2015 indiana legislative update -...

IN THIS ISSUE

2 Welcome Message

3 Sales and Use Tax

4 Income Tax

6 Economic Development and Tax Credits

8 Property Tax

10 Other Taxes and Unclaimed Property

1 1 Local Taxation

12 Tax Administration

KSM Location Advisors

2015 Indiana Legislative Update

Tax and Economic Development Legislative Summary

2 KSM Location Advisors


Welcome MessageWelcome to KSM Location Advisors’ legislative update for the 2015 Indiana General Assembly! There was a flurry of legislative activity this session that impacts economic development and taxes. You’ll find summaries of all those changes and more in the pages that follow.

After much debate, the Indiana Regional Cities initiative passed with the governor’s request for $84 million in funding fully intact. The catch is that the money will have to come from the just-passed tax amnesty program. If that initiative generates less than $84 million in new tax revenue, Regional Cities will take the hit. Still, given that Indiana’s last tax amnesty program in 2005 generated over $200 million in revenue, $84 million sounds like a walk in the park. At least, that’s what supporters of Regional Cities are hoping.

At long last, Indiana has finally laid to rest its warehouse and distribution center-killing throwback rule. Starting next year, untaxed out-of-state sales won’t get thrown back to (i.e., taxed in) Indiana. As a result, Indiana will no longer be at a competitive disadvantage with the majority of states that do not have a similarly anti-business taxing undercurrent.

Regardless of these nice legislative wins, the entire legislative session – economic development-related and otherwise – was overshadowed by a certain elephant in the room that spells its name with four letters: RFRA. Regardless of one’s personal beliefs on this controversial topic, there is no denying that Indiana’s economic development brand has taken a major hit from the resulting media coverage. The full extent of the damage is still not known. Some had speculated that in the wake of RFRA, Indiana might take actions to enhance and/or add to its economic development

toolkit. Surprisingly, the state went in the opposite direction by imposing a cap on its most powerful economic development program: the EDGE job creation tax credit.

That EDGE cap was introduced extremely late in the session with no fanfare and somehow still became part of the final budget. The policy impact of this head-scratcher is yet to be determined. But certainly in light of its recent and aggressive courting of businesses in competing states, Indiana has handed these states two potent PR weapons. In the court of site selection opinion, the one-two punch of RFRA and a cap on EDGE is sure to land a heavy blow.

The flurry of economic development discussion within the walls of Katz, Sapper & Miller the past few months has not been limited to legislative matters. In February, it was our great pleasure to bring on board Katie Culp as president of the newly branded KSM Location Advisors. As the previous leader of DTZ’s national site selection practice, Katie comes to KSM with a deep resume in the public and private sector, and is one of the country’s most respected economic development leaders. Along with her colleague, Jamie Pike (who also joined us from DTZ in February), Katie has already expanded the depth and breadth of our practice in ways that are exciting for our firm and transformative for our clients. So, Katie and Jamie, welcome!

As you read through the pages that follow, please feel free contact any of the specialists listed throughout this summary. It will be our pleasure to answer your questions about how any of the changes made in this most recent legislative session might affect the way that you do business.

Tim Cook, [email protected]

317.580.2038

KSM Location Advisors 3


Sales and Use TaxAffected Code Section: Ind. Code § 6-2.5-1-21.5 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 5Explanation: Provides a statutory definition for the term “licensed practitioner” for sales and use tax purposes. The term includes an individual who is a doctor, dentist, veterinarian, or other practitioner licensed to prescribe, dispense and administer drugs to human beings or animals in the course of the practitioner’s professional practice of treating patients.

Affected Code Section: Ind. Code § 6-2.5-3-1 (amendment)Effective Date: Jan. 1, 2016Enacted By: House Bill 1472 § 6Explanation: For use tax purposes, defines the term “temporary storage,” which is limited to the keeping or retention of tangible personal property in Indiana for 180 days or less and only for the purpose of subsequent use of that property solely outside of Indiana. The definition of “storage” is amended to exclude that which qualifies as “temporary storage.”

Affected Code Section: Ind. Code § 6-2.5-5-2 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 9Explanation: Expands the sales tax exemption for agricultural machinery, tools and equipment directly used in direct production, extraction, harvesting or processing of agricultural commodities to include “material handling equipment purchased for the purpose of transporting materials” from an onsite location into production, extraction, harvesting or processing activities of agricultural commodities. Application Note: No additional definition is provided for the term “material handling equipment.”

Affected Code Section: Ind. Code § 6-2.5-5-3 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 10Explanation: Includes in the definition of “processing of tangible personal property” the cutting of steel bars into billets and felling trees for further use in production or for sale in the ordinary course of business. Further expands the scope of the manufacturing sales tax exemption to apply to “material handling equipment purchased for the purpose of transporting materials” from an onsite location into the activities of production, manufacture, fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible personal property. Application Note: This appears to be a broadening of the manufacturing exemption. Previous treatment of material handling equipment for the purpose of transporting materials was only exempt if such transportation was movement of work in process as part of the manufacturing process. No additional definition is provided for the term “material handling equipment.”

Affected Code Section: Ind. Code § 6-2.5-5-4 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 11Explanation: Expands the sales tax exemption for tangible personal property directly used in the direct production of manufacturing and agricultural production machinery, equipment and tools to include “material handling equipment purchased for the purpose of transporting materials into such activities from an onsite location.” Application Note: No additional definition is provided for the term “material handling equipment.”

Continued on page 14.See “Sales and Use Tax.”

SALES AND USE TAX

For more information:

Donna L. Niesen, [email protected]

317.580.2047


Tim Conrad, JDMultistate Project [email protected]

317.452.1388





317.580.2047


Amy ZimmerMultistate Tax Advisory [email protected]

317.580.2440

Income TaxAffected Code Section: Ind. Code § 6-3-1-3.5 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 171 § 7Explanation: Technical correction to federal law citations.

Affected Code Section: Ind. Code § 6-3-1-3.5 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 12Explanation: Eliminates multiple adjustments to arrive at a taxpayer’s “adjusted gross income,” “taxable income,” or “life insurance company taxable income.”

With respect to individuals, adjustments eliminated include: (a) the deduction equal to the lesser of two thousand dollars ($2,000) or that part of the individual’s adjusted gross income (IRC § 62) for that taxable year that is subject to a tax imposed by another state or political subdivision and that is imposed on or measured by income; (b) the add-back for the amount equal to the total capital gain portion of a lump sum distribution (IRC § 402(c)(4)(D)) if the lump sum distribution is received by the individual during the taxable year and if the capital gain portion of the lump sum distribution is subject to taxation under IRC § 402; (c) the deduction for any amount of a credit (including an advance refund of a credit) provided to an individual under 26 U.S. Code 6428 (federal Economic Stimulus Act of 2008) and included in the individual’s federal adjusted gross income; (d) the add-back for any amount of unemployment compensation that was excluded from federal gross income; (e) the add-back for the amount excluded from gross income under IRC § 108(a)(1)(c) for discharge of debt on a qualified principal residence; (f) the add-back or deduction required to make the adjusted gross income of any taxpayer claiming the special allowance

for qualified disaster assistance property under IRC § 168(n) equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property; (g) the add-back or deduction required to make the adjusted gross income of any taxpayer who made an election under IRC § 179C to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year; (h) the add-back or subtraction necessary to make the adjusted gross income of a taxpayer that made an election under IRC § 181 to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; and (i) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who treated a loss from the sale or exchange of preferred stock in either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation as an ordinary income loss under § 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.

With respect to life insurance companies, insurance companies subject to taxation under IRC § 831 and organized under Indiana law, and corporations, adjustments eliminated include: (a) the add-back or deduction necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under IRC § 168(n) equal to the adjusted gross income that would have

INCOME TAX



been computed had the special allowance not been claimed for the property; (b) the add-back or subtraction necessary to make the adjusted gross income of any taxpayer who made an election under IRC § 179C to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; (c) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who made an election under IRC § 181 to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; and (d) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who treated a loss from the sale or exchange of preferred stock in either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation as an ordinary income loss under § 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.

With respect to trusts and estates, adjustments eliminated include: (a) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who claimed the special allowance for qualified disaster assistance property under IRC § 168(n) equal to the adjusted gross income that would have been computed had the special allowance not been claimed for the property; (b) the add-back or subtraction necessary to make the adjusted gross income of any taxpayer who made an election under IRC § 179C to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been

made for that year; (c) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who made an election under IRC § 181 to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; (d) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who treated a loss from the sale or exchange of preferred stock in either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation as an ordinary income loss under § 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss; and (e) the add-back for the amount excluded from gross income under IRC § 108(a)(1)(c) for the discharge of debt on a qualified principal residence.

Affected Code Section: Ind. Code. § 6-3-1-11 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: House Bill 1472 § 15Explanation: Updates references to the IRC to mean the version of the IRC as amended and in effect on Jan. 1, 2015.

Affected Code Section: Ind. Code § 6-3-1-20 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 13Explanation: Redefines the term “business income” to mean “all income that is apportionable to the state under the Constitution of the United States.”

Affected Code Section: Ind. Code § 6-3-1-36 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 317 § 1Explanation: Provides a statutory definition of the term “eligible community foundation” for purposes of IC § 6-3.

Affected Code Section: Ind. Code § 6-3-2-2 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 §14Explanation: Eliminates the “throwback rule” for purposes of calculating the Indiana sales factor numerator. Also, specifically identifies “computer software” as tangible personal property for income tax purposes. Application Note: From an income tax perspective, “computer software” remains undefined. We expect the Department to develop an income tax policy applicable to computer software. One possible solution would be to draw from the sales tax definition.

Affected Code Section: Ind. Code § 6-3-2-3.7 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 441 § 15Explanation: For taxable years beginning after Dec. 31, 2014, and beginning before Jan. 1, 2016, increases the amount of the federal civil service annuity deduction provided for and calculated by this section to the first eight thousand dollars ($8,000) received by the individual or their surviving spouse during the taxable year. For taxable years beginning after Dec. 31, 2015, increases the amount of the federal civil service annuity deduction provided for and calculated by this section to the first sixteen thousand dollars ($16,000) received by the individual or their surviving spouse during the taxable year. Additionally, provides that surviving spouses may also claim the deduction and are not subject to the requirement provided by subsection (b) that a claimant of this deduction must be at 62 years of age before the end of the taxable year.

Continued on page 15.See “Income Tax.”

INCOME TAX





317.580.2038


Katie [email protected]

317.452.1986

Economic Development and Tax CreditsAffected Code Section: Ind. Code § 2-5-3.2-1 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1142 § 1Explanation: Requires the Legislative Services Agency to conduct a regular review, analysis, and evaluation of all tax incentives and provide to the legislative council a report containing the findings of the review, analysis, and evaluation.

Affected Code Section: Ind. Code§ 2-5-3.2-2 (addition)Effective Date: Upon PassageEnacted By: House Bill 1142 § 2Explanation: For purposes of the study previously cited, provides that the term “tax expenditure” means “a tax exemption, tax deduction, tax credit, preferential tax rate, or tax provision that reduces a person’s state tax liability.”

