate any of the numbers Taxpayer used to calculate the credits. The Department notes that the burden of proving a proposed assessment wrong rests with the person against whom the proposed assessment is made, as provided by IC § 6-8.1-5-1(c).
For income tax purposes, Indiana follows the federal tax scheme with certain modifications. IC § 6-3-2-1(b); IC § 6-3-1-3.5(b). Indiana also provides certain tax credits which a taxpayer may claim to reduce its taxable income. One of the tax credits is the "Indiana qualified research expense tax credit" under IC § 6-3.1-4-...
...
...
The Department denied the credits which Taxpayer claimed, basing its determination on the grounds that Taxpayer did not have any documentation to substantiate the numbers which Taxpayer used in its credit calculations. During the hearing, Taxpayer explained that they did not have any additional documentation ready to provide in support of their claimed credits. Additional time was allowed for the submission of any supporting documentation. Ultimately, no additional supporting documentation was received by the Department on this issue. Therefore, Taxpayer has not met the burden of proving the proposed assessments wrong, as required by IC § 6-8.1-5-1(c).
Monday, June 3, 2013
Tribune Reports Tipton Alliance Seeks More Public Input
From the Kokomo Tribune:
As the newly-created Tipton County economic development organization nears the completion of its first year in operation, members of the alliance that oversees the group want more public input.
When it formed the Tipton County Local Economic Development Organization created four task forces with specific responsibilities including: Agribusiness; Quality of Life and attracting new families; Business retention and expansion; and the U.S. 31 corridor through the county.
During a meeting of the Tipton Government Economic Development Alliance, which consists of city and county elected officials, Tipton Mayor Don Havens said he wanted to see the four task forces become as active as possible.
LEDO members indicated the Agribusiness and Quality of Life Task Forces have met once, the Business retention group has met several times and only three people showed up at the lone meeting concerning the U.S. 31 corridor.
All the task force meetings are open to the public.
...
The TCEDC used to receive funding from both Tipton County and the city of Tipton, but that funding source was ended in 2009. At the time the city and county attempted to create a joint economic development department, but it failed in 2011 when former Mayor Dan Delph withdrew the city funding.
The LEDO receives $150,000 in economic development income tax revenues from both the city and county. President Mike Harlow said it has not requested any private funding to date.
Havens said the LEDO has only spent money on Sheridan’s salary.
http://kokomotribune.com/local/x240790446/Tipton-Alliance-seeks-more-public-input
As the newly-created Tipton County economic development organization nears the completion of its first year in operation, members of the alliance that oversees the group want more public input.
When it formed the Tipton County Local Economic Development Organization created four task forces with specific responsibilities including: Agribusiness; Quality of Life and attracting new families; Business retention and expansion; and the U.S. 31 corridor through the county.
During a meeting of the Tipton Government Economic Development Alliance, which consists of city and county elected officials, Tipton Mayor Don Havens said he wanted to see the four task forces become as active as possible.
LEDO members indicated the Agribusiness and Quality of Life Task Forces have met once, the Business retention group has met several times and only three people showed up at the lone meeting concerning the U.S. 31 corridor.
All the task force meetings are open to the public.
...
The TCEDC used to receive funding from both Tipton County and the city of Tipton, but that funding source was ended in 2009. At the time the city and county attempted to create a joint economic development department, but it failed in 2011 when former Mayor Dan Delph withdrew the city funding.
The LEDO receives $150,000 in economic development income tax revenues from both the city and county. President Mike Harlow said it has not requested any private funding to date.
Havens said the LEDO has only spent money on Sheridan’s salary.
http://kokomotribune.com/local/x240790446/Tipton-Alliance-seeks-more-public-input
Republic Reports Columbus Considering Tax Increase for Maintenance and Road Work
From the Columbus Republic:
Columbus is so far behind in its upkeep on facilities and city roads that even a $350,000 proposed tax increase would be a drop in the bucket, according to city officials.
Instead the city will likely have to look at other measures, such as instituting user fees for some facilities, or privatization of some city services, said Mayor Kristen Brown. Columbus City Council is scheduled to consider the tax hike at its meeting Tuesday, but it is unlikely to be approved, the mayor and council members said.
City Attorney Jeff Logston said the city is allowed under state law to have a cumulative capital development tax rate of up to 5 cents per $100 of assessed value. The full 5 cents would raise $1.1 million for capital expenditures, but this year's rate was 3.5 cents, which raised $785,611.
News-Sentinel Reports Two Companies Seek Abatements for Investments in Fort Wayne
From the Fort Wayne News-Sentinel:
Two local companies plan to invest more than $9.3 million in expansions expected to create 12 full-time jobs.
