Bill Text: IN HB1331 | 2012 | Regular Session | Introduced
Bill Title: Companion animal sterilization program.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Commerce, Small Business and Economic Development [HB1331 Detail]
Download: Indiana-2012-HB1331-Introduced.html
Citations Affected: IC 6-3.1-34; IC 6-8.1; IC 15-16-2-36; IC 15-19-7;
IC 15-20.
Synopsis: Companion animal sterilization program. Establishes the
Indiana companion animal sterilization fund (fund) and the Indiana
companion animal sterilization program (program) under the
administration of the board of veterinary medical examiners to
reimburse veterinary services providers who participate in the program
for furnishing spaying or neutering services on a dog or a cat owned or
harbored by a Medicaid recipient at no charge to the Medicaid
recipient. Adds the fund as a charitable purpose to which an individual
may choose to give all or part of the individual's income tax refund.
Imposes a fee of $50 on the sale of an unsterilized cat or dog at retail.
Imposes a fee of $3 on each rabies vaccination performed by a
veterinary services provider. Increases the fee collected from
distributors of pet food paid annually for inspection of pet food sold in
packages of 10 pounds or less from $50 to $80. Provides a tax credit
against state tax liability to veterinary services providers who
participate in the program and perform both: (1) a rabies vaccination;
and (2) spay or neuter services; on a companion animal owned or
harbored by a Medicaid recipient. Provides that the fee imposed on
sales of unsterilized cats and dogs at retail, the fee imposed on rabies
vaccinations performed by veterinarians, and the increases in the pet
food inspection fee are paid into the fund. Appropriates money in the
fund, other than money reserved for refunds, that is not otherwise
appropriated.
Effective: July 1, 2012; January 1, 2013.
January 10, 2012, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
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A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals and to make an appropriation.
Chapter 34. Selected Veterinary Services Tax Credit
Sec. 1. This chapter applies only to taxable years beginning after December 31, 2012.
Sec. 2. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 3. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(2) IC 6-5.5 (the financial institutions tax); and
(3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
Sec. 4. As used in this chapter, "taxpayer" means a person, corporation, partnership, or other entity that has any state tax liability.
Sec. 5. (a) As used in this section, "companion animal" has the meaning set forth in IC 15-20-4-2.
(b) As used in this section, "veterinary services provider" has the meaning set forth in IC 15-20-6-4.
(c) Each taxable year, a veterinary services provider who participates in the Indiana companion animal sterilization program under IC 15-20-4 is entitled to a credit against state tax liability for each treatment of a companion animal owned or harbored by an individual eligible to receive services under the Indiana companion animal sterilization program that includes:
(1) a rabies vaccination; and
(2) spaying or neutering services.
(d) For each taxable year, the amount of the credit provided by subsection (c) is:
(1) the number of companion animals owned or harbored by an individual eligible to receive services under the Indiana companion animal sterilization program for which a veterinary services provider has performed the combination of treatments specified in subsection (c) during the taxable year; multiplied by
(2) fifty dollars ($50).
(e) If a veterinarian performs the combination of treatments specified in subsection (c) for a companion animal in the context of an employment, ownership, or contractual relationship with a veterinary clinic, the performance of the combination of treatments specified in subsection (c) for the companion animal is attributable to the veterinary clinic and not the veterinarian individually.
Sec. 6. (a) If a pass through entity does not have state tax liability for a taxable year but is otherwise entitled to the tax credit provided by this chapter, each shareholder, partner, or member of the pass through entity is entitled to a share of the tax credit equal to:
(1) the amount of the tax credit determined for the pass through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
(b) A share of a tax credit allocated under subsection (a) is in
addition to a tax credit to which a shareholder, partner, or member
of a pass through entity is otherwise entitled under this chapter.
Sec. 7. (a) If the credit provided by this chapter exceeds a
taxpayer's state tax liability for the taxable year for which the
credit is first claimed, the excess may be carried forward to
succeeding taxable years and used as a credit against the
taxpayer's state tax liability during those taxable years. Each time
the credit is carried forward to a succeeding taxable year, the
credit is to be reduced by the amount that was used as a credit
during the immediately preceding taxable year. The credit
provided by this chapter may be carried forward and applied to
succeeding taxable years for not more than five (5) taxable years
following the first year for which the credit is claimed.
(b) A taxpayer is not entitled to a carryback or refund of any
unused credit under this chapter.