Affected Code Section:Ind. Code Chapter 5-28-37 (addition)Effective Date: Upon PassageEnacted By: House Bill 1403 § 1Explanation: Establishes the Indiana regional city fund, the purpose of which will be to provide grants or loans to support proposals for economic development. The Indiana Economic Development Corporation (IEDC) is to administer the fund, which will consist of funds appropriated by the general assembly, as well as loan repayments. Applications for grants or loans may be submitted by any development authority. The board is granted broad discretion to request a wide range of information in relation to applications for grants or loans under this chapter. Requires the board to submit to the legislative council an annual report detailing which development authorities received grants or loans.

Affected Code Section: Ind. Code § 6-1.1-15-1.5 (addition) Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 13Explanation: Provides that a taxpayer may enter into a written agreement with an entity authorized to establish a TIF allocation area in which the taxpayer waives its review rights pertaining to any assessment of the taxpayer’s tangible property that is located in an allocation area for an assessment date that occurs during the term of any specified bond or lease obligations that are payable from property taxes.

Affected Code Section: Ind. Code § 6-1.1-39-10 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 20Explanation: Provides the authority for the executive of a local governmental unit to enter into a written agreement with a taxpayer with an interest in tangible property in a Tax Increment Financing (TIF) allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable from property taxes.

Affected Code Section: Ind. Code §§ 6-3.1-4-1, 6-3.1-4-4 (amendment)Effective Date: Jan. 1, 2016Enacted By: House Bill 1472 § 21Explanation: Eliminates reference to the version of the Internal Revenue Code that was in effect on Jan. 1, 2001.

Affected Code Section: Ind. Code § 6-3.1-13-18 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 84Explanation: Provides that the maximum amount of Economic Development for a

ECONOMIC DEVELOPMENT/TAX CREDITS



Growing Economy (EDGE) credits that the IEDC may award for job creation during the 2015 state fiscal year is two hundred twenty-five million dollars ($225,000,000). Application Note: For the first time the state budget has imposed a cap on EDGE job creation tax credits. The impact that this cap will have on how EDGE credits are awarded to new projects is to be determined.

Affected Code Section: Ind. Code § 6-3.1-21-6 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 23Explanation: For purposes of refunding a taxpayer’s earned income tax credit to the extent that the amount of the credit exceeds its adjusted gross income tax liability, removes the adjustment that the amount refunded be reduced by any advance payments of the credit made by the taxpayer’s employer under IC § 6-3-4-8.

Affected Code Section: Ind. Code § 6-3.1-21-8 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 24Explanation: Removes reference to a taxpayer claiming the advance payment with respect to the earned income tax credit.

Affected Code Section: Ind. Code § 6-3.1-24-9 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 441 § 30Explanation: Extends the sunset date for the Indiana Venture Capital Investment Tax Credit to Dec. 31, 2020.

Affected Code Section: Ind. Code § 6-3.1-26-8.5 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 31Explanation: Includes “upgrading or building passing lines or automated switches on a rail line” in the definition of “logistics investment” for purposes of the Hoosier Business Investment (HBI) tax credit.

Affected Code Section: Ind. Code § 6-3.1-26-15 (amendment)Effective Date: Upon PassageEnacted By: Senate Bill 441 § 32Explanation: Provides for special administration of the HBI Tax Credit for taxpayers that are not pass-through entities, that propose at least five hundred million dollars ($500,000,000) in total investment over a five year period, and enter into an agreement with the IEDC prior to Jan. 1, 2017 to not claim credits under this chapter for more than one hundred seventy million dollars ($170,000,000) of qualified investments made as a part of the $500,000,000 investment proposed. In such a case, if the amount of credits exceeds the taxpayer’s liability for that given taxable year, the amount of the unused credits may be accelerated to the current tax year, discounted, and remitted to the taxpayer.

Affected Code Section: Ind. Code § 6-3.1-26-16 (amendment)Effective Date: Upon PassageEnacted By: Senate Bill 441 § 33Explanation: Provides that shareholders, members, or partners of a pass-through entity entitled to HBI Tax Credits may carry forward unused credits for up to nine years. Provides for special administration of the HBI Tax Credit for taxpayers that are pass-through entities, that propose at least five hundred million dollars ($500,000,000) in total investment over a five year period, and enter into an agreement with the IEDC prior to Jan. 1, 2017, to not claim credits under this chapter for more than one hundred seventy million dollars ($170,000,000) of qualified investments made as a part of the five hundred million dollar ($500,000,000) investment proposed. In such a case, if the amount of the credits exceeds the taxpayer’s liability for that given taxable year, the amount of the unused credits may be accelerated to the current tax year, discounted, and remitted to the taxpayer.

Affected Code Section: Ind. Code § 6-3.1-26-20 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 34Explanation: Provides that for purposes of determining the total amount of HBI Tax Credits that the IEDC may award each year, any credits accelerated under IC §§ 6-3.1-26-15 and 16 are valued at the amount of the tax credit prior to the discount. Application Note: To the extent credits are accelerated, discounted, and received at the maximum amounts provided under the previous two provisions cited, such credits would comprise more than one-third of the total amount of HBI credits that could be awarded in total by the IEDC in that year.

Affected Code Section: Ind. Code § 6-3.1-26-26 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 441 § 35Explanation: Extends the sunset date for the HBI Tax Credit to Dec. 31, 2020. Affected Code Section: Ind. Code § 8-22-3.5-9.8 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 23Explanation: Provides that a commission may enter into a written agreement with a taxpayer with an interest in tangible property located in an airport development zone in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Continued on page 19.See “Economic Development/Tax Credits.”

ECONOMIC DEVELOPMENT/TAX CREDITS



Property TaxAffected Code Section: Ind. Code §6-1.1-3-1 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 1Explanation: Requires that, in all cases, if a person files an Indiana personal property tax return based on where the property is situated, the owner of the property shall, within 45 days after the filing deadline, provide a copy or other written evidence of the filing of the return to the assessor of the county in which the owner resides. This section does not apply to a taxpayer who is required by the department of local government finance to file a summary of the taxpayer’s Indiana personal property returns.

Affected Code Section: Ind. Code § 6-1.1-3-7 (amendment) Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 2Explanation: Eliminates the requirement of filing duplicate business personal property returns if the sum of the assessed values reported by a taxpayer exceeds $150,000 in a given year. Provides that if a taxpayer has personal property that is subject to assessment and that is located in two or more taxing districts within the same township, then that taxpayer shall file a single return with the county assessor and attach a schedule listing, by township, all the taxpayer’s personal property and the property’s assessed value. The taxpayer must furnish information sufficient to allow the county assessor to appropriately allocate the assessed value of the taxpayer’s personal property among the townships and taxing districts listed on the return.

Affected Code Section: Ind. Code § 6-1.1-3-7.2 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 3Explanation: Provides that this section applies only to assessment dates

occurring after Dec. 31, 2015. This section now provides that in all counties in the state, if the acquisition cost of a taxpayer’s total business personal property in a county is less than $20,000 for that year’s assessment date, then the taxpayer’s property in that county is exempt from personal property taxation. However, the annual certification that must be filed by any taxpayer claiming this exemption must be notarized and signed under penalties for perjury.Application Note: This will be a big change for small businesses that hold less than $20,000 in personal property and are currently required to file a personal property tax return as only an annual certification will need to be filed.

Affected Code Section: Ind. Code § 6-1.1-3-7.3 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 2Explanation: Permits a county’s fiscal body to adopt an ordinance imposing an annual local service fee, not to exceed $50, on any taxpayers that benefit from the exemption under IC § 6-1.1-3-7.2 for taxpayers with less than $20,000 of personal property in the county. Any annual local service fees imposed are due and payable at the same time that property taxes for that assessment date are due and payable.

Affected Code Section: Ind. Code § 6-1.1-3-7.5 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 1Explanation: Provides that if a taxpayer files an amended personal property tax return for a year before July 16 of that year, the taxpayer shall pay taxes payable in the immediately succeeding year based on the assessed value reported on the amended return. However, if a taxpayer files an amended personal property tax return for a year after July 15 of that year, the taxpayer shall pay taxes payable in


Chad M. MillerProperty Tax Technical [email protected]

317.580.2058

PROPERTY TAX


Heather Judy, CPAMultistate Programs [email protected]

317.580.2168



the immediately succeeding year based on the assessed value reported on the taxpayer’s original personal property tax return.

Affected Code Section: Ind. Code § 6-1.1-3-10 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 4Explanation: Eliminates the requirement of filing a separate personal property return by taxing district for taxpayers with personal property located in two or more taxing districts within the same township.

Affected Code Section: Ind. Code § 6-1.1-3-22 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 374 § 1Explanation: Effective July 1, 2015, this provision voids 50 IAC 4.2-4-6(c), which provides guidance for determining the year of acquisition of an item of tangible personal property.

Affected Code Section: Ind. Code § 6-1.1-3-22.5 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 374 § 2Explanation: Provides the general rule for determining the year of acquisition for when a taxpayer acquires an item of tangible personal property. The year of acquisition for depreciable tangible personal property is determined as follows: (a) for all tangible property acquired after Jan. 1, 2016, the applicable fiscal year beginning Jan. 2 and ending Jan. 1; (b) for all tangible property acquired after March 1, 2015, and before Jan. 2, 2016, the fiscal year beginning March 2, 2015, and ending Jan. 1, 2016; and (c) for all tangible property acquired before March 2, 2015, the applicable fiscal year beginning March 2 and ending March 1.

Affected Code Section: Ind. Code § 6-1.1-3-24 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 5Explanation: Extends the assessment rules for outdoor advertising signs

through the 2018 assessment date. This section was previously scheduled to sunset after the 2016 assessment date.

Affected Code Section: Ind. Code § 6-1.1-4-4 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 374 § 3Explanation: Sunsets this section on July 1, 2016, which deals with the schedule of general reassessments involving physical inspections of real property.

Affected Code Section: Ind. Code § 6-1.1-4-4.4 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 374 § 4Explanation: Provides that this section’s provisions apply to assessments made under IC § 6-1.1-4-4.2, which provides for county assessor reassessment of real property within its jurisdiction. If an assessment under section 4.2 results in the assessor changing the underlying parcel characteristics, the assessor has the burden of proving that any change was valid in any appeal of the assessment.

Affected Code Section: Ind. Code § 6-1.1-4-13 (amendment)Effective Date: March 1, 2015 (retroactive)Enacted By: Senate Bill 436 § 6Explanation: Provides extensive guidance as to when land qualifies as being “devoted to agricultural use.” Agricultural use may not be determined by the size of a parcel. “Agricultural use” for purposes of this section includes, but is not limited to, the production of livestock or livestock products, commercial aquaculture, equine or equine products, land designated as a conservation reserve plan, pastureland, poultry or poultry products, horticultural or nursery stock, fruit, vegetables, forage, grains, timber, trees, bees and apiary products, tobacco, other agricultural crops, general farming operation purposes, native timberlands, or land that lies fallow. Additionally, the following categories of land are always considered to be devoted to agricultural use: (a) land enrolled in a land conservation or reserve program administered by the

United States Department of Agriculture (USDA), a land conservation program administered by the USDA’s Farm Service Agency, or a conservation reserve program or agricultural easement program administered by the USDA’s National Resources Conservation Service; (b) land enrolled in the department of natural resources’ classified forest and wildlands program (or any similar or successor program); (c) land classified in the category of other agricultural use, as provided in the Department of Local Government Finance’s real property assessment guidelines; and (d) land devoted to the harvesting of hardwood timber. Provides that the soil productivity factors used for the March 1, 2011, assessment date apply to the March 1, 2015, assessment date, but that new soil productivity factors shall be used for assessment dates occurring after March 1, 2015.

