2012 Indiana Legislative Update - Microsoftmpcms.blob.core.windows.net/44e8f4df-a2c6-4d53-84f1-c1d6... · 2013. 6. 23. · Enacted By: House Bill 1325 & Senate Bill 0144 Explanation:

Katz, Sapper & Miller, LLPCertified Public Accountants

TABLE OF CONTENTS

2012 Indiana Legislative Update

Tax and Economic Development Legislative Summary

1 Sales and Use Tax

3 Income Tax

5 Property Tax

8 Economic Development/Tax Credits

9 Miscellaneous Tax


1 Katz, Sapper & Miller

Sales and Use TaxAffected Code Section: IC § 6-2.5-3-2 (amendment)Effective Date: January 1, 2009 (retroactive)Enacted By: House Bill 1325Explanation: Specifies the definition of “completion work” and “delivery” for purposes of the use tax exemption on certain aircraft transactions. Note that this amendment is intended to specify, and not to change, the General Assembly’s intent.

Affected Code Section: IC § 6-2.5-4-5 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adds several utility charges that are not subject to sales tax. These charges include recycling activities, effective January 1, 2012, and processing, repairing, floriculture, and arboriculture, effective December 31, 2012.

Affected Code Section: IC § 6-2.5-5-5.1 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Increases the time to submit a refund claim for exempt utility use from 18 months to three years from the date of the transaction.Special note on practical impact to businesses: This change is a partial reversal of the law change in 2011 that reduced the

refund claim period to 18 months.Affected Code Section: IC § 6-2.5-5-9 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Extends the exemption for wrapping material and shipping containers to certain third-party shippers.

Affected Code Section: IC § 6-2.5-5-30 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adds recycling to the list of activities that qualify under the production exemption. Special note on practical impact to businesses: The Department of Revenue has consistently taken the position that recycling does not qualify as an exempt manufacturing or production activity. This law change resolves the issue on a prospective basis.

Affected Code Section: IC § 6-2.5-5-37 (amendment)Effective Date: January 1, 2011 (retroactive)Enacted By: House Bill 1325Explanation: Provides a sales tax exemption for transactions in which tangible personal property is leased, owned or operated by a company engaged in competitive racing. Also provides an exemption for any tangible

SALES AND USE TAX

Katz, Sapper & Miller’s 2012 Legislative Update provides a summary of the various tax and economic development legislative changes that occurred during the 2012 session of the Indiana General Assembly.

Members of our firm’s State & Local Tax Practice specialize in each area of legislation mentioned in this publication, including sales tax, income tax, property tax, economic development and tax credits, and miscellaneous taxes. Please do not hesitate to contact these individuals if you have a question about how a specific law change may affect your business.

For more information:

Donna L. Niesen, [email protected]

Katz, Sapper & Miller 2


personal property which comprises any part of a “two-seater Indianapolis 500 style race car.”

Affected Code Section: IC § 6-2.5-5-42 (amendment)Effective Date: January 1, 2009 (retroactive)Enacted By: House Bill 1325Explanation: Adds language to the aircraft fly-away exemption qualifying certain transactions involving interior completion work.

Affected Code Section: IC § 6-2.5-5-45 (addition)Effective Date: July 1, 2012Enacted By: House Bill 1325 & Senate Bill 0144Explanation: Provides an exemption from sales tax for tangible personal property acquired for the purpose of complying with the state tobacco tax laws.

Affected Code Section: IC § 6-2.5-5-45.8 (addition)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Sets forth the definition of recycling activities and details the transactions qualifying for the new recycling exemption.

Affected Code Section: IC § 6-2.5-5-46 (addition)Effective Date: July 1, 2012Enacted By: House Bill 1325Explanation: Provides an exemption from sales tax for tangible personal property used, consumed or installed in repairs of aircraft and related avionics systems where the aircraft is registered outside the United States. Specifies that the exemption applies to aircraft with a minimum landing weight of at least 5,000 pounds or with turboprop or turbojet power plant systems. Further specifies

that the exemption only applies where the retailer possesses a valid repair station certificate issued by the Federal Aviation Administration.

Affected Code Section: IC § 6-2.5-6-1(amendment)Effective Date: January 1, 2013 Enacted By: House Bill 1072Explanation: Provides that all retail merchants must report and remit sales and use tax through the Department of Revenue’s online tax filing program. Special note on practical impact to businesses: Under existing law, certain businesses were grandfathered the option of finding hard copy returns instead of online filing. This provision eliminates the grandfather exception.

