Bill Text: IN HB1149 | 2011 | Regular Session | Introduced
Bill Title: Repeal of valuation method for certain property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-06 - First reading: referred to Committee on Ways and Means [HB1149 Detail]
Download: Indiana-2011-HB1149-Introduced.html
Citations Affected: IC 6-1.1-3-23.
Synopsis: Repeal of valuation method for certain property. Provides
for the expiration of the property tax valuation method for special
integrated steel mill and oil refinery/petrochemical equipment. Repeals
a related noncode provision.
Effective: January 1, 2011 (retroactive).
January 6, 2011, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) "adjusted cost" refers to the adjusted cost established in 50 IAC 4.2-4-4 (as in effect on January 1, 2003);
(2) "depreciable personal property" has the meaning set forth in 50 IAC 4.2-4-1 (as in effect on January 1, 2003);
(3) "integrated steel mill" means a person, including a subsidiary of a corporation, that produces steel by processing iron ore and other raw materials in a blast furnace in Indiana;
(4) "oil refinery/petrochemical company" means a person that produces a variety of petroleum products by processing an annual average of at least one hundred thousand (100,000) barrels of crude oil per day;
(5) "permanently retired depreciable personal property" has the
meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,
2003);
(6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in
effect on January 1, 2003);
(7) "special integrated steel mill or oil refinery/petrochemical
equipment" means depreciable personal property, other than
special tools and permanently retired depreciable personal
property:
(A) that:
(i) is owned, leased, or used by an integrated steel mill or an
entity that is at least fifty percent (50%) owned by an
affiliate of an integrated steel mill; and
(ii) falls within Asset Class 33.4 as set forth in IRS Rev.
Proc. 87-56, 1987-2, C.B. 647; or
(B) that:
(i) is owned, leased, or used as an integrated part of an oil
refinery/petrochemical company or its affiliate; and
(ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS
Rev. Proc. 87-56, 1987-2, C.B. 647;
(8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as
in effect on January 1, 2003); and
(9) "year of acquisition" refers to the year of acquisition
determined under 50 IAC 4.2-4-6 (as in effect on January 1,
2003).
(b) (c) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
IAC 4.2-4-7, a taxpayer may elect to calculate the true tax value of the
taxpayer's special integrated steel mill or oil refinery/petrochemical
equipment by multiplying the adjusted cost of that equipment by the
percentage set forth in the following table:
Year of Acquisition Percentage
1 40%
2 56%
3 42%
4 32%
5 24%
6 18%
7 15%
8 and older 10%
(c) (d) The department of local government finance shall designate
the table under subsection (b) (c) as "Pool No. 5" on the business
personal property tax return.
(d) (e) The percentage factors in the table under subsection (b) (c)
automatically reflect all adjustments for depreciation and obsolescence,
including abnormal obsolescence, for special integrated steel mill or oil
refinery/petrochemical equipment. The equipment is entitled to all
exemptions, credits, and deductions for which it qualifies.
(e) (f) The minimum valuation limitations under 50 IAC 4.2-4-9 do
not apply to special integrated steel mill or oil refinery/petrochemical
equipment valued under this section. The value of the equipment is not
included in the calculation of that minimum valuation limitation for the
taxpayer's other assessable depreciable personal property in the taxing
district.
(f) (g) An election to value special integrated steel mill or oil
refinery/petrochemical equipment under this section:
(1) must be made by reporting the equipment under this section
on a business personal property tax return;
(2) applies to all of the taxpayer's special integrated steel mill or
oil refinery/petrochemical equipment located in the state (whether
owned or leased, or used as an integrated part of the equipment);
and
(3) is binding on the taxpayer for the assessment date for which
the election is made.
The department of local government finance shall prescribe the forms
to make the election beginning with the March 1, 2003, assessment
date. Any special integrated steel mill or oil refinery/petrochemical
equipment acquired by a taxpayer that has made an election under this
section is valued under this section.
(g) (h) If fifty percent (50%) or more of the adjusted cost of a
taxpayer's property that would, notwithstanding this section, be
reported in a pool other than Pool No. 5 is attributable to special
integrated steel mill or oil refinery/petrochemical equipment, the
taxpayer may elect to calculate the true tax value of all of that property
as special integrated steel mill or oil refinery/petrochemical equipment.
The true tax value of property for which an election is made under this
subsection is calculated under subsections (b) (c) through (f). (g).
(i) This section expires January 1, 2013.