Affected Code Section: Ind. Code § 6-1.1-4-13.2 (addition)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 436 § 7Explanation: Provides that for the property tax assessment of agricultural land for the 2015 assessment date, the statewide agricultural land base rate value per acre used to determine the value of agricultural land is two thousand fifty dollars ($2,050). Ties the statewide agricultural land base rate for assessment dates occurring in years 2016 and thereafter to the assessed value growth quotient formula under IC § 6-1.1-18.5-2(b).

Affected Code Section: Ind. Code § 6-1.1-4-21 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 374 § 5Explanation: Repeals this entire section, which provides requirements and a framework for the county reassessment plan as required under IC § 6-1.1-4-4.2.

Continued on page 20.See “Property Tax.”

PROPERTY TAX



Other Taxes and Unclaimed PropertyAffected Code Section: Ind. Code. § 6-6-5-5Effective Date: Jan. 1, 2017Enacted By: Senate Bill 441 § 43Explanation: For purposes of the motor vehicle excise tax, makes a technical change to eliminate reference to IC § 6-1.1-12-17.4.

Affected Code Section: Ind. Code § 6-6-5-5.7 (addition)Effective Date: Jan. 1, 2016Enacted By: House Bill 1047 § 1Explanation: Imposes an annual thirty dollar ($30) excise tax on mini-trucks, to be collected at the time the mini-truck is registered each year.

Affected Code Section: Ind. Code § 6-6-5.1-13Effective Date: Jan. 1, 2017Enacted By: Senate Bill 441 § 44Explanation: For purposes of the excise tax on recreational vehicles and truck campers, makes a technical change to eliminate reference to IC § 6-1.1-12-17.4. Affected Code Section: Ind. Code § 8-24-17-14 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 §47Explanation: Technical change to eliminate reference to IC § 6-3-1-3.5(a)(6). Affected Code Section: Ind. Code § 9-13-2-103.1 (addition)Effective Date: Jan. 1, 2016Enacted By: House Bill 1047 § 3Explanation: Provides that the term “mini-truck” is defined to mean a truck that (1) is powered by an internal combustion engine with a piston or rotary displacement of not less than six hundred sixty (660) cubic centimeters, (2) is sixty (60) inches wide, (3) has an unladen dry weight of one thousand six hundred

(1,600) pounds or less, (4) can achieve a top speed of not more than sixty (60) miles per hour, (5) is manufactured with a locking enclosed cab and a heated interior, and (6) is operated on a highway.

Affected Code Section: Ind. Code § 32-34-1-18 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 282 § 1Explanation: For unclaimed property purposes, amends the definition of “state” to now include the instrumentalities of one of the United States.

Affected Code Section: Ind. Code § 32-34-1-20 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 282 § 2Explanation: For unclaimed property purposes, provides that the dormancy period for United States savings bonds is three years after the date the bonds stop earning interest.

Affected Code Section: Ind. Code § 32-34-1-20.5 (addition) Effective Date: July 1, 2015Enacted By: Senate Bill 282 § 3Explanation: For unclaimed property purposes, provides that for United States savings bonds that become “unclaimed property” under this chapter, all legal title and property rights to both the bonds and the proceeds therefrom vest solely in the state of Indiana.

OTHER TAXES AND UNCLAIMED PROPERTY



317.580.2038


Tim Conrad, JDMultistate Project [email protected]

317.452.1388



Affected Code Section: Ind. Code § 6-3.5-1.1-2.8 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1472 § 26Explanation: Makes certain sections applicable to both Elkhart and Marshall County.

Affected Code Section: Ind. Code § 6-3.5-1.1-3.4 (addition)Effective Date: Upon PassageEnacted By: House Bill 1472 § 27Explanation: Authorizes Tipton County to impose an additional county adjusted gross income tax above and beyond that which is already authorized by IC § 6-3.5-1.1-2 for the purposes of financing the construction of a jail, making improvements to the courthouse, and to repay associated bonds. The imposition of any additional income tax is subject to limitations.

Affected Code Section: Ind. Code § 6-3.5-1.1-3.7 (addition)Effective Date: Upon PassageEnacted By: House Bill 1472 § 28Explanation: Authorizes Rush County to impose an additional county adjusted gross income tax above and beyond that which is already authorized by IC § 6-3.5-1.1-2 for the purposes of financing the construction of a jail, operating the jail, and repaying associated bonds. The imposition of any additional income tax is subject to limitations.

Affected Code Section: Ind. Code § 6-3.5-1.1-7 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 36Explanation: Eliminates the county adjusted gross income tax credit for elderly persons with a total disability.

Affected Code Section: Ind. Code § 6-3.5-1.1-10 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1472 § 29

Explanation: Provides two exceptions to the general rule that distributions made to the county treasurer must be treated as though they are property taxes due and payable during that same calendar year.

Affected Code Section: Ind. Code § 6-3.5-1.1-11 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1472 § 30Explanation: Provides two exceptions to the general rule that certified distributions received by a county treasurer must be allocated, distributed and used by the civil taxing units and school corporations in the manner prescribed by IC § 6-3.5-1.1-11.

Affected Code Section: Ind. Code §§ 6-3.5-1.1-18, 6-3.5-6-22, and 6-3.5-7-18 (amendments)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 §§ 37, 38, and 41Explanation: Technical changes to eliminate reference to IC § 6-3-1-3.5(a)(6), which has been repealed.

Affected Code Section: Ind. Code § 6-3.5-4-2 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 22Explanation: For purposes of the county motor vehicle excise surtax, provides that if an adopting entity adopts an ordinance to impose an annual license excise surtax, the adopting entity may now also (a) impose the annual license excise surtax at the same rate or amount on each motor vehicle subject to the tax, and (b) impose the annual license excise surtax on vehicles subject to the tax at one or more different rates based on the class of the vehicle.

Continued on page 25.See “Local Taxation.”

LOCAL TAXATION

Local Taxation



317.580.2047


Amy ZimmerMultistate Tax Advisory [email protected]

317.580.2440



Affected Code Section: Ind. Code § 4-6-5-3 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 1Explanation: Provides that an attorney employed by a state agency is subject to the attorney-client and work product privileges so long as the requirements to assert the protection and privilege are satisfied.

Affected Code Section: Ind. Code § 6-2.5-8-7 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 13Explanation: Provides that the IDOR may revoke a registered retail merchant’s certificate, a manufacturer’s or wholesaler’s certificate, or an exempt organization’s certificate “for good cause,” which includes (but is not limited to) (a) failure to file a return required under IC Chapter 6-2.5-8 for any tax collected for the state in trust, or remit any tax collected for the state in trust; (b) being charged with a violation of any provision under IC Title 35; and (c) being subject to a court order under IC §§ 7.1-2-6-7, 32-30-6-8, 32-30-7, or 32-30-8.

Affected Code Section: Ind. Code § 6-3-4-8 (amendment and deletion)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 17Explanation: Requires all employers to file Form WH-3 with the IDOR not later than 31 days after the end of each calendar year. Eliminates the prohibition against issuing a refund to any employee who fails to file an income tax return within two years from the due date of the return or returns (formerly known as the two year statute of limitation).

Affected Code Section: Ind. Code § 6-8.1-3-7.1 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 33Explanation: Requires that the IDOR must enter into an agreement with the fiscal

officer of a capital improvement board of managers created under IC §§ 36-10-8 or 36-10-9, and that is responsible for expenditure of funds from (a) an innkeeper’s tax, a food and beverage tax, or an admissions tax under IC Article 6-9; (b) the supplemental auto rental excise tax under IC Chapter 6-6-9.7; or (c) the state gross retail taxes allocated to professional sports development area fund, a sports and convention facilities operating fund, or other fund under IC Chapters 36-7-31 or 36-7-31.3. The agreement must require the IDOR to provide the fiscal officer an annual report with the name of each business collecting the above taxes and the amount of money collected from each business. The agreement with the fiscal officer must include a nondisclosure provision.

Affected Code Section: Ind. Code § 6-8.1-3-17 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 91Explanation: Requires that the IDOR establish a tax amnesty program for taxpayers having an unpaid tax liability for a listed tax that was due and payable for a tax period ending before Jan. 1, 2013. Provides that a taxpayer who has previously participated in a tax amnesty program under this section or under 6-2.5-14 (amnesty for unpaid use tax on claimed race horses) is not eligible to participate in this tax amnesty program. In exchange for participation in the amnesty program, the taxpayer will not be charged penalty, interest, collection fees or costs otherwise applicable.

Affected Code Section: Ind. Code § 6-8.1-3-24 (addition)Effective Date: July 1, 2015 Enacted By: House Bill 1001 § 92Explanation: Provides the IDOR authority to adopt emergency rules under IC § 4-22-2-37.1 to carry out the amnesty program under IC § 6-8.1-3-17.

TAX ADMINISTRATION

Tax Administration



317.580.2047


Tim Conrad, JD Multistate Project [email protected]

317.452.1388



Affected Code Section: Ind. Code § 6-8.1-3-25 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 93Explanation: Provides that the IDOR must deposit the amounts collected under the tax amnesty program carried out under IC § 6-8.1-3-17 as follows: (a) the first eighty-four million dollars ($84,000,000) must be deposited into the Indiana regional cities development fund established by IC § 5-28-38-2; (b) the next six million dollars ($6,000,000) must be transferred to the Indiana department of transportation to reimburse the department of transportation for money that it expended under IC § 8-23-2-18.5 for the operation of the Hoosier State Rail Line, provided that the total amount transferred to the Indiana department of transportation may not exceed the lesser of six million dollars ($6,000,000) or the total amount expended by the Indiana department of transportation under IC § 8-23-2-18.5 for the operation of the Hoosier State Rail Line after June 30, 2015, and before July 1, 2017; (c) any remaining amounts collected must be deposited into the state general fund.

Affected Code Section: Ind. Code § 6-8.1-4-5 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 34Explanation: Provides the circumstances in which the IDOR may deny an application submitted to the commercial motor vehicle owners registration center under IC § 6-8.1-4-4 for a vehicle registration, a motor carrier fuel tax annual permit, a proportional use credit certificate, a certificate of operating authority, an oversize vehicle permit, or an overweight vehicle permit. The department may deny such an application if the applicant’s business is operated, managed, or otherwise controlled by or affiliated with a person, including the applicant, a relative, family member, responsible officer, or shareholder whom the department has determined (a) has failed to file all tax returns or information reports as required by Ind. Code Titles

6, 8, and 9; (b) failed to pay all taxes, penalties, and interest required to the department under IRC Titles 6, 8, 9; (c) failed to pay any registration or license plate fees for vehicles that were at any point owned or operated by the person for which the person was responsible for payment; (d) has an unsatisfactory safety rating under 49 CFR Part 385; or (e) has multiple violations of IC Title 9 or a rule adopted under Title 9. Additionally, the IDOR may deny any application described in IC § 6-8.1-4-4(c) if the applicant is a motor carrier whose business is operated, managed, or otherwise controlled by or affiliated with a person, including an owner, relative, family member, responsible officer, or shareholder whom the IDOR has determined is covered by any of the above situations permitting denial of an application.