Sec. 8. To receive the tax credit under this chapter, a taxpayer
must claim the credit on the taxpayer's annual state tax return or
returns in the manner prescribed by the department.
(IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax
(IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum
severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
various food and beverage taxes (IC 6-9); the county admissions tax
(IC 6-9-13 and IC 6-9-28); the regional transportation improvement
income tax (IC 8-24-17); the oil inspection fee (IC 16-44-2); the
emergency and hazardous chemical inventory form fee (IC 6-6-10); the
penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the
fees and penalties assessed for overweight vehicles (IC 9-20-4 and
IC 9-30); the underground storage tank fee (IC 13-23); the solid waste
management fee (IC 13-20-22); the companion animal sterilization
service fee (IC 15-20-5); the companion animal rabies vaccination
fee (IC 15-20-6); and any other tax or fee that the department is
required to collect or administer.
(b) Every husband and wife (other than nonresidents) who file a joint income tax return and who are entitled to a refund from the
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to one (1) or more of the
nongame fund. In the event that the husband and wife designate that a
certain amount shall be paid over to the nongame fund and funds
described in subsection (c). If the refund to which they a husband
and wife are entitled is less than the total amount designated such
designation shall mean that to be paid over to one (1) or more of the
funds described in subsection (c), all of the refund to which they the
husband and wife are entitled shall be paid over to the nongame fund.
designated funds, but in an amount or amounts reduced
proportionately for each designated fund. If a husband and wife
designate all of the refund to which the husband and wife are
entitled to be paid over to one (1) or more of the funds described in
subsection (c) without designating specific amounts, the refund to
which the husband and wife are entitled shall be paid over to each
fund described in subsection (c) in an amount equal to the refund
divided by the number of funds described in subsection (c),
rounded to the lowest cent, with any part of the refund remaining
due to the effects of rounding to be deposited in the nongame fund.
(c) Designations under subsection (a) or (b) may be directed
only to the following funds:
(1) The nongame fund.
(2) The Indiana companion animal sterilization fund.
(c) (d) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the following:
(1) The nongame and endangered species program. which is The
description of this program shall be written in cooperation with
the department of natural resources.
(2) The Indiana companion animal sterilization fund. The
description of the program shall be written in cooperation
with the Indiana board of veterinary medical examiners.
(e) The department shall interpret a designation on a return
under subsection (a) or (b) that is illegible or otherwise not
reasonably discernible to the department as if the designation had
not been made.
(1) the state chemist, under this chapter, IC 15-15-2, and IC 15-16-4;
(2) the state chemist, under IC 15-19-7-24 and
IC 15-19-7-30(a); and
(2) (3) the state seed commissioner under IC 15-15-1;
shall be paid to the treasurer of Purdue University. The funds shall be
administered by the board of trustees of Purdue University.
(b) The pet food and specialty pet food annual inspection fee
imposed under IC 15-19-7-30(b) shall be distributed as follows:
(1) Fifty dollars ($50) of each pet food and specialty pet food
annual inspection fee collected under IC 15-19-7-30(b) shall
be paid to the treasurer of Purdue University and
administered by the board of trustees of Purdue University.
(2) Thirty dollars ($30) of each pet food and specialty pet food
annual inspection fee collected under IC 15-19-7-30(b) shall
be paid to the treasurer of state for further credit to the
Indiana companion animal sterilization fund.
(b) (c) On approval of the governor and the budget agency, the
board of trustees may spend the excess funds received under
subsections (a) and (b)(1) for the construction, operation,
rehabilitation, and repair of buildings, structures, or other facilities
used for:
(1) carrying out the purposes of those chapters referred to in
subsection (a) under which the fees are collected; or
(2) the agricultural programs authorized by law and in support of
the purposes of the chapters referred to in subsection (a).
(1) No fee shall be paid on a commercial feed if the payment has been made by a previous distributor.
(2) No fee shall be paid on a custom mixed feed if the inspection fee has been paid on all of the commercial feeds that are ingredients of the custom mixed feed.
(3) On commercial feeds that contain ingredients on which the inspection fee has already been paid, credit shall be given for that payment.
(4) The minimum inspection fee is five dollars ($5) per quarter if a quarterly feed tonnage report is required under section 31 of this chapter.
(b) In the case of a pet food or a specialty pet food that is distributed in Indiana in packages of ten (10) pounds or less, an annual inspection
fee of fifty eighty dollars ($50) ($80) shall be paid instead of the
tonnage inspection fee specified in subsection (a).