Affected Code Section: IC § 6-2.5-7-5 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1128Explanation: Repeals the $0.18 per gallon reimbursement program for merchants who sell E-85 fuel.

Affected Code Section: IC § 6-2.5-7-6 (repeal)Effective Date: July 1, 2012Enacted By: House Bill 1128Explanation: Repeals the credit available to sellers of E-85 fuel in instances where the deduction exceeds the amount of the sales tax required to be remitted.

Affected Code Section: IC § 6-2.5-8-7 (amendment)Effective Date: Upon passage (March 15, 2012)Enacted By: House Bill 1196Explanation: Provides the Department of Revenue with the authority to suspend a retail merchant certificate and not re-issue a new certificate for a year if the department finds that a person has been convicted of selling a synthetic drug.

SALES AND USE TAX



Affected Code Section: IC § 6-3-1-3.5 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Updates outdated references to the Internal Revenue Code. Modifies the definition of adjusted gross income for individuals by removing certain outdated state property tax deductions and decoupling provisions, including the deduction of interest on education loans under IRC § 221 and the deduction of savings certificates under IRC § 128 for returns filed before 1987.

Affected Code Section: IC § 6-3-4-1(amendment)Effective Date: January 1, 2013Enacted By: House Bill 1072Explanation: Modifies return filing requirements for estates and trusts to mirror the requirements set forth in IRC § 6012 for taxable years beginning after December 31, 2012, at which point the filing requirement will apply to estates and trusts with gross income exceeding $600.

Affected Code Section: IC § 6-3-4-8 (amendment)Effective Date: January 1, 2013Enacted By: House Bill 1072Explanation: Eliminates the quarterly and semi-annual filing frequencies for employer wage withholding, leaving only monthly or annual filing frequencies. Grants the option of annual reporting to employers who withhold less than $1,000 of tax per month.

Affected Code Section: IC § 6-3-4-8.1 (amendment)Effective Date: January 1, 2013Enacted By: House Bill 1072Explanation: Provides that all entities that

withhold taxes must file and remit the withholding taxes electronically through the Department of Revenue’s online tax filing program. Special note on practical impact to businesses: Under existing law, certain businesses were grandfathered the option of filing hard copy returns instead of online filing. This provision eliminates the grandfather exception.

Affected Code Section: IC § 6-3-4-12 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the date on which partnerships must report the amount of nonresident withholding to its nonresidents partners from thirty days after the close of its tax year to the 15th day of the third month after the end of its taxable year. Adjusts the date on which partnerships must report the amount of nonresident withholding to the Department of Revenue from thirty days after the close of its tax year to the 15th day of the fourth month after the end of its taxable year.

Affected Code Section: IC § 6-3-4-13 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the date on which S corporations must report and pay nonresident withholding to the Department of Revenue from the 15th day of the third month after the end of its taxable year to the 15th day of the fourth month after the end of its taxable year.

Affected Code Section: IC § 6-3-4-16.5 (amendment)Effective Date: July 1, 2012

Income Tax

INCOME TAX





Enacted By: House Bill 1072Explanation: Requires electronic filing for taxpayers who file more than 25 Form W-2Gs, Form 1099-Rs, or Form WH-18s per year.

Affected Code Section: IC § 6-3.5-1.1-2, IC § 6-3.5-1.1-3, IC § 6-3.5-1.1-3.1, IC § 6-3.5-1.1-4, IC § 6-3.5-1.1-24, IC § 6-3.5-1.1-25, & IC § 6-3.5-1.1-26 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to county adjusted gross income tax (CAGIT) imposition and distribution.

Affected Code Section: IC § 6-3.5-1.1-2.6 (repeal)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Repeals certain procedural rules related to CAGIT imposition and distribution.

Affected Code Section: IC § 6-3.5-1.1-9 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to CAGIT imposition and distribution.

Affected Code Section: IC § 6-3.5-1.1-10 (amendment)Effective Date: April 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to CAGIT imposition and distribution.

Affected Code Section: IC § 6-3.5-1.5-1(amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Eliminates the requirement that the Department of Revenue calculate the CAGIT or County Option Income Tax

(COIT) rate. Provides that the DLGF and the budget agency shall jointly calculate the CAGIT or COIT rate by September 1 of each year.

Affected Code Section: IC § 6-3.5-1.5-2 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Pushes back the date from July 1 to September 1 that the DLGF must certify the CAGIT or COIT rate to the county auditor each year.