According to paperwork filed with the Allen County Department of Planning Services, Central States Enterprises will make about $6.70 million in improvements to its grain storage and shipping facility at 356 Hartzell Road in New Haven. The company would also add $1.13 million in new equipment and has applied for a “phase-in” (formerly known as an abatement) that would reduce its taxes on the new investment by $860,000 over seven years.
Central States, which was founded in 1974 and posted about $120.6 million in sales last year, would erect two additional silos and expects to complete work by fall 2014. No new jobs would be created by the company, which currently has about 24 full-time employees.
Quick Cut Inc., a steel fabricator founded in 1997 with annual sales of $9.6 million, would create 12 full-time jobs through the addition of $1.4 million in new equipment at its 4630 Allen Martin Drive facility, with annual salaries averaging between $25,000 and $50,000. The company currently employs about 44 people.
If approved by County Council, the company's “phase-in” would reduce the taxes on the new equipment by $40,000 over five years.
Star Reports "Who Gets Indiana's Million of Tax Incentive Dollars?"
From the Indianapolis Star:
Wondering which big project has picked up the most tax incentives from the Indiana Economic Development Corporation?
Wonder no longer. Now there's a way to find out.
Here's a list of the 10 biggest tax incentives awarded by the state since 2005. We compiled the data from the state's new "transparency portal," which lists projects by company name, location, amount the state offered and the amount the state has so far agreed to pay out.
The incentives are paid to companies in return for expanding a plant, relocating to Indiana, hiring workers and the like.
The money is paid in the form of tax credits, training grants and other public funds.
So take a look at 10 projects that got the biggest basket of goodies. Then learn what the new "transparency portal" does and doesn't say
http://www.indystar.com/apps/pbcs.dll/gallery?Avis=BG&Dato=20130603&Kategori=BUSINESS21&Lopenr=306030025&Ref=PH
Wondering which big project has picked up the most tax incentives from the Indiana Economic Development Corporation?
Wonder no longer. Now there's a way to find out.
Here's a list of the 10 biggest tax incentives awarded by the state since 2005. We compiled the data from the state's new "transparency portal," which lists projects by company name, location, amount the state offered and the amount the state has so far agreed to pay out.
The incentives are paid to companies in return for expanding a plant, relocating to Indiana, hiring workers and the like.
The money is paid in the form of tax credits, training grants and other public funds.
So take a look at 10 projects that got the biggest basket of goodies. Then learn what the new "transparency portal" does and doesn't say
http://www.indystar.com/apps/pbcs.dll/gallery?Avis=BG&Dato=20130603&Kategori=BUSINESS21&Lopenr=306030025&Ref=PH
Revenue Notices Annual Public Hearing
Department of Revenue
Annual Public Hearing
INDIANAPOLIS (June 3, 2013) – The Indiana Department of Revenue will host its annual public hearing at 9:30 a.m. on June 4, 2013.
The hearing will be take place at:
Indiana Government Center South
Conference Room 18
402 W. Washington St.
Indianapolis, IN 46204
Conference Room 18
402 W. Washington St.
Indianapolis, IN 46204
Please post to activities calendars as appropriate.
Meeting Purpose:
As required by Indiana Code, the purpose of this annual hearing is to provide taxpayers an opportunity to recommend changes in statutes, departmental policies, processes, and procedures to help the department better administer tax laws. (IC 6-8.1-14)
This is not a news or media opportunity.
Seven Appeals Filed in Tax Court in May
| 05/29/13 | Kathryn Gillette v. Brown County Assessor | N/A | 49T10-1305-TA-53 |
| 05/28/13 | Autumn Ridge, LP v. Larry Davis, in his official capacity as Assessor, Madison County | N/A | 49T10-1305-TA-52 |
| 05/28/13 | Sony DADC US, Inc. v. Indiana Dept. of State Revenue | N/A | 49T10-1305-TA-51 |
| 05/01/13 | RJK Trust/Robert J. Kuchler, Trustee v. LaPorte Co. Assessor | N/A | 45T10-1304-TA-50 |
| 05/01/13 | Hurco Companies, Inc. v. Indiana Dept. of State Revenue | N/A | 49T10-1304-TA-49 |
| 05/01/13 | Vern R. Grabbe v. Clinton Co. Assessor, Dana M. Myers | N/A | 49T10-1304-TA-48 |
| 05/01/13 | VideoIndiana Inc.and Affiliates v. Indiana Dept. of State Revenue | N/A | 49T10-1304-TA-47 |
http://www.in.gov/judiciary/opinions/taxsumm.html
Revenue Waives Penalty for Taxpayer with Dishonored Tax Payment
Excerpts of Revenue's Determination follow:
Taxpayer is an Indiana resident. The Indiana Department of Revenue ("Department") determined that Taxpayer had dishonored tax payment during the tax year 2012.
...
Taxpayer is an Indiana resident. The Indiana Department of Revenue ("Department") determined that Taxpayer had dishonored tax payment during the tax year 2012.