(b) A resident of Indiana who only manufactures and distributes custom mixed commercial feeds and has met the requirements of section 30 of this chapter is exempt from filing quarterly feed tonnage reports.
(c) A distributor who is subject to the inspection fees for small packaged pet and specialty pet foods distributed in containers of ten (10) pounds or less under section 30 of this chapter shall do the following:
(1) Before beginning distribution, file with the state chemist a listing of small packaged pet and specialty pet foods to be distributed in Indiana in containers of ten (10) pounds or less, on forms provided by the state chemist. The listing under this subdivision shall be renewed annually before January 1 of each year and is the basis for the payment of the annual inspection fee
(2) If the annual renewal of the listing is not received before January 16 or if an unlisted product is distributed, pay a late filing fee of ten dollars ($10) per product in addition to the normal charge for the listing. The late filing fee under this subdivision is in addition to any other penalty under this chapter.
1, 2012]:
Chapter 4. Indiana Companion Animal Sterilization Program
Sec. 1. As used in this chapter, "board" refers to the Indiana
board of veterinary medical examiners established by
IC 25-38.1-2-1.
Sec. 2. As used in this chapter, "companion animal" means a
dog or cat.
Sec. 3. As used in this chapter, "fund" refers to the Indiana
companion animal sterilization fund established by section 5 of this
chapter.
Sec. 4. As used in this chapter, "veterinary services provider"
means:
(1) a veterinarian (as defined in IC 15-17-2-102), if the
veterinarian provides veterinary services as a sole proprietor;
or
(2) a professional services corporation or other business entity
authorized under Indiana law to provide veterinary services,
if a veterinarian provides veterinary services through the
veterinarian's affiliation with the professional services
corporation or other business entity.
Sec. 5. (a) The Indiana companion animal sterilization fund is
established for the purpose of receiving money from the sources
listed in subsection (b) for reimbursement of veterinary services
providers that perform spaying or neutering services of companion
animals on behalf of Medicaid recipients under this chapter. The
board shall administer the fund.
(b) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Donations.
(3) Federal grants or other federal appropriations.
(4) Fee and penalty revenue distributed to the fund under
IC 15-16-2-36, IC 15-20-5, IC 15-20-6, and any other law.
(5) Interest and other earnings derived from investment of
money in the fund.
(6) Money reserved for refund claims.
(c) Expenses of administering the fund shall be paid from money
in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 6. Any unappropriated money in the fund not reserved for
refund claims is annually appropriated to the board for use by the
board in carrying out the purpose of the fund.
Sec. 7. (a) The board shall conduct a program to reimburse
veterinary services providers that perform spaying or neutering
services for a companion animal owned or harbored by a Medicaid
recipient at no charge to the Medicaid recipient.
(b) The board may contract with one (1) or more
nongovernmental entities, selected as the result of a competitive
process, to perform either or both of the following services:
(1) Contracting with veterinary services providers who wish
to participate in the program described in subsection (a).
(2) Administering the fund and processing reimbursement
claims by veterinary services providers under the program
described in subsection (a).
(c) If the board contracts with an organization selected under
subsection (b) to administer the fund, the organization shall
administer the fund in accordance with the requirements of this
chapter. An organization selected to administer the fund under
subsection (b) may not expend more than fifteen percent (15%) of
the fund annually for administrative costs.
Sec. 8. (a) Before January 1, 2014, the maximum reimbursement
amount under the program described in section 7 of this chapter
for the performance of a spaying or neutering service by a
veterinary services provider for a companion animal owned or
harbored by a Medicaid recipient is fifty dollars ($50). After
December 31, 2013, the maximum reimbursement changes in
accordance with subsection (b).
(b) Beginning January 1, 2014, and on each January 1
thereafter, the board shall determine the maximum reimbursement
amount applicable throughout the ensuing calendar year. The
amount of the maximum reimbursement amount is determined in
STEP THREE of the following STEPS:
STEP ONE: Divide:
(A) the Consumer Price Index for All Urban Consumers
(CPI-U) for the Midwest Region for all items as of
December 1 of the immediately preceding year, as
published by the Bureau of Labor Statistics of the United
States Department of Labor; by
(B) the Consumer Price Index for All Urban Consumers
(CPI-U) for the Midwest Region for all items as of
December 1, 2012, as published by the Bureau of Labor
Statistics of the United States Department of Labor.