Affected Code Section: IC § 6-3.5-6-1.5 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Permits Miami County to depart from the uniform rules regarding the distribution of the county option income tax.

Affected Code Section: IC § 6-3.5-6-8, IC § 6-3.5-6-9, IC § 6-3.5-6-11, IC § 6-3.5-6-12, IC § 6-3.5-6-12.5, IC § 6-3.5-6-28, IC § 6-3.5-6-29, IC § 6-3.5-6-30, IC § 6-3.5-6-31, IC § 6-3.5-6-32, & IC § 6-3.5-6-33 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to COIT imposition and distribution.

Affected Code Section: IC § 6-3.5-6-17 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to COIT imposition and distribution.

Affected Code Section: IC § 6-3.5-7-1.5, IC § 6-3.5-7-4.3, IC § 6-3.5-7-4.6, IC § 6-3.5-7-4.7, IC § 6-3.5-7-4.8, IC § 6-3.5-7-22, IC § 6-3.5-7-25, and IC § 6-3.5-7-25.5

(repeal)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to county economic development income tax (CEDIT) imposition and distribution.

Affected Code Section: IC § 6-3.5-7-5, IC § 6-3.5-7-6, IC § 6-3.5-7-7, IC § 6-3.5-7-11, IC § 6-3.5-7-13.1, IC § 6-3.5-7-15, IC § 6-3.5-7-26, IC § 6-3.5-7-27, & IC § 6-3.5-7-28 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to CEDIT imposition and distribution.

Affected Code Section: IC § 6-3.5-7-12 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to CEDIT imposition and distribution.

Affected Code Section: IC § 6-3.5-7-16 (amendment)Effective Date: April 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Adjusts the procedural rules related to CEDIT imposition and distribution.

Affected Code Section: IC § 6-3.5-7-27.6 (addition)Effective Date: Upon passage (March 19, 2012)Enacted By: House Bill 1072Explanation: Permits Starke County to use proceeds from the CEDIT for jail construction. In doing so, Starke County is permitted to implement a CEDIT rate that is 0.65% higher than the statewide maximum.

INCOME TAX



Property TaxAffected Code Section: IC § 3-8-1-23 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1195Explanation: Changes the timing for when candidates for county assessor must have attained the certification of a level three assessor-appraiser.

Affected Code Section: IC § 5-1-18-7 & IC § 5-1-18-8 (amendment)Effective Date: July 1, 2012 Enacted By: House Bill 1072Explanation: Provides that political subdivisions must report information concerning bonds and leases electronically in a debt issuance report. Provides that the Department of Local Government Finance (DLGF) cannot approve a property tax levy associated with a debt unless the debt issuance report has been received. Provides the DLGF with the power to waive the requirement of filing a debt issuance report.

Affected Code Section: IC § 6-1.1-3-24 (addition)Effective Date: March 1, 2011 (retroactive)Enacted By: House Bill 1072Explanation: Provides tailored assessment rates for outdoor advertising signs, based on structure type, lighting, and height.

Affected Code Section: IC § 6-1.1-4-4.2 (amendment)Effective Date: July 1, 2012Enacted By: Senate Bill 0019Explanation: Eliminates the quadrennial reassessment system and permits the county assessor to create their own reassessment plan, subject to approval by the DLGF. In drafting the plan, assessors are directed to break the parcels in the county into fourths and reassess on a rolling schedule.

Special note on practical impact to businesses: Businesses may no longer know when their property will be re-assessed. This possibility will make it especially important for businesses to review their notice of assessment (Form 11) for assessment errors.

Affected Code Section: IC § 6-1.1-4-5 (addition)Effective Date: January 1, 2013Enacted By: Senate Bill 0019Explanation: Provides that taxpayers within a property group, as established by the county assessor under the new rolling reassessment schedule, may petition to have their properties reassessed. Grants the authority to order or deny a reassessment to the DLGF.

Affected Code Section: IC § 6-1.1-4-13 (amendment)Effective Date: February 29, 2012Enacted By: Senate Bill 0019Explanation: Provides for the use of new soil productivity factors in assessing agricultural land for assessment dates after March 1, 2012.

Affected Code Section: IC § 6-1.1-4-21.4 (addition)Effective Date: July 1, 2012Enacted By: Senate Bill 0019Explanation: Provides deadlines for reassessing parcels in a group under a rolling reassessment plan. Provides that one-third of the parcels must be reassessed before October 1st of the year that the group’s reassessment begins, with another third having to be reassessed before January 1st of the following year, and with all properties in the group having to be reassessed by March 1st of the year following the year in which the group’s reassessment begins.

