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2017 Mid-Session Legislative Update
bill status as of 1/27/2017
AIC tracking 400+ total bills out of over 1200 bills filed in the
Indiana General Assembly
Road Funding
• Last year, based on 2009 data, AIC identified the need for local roads to be $500M in new funding annually and ongoing
• Last year’s HB 1001 included increased funding from the state that averages around $100M per year from sales tax on gasoline.
• That funding came in the form of the Community Crossings grant program, which provided up to $1M to 81 counties.
• FIRSST Task Force met over the summer to examine the long term need and revenue options for both state and local road networks
LTAP Report on Local Roads and Bridges
• To apply for the Community Crossings grants, units had to provide a asset management plan to assess the status of their infrastructure
• Purdue’s Local Technical Assistance Program coordinated this data and published a report on the status of local infrastructure statewide
• County pavement averaged a 4.5/10, with 40% poor
• Nearly half of local bridges are either structurally deficient, functionally obsolete, or both
• Report updates estimated annual, increased need for local units at $530M just to maintain the poor status of local infrastructure
• To bring local roads to average of even 20% poor, and eliminate deficient and obsolete bridges over 10 years, $1B extra is needed yearly
HB 1002 in Dollars and Cents
• HB 1002 includes the House Republican road funding plan
• Would increase local road funding by over $340M annually by FY 17
• Would increase INDOT funding by $835M by FY 17
• Increases gasoline, diesel, and special fuel taxes by 10 cents/gal and indexes for future growth • (last per gallon gas tax increase was 2003, Diesel last increase 1988)
• Increases registration fee by $15; to increase Community Crossings
• Shifts all taxes paid at pump to transportation system uses by FY 21
• $150 fee on electric vehicles
House Bill 1002 cont’d
• Extends period to adopt wheel tax to November 1, from July 1
• Expands Community Crossings local match source to any fund authorized to be expended for road and bridge purposes
• Changes Community Crossings match to 80/20 from 50/50
• Lowers municipal wheel tax population req’mt from 10k to 5k
• Authorizes Weigh-in-Motion program for State Police
• Funds continued LTAP research on local roads thru asset mgmt plans
• Requires INDOT to conduct a feasibility study of existing interstates
• Removes prohibition of tolling without future legislative authority
• Requires INDOT to research Vehicle Miles Travelled (VMT) taxation
House Bill 1002 cont’d
• Establishes a 100% federal fund swap program to provide state dollars to local units instead of federal dollars • Frees local units from many expensive and burdensome federal regulations
• Will provide 20% or more project savings on road and bridge projects
• Intent to fund same purposes that federal $ provides for, but with greater efficiency in both spending and project time lines
• Requires INDOT to establish metrics for local roads and bridges • Compare Indiana conditions to those in other similar states
• Develop goals to ensure local asset conditions are in top 25% of similar states
• Develop a state and local asset prioritization system and project priority list
• Safety, Congestion, Environment, Economics, Cost, etc.
• General Assembly may not approve or disapprove projects on priority list
Market Segmentation
• Last year, SEA 308 passed to allow Assessors the ability to narrow the universe of comparable properties for tax valuation purposes by use of Market Segmentation
• DLGF has been in the process of drafting a new rule which defines Market Segmentation and describes its use • AIC and Assessors’ Assn are providing written feedback
• Howard County has appealed the decision of Indiana Tax Court about assessment of a Kohl’s store; AIC has submitted amicus brief
• Combination of Supreme Court decisions and DLGF rule will take time to sort out, but will determine future of assessment practices
Assessment Issues
• HB 1198 clarifies that $50 penalty for failure to appear at PTBOA is at Assessors’ option, not required
• HB 1299 allows county to be reimbursed by other units for legal costs associated with defending assessment appeals
• HB 1371 returns to cost approach to determine tax value, less depreciation; requires land value to be same as vacant land; + more
• HB 1402 requires that certain outdoor signs be excluded from tax assessment of land upon which the signs stand
• SB 164 eliminates trending, but retains reassessment
Assessment Issues
• SB 350 parcel characteristics may only be changed at reassessment; splits cost of appraisal b/w county and taxpayer, + other changes
• SB 386 requires exchange of evidence prior to PTBOA hearing
• SB 449 limits compensation options for personal prop tax audits
• SB 501 is extensive re-write of property tax appeals process
• SB 512 allows taxing units to opt out of any new TIF zones
• SB 559 provides property tax exemption for non-profit landlords who rent to low income tenants
State and Local Finance
• HB 1017 Doubles state salary stipend for County Highway Engineers
• HB 1120 Requires that LOIT trust fund recipients who had a special LOIT rate in place would receive extra $ to make special rate whole
• HB 1141/SB 128 allows local options for funding state road projects; incl. voluntary property tax payments and property tax referenda
• HB 1156 requires a county with two PSAPs to split county payment between the two based on call volume
• HB 1381 allows local units to intercept state income tax returns
• HB 1512 increases Engineer stipend and sets Supervisor stipend for those that complete LTAP road scholar program
Taxation and Fees
• HB 1201/SB 155 would require a state PILOT for state owned lands
• HB 1279/HB1350 alters admissions tax status quo for riverboats
• HB 1311 lowers “floor” on business personal property depreciation from 30% to 20% over 10 years; ~$130M impact by 2027
• HB 1348 allows local service fees on tax exempt property
• HB 1410/SB 415 eliminates mortgage deduction in favor of increased homestead deduction
• HB 1414 sunsets current LIT law and re-establishes in 2021 with new format and caps for expenditure rates and property tax relief
Taxation and Fees
• HB 1450 is DLGF agency bill with long list of changes to local government taxation and functionality