Affected Code Section: Ind. Code § 6-8.1-5-1 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 35Explanation: Eliminates the requirement that if a taxpayer has a surety bond guaranteeing payment of the tax for which a proposed assessment is made, the IDOR must furnish a copy of the proposed assessment to that surety. Provides that a taxpayer has up to 90 days (formerly 60 days) to appeal a decision in a letter of findings to the tax court. This 90-day period may be extended by mutual agreement signed by both the department and relevant taxpayer(s). Provides that a taxpayer has 60 days (formerly 45 days) to respond to a proposed assessment before the IDOR may demand payment pursuant to IC § 6-8.1-8-2(a). Removes the requirement that the IDOR issue a Letter of Findings within 60 days of the protest hearing.

Affected Code Section: Ind. Code § 6-8.1-5-2 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 36Explanation: Provides that if a taxpayer’s federal taxable income, federal adjusted gross income, or federal income tax

liability for a taxable year is subject to a modification or alteration as provided in IC §§ 6-3-4-6(c), 6-3-4-6(d), 6-5.5-6-6(c), and 6-5.5-6-6(d), the date by which the IDOR must issue a proposed assessment is extended to six months after the date on which notice of the modification or alteration is filed with the IDOR by the taxpayer.

Affected Code Section: Ind. Code § 6-8.1-7-1 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 37Explanation: Provides that the IDOR, pursuant to a reciprocal agreement entered into with the taxing officials of the United States government or with the taxing officials of other state governments, may release information to those officials concerning (a) an innkeeper’s tax, a food and beverage tax, or an admissions tax under IC Article 6-9; (b) the supplemental auto rental excise tax under IC Chapter 6-6-9.7; and the covered taxes allocated to a professional sports development area fund, sports and convention facilities operating fund, or other fund under IC Chapters 36-7-31 and 36-7-31.3. Additionally, the IDOR may disclose to a power subsidiary or a person selling the services or commodities listed in IC § 6-2.5-4-5(b) information concerning sales tax exemption certificates that relate to a taxpayer that is exempt from sales tax under IC § 6-2.5-4-5 for the purpose of enforcing and collecting the state sales and use taxes.

Continued on page 25.See “Tax Administration.”

TAX ADMINISTRATION



Sales and Use Tax(Continued from page 3.)

Affected Code Section: Ind. Code § 6-2.5-5-5.1 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 7Explanation: Eliminates the limitation provided by subsection (c) that utility refund claims made under IC § 6-2.5-5-5.1 may not cover transactions that occurred more than thirty-six (36) months before the date of the refund claim.Application Note: This restores utility refund claims to the general statute of limitations of three years, tolling at year end.

Affected Code Section: Ind. Code § 6-2.5-5-18 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 8Explanation: Makes modifications to the sales tax exemptions applicable to drugs, durable medical equipment, mobility-enhancing equipment, prosthetic devices, hearing aids and other medical supplies. Provides that transactions involving the following are exempt from sales tax if the “end user” acquires the property upon a prescription or drug order (IC § 16-42-19-3) that is required by law for the transaction from a licensed practitioner: (1) durable medical equipment (including a repair or replacement part); (2) mobility enhancing equipment (including a repair or replacement part); (3) prosthetic devices, including artificial limbs, orthopedic devices, dental prosthetics, eyeglasses and contact lenses (including repair or replacement parts); (4) other medical supplies or devices that are used exclusively for medical treatment of a medically diagnosed condition, including a medically diagnosed condition due to injury, bodily dysfunction or surgery; (5) hearing aid devices that are worn on the body and designed to aid, improve or correct defective human hearing, including parts, attachments, batteries and accessories reasonably necessary for use of a hearing aid device; (6) legend drugs and nonlegend drugs,

if a registered pharmacist makes the sale to a patient upon the prescription of a licensed practitioner, or a licensed practitioner makes the sale to a patient; (7) a nonlegend drug, if the nonlegend drug is dispensed upon an original prescription or a drug order (IC § 16-42-19-3) and the ultimate user of the drug is a person confined to a hospital or health care facility; and (8) food, food ingredients and dietary supplements that are sold by a licensed practitioner or pharmacist.Application Note: Treatment of “medical supplies and devices” is amended under these provisions. Previously, to be exempt, the purchase of the medical supplies and devices only had to be prescribed by a person licensed to issue the prescription. Under this new language, to be exempt, the medical supplies and devices purchased must be used exclusively for medical treatment of a medically diagnosed condition.

Affected Code Section: Ind. Code § 6-2.5-5-19 (amendment and deletion)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 9Explanation: Eliminates the sales tax exemption for drugs now provided for under IC § 6-2.5-5-18. Provides a sales tax exemption for transactions involving drugs, insulin, oxygen, blood and blood plasma purchased by a licensed practitioner or a health care facility for both the direct consumption in treating a patient and, in the case of drugs, resale to the patient that the practitioner is treating.

Affected Code Section: Ind. Code § 6-2.5-5-21.5 (deletion)Effective Date: July 1, 2015Enacted By: House Bill 1472 §10Explanation: Eliminates the sales tax exemption for purchases of food or food ingredients prescribed as medically necessary by a licensed physician.Application Note: An exemption similar to this one is now a part of IC § 6-2.5-5-18.

Affected Code Section: Ind. Code § 6-2.5-5-40 (amendment)Effective Date: Jan. 1, 2016Enacted By: House Bill 1472 § 11Explanation: Makes modifications to the research and development sales tax exemption. Provides that the term “research and development activities” includes “design, refinement, and testing of prototypes of new or improved commercial products before sales have begun for the purpose of determining facts, theories or principles, or for the purpose of increasing scientific knowledge that may lead to new or enhanced products.” Adds to the list of activities excluded from the definition of “research and development activities”: (1) research in connection with nontechnical activities, including literary, historical, social sciences, economics, humanities psychology or similar projects; (2) market and sales research; (3) product market testing, including product testing by product consumers or through consumer surveys for evaluation of consumer product performance or consumer product usability; (4) the acquisition, investigation or evaluation of another’s patent, model, process or product for the purpose of investigating or evaluating the value of a potential investment; and (5) the providing of sales services or any other service, whether technical or nontechnical in nature.” Provides that, for purposes of IC § 6-2.5-5-40(c)(2), a research and development activity is devoted to experimental or laboratory research and development if the activity is considered essential and integral to experimental or laboratory research. The term does not include any activities incidental to experimental or laboratory research and development.Application Note: Due to the use of the “essential and integral” language, it is possible that the administration of this exemption will be similar to the administration of the manufacturing exemption.

Affected Code Section: Ind. Code § 6-2.5-5-45.8 (amendment)



Effective Date: July 1, 2015Enacted By: House Bill 1472 § 12Explanation: Makes modifications to the sales tax exemption for recycling operations. Provides that being “occupationally engaged in the business of recycling” means “to engage in recycling with the intention of doing so at a profit.” Modifies the language of the exemption provision itself to utilize a “single direct” test (as opposed to the previously utilized “double direct” test). Provides that a “recycling cart” is defined to mean “a manually propelled container with a capacity of not more than one hundred (100) gallons of recycling materials,” and provides that purchases of recycling carts are exempt if they are purchased by a person occupationally engaged in the business of recycling. Application Note: The “double direct” language has been eliminated from this exemption. The purchase of tangible personal property is now exempt under this provision if it is acquired for direct use in the processing of recycling materials. Therefore, the scope of the new version could be broader than the previous version.

Affected Code Section: Ind. Code § 6-2.5-5-50 (addition)Effective Date: Upon PassageEnacted By: House Bill 1271 § 1Explanation: Exempts from Indiana sales and use tax transactions involving labels if those labels will be affixed to other tangible personal property being sold by a retail merchant, and the person acquiring the labels is required to affix the labels to the other tangible personal property for the purpose of complying with any state or federal statute or regulation. Application Note: Previous policy on exemptions related to labels and packaging has been narrowly construed. Placing additional restrictions on label usage potentially narrows the overall scope of the packaging exemption.

Affected Code Section: Ind. Code § 6-2.5-6-9 (amendment)Effective Date: Upon PassageEnacted By: Senate Bill 199 § 23Explanation: Clarifies Dec. 31, 2006, as the effective date for use of a bad debt deduction within an affiliated group. Further includes relationships described in Internal Revenue Code (IRC) § 267(b)(11) in the definition of affiliated group.

Affected Code Section: Ind. Code § 6-2.5-7-12 (amendment)Effective Date: July 1, 2014 (retroactive)Enacted By: Senate Bill 199 § 25Explanation: Repeals this entire section, which dealt with prepayment of the state gross retail tax by gasoline distributors.

Affected Code Section: Ind. Code § 6-2.5-8-8 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 14Explanation: Includes in the list of persons authorized to issue sales and use tax exemption certificates persons who are exempt from sales tax under IC § 6-2.5-4-5 (with regard to power subsidiaries of public utilities) and who receive an exemption certificate from the Indiana Department of Revenue (IDOR). Provides that a power subsidiary or a person selling services or commodities listed in IC § 6-2.5-4-5(b) who accepts an exemption certificate issued by the IDOR to a person or entity who is exempt from the sales and use tax imposed by IC § 6-2.5-4-5 is relieved from the duty to collect sales or use tax from such a person or entity until otherwise notified by the Department.

Affected Code Section: Ind. Code § 6-10-1-1 (addition)Effective Date: Upon PassageEnacted By: Senate Bill 80 § 1 Explanation: Prohibits the state and any of its political subdivisions from imposing, assessing, collecting, or attempting to collect a tax on Internet access or the use of Internet access. Application Note: This bill’s provisions do not prohibit the imposition of a net

income tax on the providers of Internet services and access. Additionally, this bill’s provisions apply only to internet access charges. Items sold via the internet remain unaffected and are still potentially subject to taxation.

Income Tax(Continued from page 5.)

Affected Code Section: Ind. Code § 6-3-2-5 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 17Explanation: Eliminates the income tax deduction for costs incurred in the taxable year by a resident individual taxpayer to install insulation, weather stripping, double pane windows, storm doors or storm windows.

Affected Code Section: Ind. Code § 6-3-2-5.3 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 18Explanation: Eliminates the income tax deduction for costs incurred in the taxable year by a resident individual taxpayer to install a solar powered roof vent or fan.

Affected Code Section: Ind. Code § 6-3-2-13 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 441 § 19Explanation: With regard to taxpayers manufacturing within a maritime opportunity district, these provisions effectively eliminate the export income deduction from the taxpayer’s adjusted gross income starting Jan. 1, 2016. Application Note: Under subsection (i), a taxpayer is not able to take the deduction based on export income that the taxpayer receives after Dec. 31, 2015. Subsection (j) sunsets this entire section Jan. 1, 2025. However, a taxpayer may still claim the deduction based on export income that it receives prior to Jan. 1, 2016.