PROPERTY TAX


By Chad M. MillerProperty Tax Practice [email protected]



Affected Code Section: IC § 6-1.1-4-39 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Provides that a taxpayer wishing for the income capitalization method or the gross rent multiplier to be used in the initial formulation of the assessment of the taxpayer’s property to submit the necessary information to the assessor no later than the March 1 assessment date. Note that this change does not restrict a taxpayer from using these methodologies in an appeal. Provides that all financial information submitted to the county assessor is confidential. Special note on practical impact to businesses: A business owner may provide the assessor with financial data that enables the assessor to consider such information in forming the assessment, but does not require the information to be submitted at the pre-assessment stage in order to be considered part of an appeal filed at a later date.

Affected Code Section: IC § 6-1.1-10-44 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0302Explanation: Adds lessees of qualified property as an eligible business for purposes of claiming the property tax exemption for qualified enterprise information technology equipment. Counts investments made by lessees towards the required aggregate investment of $10,000,000. Provides that businesses are only eligible for the property tax exemption for qualified enterprise information technology equipment if the fiscal body of a county or municipality designates the area as a high technology district area.

Affected Code Section: IC § 6-1.1-11-8 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072

Explanation: Gives discretion to the DLGF to review property tax exemptions approved by county auditors. The DLGF was previously required to review every exemption.

Affected Code Section: IC § 6-1.1-12-26.1 (addition)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Grants a property tax deduction to owners of solar power devices equal to the value of the solar power device. Limits the ability of electric utilities to claim this deduction.

Affected Code Section: IC § 6-1.1-12-27.1 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: House Bill 1072Explanation: Updates the procedures to claim the property tax deduction for solar power devices.

Affected Code Section: IC § 6-1.1-12-37 (amendment)Effective Date: July 1, 2012 Enacted By: House Bill 1072Explanation: Grants the county auditor the authority to require proof of residence for individuals claiming the homestead deduction. Permits the auditor to limit the required evidence to the individual’s state tax return, driver’s license, or voter registration card. Provides appeal procedures for individuals who are denied the homestead deduction.

Affected Code Section: IC § 6-1.1-13-1(amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Provides that a county Property Tax Assessment Board of Appeals (PTABOA) must provide thirty day’s notice before making any changes to a tangible property valuation or adding tangible personal property to a return.

Affected Code Section: IC § 6-1.1-15-1(amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Provides that a taxpayer may request a continuance of a property tax appeal hearing by filing a request at least 20 days before the hearing date. Provides that a taxpayer may withdraw a petition by filing a notice of withdrawal at least eight days before the hearing date. Provides a $50 penalty if a taxpayer or taxpayer’s representative fails to appear at a property tax appeal hearing.

Affected Code Section: IC § 6-1.1-15-18 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Sets forth rules for using comparable properties in an appeal, including any review by the Board of Tax Review or the Tax Court. Provides that taxpayers or assessing officials may use comparable properties located in the same taxing district or properties located within two miles of the taxing district for residential property appeals. Provides that taxpayers or assessing officials may use any relevant comparable property in non-residential property appeals, but that properties located in the same taxing district or within two miles of the taxing district will be given preference.

Affected Code Section: IC § 6-1.1-22-8.1 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0147Explanation: Provides that taxpayers may direct the county treasurer and auditor to transmit property tax information to them by electronic mail.

Affected Code Section: IC § 6-1.1-22-9.7 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0147Explanation: Provides that a monthly property tax payment plan may include

PROPERTY TAX



automatic monthly deductions from a taxpayer’s financial institution. Sets the maximum length of a payment plan period at 12 months. Provides that a taxpayer will not be considered delinquent if the taxpayer has approval to use a monthly payment plan and make timely monthly payments.

Affected Code Section: IC § 6-1.1-22.6-1 to IC § 6-1.1-22.6-27 (addition)Effective Date: Upon passage (March 19, 2012)Enacted By: Senate Bill 0019Explanation: Adds new provisions to address counties that are late in issuing property tax bills. Makes counties that are late in issuing property tax bills, currently LaPorte County, set aside $1,000,000 per year they are delayed to compensate local taxing units. Provides a mechanism for the county executive of such counties to appoint an individual to carry out the duties of the county auditor, treasurer, or assessor.

Affected Code Section: IC § 6-1.1-24-1 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0147Explanation: Provides that a parcel will not be listed on a tax sale notice if the delinquent amount is $25 or less.