...
The Department issued proposed assessment for penalty on failure to timely remit an estimated individual income tax payment for one quarter in the tax year 2012. Taxpayer protests that he tried to file in the same manner that he had successfully filed several times before, but that the Department's filing system did not recognize Taxpayer's bank account number. Taxpayer states that the bank account number is the same one that he has always used to file in this manner and that it has always worked before and since the filing at issue. Taxpayer protests the imposition of penalty and requests a waiver of that penalty.
The Department refers to IC § 6-8.1-10-5, which states:
(a ) If a person makes a tax payment with a check, credit card, debit card, or electronic funds transfer, and the department is unable to obtain payment on the check, credit card, debit card, or electronic funds transfer for its full face amount when the check, credit card, debit card, or electronic funds transfer is presented for payment through normal banking channels, a penalty of ten percent (10[percent]) of the unpaid tax or the value of the check, credit card, debit card, or electronic funds transfer, whichever is smaller, is imposed.
(b) When a penalty is imposed under subsection (a), the department shall notify the person by mail that the check, credit card, debit card, or electronic funds transfer was not honored and that the person has ten (10) days after the date the notice is mailed to pay the tax and the penalty either in cash, by certified check, or other guaranteed payment. If the person fails to make the payment within the ten (10) day period, the penalty is increased to one hundred percent (100 [percent]) multiplied by the value of the check, credit card, debit card, or electronic funds transfer, or the unpaid tax, whichever is smaller.
(c) If a person has been assessed a penalty under subsection (a) more than one (1) time, the department may require all future payments for all listed taxes to be remitted with guaranteed funds.
(d) If the person subject to the penalty under this section can show that there is reasonable cause for the check, credit card, debit card, or electronic funds transfer not being honored, the department may waive the penalty imposed under this section.
(Emphasis added).
In this case, Taxpayer was unable to remit a quarterly estimated income tax payment. The Department considered this to constitute negligence and so imposed penalties under IC § 6-8.1-10-5. As a result of the protest process, Taxpayer has affirmatively established that it acted reasonably in his efforts to comply with Indiana's tax filing requirements. The penalty will be waived.
Sunday, June 2, 2013
Repubic Reports Columbus Considering Raising Property Tax Rate to Fund Capital Improvement Projects
From the Columbus Republic:
The Columbus City Council is scheduled to consider raising a city property tax rate to help fund capital improvement projects. That would occur at its Tuesday night meeting.
The cumulative capital development fund rate was 3.46 cents per $1,000 of assessed property value this year, but governing bodies can have the rate set as high as 5 cents, City Attorney Jeff Logston said. If the council were to raise the rate to the full amount, it would generate about $350,000 a year more for the city, Logston estimated.
http://www.therepublic.com/view/local_story/City-Council-to-consider-tax-i_1370144273
The Columbus City Council is scheduled to consider raising a city property tax rate to help fund capital improvement projects. That would occur at its Tuesday night meeting.
The cumulative capital development fund rate was 3.46 cents per $1,000 of assessed property value this year, but governing bodies can have the rate set as high as 5 cents, City Attorney Jeff Logston said. If the council were to raise the rate to the full amount, it would generate about $350,000 a year more for the city, Logston estimated.
http://www.therepublic.com/view/local_story/City-Council-to-consider-tax-i_1370144273
Riley: Head-ScratchingTax Issues in Muncie as Hard as "Pie"
By Larry Riley in the Muncie Star-Press:
You read that the Muncie Public Library is taking quick action to deal with, and limit, the impact of even more property tax losses this year projected by the county auditor’s office?
A yet-undetermined number of employees — the library has 43 full-time — will be laid off and the system’s two main branches each will close one weekend day.
The move is a proactive way to confront what appears to be problematic news, and clearly that agency’s leaders think they need to act sooner, not later.
The library wants to reduce $400,000 from its current 2013 budget. Act now, that’s $66,000 in monthly reductions. Waiting another three months would require $133,000 in monthly reductions, a less manageable figure.
The three biggest local government units forecasted to lose much more than the library are taking different actions — or none.
Muncie Community Schools may try to get a higher tax rate for the indefinite future via a referendum this fall. Like almost every local government, MCS hiked its tax rate for this year, going up 7 percent. But that tax rate comes out of a property tax-capped “pie,” if I may use the analogy.
A referendum, I think, will allow a tax rate to circumvent the property tax caps and create a bigger “pie.”
Delaware County is dealing with the issue by doing nothing, mostly because its fiscal leaders are hapless and clueless.
The city of Muncie also is doing nothing, but that’s because Mayor Dennis Tyler does not think the impacts will be nearly what’s projected.
In fact, the projections are not what local governments will receive, but what “credits” — a mythical amount of money taxpayers won’t pay if they are taxed beyond the tax caps — will amount to per government unit.