Affected Code Section: Ind. Code § 6-3-2-14.1 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 20



Explanation: Eliminates reference to IC § 6-3-2-14.5 with regard to lottery ticket prize money.Affected Code Section: Ind. Coe § 6-3-2-14.5 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 21Explanation: Eliminates the adjusted gross income tax exemption for the first one thousand two hundred dollars ($1,200) of prize money received from a winning lottery ticket.

Affected Code Section: Ind. Code § 6-3-2-17 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 22Explanation: Eliminates the adjusted gross income tax exemption for the first one thousand dollars ($1,000) of reward money given to an individual who provides information to assist in a law enforcement investigation.

Affected Code Section: Ind. Code § 6-3-2-18 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 23Explanation: Eliminates the income tax exemption for money deposited by an employer into its employee’s “medical care savings account.”

Affected Code Section: Ind. Code § 6-3-2-20 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 24Explanation: Broadens the add-back to Indiana adjusted gross income related to all intercompany interest expenses (previously applied only to intangible interest expenses). However, it also adds to the list of instances in which the add-back is not required a situation where a recipient receives an item of income that corresponds to the directly related interest expenses and the recipient is subject to the financial institutions tax imposed by IC Article 6-5.5, files a return under IC Article 6-5.5, and apportions the items of income that correspond to the intangible expenses and the directly related interest expenses in accordance

with IC Article 6-5.5.

Affected Code Section: Ind. Code § 6-3-2-25 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill § 25 Explanation: Makes a technical correction to reference IC § 6-3-1-3.5(a)(13) instead of (a)(15).

Affected Code Section: Ind. Code § 6-3-3-14.5 (addition)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: House Bill 1001 § 82Explanation: Provides a nonrefundable income tax credit for teachers for amounts expended for classroom supplies. The credit is equal to the lesser of $100 or the total amount expended for classroom supplies.

Affected Code Section: Ind. Code § 6-3-3-14.6 (addition)Effective Date: Jan. 1, 2016Enacted By: House Bill 1001 § 83Explanation: Provides a nonrefundable income tax credit to certain for-profit hospitals, as specifically defined, equal to ten percent (10%) of the property taxes it paid in Indiana for the taxable year in question.

Affected Code Section: Ind. Code § 6-3-4-6 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 16Explanation: Provides guidance as to when any modification of a taxpayer’s federal income tax liability or federal income tax return actually occurs, which triggers the obligation contained in IC § 6-3-4-6(b) for that taxpayer to notify the IDORas to when such a modification has occurred. Triggering events include: (a) the taxpayer filing an amended federal income tax return; (b) a final determination is made concerning an assessment or deficiency; (c) a final determination is made concerning a claim for refund; (d) a taxpayer waives the restrictions on assessment and collection on all, or any part, of an underpayment of federal income tax by signing a federal

Form 870, or any other form prescribed by the Internal Revenue Service (IRS) for that purpose, but only with respect to the underpayment covered by the waiver; (e) the taxpayer enters into a closing agreement with the IRS concerning the taxpayer’s tax liability under IRC § 7121 that is a final determination; and (f) a modification or alteration in an amount of tax is otherwise made that is a final determination. For purposes of (b) through (f), a final determination means “an action or decision by a taxpayer, the IRS (including the Appeals Division), the United States Tax Court, or any other United States federal court concerning any disputed tax issue that (1) is final and conclusive; and (2) cannot be reopened or appealed by a taxpayer or the IRS as a matter of law.” Note that these are triggering events without regard to whether a modification results in an underpayment or overpayment of tax.

Affected Code Section: Ind. Code § 6-3-4-12 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: House Bill 1472 § 18Explanation: This section applies to partnerships. Modifies the obligation of a partnership to file a composite income tax return by now requiring that the composite return include all nonresident partners (and not only nonresident “individual” partners). All nonresident partners are required to be included regardless of whether or not it has other Indiana source income. Provides that, for purposes of IC § 6-3-4-12, a “nonresident partner” is (1) an individual who does not reside in Indiana, (2) a trust that does not reside in Indiana, (3) an estate that does not reside in Indiana, (4) a partnership not domiciled in Indiana, (5) a C-corporation not domiciled in Indiana, and (6) an S-corporation not domiciled in Indiana. Provides that, notwithstanding any of the above, a pass-through entity is not required to withhold on or include in a composite return a nonresident member if the nonresident member is a publicly traded partnership, meets the exception for partnerships under IRC §



7704(c), and has agreed to file an annual information return reporting the name, address, taxpayer identification number, and other information requested by the IDOR of each unit holder. Provides that if a partnership is granted an extension to file its income tax return under IC § 6-8.1-6-1, that return and payment due shall be allowed the same treatment as an extended income tax return with respect to due dates, interest, and penalties as provided for in IC § 6-8.1-6-1. Prohibits the IDOR from imposing a late payment penalty on a partnership for failure to file a return, pay the full amount due, or pay any withholding tax deficiency if the partnership, before the fifteenth day of the fourth month after the end of the partnership’s taxable year, pays the IDOR either (a) eighty percent (80%) of the withholding tax due for the current year, or (b) one hundred percent (100%) of the withholding tax due for the preceding year.Application Note: This law change, coupled with previous IDOR policy changes, should reduce the overall complexity of Indiana’s nonresident withholding and composite filing requirements. Affected Code Section: Ind. Code § 6-3-4-13 (amendment) Effective Date: Jan. 1, 2015 (retroactive)Enacted By: House Bill 1472 § 19Explanation: This section applies to S-corporations. Modifies the obligation of an S-corporation to file a composite income tax return by now requiring that the composite return include all nonresident shareholders (and not only nonresident “individual” shareholders). All nonresident shareholders are required to be included in the composite return regardless of whether or not the nonresident shareholder has other Indiana source income. Provides that, for purposes of IC § 6-3.4-13, the term “nonresident shareholder” is defined to include (1) an individual who does not reside in Indiana, (2) a trust that does not reside in Indiana, and (3) an estate that does not reside in Indiana. Provides that if

an S-corporation is granted an extension to file its income tax return under IC § 6-8.1-6-1, the return and payment due shall be allowed the same treatment as an extended income tax return with respect to due dates, interest, and penalties as provided for in IC § 6-8.1-6-1. Prohibits the IDOR from imposing a late payment penalty on an S-corporation for failure to file a return, pay the full amount due, or pay any withholding deficiency if the S-corporation, before the 15th day of the fourth month after the end of the S-corporation’s taxable year, pays the department either (a) eighty percent (80%) of the withholding tax due for the current year, or (b) one hundred percent (100%) of the withholding tax due for the preceding year. Application Note: This law change, coupled with previous IDOR policy changes, should reduce the overall complexity of Indiana’s nonresident withholding and composite filing requirements.

Affected Code Section: Ind. Code § 6-3-4-15 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: House Bill 1472 § 20Explanation: This section applies to trusts and estates. Requires all trusts and estates to file a composite income tax return on behalf of all nonresident beneficiaries. For purposes of IC § 6-3-4-15, the term “nonresident beneficiary” is defined to mean (1) an individual who does not reside in Indiana, (2) a trust that does not reside in Indiana, (3) an estate that does not reside in Indiana, (4) a partnership that is not domiciled in Indiana, (5) a C corporation that is not domiciled in Indiana, and (6) an S corporation that is not domiciled in Indiana. The composite return must include all nonresident beneficiaries regardless of whether the nonresident beneficiary has other Indiana source income. Provides that if a trust or estate is permitted an extension to file its income tax return pursuant to IC § 6-8.1-6-1, then the return and payment due shall be allowed the same treatment as the

extended income tax return with respect to due dates, interest and penalties under IC § 6-8.1-6-1. Application Note: In the past, trusts have not been required to file composite returns.

Affected Code Section: Ind. Code § 6-3.1-15-7 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 26Explanation: Starting Jan. 1, 2016, these amendments effectively eliminate the income tax deduction for donations during a taxable year of qualified computer equipment. Application Note: Subsection (b) prohibits the use of this deduction for taxable years beginning after Dec. 31, 2015. Subsection (c) sunsets all of IC Chapter 6-3.1-15 on Jan. 1, 2018. However, taxpayers are still eligible for this deduction for donations made in a taxable year beginning before Jan. 1, 2016.

Affected Code Section: Ind. Code § 6-3.1-16-7 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 27Explanation: Starting Jan. 1, 2016, these amendments effectively eliminate the historic rehabilitation income tax credit. Application Note: Subsection (d) prohibits the use of this credit for taxable years for an otherwise qualified expenditure in a taxable year beginning after Dec. 31, 2015. Subsection (e) sunsets all of IC Chapter 6-3.1-16 on Jan. 1, 2019. However, taxpayers are still eligible to claim the credit for qualified expenditures made in a taxable year beginning before Jan. 1, 2016.

Affected Code Section: Ind. Code § 6-3.1-16-14 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 85Explanation: Effectively eliminates funding for the historic rehabilitation credit for state fiscal years that begin after June 30, 2016. Application Note: Credits may still be claimed for expenditures for the



preservation or rehabilitation of historic property until July 1, 2016. Additionally, nothing prohibits credits awarded before July 1, 2016, from being carried forward to a taxable year beginning after Dec. 31, 2016.

Affected Code Section: Ind. Code 6-3.1-19-2Effective Date: July 1, 2015Enacted By: Senate Bill 441 § 28Explanation: For purposes of the community revitalization enhancement district tax credit, beginning Jan. 1, 2016, removes from the definition of “qualified investment” any expenditures on property classified as residential for property tax purposes, unless the expenditure was approved by the Indiana Economic Development Corporation before Jan. 1, 2016.

Affected Code Section: Ind. Code 6-3.1-30.5-13 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 86Explanation: Provides that the maximum amounts of School Scholarship Tax Credits that may be awarded for the fiscal years beginning before July 1, 2015, beginning July 1, 2015, and beginning after June 30, 2016, as seven million five hundred thousand dollars ($7,500,000), eight million five hundred thousand dollars ($8,500,000) and nine million five hundred thousand dollars ($9,500,000) respectively.

Affected Code Section: Ind. Code § 6-3.1-34.6-8 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 88Explanation: Modifies the income tax credit related to placing a natural gas powered vehicle into service. Provides that if a person claims a credit under IC Chapter 6-3.1-34.6 for placing a qualified natural gas powered vehicle into service in 2013, the person may claim such a credit only against any sales or use tax liability incurred by the person on transactions occurring after June 30, 2015, involving a natural gas product (as

defined in IC § 6-6-2.5-16.5) and that are subject to sales or use tax.

Affected Code Section: Ind. Code § 6-5.5-1-2 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 42Explanation: Eliminates multiple adjustments to arrive at a financial institution’s adjusted gross income. Eliminated adjustments include: (a) the add-back or deduction necessary to make the adjusted gross income of any taxpayer who claimed the special allowance for qualified disaster assistance property under IRC § 168(n) equal to the adjusted gross income that would have been computed had the special allowance not been claimed for the property; (b) the add-back or subtraction necessary to make the adjusted gross income of any taxpayer that made an election under IRC § 179C to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; (c) the add-back or deduction necessary to make the adjusted gross income of any taxpayer that made an election under IRC § 181 to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for that year; and (d) the add-back or deduction necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation as an ordinary income loss under § 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.