Affected Code Section: IC § 6-1.1-24-1.2 (amendment)Effective Date: Upon passage (March 14)Enacted By: House Bill 1090 Explanation: Sets forth rules in which taxpayers may enter into arrangements to pay delinquent property taxes in lieu of having the property go to tax sale.

Affected Code Section: IC § 6-1.1-24-2 (amendment)Effective Date: Upon passage (March 14)Enacted By: House Bill 1090Explanation: Sets forth procedural rules for counties that adopt an ordinance to waive interest and penalties associated

with delinquent property tax payments to notify delinquent taxpayers of the ordinance.

Affected Code Section: IC § 6-1.1-24-15 (addition)Effective Date: Upon passage (March 14)Enacted By: House Bill 1090Explanation: Provides that a county may adopt an ordinance to modify the minimum bid amount required to sell a property at a tax sale.

Affected Code Section: IC § 6-1.1-25-4 (addition)Effective Date: Upon passage (March 14)Enacted By: House Bill 1090Explanation: Provides that a county treasurer can enter into a settlement agreement with a delinquent taxpayer if the taxpayer’s property did not sell at a tax sale.

Affected Code Section: IC § 6-1.1-26-5 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0147Explanation: Provides that the rate of interest owed on property tax refunds, previously a fixed rate of 4%, will be the rate used by the Commissioner of the Department of Revenue.Special note on practical impact to businesses: The interest rate may be adjusted, resulting in a decrease in the amount of interest received by the taxpayer.

Affected Code Section: IC § 6-1.1-35.5-4.5 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Grants authority to the DLGF to control the content and providers of assessment training.

Affected Code Section: IC § 6-1.1-37-9 (amendment)Effective Date: July 1, 2012 Enacted By: Senate Bill 0147

Explanation: Provides that the rate of interest owed on property tax deficiencies, previously a fixed rate of 10%, will be the rate used by the Commissioner of the Department of Revenue.

Affected Code Section: IC § 6-1.1-37-10.1 (amendment)Effective Date: Upon passage (March 14)Enacted By: House Bill 1090Explanation: Provides that a county may adopt an ordinance to waive interest and penalties associated with delinquent property tax payments.

Affected Code Section: IC § 6-1.1-37-11 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1195Explanation: Limits the amount of interest that a taxpayer may receive after successfully appealing a property assessment unless that taxpayer affirms that substantive evidence of the taxpayer’s position had been presented by the taxpayer at or before the PTABOA hearing.

Affected Code Section: Uncodified Section 133Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation Voids the DLGF’s administrative rules, set forth in 50 Ind. Admin. Code 24-3-2, which direct how to determine a principle place of residence for purposes of claiming the homestead exemption.

Affected Code Section: Uncodified Section 125Effective Date: July 1, 2013Enacted By: House Bill 1072Explanation: Permits Barkley and Union Township in Jasper County to petition the DLGF to raise the maximum property tax levy for fire protection and emergency services beginning with property taxes due and payable in 2013.

PROPERTY TAX



Affected Code Section: IC § 5-28-16-3Effective Date: Upon passage (March 19, 2012)Enacted By: House Bill 1072Explanation: Provides that an applicant’s job creation projection may be kept confidential when applying to the Indiana Economic Development Corporation as part of its 21 Fund program.

Affected Code Section: IC § 6-3.1-13.5-14Effective Date: July 1, 2012Enacted By: House Bill 1002Explanation: Provides that a capital investment tax credit may not be awarded for investments made after December 31, 2016 but that unused credits may be carried forward. Provides that the capital investment tax credit expires January 1, 2010.

Affected Code Section: IC § 6-3.1-15-1Effective Date: July 1, 2012Enacted By: House Bill 1002Explanation: Defines the term “buddy project system” for purposes of the tax credit for computer equipment donations.

Affected Code Section: IC § 6-3.1-24-9 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Extends the sunset date of the venture capital investment tax credit from 2014 to 2016.

Affected Code Section: IC § 6-3.1-26-26 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Extends the sunset date of the Hoosier business investment tax credit from 2013 to 2016.

Affected Code Section: IC § 6-3.1-31.9-23 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Extends the sunset date of the alternative fuel vehicle tax credit from 2012 to 2016.

Affected Code Section: IC § 6-3.1-33-9 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Extends the sunset date of the new employer tax credit from 2013 to 2017.