• HB 1501 allows rural entrepreneurship development incentives (READI) funded by local income tax increment increases
• SB 158 eliminates collection of county wheel tax in a municipality if that muni has own wheel tax; but no longer gets share of county tax
• SB 163 requires mandatory sharing of public safety LIT w/ townships who provide public safety services
Taxation and Fees
• HB 1351/SB 308 changes tax location of rental equipment to home office instead of location of use
• SB 455 updates tax administration of mobile homes
• SB 465 shifts SWMD funding from property tax to flat or user fee
• SB 505 sets predictable fees for recorded documents, + other
• SB 512 reduces sheriff’s service of process fee from $25 to $13, but allows for collection more than once per case
Property Tax Issues
• HB 1046 requires that AV cannot increase more than 3% annually following a successful tax appeal
• HB 1056 allows a unit to adopt AV increase limits on homesteads owned by low-income owners in Neighborhood Enhancement Zones
• HB 1247 allows county or LIT council to adopt a minimum property tax replacement fee of between $100 and $400
• HB 1257 eliminates AV cap on disabled veteran property tax deduction
• HB 1506 limits homestead deductions to no more than 75% of AV
• SB 331 req’s double check of homestead AV by DLGF if >10% increase
State Government Oversight
• HB 1031/SB 159 allows State Examiner to call a local official to State Audit Committee if an audit finding is not corrected in timely manner
• HB 1133 limits local unit authority to ban short term rentals (AirBNB)
• HB 1160 requires a study on effectiveness of Indiana Tax Court
• HB 1182 allows State Examiner to hire Dir of Special Investigations who would have police powers
• HB 1226 requires construction projects to use PVC piping
• HB 1275 allows social events to be held in heritage barns without regard to fire, building, or safety codes
State Government Oversight
• HB 1452 eliminates authority to establish a separate schedule of document fees and amends sheriff’s service of process fees; raises to $5 (from $1) fee for authentication of copy in record
• HB 1508/HB 1594 deducts part of LIT from county that fails to follow req’mts of accreditation for Veteran Service Officers and sets minimum office hours for VSOs
• HB 1555 requires workers comp insurance for reserve officers
• HB 1597 requires referenda on wind turbine zoning, minimum setbacks, and conflict of interest disclosures
State Government Oversight
• SB 126 would outlaw campaign donations from contractors, etc. during pending solicitation or after contract award
• SB 348 preempts local ordinances governing size of political signage
• SB 502 eliminates local storm water fees for agricultural, religious, or school property
• SB 558 outlaws local zoning ordinances that establish rental rates for private real estate, + other local preemption
Criminal Justice • HB 1006 extends Justice Reinvestment Act grants to mental health and
addiction services for misdemeanors
• HB 1261 allows optional video enforcement of speed violations in construction work zones
• HB 1405 allows county to request 50% reimbursement for indigent defense (increase from current 40%)
• HB 1420 transfers DOC oversight of jails to new jail standards committee and allows them to provide inspections etc. which would be paid for by new $15 jail booking fee
• HB 1438 allows counties and cities to approve syringe exchange programs for not longer than two years
Criminal Justice
• HB 1444 increases criminal and civil penalty for ransomware attacks
• HB 1514 creates law enforcement body camera fund; sets $5 fee on all violations of ordinances or infractions
• SB 140 creates law enforcement equipment matching grant fund (no$)
• SB 228 establishes presumption that suspect should be released without bail unless pose risk of flight or danger
• SB 419 allows county to select CMHC recipient of mandatory tax levy
Annexation and Gov’t Reduction
• HB 1232 would eliminate township boards and transfer fiscal oversight of townships to county fiscal body
• HB 1404 allows expanded merger of municipality and township for voting purposes but would still receive county services
• SB 381 would grant county commissioners approval authority over annexations within their county
Elections and Clerk Fees • HB 1093 negates “scratch” votes when straight ticket is selected
• HB 1329 requires mail-in absentee voters to include a copy of ID
• HB 1472 eliminates straight ticket voting and provides for special election in vacant legislative seats, unless in last year of term
• HB 1522 removes deduction of document storage fee; fee to certify records increases from $1 to $5, + keep 3% probation user fees
• SB 107 returns straight ticket voter intent law to pre-2016 change
• SB 417 changes in-person absentee process for E poll book counties
• SB 442 Sec of State bill with numerous changes to election laws, incl. voter list maintenance, use of voting system purchase fund, recounts, declaration of candidacy rules, in-person absentee voting, etc.
Tax Sales and Land Issues • HB 1295 allows option to increase minimum land value at which fiscal
body must approve sale, and decrease value at which may be offered to adjacent land owner
• HB 1296 gives a lien to tax certificate holder who improves property
• HB 1505 clarifies that interest on drain construction loans should not include penalties for late payment
• HB 1536 increases burden of proof on a person wishing to challenge validity of tax sale and eliminates conflicts re: cause numbers
• SB 152 eliminates blight registry
• SB 297 reduces redemption period from 1 year to 6 months
Other Issues
• HB 1116 allows a local official to voluntarily waive their salary
• HB 1121 provides land owners w/ vested right to use of property; would allow lawsuits against gov’t if land use rights were violated and property value decreased (+ punitive damages allowed)
• HB 1272 allows that public notice considered valid if unit takes all necessary steps to post, yet newspaper fails to actually publish
• HB 1341 allows local gov’t to adopt regional rural strategic development plan + allows rural broadband lease and operation
• At least 10 different bills changing civil forfeiture laws
Contact Information
David Bottorff dbottorff@indianacounties.org
Ryan Hoff rhoff@indianacounties.org
Christine Traina
ctraina@indianacounties.org
www.indianacounties.org
mailto:dbottorff@indianacounties.orgmailto:rhoff@indianacounties.orgmailto:ctraina@indianacounties.orghttp://www.indianacounties.org/Recommended