The issue is complicated, and may not be completely understood until all taxes are paid and sorted out.
...
See the full article here:
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013306020022
You read that the Muncie Public Library is taking quick action to deal with, and limit, the impact of even more property tax losses this year projected by the county auditor’s office?
A yet-undetermined number of employees — the library has 43 full-time — will be laid off and the system’s two main branches each will close one weekend day.
The move is a proactive way to confront what appears to be problematic news, and clearly that agency’s leaders think they need to act sooner, not later.
The library wants to reduce $400,000 from its current 2013 budget. Act now, that’s $66,000 in monthly reductions. Waiting another three months would require $133,000 in monthly reductions, a less manageable figure.
The three biggest local government units forecasted to lose much more than the library are taking different actions — or none.
Muncie Community Schools may try to get a higher tax rate for the indefinite future via a referendum this fall. Like almost every local government, MCS hiked its tax rate for this year, going up 7 percent. But that tax rate comes out of a property tax-capped “pie,” if I may use the analogy.
A referendum, I think, will allow a tax rate to circumvent the property tax caps and create a bigger “pie.”
Delaware County is dealing with the issue by doing nothing, mostly because its fiscal leaders are hapless and clueless.
The city of Muncie also is doing nothing, but that’s because Mayor Dennis Tyler does not think the impacts will be nearly what’s projected.
In fact, the projections are not what local governments will receive, but what “credits” — a mythical amount of money taxpayers won’t pay if they are taxed beyond the tax caps — will amount to per government unit.
The issue is complicated, and may not be completely understood until all taxes are paid and sorted out.
...
See the full article here:
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013306020022
NWI Guest Commentary: Poor School Funding Fuels Local School Referendums
From the Northwest Indiana Times:
Why are school corporations engaged in referendums as of late? While school referendums used to be mainly sought for an increase in property taxes for school construction projects, they are now being used to increase the funds available to cash-strapped general funds.
In 2008, state lawmakers established referendums as the mechanism for school districts to appeal to their local citizens to increase the school tax rate to add to state funding to raise enough money to fund its programs and keep current personnel employed.
For such a referendum to succeed, there are obvious advantages for wealthier communities over poorer communities. A community needs financial well-being to afford a tax increase, as well as a public and governmental belief that public education is valuable for the common good.
The Indiana Constitution recognizes that a common system of public education is in the best interests of the common good and therefore the state has a responsibility to provide an appropriate system of equitable financing, and not leave it up to the financial well-being of a local community.
The overall effect of the referendum philosophy will result in the state dividing school corporations into two categories: “have” and “have not.”
The state Legislature and Gov. Mike Pence have just signed a budget that is advertised to provide a 2 percent increase in state funding for 2014 and a 1 percent increase for 2015.
However, a significant number of school districts will receive less per year because of other factors not advertised in the school general fund formula.
...
See the full article here:
http://www.nwitimes.com/news/opinion/columnists/guest-commentary/guest-commentary-poor-state-funding-fuels-local-school-referendums/article_36becb9e-bd7f-5785-bb66-5adf11c6b8d6.html
Why are school corporations engaged in referendums as of late? While school referendums used to be mainly sought for an increase in property taxes for school construction projects, they are now being used to increase the funds available to cash-strapped general funds.
In 2008, state lawmakers established referendums as the mechanism for school districts to appeal to their local citizens to increase the school tax rate to add to state funding to raise enough money to fund its programs and keep current personnel employed.
For such a referendum to succeed, there are obvious advantages for wealthier communities over poorer communities. A community needs financial well-being to afford a tax increase, as well as a public and governmental belief that public education is valuable for the common good.
The Indiana Constitution recognizes that a common system of public education is in the best interests of the common good and therefore the state has a responsibility to provide an appropriate system of equitable financing, and not leave it up to the financial well-being of a local community.
The overall effect of the referendum philosophy will result in the state dividing school corporations into two categories: “have” and “have not.”
The state Legislature and Gov. Mike Pence have just signed a budget that is advertised to provide a 2 percent increase in state funding for 2014 and a 1 percent increase for 2015.
However, a significant number of school districts will receive less per year because of other factors not advertised in the school general fund formula.
...
See the full article here:
http://www.nwitimes.com/news/opinion/columnists/guest-commentary/guest-commentary-poor-state-funding-fuels-local-school-referendums/article_36becb9e-bd7f-5785-bb66-5adf11c6b8d6.html
NWI Reports Debt and Urgent Needs Limit Lake County Tax Benefits
From the Northwest Indiana Times:
Lake County officials are urging a cautious approach to new spending despite an expected windfall from a new income tax.
The cash-strapped county expects to receive about $15 million from the tax next year, but it is still dealing with $121 million in long-term debt. A drop in revenue because of the state's elimination of the inheritance tax, higher health care and pension costs and a looming deadline to equip a new consolidated E-911 network also will take a chunk out of the windfall.
Councilman David Hamm tells The Times in Munster ( http://bit.ly/10NWdDT) that any spending spree would send the wrong message to the public. He wants the county to pay down its debt first.
The county's debt won't be repaid until at least 2028.
http://www.nwitimes.com/news/state-and-regional/indiana/debt-urgent-needs-to-limit-lake-co-tax-benefits/article_204dcc74-289e-5275-b1e6-b0979214ef83.html
Lake County officials are urging a cautious approach to new spending despite an expected windfall from a new income tax.
The cash-strapped county expects to receive about $15 million from the tax next year, but it is still dealing with $121 million in long-term debt. A drop in revenue because of the state's elimination of the inheritance tax, higher health care and pension costs and a looming deadline to equip a new consolidated E-911 network also will take a chunk out of the windfall.
Councilman David Hamm tells The Times in Munster ( http://bit.ly/10NWdDT) that any spending spree would send the wrong message to the public. He wants the county to pay down its debt first.
The county's debt won't be repaid until at least 2028.
http://www.nwitimes.com/news/state-and-regional/indiana/debt-urgent-needs-to-limit-lake-co-tax-benefits/article_204dcc74-289e-5275-b1e6-b0979214ef83.html
Saturday, June 1, 2013
Revenue Determines Taxpayer was a Resident of Indiana Despite Assuming Employment Outside of the State
Excerpts of Revenue's Determination follow:
Taxpayer is an individual. Prior to mid-2009, Taxpayer was an Indiana resident. However, according to Taxpayer, Taxpayer began employment outside Indiana in mid-2009 and has continued to work and live in Indiana.
Taxpayer is an individual. Prior to mid-2009, Taxpayer was an Indiana resident. However, according to Taxpayer, Taxpayer began employment outside Indiana in mid-2009 and has continued to work and live in Indiana.
Sometime after mid-2009, Taxpayer returned to Indiana and renewed his Indiana driver's license. Based on this renewal, the Indiana Department of Revenue ("Department") determined that Taxpayer was an Indiana resident for the years in question.
...
Taxpayer protests the imposition of individual income tax for 2009, 2010, and 2011. Taxpayer claims to have not been a resident of Indiana during those years. The issue is whether Taxpayer was an Indiana resident for the years in question.
...
Even though Taxpayer was not physically located in Indiana for the periods in question (except for occasional visits) and did not work in Indiana during the periods in question, the issue of whether Taxpayer was domiciled in Indiana remains. If Taxpayer was domiciled in Indiana, he is a resident under IC § 6-3-1-12 regardless of his physical location or his duration in any jurisdiction.
The Indiana Supreme Court considered the issue of the meaning of "domicile" in State Election Bd. v. Bayh, 521 N.E.2d 1313 (Ind. 1988). In that case, Mr. Bayh desired to run for governor of the state. Pursuant to public discussions concerning whether Mr. Bayh met the residency requirements for governor, Mr. Bayh sought a declaratory judgment determining whether he met the residency requirement. The Indiana Supreme Court affirmed the trial court's decision that the standard for residency was whether or not Mr. Bayh had an Indiana domicile. It also affirmed the determination that Mr. Bayh was domiciled in Indiana.
Domicile in Indiana is defined as "the place where a person has his true, fixed, permanent home and principal establishment, and to which place he has, whenever he is absent, the intention of returning." Id. at 1317. Domicile is not determined by the location of the person's body. A change of domicile requires an actual moving with an intent to move to a given place and remain there. "It must be an intention coupled with acts evidencing that intention to make the new domicile a home in fact.... [T]here must be the intention to abandon the old domicile; the intention to acquire a new one; and residence in the new place in order to accomplish a change of domicile." Id. (citing State ex rel. Flaugher v. Rogers, 77 N.E.2d 594, 595-96 (Ind. 1948)).
Further, "A person who leaves his place of residence temporarily, but with the intention of returning, has not lost his original residence." Bayh, 521 N.E.2d at 1317. (citing Yonkey v. State (1866), 27 Ind. 236) As further stated in Bayh,
Where an old resident and inhabitant, having his domicil from his birth in a particular place, goes to another place or country, the great question whether he has changed his domicile... will depend mainly upon the question, to be determined from all the circumstances, whether the new residence is temporary or permanent.... If the departure from one's fixed and settled abode is for a purpose in its nature temporary, whether it be business or pleasure, accompanied with an intent of returning... as soon as such purpose is accomplished; in general, such a person continues to be an inhabitant... for all purposes of enjoying civil and political privileges, and of being subject to civil duties.
Bayh, 512 N.E.2d at 1317 (quoting Culbertson v. Board of Commissioners of Floyd County, 52 Ind. 361, 368-69 (1876)).