Economic Development/Tax Credits

ECONOMIC DEVELOPMENT/TAX CREDITS


Lisa Leventhal [email protected] 317.580.2026



Affected Code Section: IC § 6-4.1-1-3 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: Senate Bill 0293Explanation: Broadens the definition of a “Class A transferee” to include the spouse, widow, or widower of a child or stepchild of the transferor.

Affected Code Section: IC § 6-4.1-1-3.5 & IC § 6-4.1-2-8 (addition)Effective Date: July 1, 2012Enacted By: House Bill 1258Explanation: Imposes pro rata personal liability for beneficiaries and owners of entities if a transferor makes a taxable transfer to an entity. Sets forth the definition of an entity to include a partnership, limited partnership, limited liability partnership, association, corporation, limited liability company, trust, or similar entity.

Affected Code Section: IC § 6-4.1-3-10 (amendment)Effective Date: January 1, 2012 (retroactive)Enacted By: Senate Bill 0293Explanation: Increases the exemption amount applied to a “Class A transferee” to $250,000 from $100,000.

Affected Code Section: IC § 6-4.1-5-1.1 (addition)Effective Date: July 1, 2012Enacted By: Senate Bill 0293Explanation: Beginning with estates of decedents who died after December 31, 2012, provides a phase-out of the Indiana inheritance tax by granting a credit which increases by 10% each year until the inheritance tax is totally phased out by 2022.

Affected Code Section: IC § 6-4.1-12-0.5(addition)Effective Date: July 1, 2012Enacted By: Senate Bill 0293Explanation: Provides that the Indiana inheritance tax will not apply to the estates of decedents whose death occurs after December 31, 2021.

Affected Code Section: IC § 6-7-2-6 (amendment)Effective Date: July 1, 2012Enacted By: Senate Bill 0144Explanation: Modifies the definition of “wholesale price” for purposes of calculating the tobacco tax to include a deduction for discounts shown on an invoice.

Affected Code Section: IC § 6-2.3-4-7 (addition)Effective Date: January 1, 2013Enacted By: House Bill 1072Explanation: Exempts severance damages and other compensation received from an electricity supplier as a result of a change in assigned service area boundaries from the utility receipts tax.

Miscellaneous Tax

MISCELLANEOUS TAX





Affected Code Section: IC § 4-10-22-1 (amendment)Effective Date: January 1, 2013Enacted By: House Bill 1376Explanation: Provides that the Office of Management and Budget is to calculate state reserves after each odd-numbered year, no longer every year, for purposes of determining if the automatic taxpayer refund will be triggered.

Affected Code Section: IC § 4-10-22-2 (amendment)Effective Date: January 1, 2013Enacted By: House Bill 1376Explanation: Increases the trigger for the automatic taxpayer refund to situations in which the total state reserves exceeds 12.5% of the general revenue appropriations for the current state fiscal year (from the previous benchmark of 10%).

Affected Code Section: IC § 4-10-22-3 (amendment)Effective Date: Upon passage (March 20, 2012)Enacted By: House Bill 1376Explanation: Adjusts terms of the automatic taxpayer refund rules by providing for a carryover of funds if the excess reserves are less than $50,000,000. In instances where the excess reserve is at least $50,000,000, excess funds will be split between the taxpayer refund and state pension obligations.

Affected Code Section: IC § 4-10-22-4 (amendment)Effective Date: Upon passage (March 20, 2012)Enacted By: House Bill 1376Explanation: Broadened the qualifications for receiving the automatic taxpayer refund to include taxpayers who filed a resident income tax return in the preceding year instead of the two preceding years. Adjusts the individual refund amount calculation to be based on a purely pro capita basis and not based on how much tax was paid by the individual in the preceding tax year.

Affected Code Section: IC § 6-8.1-9-1 (amendment)Effective Date: July 1, 2012Enacted By: House Bill 1072Explanation: Removes a provision denying the tax court jurisdiction for appeals filed more than three years after the date the claim for refund was filed with the Department of Revenue. Removes a provision providing that a claim for refund based on the utility exemption must be filed within 18 months after the date of payment.

Affected Code Section: IC § 36-1-8-11 (amendment)Effective Date: Upon passage (March 19, 2012)Enacted By: House Bill 1072Explanation: Permits political subdivisions and municipally owned utilities to pass on credit card charge fees to payors.

MISCELLANEOUS TAX

Documents

2012 Indiana Legislative Update - Microsoftmpcms.blob.core.windows.net/44e8f4df-a2c6-4d53-84f1-c1d6... · 2013. 6. 23. · Enacted By: House Bill 1325 & Senate Bill 0144 Explanation: