Bill Text: IN HB1191 | 2011 | Regular Session | Introduced
Bill Title: Taxation of civil service annuities.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2011-01-24 - Representatives Burton and Kersey added as coauthors [HB1191 Detail]
Download: Indiana-2011-HB1191-Introduced.html
Introduced Version
HOUSE BILL No. 1191
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3-2.
Synopsis: Taxation of civil service annuities. Increases the civil
service annuity income tax deduction from $2,000 to $5,000.
Establishes a subsequent trigger date to increase the deduction from
$5,000 to $13,000 over a three year phase-in period. Provides that the
deduction is available to a surviving spouse. Repeals the current civil
service annuity income tax deduction provision.
Effective: January 1, 2011 (retroactive).
Clere, Koch
January 10, 2011, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 117th General Assembly (2011)
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
HOUSE BILL No. 1191
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-3-2-3.8; (11)IN1191.1.1. -->
SECTION 1. IC 6-3-2-3.8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2011 (RETROACTIVE)]: Sec. 3.8. (a) As used in this
section, "general revenue fund" refers to the following:
(1) Counter-cyclical revenue and economic stabilization fund (IC 4-10-18-2).
(2) State general fund, including the Medicaid contingency and reserve account of the state general fund (IC 4-12-1-15.5).
(3) State tuition reserve fund (IC 4-12-1-15.7).
(b) As used in this section, "state general fund appropriations" refers to the sum of the specific amounts appropriated by a budget bill from the state general fund for expenditure in a particular state fiscal year, excluding transfers to the income tax reduction reserve fund. The term includes any amount appropriated in a budget bill for a period exceeding one (1) state fiscal year that is allocated by the budget agency to a particular state fiscal year in a list of appropriations prepared under IC 4-12-1-12.
(c) As used in this section, "surplus date" means the first state fiscal year that ends after 2011 in which the amount by which the year-end general revenue fund balance for the immediately preceding state fiscal year exceeds ten percent (10%) of the general revenue fund appropriations for the current state fiscal year as certified by the state auditor under subsection (g).
(d) Except as provided by subsection (f), for a taxable year beginning after 2010, and for each year until the end of the calendar year containing the surplus date, an individual or the individual's surviving spouse is entitled to an adjusted gross income tax deduction each taxable year equal to the remainder of:
(1) the first five thousand dollars ($5,000) received by the individual or the individual's surviving spouse during the taxable year from a federal civil service annuity and included in adjusted gross income under Section 62 of the Internal Revenue Code; minus
(2) the total amount of Social Security benefits and railroad retirement benefits received by the individual or the individual's surviving spouse during the taxable year.
(e) Except as provided in subsection (f), beginning with the first calendar year immediately after the surplus year, an individual or the individual's surviving spouse is entitled to an adjusted gross income tax deduction each taxable year equal to the remainder of:
(1) for a taxable year that begins during the calendar year after the surplus year, the first eight thousand dollars ($8,000);
(2) for a taxable year that begins during the second calendar year after the surplus year, the first eleven thousand dollars ($11,000); and
(3) for a taxable year that begins in the third calendar year after the surplus year and thereafter, the first thirteen thousand dollars ($13,000);
minus the total amount of Social Security benefits and railroad retirement benefits received by the individual or the individual's surviving spouse during the taxable year.
(f) An individual is entitled to the deduction provided by this section only if the individual is at least sixty-two (62) years of age before the end of the taxable year. This subsection does not apply to the individual's surviving spouse.
(g) The auditor of state, not later than thirty-one (31) days after the end of a state fiscal year after the first state fiscal year that ends after 2011 in which the amount by which the year-end general
(1) Counter-cyclical revenue and economic stabilization fund (IC 4-10-18-2).
(2) State general fund, including the Medicaid contingency and reserve account of the state general fund (IC 4-12-1-15.5).
(3) State tuition reserve fund (IC 4-12-1-15.7).
(b) As used in this section, "state general fund appropriations" refers to the sum of the specific amounts appropriated by a budget bill from the state general fund for expenditure in a particular state fiscal year, excluding transfers to the income tax reduction reserve fund. The term includes any amount appropriated in a budget bill for a period exceeding one (1) state fiscal year that is allocated by the budget agency to a particular state fiscal year in a list of appropriations prepared under IC 4-12-1-12.
(c) As used in this section, "surplus date" means the first state fiscal year that ends after 2011 in which the amount by which the year-end general revenue fund balance for the immediately preceding state fiscal year exceeds ten percent (10%) of the general revenue fund appropriations for the current state fiscal year as certified by the state auditor under subsection (g).
(d) Except as provided by subsection (f), for a taxable year beginning after 2010, and for each year until the end of the calendar year containing the surplus date, an individual or the individual's surviving spouse is entitled to an adjusted gross income tax deduction each taxable year equal to the remainder of:
(1) the first five thousand dollars ($5,000) received by the individual or the individual's surviving spouse during the taxable year from a federal civil service annuity and included in adjusted gross income under Section 62 of the Internal Revenue Code; minus
(2) the total amount of Social Security benefits and railroad retirement benefits received by the individual or the individual's surviving spouse during the taxable year.
(e) Except as provided in subsection (f), beginning with the first calendar year immediately after the surplus year, an individual or the individual's surviving spouse is entitled to an adjusted gross income tax deduction each taxable year equal to the remainder of:
(1) for a taxable year that begins during the calendar year after the surplus year, the first eight thousand dollars ($8,000);
(2) for a taxable year that begins during the second calendar year after the surplus year, the first eleven thousand dollars ($11,000); and
(3) for a taxable year that begins in the third calendar year after the surplus year and thereafter, the first thirteen thousand dollars ($13,000);
minus the total amount of Social Security benefits and railroad retirement benefits received by the individual or the individual's surviving spouse during the taxable year.
(f) An individual is entitled to the deduction provided by this section only if the individual is at least sixty-two (62) years of age before the end of the taxable year. This subsection does not apply to the individual's surviving spouse.
(g) The auditor of state, not later than thirty-one (31) days after the end of a state fiscal year after the first state fiscal year that ends after 2011 in which the amount by which the year-end general
revenue fund balance for the immediately preceding state fiscal
year exceeds ten percent (10%) of the general revenue fund
appropriations for the current state fiscal year, shall certify the
surplus date and shall notify the department.
SOURCE: IC 6-3-2-3.7; (11)IN1191.1.2. -->
SECTION 2. IC 6-3-2-3.7 IS REPEALED [EFFECTIVE JANUARY
1, 2011 (RETROACTIVE)].
SOURCE: ; (11)IN1191.1.3. -->
SECTION 3. An emergency is declared for this act.