Affected Code Section: Ind. Code 6-5.5-6-6 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 32Explanation: For financial institutions tax purposes, provides that a taxpayer must notify the IDOR within 180 days after any alteration or modification of its federal income tax return occurs. Includes provisions specifying exactly when a “modification or alteration” occurs such that it would trigger the requirement for the taxpayer to notify the department. Triggering events include: (a) the taxpayer filing an amended federal income tax return; (b) a final determination is made concerning an assessment or deficiency; (c) a final determination is made concerning a claim for refund; (d) a taxpayer waives the restrictions on assessment and collection on all, or any part, of an underpayment of federal income tax by signing a federal Form 870, or any other form prescribed by the IRS for that purpose, but only with respect to the underpayment covered by the waiver; (e) the taxpayer enters into a closing agreement with the IRS concerning the taxpayer’s tax liability under IRC § 7121 that is a final determination; and (f) a modification or alteration in an amount of tax is otherwise made that is a final determination. For purposes of (b) through (f), a final determination means “an action or decision by a taxpayer, the IRS (including the Appeals Division), the United States Tax Court, or any other United States federal court concerning any disputed tax issue that (1) is final and conclusive; and (2) cannot be reopened or appealed by a taxpayer or the IRS as a matter of law.” Note that these are triggering events without regard to whether a modification results in an underpayment or overpayment of tax. If the modification or alteration results in a change in the taxpayer’s federal adjusted gross income or income within Indiana, the taxpayer will be required to file an amended Indiana financial institutions tax return, along with a copy of the taxpayer’s amended federal income tax return, with



the department within 180 days of the modification being made.

Affected Code Section: Ind. Code § 6-8-11-9 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 45Explanation: Provides that principal contributed by an employer to a medical care savings account of an employee on or after Jan. 1, 2016, is no longer exempt from income tax as income of the employee.

Affected Code Section: Ind. Code § 6-8-11-11.5 (addition)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 46Explanation: Provides that if an employer contributes money to an employee’s medical care savings account after Dec. 31, 2015, the money may be withdrawn by the employee from the account at any time and for any purpose without penalty

Economic Development/Tax Credits(Continued from page 7.)

Affected Code Section: Ind. Code § 36-7-14-39.6 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 26Explanation: Provides that a redevelopment commission may enter into a written agreement with a taxpayer with an interest in tangible property located in a TIF allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Affected Code Section: Ind. Code § 36-7-14.5-12.6 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 27Explanation: Provides that a redevelopment authority may enter into a written agreement with a taxpayer with an interest in tangible property located in a TIF allocation area in which the taxpayer waives review of any assessment

of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.Affected Code Section: Ind. Code § 36-7-15.1-26.6 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 28Explanation: Provides that the commissioner of the Indianapolis Metropolitan Development Commission may enter into a written agreement with a taxpayer with an interest in tangible property located in a TIF allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Affected Code Section: Ind. Code § 36-7-30-26.5 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 29Explanation: Provides that a military base reuse authority may enter into a written agreement with a taxpayer with an interest in tangible property located in its allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Affected Code Section: Ind. Code § 36-7-30.5-31.5 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 30Explanation: Provides that a military base development authority may enter into a written agreement with a taxpayer with an interest in tangible property located in its allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Affected Code Section: Ind. Code § 36-7-32-17.5 (addition)Effective Date: July 1, 2015

Enacted By: Senate Bill 436 § 31Explanation: Provides that a redevelopment commission may enter into a written agreement with a taxpayer with an interest in tangible property located in a certified tech park allocation area in which the taxpayer waives review of any assessment of the taxpayer’s tangible property during the term of any specified bond or lease obligations that are payable in property taxes.

Affected Code Section: Ind. Code § 36-7-32-22 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 32Explanation: In the case of a certified technology park that is operating under a written agreement entered into by two or more redevelopment commissions, limits to five million dollars ($5,000,000) the amount that may be deposited over the life of the certified technology park in the incremental tax financing fund of each redevelopment commission participating in the operation of the certified technology park.

Affected Code Section: Ind. Code § 36-7-32-26 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 33Explanation: Provides that a party to an agreement under this section as part of an economic development project within a certified technology park may agree to allocate a part of the maximum amount that may be deposited in the party’s incremental tax financing fund to one or more other parties to the agreement.

Affected Code Section: Ind. Code § 36-7.6-1-7 (deletion)Effective Date: Upon PassageEnacted By: House Bill 1403 § 5Explanation: Repeals this provision of the Regional Development Authorities law, which provided a definition for the term “economic growth region.”

Affected Code Section: Ind. Code § 36-7.6-1-12 (amendment)Effective Date: Upon Passage



Enacted By: House Bill 1403 § 6Explanation: Amends the definition of “project” with the Regional Development Authorities law to now include “any project that enhances a region with the goal of attracting people or business.”

Affected Code Section: Ind. Code § 36-7.6-1-12.5 (addition)Effective Date: Upon PassageEnacted By: House Bill 1403 § 7Explanation: Within the Regional Development Authorities law, provides that a “qualified city” is defined as either “a second class city” or “a city or town that is eligible to become a second class city.”

Affected Code Section: Ind. Code § 36-7.6-2-1 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1403 § 8Explanation: Within the Regional Development Authorities law, eliminates the reference to economic growth regions.

Affected Code Section: Ind. Code § 36-7.6-2-2 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1403 § 9Explanation: Within the Regional Development Authorities law, provides that a development authority established under IC Chapter 36-7.6-2 must carry out the purposes of the chapter by now also funding and developing “any project that enhances the region with the goal of attracting people or business.”

Affected Code Section: Ind. Code § 36-7.6-2-3 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1403 § 10Explanation: Within the Regional Development Authorities law, modifies the qualifying circumstances and procedures for establishing a development authority. Requires that any development authority established under this chapter must promptly notify the IEDC.

Affected Code Section: Non-codeEffective Date: July 1, 2015Enacted By: House Bill 1001 § 1Explanation: Allocates a two-year operating budget for the Indiana Skills Enhancement Fund of twenty-five million dollars ($25,000,000).

Property Tax(Continued from page 9.)

Affected Code Section: Ind. Code § 6-1.1-4-43 (addition)Effective Date: March 1, 2014 (retroactive)Enacted By: Senate Bill 436 § 8Explanation: This section is made applicable only to a real property assessment for the 2014 assessment date and assessment dates thereafter, and for real property that is a limited market or special purpose property commonly regarded as a big box retail building under standard appraisal practices, is at least 50,000 square feet, and is occupied by its original owner or by a tenant for which the improvement was built. Provides that in determining the true tax value of real property under this section which has improvements with an effective age of 10 years or less, the assessing officials must apply the cost approach, less depreciation and obsolescence. For purposes of this section, land is to be assessed separately and may be assessed or challenged based on the market value of comparable land. If a taxpayer files a property tax appeal notice under IC § 6-1.1-15 after April 30, 2015, requesting review of real property covered by this section, a taxpayer must provide to the appropriate county or township assessing official information concerning the actual construction costs for the real property. Any appeal related to property covered by this section cannot be reviewed until the taxpayer provides all relevant and reasonably available information concerning the actual construction costs for the real property before the hearing scheduled by the county Property Tax Assessment Board of Appeals (PTABOA). Application Note: This section is explicitly made inapplicable to the assessment of a

multi-tenant income producing shopping center. This changes the way big box stores are typically appraised and valued using the three approaches to value. Appraisals and valuations will be limited to one method using the cost approach.

Affected Code Section: Ind. Code § 6-1.1-4-44 (addition)Effective Date: March 1, 2014 (retroactive)Enacted By: Senate Bill 436 § 9Explanation: This section is made applicable only to a real property assessment of commercial nonincome producing real property, including a sale-leaseback property, for the 2014 assessment date and all assessment dates thereafter, as well as to any other assessment date if an assessment appeal is currently pending before the county PTABOA or the Indiana Board of Tax Review (IBTR). In determining the true tax value of real property under this section which has improvements with an effective age of 10 years or less, prohibits the use of certain categories of comparable real property sales from being used. Comparable real property sales may not be used if the property (a) has been vacant for more than one year as of the assessment date or in the case of industrial property vacant for more than five years; (b) has significant restrictions placed on the use of the real property by a recorded covenant, restriction, easement, or other encumbrance on the use of the real property; (c) the property was sold and is no longer used for the purpose, or a similar purpose, for which the property was used by the original occupant or tenant; or (d) was not sold in an arm’s length transaction.Application Note: This section is explicitly made inapplicable to the assessment of a multi-tenant income producing shopping center.

Affected Code Section: Ind. Code § 6-1.1-4-44.5 (addition)Effective Date: March 1, 2015 (retroactive)Enacted By: Senate Bill 436 § 10Explanation: Permits a county assessor to apply an influence factor to recognize



the reduced acreage value of residential excess land for real property assessments that include land classified as residential excess land. The influence factor may be applied on a per acre basis or based on acreage categories. The influence factor may not be used as an alternative to determining the value of farmland as provided in IC Chapter 6-1.1-4-13. This provision is retroactive to the March 1, 2015, assessment date.

Affected Code Section: Ind. Code § 6-1.1-8-19 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 2Explanation: Changes the due date for a public utility company to file its statement of property owned or used by the company on the assessment date of that year from March 1 to April 1.

Affected Code Section: Ind. Code § 6-1.1-10-16.8 (addition)Effective Date: Upon Passage Enacted By: Senate Bill 436 § 11Explanation: Provides a property tax exemption for the basement of a dwelling or building in a special flood area requiring FEMA-mandated insurance if the basement floor level has been elevated to mitigate the risk of flooding and, as a result, the basement is rendered unusable as living space.

Affected Code Section: Ind. Code § 6-1.1-10-26.5 (addition)Effective Date: Jan. 1, 2011 (retroactive)Enacted By: House Bill 1388 § 4Explanation: Provides an exemption from property taxation if the tangible property is owned by an agricultural organization and is exempt from taxation under IRC § 501(c)(5). This exemption includes a tract of land of not more than 140 acres on which a county fair has been conducted for at least 50 years, the improvements situated on the tract of land, and personal property situated on the tract of land and used for the exempt purpose of the agricultural organization.

Affected Code Section: Ind. Code § 6-1.1-10-37.5 (addition)Effective Date: Upon PassageEnacted By: House Bill 1388 § 5Explanation: Provides a property tax exemption for a “common area” so long as the common area easements and covenants restricting the use and conveyance of common areas to lot owners are recorded, and notice is provided, to the appropriate county or township assessor. Provides the process by which a county or township assessor may declare an area a “common area.”

Affected Code Section: Ind. Code § 6-1.1-12-17.4 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 441 § 3Explanation: Provides a sunset date for the property tax deduction for World War I veterans, with the exemption only applying to property taxes imposed for an assessment date before Jan. 1, 2016.

Affected Code Section: Ind. Code § 6-1.1-12-18 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 415 § 3Explanation: Provides authority for a town, county or city fiscal body to pass an ordinance to extend the period during which the residential rehabilitation property tax deduction may be claimed by the property owner. A county, city or town fiscal body may adopt an ordinance to establish a deduction period that is longer than five years but not to exceed 15 years for any rehabilitated property covered by this section that has also been abandoned or vacant for purposes of IC § 6-1.1-24.Application Note: Currently, a residential owner receives a deduction not to exceed $18,720 per dwelling unit annually for a five-year period.

Affected Code Section: Ind. Code § 6-1.1-12-22 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 415 § 4Explanation: Provides authority for a town, county, or city fiscal body to pass

an ordinance to extend the period during which the property tax deduction for rehabilitation of buildings erected at least 50 years ago may be claimed by the property owner. A county, city or town fiscal body may adopt an ordinance to establish a deduction period that is longer than five years but not to exceed 15 years for any rehabilitated property covered by this section that has also been abandoned or vacant for purposes of IC § 6-1.1-24.Application Note: Currently, a commercial property owner is entitled to receive a deduction not to exceed $300,000 for five years.

Affected Code Section: Ind. Code § 6-1.1-12-37 (amendment)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 372 § 1Explanation: Provides that if more than one individual or entity qualifies property as a homestead under subsection (a)(2)(B) for an assessment date, only one standard deduction from the assessed value of the homestead may be applied for the assessment date.

Affected Code Sections: Ind. Code § 6-1.1-12-37, § 6-1.1-12.1-5.4, § 6-1.1-12.3-10, § 6-1.1-12.7-6, § 6-1.1-13-6, § 6-1.1-17-16.2, § 6-1.1-18.5-10.5, § 6-1.1-22.5-20, § 6-1.1-40-11, § 6-1.1-42-27, § 6-1.1-44-6, § 6-2.5-8-1, § 6-6-6.5-1, § 6-6-6.5-10.7, § 6-6-11-5, § 14-33-22-6, § 36-2-6-14.5, § 36-7-15.1-25, § 36-7-15.1-52Effective Date: Jan. 1, 2016Enacted By: Senate Bill 374 §§ 6, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28 Explanation: Corrects references to the property tax assessment date to make the law consistent with the change of the assessment date from March 1 to Jan. 1. Also makes corresponding changes to certain filing dates.

Affected Code Section: Ind. Code § 6-1.1-12-41 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 374 § 7Explanation: Repeals this entire section, which provided counties the option to adopt an ordinance exempting inventory



from business personal property taxation. Application Note: This provision was obsolete, as IC § 6-1.1-12-42, which applies statewide, exempts all inventory from business personal property taxation. Affected Code Section: Ind. Code § 6-1.1-12.4-13 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 9Explanation: Eliminates the rules enacted by the DLGF at 50 § IAC 22 concerning the DLGF’s administration of the investment property tax deduction provided for by IC Chapter 6-1.1-12.4.

Affected Code Section: Ind. Code § 6-1.1-12.6-9 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 12Explanation: Eliminates the rules enacted by the DLGF at 50 IAC 25 concerning the DLGF’s administration of the model residence property tax deduction provided for by IC 6-1.1-12.6.

Affected Code Section: Ind. Code § 6-1.1-12.8-8 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 14Explanation: Eliminates the rules enacted by the DLGF at 50 IAC 28 concerning applications for the residence in inventory property tax deduction.

Affected Code Section: Ind. Code § 6-1.1-15-1 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1388 § 15Explanation: Provides that a taxpayer may obtain review by the county board of a county or township official’s action with respect to, among other things, a determination concerning a “common area” under IC § 6-1.1-10-37.5.

Affected Code Section: Ind. Code § 6-1.1-15-1 (amendment)Effective Date: Upon PassageEnacted By: Senate Bill 436 § 12Explanation: Requires a county PTABOA or township official to provide written attestation that the official described to the taxpayer the taxpayer’s right to

a review of the issues by the county PTABOA and the taxpayer’s right to appeal to the IBTR and to the Indiana Tax Court.

Affected Code Section: Ind. Code § 6-1.1-15-2.5 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 423 § 2Explanation: In cases of appeals by a taxpayer with respect to an assessment of their tangible property, provides that the taxpayer and the township or county official may enter into an agreement in which both parties (a) agree to waive a determination by the county board and submit the dispute directly to the IBTR, or (b) stipulate to the assessed value pursuant to an independent appraisal subject to the provisions of this section. Provides the procedural and substantive framework for the administration and creation of these agreements.

Affected Code Section: Ind. Code § 6-1.1-15-4 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 467 § 1Explanation: Provides that at a hearing, the Indiana board shall admit into evidence an appraisal report, prepared by an appraiser, unless the appraisal report is ruled inadmissible on grounds besides a hearsay objection.

Affected Code Section: Ind. Code § 6-1.1-15-17.1 (addition)Effective Date: March 1, 2015Enacted By: Senate Bill 436 § 14Explanation: Requires the county or township assessor to provide notice of any changes in land classification and the reason(s) for the change as part of the assessment notice for any changes of classification after Feb. 28, 2015. The county or township assessor would have the burden of proving that the change in classification is correct in any review or appeal under IC §6-1.1-15 and in any appeals taken to the IBTR or the Indiana Tax Court.

Affected Code Section: Ind. Code § 6-1.1-18-12 (amendment)Effective Date: Upon Passage Enacted By: Senate Bill 476 § 1Explanation: Provides a modification to the calculation used to determine the maximum rate for a school corporation’s capital projects fund for taxes due and payable in calendar year 2016. However, the modification is made inapplicable to the calculation for the Vincennes Community School Corporation.

Affected Code Section: Ind. Code § 6-1.1-18.5-22.3 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 3Explanation: Provides discretionary authority to Brown County to impose a special property tax levy in 2016 and 2017 that is not subject to the otherwise applicable ad valorem property tax levy limits imposed by IC Chapter 6-1.1-18.5, but is subject to an annual cap of $478,115.

Affected Code Section: Ind. Code § 6-1.1-18.5-23.2 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 4Explanation: Permits certain townships located in Hancock County to submit a petition to the Department of Local Government Finance requesting an increase in the maximum permissible ad valorem property tax levy.

Affected Code Section: Ind. Code § 6-1.1-20-0.7 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 251 § 1Explanation: Excludes certain categories of expenditures for purposes of calculating under IC Chapter 6-1.1-20 whether a project is a “controlled project.” Provides, however, that this section is applicable only to preliminary determinations made after June 30, 2015, by a political subdivision of Hamilton County (other than a school corporation).



Affected Code Section: Ind. Code § 6-1.1-20.3-6.7 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 15Explanation: Modifies the formula for determining whether a township qualifies as a distressed political subdivision to include a reference to the preceding year’s statewide average township assistance property tax rate rather than the current year’s rate.

Affected Code Section: Ind. Code § 6-1.1-20.3-13 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 436 § 16Explanation: Modifies the formula for determining whether a township’s status as a distressed political subdivision should be terminated to include a reference to the preceding year’s statewide average township assistance property tax rate rather than the current year’s rate.

Affected Code Section: Ind. Code § 6-1.1-24-1 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 5Explanation: Provides that for purposes of tax sales, the certifications made by the auditor to the treasurer are the same for all real property parcels eligible for tax sale. Removes language permitting a county executive to certify certain vacant or abandoned property and thus qualify the property for different reporting criteria.

Affected Code Section: Ind. Code § 6-1.1-24-1.5 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 7Explanation: Provides that if any property taxes or special assessments from the prior year’s fall installment or before are delinquent on real property (as determined under IC § 6-1.1-37-10), and an order from a court or hearing authority obtained under IC § 36-7-37 has been obtained declaring the property vacant or abandoned, the executive of a county, city, or town may, after providing certain notices, certify and deliver to the county auditor a list of vacant and abandoned

properties. Imposes the additional requirements on the county auditor that it must (a) after receipt of the list of properties eligible for tax sale, post a copy of the public notice of the sale of the property at a public place of posting at least 21 days before the tax sale, (b) certify to the county treasurer that the property on the notice is to be sold at public auction, and (c) issue a deed to the real property conveying fee simple title to the highest bidder at the public auction as long as the bid is at least the minimum bid specified by subsection (c).

Affected Code Section: Ind. Code § 6-1.1-24-1.7 (addition)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 8Explanation: Provides that the county executive or his designee may certify certain properties as not suitable for tax sale. The certification must identify the names and addresses of each person with a substantial property interest of record. Within 10 days of making the above certification, the county executive or his designee must provide to each person with a substantial property interest of record with notice that the property has been certified as not suitable for tax sale, that the issue will be decided by a court prior to the tax sale, that if the property is deemed not suitable for tax sale by the court, it will not be sold at the tax sale, but may be disposed of by the county executive as provided for in IC Chapter 6-1.1-24, and that the property may be redeemed for up to 120 days after the conclusion of the tax sale from which the property was removed.

Affected Code Section: Ind. Code § 6-1.1-24-2 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 9Explanation: Provides that the notice of tax sale requirements imposed by this section do not apply when the property to be sold at a tax sale is vacant or abandoned real property on the list prepared by the county auditor pursuant to IC § 6-1.1-24-1.5.

Affected Code Section: Ind. Code § 6-1.1-24-2.2 (deletion)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 10Explanation: Repeals a reference to elements to be included in a notice required under IC § 6-1.1-24-2. Affected Code Section: Ind. Code § 6-1.1-24-2.3 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 11Explanation: Requires the executive of the city, county or town that has jurisdiction over the property to send notice to any person with a substantial property interest of record in a property before a property is certified as vacant or abandoned under IC § 6-1.1-24-1.5, if notice was not provided under IC § 36-7-37. The notice under this section must include certain information related to any potential tax sale. Eliminates reference to the right of redemption after a tax sale regarding a property that was declared vacant or abandoned. Provides that, to prevent the sale of vacant or abandoned property, any owner must pay all delinquent taxes and special assessments prior to the date of the tax sale.

Affected Code Section: Ind. Code § 6-1.1-24-3 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 450 § 1Explanation: Provides that if properties are not sold at an initial tax sale, the county auditor may, with respect to those properties, publish an abridged tax sale notice for any subsequent tax sales. The abridged tax sale notice may omit the description of specific properties eligible for sale if the notice provides a statement that the descriptions for those properties are available either online or in printed form upon request.

Affected Code Section: Ind. Code § 6-1.1-24-3 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 12Explanation: Provides that the notice of tax sale requirements imposed by this section do not apply to vacant or



abandoned real property on the list prepared by the county auditor pursuant to IC § 6-1.1-24-1.5.

Affected Code Section: Ind. Code § 6-1.1-24-4 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 13Explanation: Provides that the notice of tax sale requirements imposed by this section do not apply to vacant or abandoned real property on the list prepared by the county auditor pursuant to IC § 6-1.1-24-1.5.

Affected Code Section: Ind. Code § 6-1.1-24-4.7 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 15Explanation: Provides that at a hearing prior to a tax sale provided by this section, the court shall determine if properties certified under IC § 6-1.1-24-1.7 are unsuitable for tax sale. The court may determine the properties unsuitable for tax sale if the property contains hazardous waste or another environmental hazard, or has unsafe building conditions for which the cost of abatement or remediation will exceed the fair market value of the property. Provides procedures for disposing the property by the county executive if a property is deemed not suitable for tax sale. Adds notice requirements for persons with a substantial interest of record in a property.