In this case, even though Taxpayer has provided some indicia of establishing a residence outside Indiana, such as assuming employment outside Indiana, renting real estate outside Indiana, and filing a tax return as a full-year resident of another state for one year, Taxpayer has not provided sufficient information at this time to establish that he renounced his Indiana domicile and affirmatively established a new domicile. Thus, Taxpayer has not met his burden of establishing that the proposed assessments were incorrect pursuant to IC § 6-8.1-5-1(c).
Taxpayer raises an alternative assertion that, even if the Department determines that he is an Indiana resident, Taxpayer is entitled to a credit for taxes paid to other jurisdictions pursuant to IC § 6-3-3-3. With regard to this contention, Taxpayer has provided returns from other states demonstrating that he is entitled to a credit for taxes paid to other states. Therefore, Taxpayer's protest is sustained to the extent provided under IC § 6-3-3-3.
News and Tribune Reports Jeffersonville Mayor Proposes $2 Million Marina
From the Clark County News and Tribune:
Mayor Mike Moore is looking to an area vital to the city’s past to help boost quality-of-life and economic development for its future.
Mayor Mike Moore is looking to an area vital to the city’s past to help boost quality-of-life and economic development for its future.
Moore on Thursday presented his vision of a new $2 million marina — one with an increased number of boat slips to 64 and a jetty that will reach out 200 feet into the Ohio River and will serve the dual purpose of fishing pier and will act as a protective barrier for the docks.
“This will transform our riverfront into a destination point, but we need the support of our city council,” he said. “I hope they agree with me that we can no longer accept the condition of our boat docks and the river’s edge as we see it here today.”
The plan would be funded by the city’s Tax Increment Finance districts. In addition, the city has already received two grants totaling $153,343 to help fund the project.
Because Moore’s plan calls for TIF funds to cover the costs of the project, a multistep approval process must be completed to amend the economic development plan for the TIF district before the funds can be used. One of those approvals must come from the city council.
At a press conference at the marina, Moore urged the city council to take a vote on the proposal.
...
See the full article here:
STYRING: Bowen held line on property taxes
By Bill Styring in the Indianapolis Business Journal:
...
Doc’s name will forever be tied to property tax replacement. His whole 1972 gubernatorial campaign was a pledge to produce “substantial, visible and lasting” property tax relief. In the 1973 Legislature, Doc got that done.
The price was high. He doubled the sales tax from 2 percent to 4 percent and used the new money to give an across-the-board 20-percent property tax credit.
A little-known, behind-the-scenes deal was that, to buy enough Democratic votes in the Senate, he had to agree to give public schoolteachers collective bargaining, a trade he would later privately lament.
Doc promised that the new sales tax revenue would all—well, almost all—go for property tax replacement. Voters are always skeptical of any political pledge to “let me raise this tax so I can cut this other tax,” fearing rightly that the result will be tax X indeed goes up, but tax Y never goes down.
Doc delivered on the tax X up and tax Y down for as long as he was in office and could control events.
...
The “lasting” part of “substantial, visible and lasting” proved more ephemeral.
Doc’s property tax controls were all statutory. Future legislatures could undo them. Without Bowen around to veto, they did just that.
By 1987, property taxes were back above their 1973 levels and headed higher.
Lesson: If you want property tax increases lastingly limited, put those limits in the state Constitution, where future legislators will find it hard to tinker.
Mitch Daniels learned that lesson from Doc. Daniels’ property tax limits are ensconced in the Constitution.
...
http://www.ibj.com/article?articleId=41607
...
Doc’s name will forever be tied to property tax replacement. His whole 1972 gubernatorial campaign was a pledge to produce “substantial, visible and lasting” property tax relief. In the 1973 Legislature, Doc got that done.
The price was high. He doubled the sales tax from 2 percent to 4 percent and used the new money to give an across-the-board 20-percent property tax credit.
A little-known, behind-the-scenes deal was that, to buy enough Democratic votes in the Senate, he had to agree to give public schoolteachers collective bargaining, a trade he would later privately lament.
Doc promised that the new sales tax revenue would all—well, almost all—go for property tax replacement. Voters are always skeptical of any political pledge to “let me raise this tax so I can cut this other tax,” fearing rightly that the result will be tax X indeed goes up, but tax Y never goes down.
Doc delivered on the tax X up and tax Y down for as long as he was in office and could control events.
...
The “lasting” part of “substantial, visible and lasting” proved more ephemeral.
Doc’s property tax controls were all statutory. Future legislatures could undo them. Without Bowen around to veto, they did just that.
By 1987, property taxes were back above their 1973 levels and headed higher.
Lesson: If you want property tax increases lastingly limited, put those limits in the state Constitution, where future legislators will find it hard to tinker.
Mitch Daniels learned that lesson from Doc. Daniels’ property tax limits are ensconced in the Constitution.
...
http://www.ibj.com/article?articleId=41607
Journal-Gazette Argues Funding Inequality Grows in Education
From the Fort Wayne Journal-Gazette:
The month that State Superintendent Glenda Ritz unveiled a promising literacy initiative for Indiana students, Fort Wayne Community Schools announced it would cut the hours for the school media clerks who help foster students’ passion for reading.
Efforts to keep budget reductions away from students and classroom instruction have run their course. While pressure continues to raise test scores, the same officials making the demands are limiting the ability of schools to help students succeed. It’s time for elected officials at both the federal and state level to give school officials more control over how public dollars are spent on education.
FWCS and other public employers are unintentional victims of the federal health care law and not-so-unintentional victims of a drive to cut public school spending. Effective Monday, the district will reduce the hours of part-time employees who don’t currently qualify for health insurance benefits, along with the hours of 21 employees who oversee elementary school libraries and media collections. The latter group includes employees who do currently qualify for health insurance benefits.
The health care law, which requires employers to offer insurance benefits to any employee who works at least 30 hours a week, wouldn’t be a problem if the school district could simply expand its coverage pool, but FWCS general fund revenues continue to decline. After Gov. Mitch Daniels cut $300 million from public schools in 2010, the district closed Elmhurst High School and Pleasant Center Elementary, outsourced custodial services and changed high school schedules to permanently cut $15 million a year in spending.
The General Assembly’s property tax overhaul moved all school general fund costs to statewide sources of revenue, allowing schools to raise additional money for salaries and benefits only through a voter-approved referendum. Suburban districts, with higher percentages of households with school-age children, can more easily persuade voters to pay higher taxes to support lower class sizes or special programs than urban or rural districts. The likelihood of voters in the FWCS district supporting higher tax bills to offer health insurance for media clerks, classroom aides and cafeteria workers is slim.
“This is what you get when you start eroding support of public schools,” FWCS Superintendent Wendy Robinson said of the reductions in work hours.
Indiana legislative leaders disingenuously suggest they have increased support for schools. But the state’s growing voucher entitlement program and an increasing number of charter schools have simply spread dollars to more schools. The 2011 voucher law required the Department of Education to make a special distribution from “savings” realized by voucher payments. FWCS will collect about $101,000 from the distribution this year, but it lost about $7 million in state funds to the voucher program.
“Choice in education creates competition,” said Senate President Pro Tem David Long, R-Fort Wayne, at a school choice rally in March. “Competition creates a better product, a better outcome.”
As Long and other lawmakers continue to pass laws that support a second, more exclusive system of schools, the cuts to traditional public schools – including cuts that will compromise literacy instruction – will put his assertion to the test.
http://journalgazette.net/article/20130531/EDIT07/305319995/0/SEARCH
Efforts to keep budget reductions away from students and classroom instruction have run their course. While pressure continues to raise test scores, the same officials making the demands are limiting the ability of schools to help students succeed. It’s time for elected officials at both the federal and state level to give school officials more control over how public dollars are spent on education.
FWCS and other public employers are unintentional victims of the federal health care law and not-so-unintentional victims of a drive to cut public school spending. Effective Monday, the district will reduce the hours of part-time employees who don’t currently qualify for health insurance benefits, along with the hours of 21 employees who oversee elementary school libraries and media collections. The latter group includes employees who do currently qualify for health insurance benefits.
The health care law, which requires employers to offer insurance benefits to any employee who works at least 30 hours a week, wouldn’t be a problem if the school district could simply expand its coverage pool, but FWCS general fund revenues continue to decline. After Gov. Mitch Daniels cut $300 million from public schools in 2010, the district closed Elmhurst High School and Pleasant Center Elementary, outsourced custodial services and changed high school schedules to permanently cut $15 million a year in spending.
The General Assembly’s property tax overhaul moved all school general fund costs to statewide sources of revenue, allowing schools to raise additional money for salaries and benefits only through a voter-approved referendum. Suburban districts, with higher percentages of households with school-age children, can more easily persuade voters to pay higher taxes to support lower class sizes or special programs than urban or rural districts. The likelihood of voters in the FWCS district supporting higher tax bills to offer health insurance for media clerks, classroom aides and cafeteria workers is slim.
“This is what you get when you start eroding support of public schools,” FWCS Superintendent Wendy Robinson said of the reductions in work hours.
Indiana legislative leaders disingenuously suggest they have increased support for schools. But the state’s growing voucher entitlement program and an increasing number of charter schools have simply spread dollars to more schools. The 2011 voucher law required the Department of Education to make a special distribution from “savings” realized by voucher payments. FWCS will collect about $101,000 from the distribution this year, but it lost about $7 million in state funds to the voucher program.
“Choice in education creates competition,” said Senate President Pro Tem David Long, R-Fort Wayne, at a school choice rally in March. “Competition creates a better product, a better outcome.”
As Long and other lawmakers continue to pass laws that support a second, more exclusive system of schools, the cuts to traditional public schools – including cuts that will compromise literacy instruction – will put his assertion to the test.
http://journalgazette.net/article/20130531/EDIT07/305319995/0/SEARCH
News-Sentinel Reports After spending millions on new office space, Fort Wayne wants to rent
From the Fort Wayne News Sentinel:
Less than two years after a multimillion-dollar project brought most city and county offices together in two downtown buildings, Fort Wayne taxpayers may soon be paying more than $52,000 in annual rent to move one agency several blocks away.
When compared to the annual city budget of about $174 million, that's not a lot of money. But in the wake of sometimes-contentious co-location negotiations between city and county officials, and with tax increases being sought to help close a $6 million deficit in the city's budget, the public is entitled to answers all the same.
Under the proposal already approved by the Board of Works and scheduled for a public hearing before City Council later this month, the city would sign a five-year lease on 4,739 square feet of space in the eight-floor building at 202 W. Berry St., which would then become home to the Metropolitan Human Relations Commission, the city's civil-rights agency. If renewed for another 10 years as allowable under the lease, the rent would total nearly $782,000 – and that doesn't include new phone service, computer lines and security upgrades (the landlord would pay utilities).
...
See the full article here:
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20130601/NEWS/130539909/0/SEARCH
Less than two years after a multimillion-dollar project brought most city and county offices together in two downtown buildings, Fort Wayne taxpayers may soon be paying more than $52,000 in annual rent to move one agency several blocks away.
When compared to the annual city budget of about $174 million, that's not a lot of money. But in the wake of sometimes-contentious co-location negotiations between city and county officials, and with tax increases being sought to help close a $6 million deficit in the city's budget, the public is entitled to answers all the same.
Under the proposal already approved by the Board of Works and scheduled for a public hearing before City Council later this month, the city would sign a five-year lease on 4,739 square feet of space in the eight-floor building at 202 W. Berry St., which would then become home to the Metropolitan Human Relations Commission, the city's civil-rights agency. If renewed for another 10 years as allowable under the lease, the rent would total nearly $782,000 – and that doesn't include new phone service, computer lines and security upgrades (the landlord would pay utilities).
...
See the full article here:
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20130601/NEWS/130539909/0/SEARCH
Herald-Times Reports Financial Advisor Hired by Monroe County
From the Bloomington Herald-Times:
As the Monroe County Auditor’s Office continues to work on restructuring, the Monroe County commissioners approved hiring a second temporary financial
position for the 2014 budget process.
The Monroe County Board of Commissioners on Friday approved hiring Bob Purlee, a former Indiana Department of Local Government Finance employee, as a financial consultant in the auditor’s office.
Purlee will review the tax rates, help the office complete the steps required by the state and provide training for members of the auditor’s staff. The contract is for $125 per hour for services on a case-by-case basis for a maximum of one year. Commissioner Iris Kiesling said she thought the auditor’s office could gain from Purlee’s knowledge, but Commissioner Julie Thomas raised some concerns about hiring a second analyst.
“I have concerns about this because we’ve already approved a contract for a financial consultant for the county council, and I understand these folks will be doing different tasks,” Thomas said. “But I will just say I would really like this to get resolved through reorganization, which you are saying you will do, as soon as possible. I would not be inclined to support this agreement going beyond this year, because reorganization should be done.”
...
See the full article here:
http://www.heraldtimesonline.com/stories/2013/06/01/news.second-adviser-hired-by-county.sto
As the Monroe County Auditor’s Office continues to work on restructuring, the Monroe County commissioners approved hiring a second temporary financial
position for the 2014 budget process.The Monroe County Board of Commissioners on Friday approved hiring Bob Purlee, a former Indiana Department of Local Government Finance
employee, as a financial consultant in the auditor’s office. Purlee will review the tax rates, help the office complete the steps required by the state and provide training for members of the auditor’s staff. The contract is for $125 per hour for services on a case-by-case basis for a maximum of one year. Commissioner Iris Kiesling said she thought the auditor’s office could gain from Purlee’s knowledge, but Commissioner Julie Thomas raised some concerns about hiring a second analyst.
“I have concerns about this because we’ve already approved a contract for a financial consultant for the county council, and I understand these folks will be doing different tasks,” Thomas said. “But I will just say I would really like this to get resolved through reorganization, which you are saying you will do, as soon as possible. I would not be inclined to support this agreement going beyond this year, because reorganization should be done.”
...
See the full article here:
http://www.heraldtimesonline.com/stories/2013/06/01/news.second-adviser-hired-by-county.sto
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