Affected Code Section: Ind. Code § 6-1.1-24-5 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 16Explanation: Eliminates the right of redemption after a sale of real property on the vacant and abandoned property list prepared by the county auditor under IC § 6-1.1-24-1.5.

Affected Code Section: Ind. Code § 6-1.1-24-5.1 (amendment)Effective Date: July 1, 2015Enacted By: Senate Bill 415 § 17Explanation: Provides that to be eligible

to bid on a parcel of real property at a tax sale, an entity must be registered with the Secretary of State and in good standing. If the property is purchased by an entity or person that is ineligible to bid, provides the procedure for forfeiture of the property under certain circumstances. However, the county treasurer retains the discretion to decline to forfeit the sale of the property because of inadvertence or mistake, lack of actual knowledge by the bidder, substantial harm to other parties with interests in the tract or item of real property, or other substantial reasons.

Affected Code Section: Ind. Code § 6-1.1-24-13Effective Date: Jan. 1, 2015Enacted By: Senate Bill 415 § 21Explanation: Provides that if the minimum sale price is not received for a property that is on the list of abandoned and vacant property prepared under IC § 6-1.1-24-1.5, the executive of the city, county or town who certified the property may request that the county auditor execute and deliver a deed for the property to the executive.

Affected Code Section: Ind. Code § 6-1.1-25-0.5 (addition)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 22Explanation: Provides that IC Chapter 6-1.1-25 does not apply to vacant or abandoned real property on the list prepared by the county auditor under IC § 6-1.1-24-1.5 unless the highest bid is under the minimum bid and the county auditor executes and delivers a deed for the real property to the executive of a county, city or town under IC § 6-1.1-24-13(c). Eliminates the right of redemption under IC Chapter 6-1.1-25 after its sale under IC Chapter 6-1.1-24 if the property was on the vacant and abandoned property list prepared by the auditor pursuant to IC § 6-1.1-24-1.5.

Affected Code Section: Ind. Code § 6-1.1-25-4 (amendment)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 23

Explanation: Eliminates reference to the right of redemption under IC Chapter 6-1.1-25 for properties on the vacant and abandoned property list prepared by the auditor pursuant to IC § 6-1.1-24-1.5. Provides that the period for redemption after the sale of property that was not offered for sale under IC § 6-1.1-24-4.7(j) is 120 days after the conclusion of the tax sale at which the property was not offered.

Affected Code Section: Ind. Code § 6-1.1-25-4.8 (addition)Effective Date: Jan. 1, 2015 (retroactive)Enacted By: Senate Bill 415 § 25Explanation: Requires that within 90 days after the conclusion of the tax sale, the county auditor must provide notice to each person with a substantial property interest of record in a property that was not offered for sale in the tax sale under IC § 6-1.1-24-4.7(j). Among other requirements, the notice must include that the property was not offered at the tax sale pursuant to IC § 6-1.1-24-4.7(j), that the person has 120 days from the conclusion of the tax sale at which the property was not offered for sale to redeem the property, and that the property may be disposed of by the county executive as provided in IC Chapter 6-1.1-24.

Affected Code Section: Ind. Code § 6-1.1-36-18 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 436 §17Explanation: Permits a fiscal body of a county to adopt an ordinance to allow the county, the political subdivisions within the county, and local agencies within the county to prescribe a uniform property tax disclosure form. The fiscal body may require that this form be filed by a taxpayer applying for a property tax exemption, a property tax deduction, a zoning change, a zoning variance, a building permit, or any other locally issued license or permit to submit a uniform property tax disclosure form. The form must include information identifying the parcel and a verified statement under



penalties of perjury regarding property tax delinquencies and may require any other information necessary to determine whether the person has a delinquent tax liability on parcels located in the county.

Affected Code Section: Ind. Code § 6-1.1-37-14 (addition)Effective Date: Upon PassageEnacted By: Senate Bill 436 § 19Explanation: This section applies only to a refund for a property resulting from a real property tax assessment appeal for the property for the 2014 assessment date or any prior assessment date. If a taxpayer is owed one hundred thousand dollars ($100,000) or more as the result of a real property tax assessment appeal, the auditor of the county in which the property is located may, instead of a refund, elect to apply credits in equal installments to future property tax installments for the property over a period of not more than five years. The auditor also has the discretion to accelerate credits or to provide a partial refund within the five year period. Application Note: Previously, the taxpayer would receive a refund check with interest applied. Now they may receive credits on future tax installments.

Affected Code Section: Ind. Code § 6-1.5-3-4.5 (addition)Effective Date: Upon Passage Enacted By: Senate Bill 436 § 21Explanation: Provides that in a narrow set of circumstances the IBTR shall recommend that the parties settle or mediate any case before the board as of May 1, 2015, that has not yet received a hearing.

Affected Code Section: Ind. Code § 20-46-4-10.5 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 41Explanation: Provides that for the New Durham Township School Corporation and the North Vermillion Community School Corporation, the superintendent may submit a petition to the Department of Local Government Finance requesting

an increase in the maximum permissible ad valorem property tax levy for the school corporation’s transportation fund. Any increase is subject to certain limitations.

Local Taxation(Continued from page 11.)

Affected Code Section: Ind. Code § 6-3.5-6-24 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 39Explanation: Eliminates the county option income tax credit for elderly persons with a total disability.

Affected Code Section: Ind. Code § 6-3.5-7-5 (amendment)Effective Date: Upon PassageEnacted By: House Bill 1472 § 31Explanation: Provides limitations for Tipton, Rush and Greene counties with respect to the aggregate sum of any county economic development income tax rates and county adjusted gross income tax rates that may be imposed.

Affected Code Section: Ind. Code § 6-3.5-7-9 (deletion)Effective Date: Jan. 1, 2016Enacted By: Senate Bill 441 § 40Explanation: Eliminates the county economic development income tax credit for elderly persons with a total disability.

Affected Code Section: Ind. Code Chapter 6-9-45 (addition)Effective Date: July 1, 2015Enacted By: House Bill 1044 § 1Explanation: Authorizes the fiscal body of the town of Rockville to enact an ordinance that imposes a food and beverage tax on certain specified types of transactions. Any tax imposed by the town of Rockville under this chapter may not exceed one percent (1%) of the gross retail income received in those certain specified types of transactions.

Affected Code Section: Ind. Code Chapter 6-9-47.5 (addition)Effective Date: July 1, 2015

Enacted By: House Bill 1044 § 2Explanation: Authorizes the fiscal body of Orange County to enact an ordinance that imposes a food and beverage tax on certain specified types of transactions. Any tax imposed by Orange County under this chapter may not exceed one percent (1%) of the gross retail income received in those certain specified types of transactions.

Affected Code Section: Non-Code Section (addition)Effective Date: Upon PassageEnacted By: House Bill 1044 § 3Explanation: Encourages the legislative council to assign to the appropriate study committee the topic of whether a uniform food and beverage tax should be enacted into law to allow all local governments to adopt such a tax. If the topic is assigned to a study committee, said committee must issue a report to the legislative council by Nov. 1, 2015

Tax Administration(Continued from page 13.)

Affected Code Section: Ind. Code § 6-8.1-8-2 (amendment) Effective Date: July 1, 2015Enacted By: House Bill 1472 § 38Explanation: Provides to the Commissioner of the IDOR the discretionary authority to release a judgment and expunge a tax warrant if he or she determines that doing so is in the best interest of the state. Requires the department to promulgate rules to define the circumstances of when expungement of the tax warrant is in the best interest of the state, as well as the process by which a taxpayer requests the expungement of a tax warrant.

Affected Code Section: Ind. Code § 6-8.1-9-1 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 39Explanation: With regard to refund requests, provides a procedural framework for the IDOR’s administration of protest hearings and requests for



rehearings. A taxpayer now has 60 days from the date the refund denial is mailed to file a written protest and request a hearing. After conducting a hearing on a protest and issuing either a memorandum of decision or order denying a refund, a person that disagrees with any part of the IDOR’s decision has 30 days from the date on which the memorandum of decision or order denying a refund is issued by the IDOR to request a rehearing. Further provides that the taxpayer and IDOR may, by written agreement, mutually extend the 90-day period that the taxpayer has to appeal a departmental decision to the Tax Court, but in no case can the extension be more than 90 days. Provides that if a taxpayer’s federal taxable income, federal adjusted gross income, or federal income tax liability for a taxable year is modified by the IRS, and the modification results in a reduction of the tax legally due, the date by which a taxpayer must file a claim for refund with the IDOR is the later of either (a) three years after the latter of the due date of the return or the date of payment, or (b) the date that is 180 days after the date of the modification or alteration by the IRS as provided for in IC §§ 6-3-4-6(c), 6-3-4-6(d), 6-5.5-6-6(c), or 6-5.5-6-6(d).

Affected Code Section: Ind. Code § 6-8.1-9-2 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 40Explanation: Provides guidance as to when interest begins to accrue in various circumstances. An excess tax payment that is not refunded or credited against a current or future tax liability within 90 days after the date the refund claim is filed, the date the tax payment was due, or the date the tax was paid, whichever is latest, accrues interest from either (1) the date the refund claim is filed, if the refund claim is filed before July 1, 2015; or (2) for a refund claim filed after June 30, 2015, the latest of the date the tax payment was due, the date the tax was paid, or July 1, 2015. Application Note: In the past, interest

on refunds not paid out within 90 days started to accrue based on the date the refund claim was filed. By contrast, interest on assessments begins to accrue based on the due date of the liability. This bill brings the dates closer between the start date of when interest accrues on refunds vs. assessments.

Affected Code Section: Ind. Code § 6-8.1-10-12 (amendment)Effective Date: July 1, 2015Enacted By: House Bill 1001 § 94Explanation: Provides that if a taxpayer has a tax liability that was due and payable for a tax period ending before Jan. 1, 2013, and the taxpayer does not participate in the IDOR’s amnesty program as established under IC § 6-8.1-3-17(c) despite its eligibility to do so, an additional penalty with respect to that tax liability is imposed that effectively doubles the penalty that the IDOR imposes as to that tax liability.

Affected Code Section: Ind. Code § 33-38-9-11 (addition)Effective Date: July 1, 2015Enacted By: Senate Bill 423 § 8Explanation: Requires the Indiana judicial center to review the workload and backlog of cases in the Indiana Tax Court and submit a report to the legislative council before Dec. 1, 2016.

Affected Code Section: Non-Code Section (addition)Effective Date: July 1, 2015Enacted By: House Bill 1472 § 44Explanation: Requires the Legislative Services Agency (LSA) to conduct a study to determine the statutory tax relief realized by C-corporations for calendar years 2011 to 2014, as well as the statutory tax relief anticipated to be realized by C-corporations for calendar years 2015 to 2021. Thereafter, but no later than Dec. 31, 2016, LSA must submit a report of the study to the legislative council and to the chairperson and ranking minority member of the house committee on ways and means and the senate committee on tax and fiscal policy.

Affected Code Section: Non-Code Section (addition)Effective Date: Upon PassageEnacted By: House Bill 1472 § 45Explanation: Requires the IDOR before Dec. 31, 2016, to conduct a study of the IDOR’s current information systems, develop a plan for modernizing the IDOR’s information systems, and submit a report of the study and the plan developed to the budget committee and the legislative council.

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