STEP TWO: Multiply:
(A) the STEP ONE result; by
(B) fifty dollars ($50).
STEP THREE: Round the STEP TWO result to the nearest
dollar.
The board shall publish the maximum reimbursement amount
determined under this subsection on the board's Internet web site
promptly after computing this amount.
Sec. 9. The board may adopt rules under IC 4-22-2 for the
implementation of the reimbursement program described in
sections 7 and 8 of this chapter.
Chapter 5. Companion Animal Sterilization Service Fee
Sec. 1. As used in this chapter, "companion animal" has the meaning set forth in IC 15-20-4-2.
Sec. 2. As used in this chapter, "companion animal sterilization service fee" refers to the fee imposed by section 5 of this chapter.
Sec. 3. As used in this chapter, "retail merchant" has the meaning set forth in IC 6-2.5-1-8.
Sec. 4. As used in this chapter, "retail transaction" has the meaning set forth in IC 6-2.5-1-2(a).
Sec. 5. A person who purchases an unsterilized companion animal in a retail transaction is liable for a fee in the amount of fifty dollars ($50) for each unsterilized companion animal acquired in the retail transaction.
Sec. 6. A retail merchant who sells an unsterilized companion animal in a retail transaction shall collect the fee imposed by section 5 of this chapter from the purchaser.
Sec. 7. The fee imposed by section 5 of this chapter is excluded from the gross retail income (as defined in IC 6-2.5-1-5) received by a retail merchant in a retail transaction.
Sec. 8. For each reporting period, a retail merchant is liable to the state for the amount of:
(1) the product of:
(A) the number of unsterilized companion animals sold in a retail transaction by the retail merchant during the reporting period; multiplied by
(B) the amount of the fee imposed by section 5 of this
chapter; minus
(2) any collection allowance the retail merchant may retain
under section 10 of this chapter.
Sec. 9. A retail merchant shall file returns for and remit the
companion animal sterilization fee electronically through the
department's online tax filing system with the same frequency that
the retail merchant is required to file returns for and remit state
gross retail and use taxes under IC 6-2.5-6.
Sec. 10. (a) In order to compensate retail merchants for
collecting and timely remitting the companion animal sterilization
service fee, every retail merchant that timely remits companion
animal sterilization service fees as required under section 9 of this
chapter is entitled to deduct and retain a collection allowance from
the amount of those fees otherwise required to be remitted under
this chapter.
(b) The allowance equals:
(1) the retail merchant's liability for companion animal
sterilization service fees determined under section 8(1) of this
chapter; multiplied by
(2) the collection allowance percentage applicable to the retail
merchant under IC 6-2.5-6-10(b).
(c) The amount of companion animal sterilization service fees
collected by a retail merchant during a calendar year is excluded
from the determination of the retail merchant's collection
allowance percentage under IC 6-2.5-6-10(b).
Sec. 11. The companion animal sterilization service fee is a listed
tax for purposes of IC 6-8.1. The department of state revenue shall
administer the fee in accordance with IC 6-8.1.
Sec. 12. The department of state revenue shall deposit
companion animal sterilization service fee revenue that the
department receives in the Indiana companion animal sterilization
fund.
Chapter 6. Companion Animal Rabies Vaccination Fee
Sec. 1. As used in this chapter, "companion animal" has the meaning set forth in IC 15-20-4-2.
Sec. 2. As used in this chapter, "companion animal rabies vaccination fee" refers to the fee imposed by section 5 of this chapter.
Sec. 3. As used in this chapter, "veterinarian" has the meaning
set forth in IC 15-17-2-102.
Sec. 4. As used in this chapter, "veterinary services provider"
has the meaning set forth in IC 15-20-4-4.
Sec. 5. A person who obtains a rabies vaccination for a
companion animal from a veterinary services provider is liable for
a fee in the amount of three dollars ($3) for each rabies vaccination
obtained.
Sec. 6. A veterinary services provider who vaccinates a
companion animal shall collect the companion animal rabies
vaccination fee at the time the rabies vaccination is administered
from the person that obtained the rabies vaccination for a
companion animal.
Sec. 7. Companion animal rabies vaccination fees are excluded
from the gross retail income (as defined in IC 6-2.5-1-5) and
adjusted gross income (as defined in IC 6-3-1-3.5) of a veterinary
services provider.
Sec. 8. For each reporting period, a veterinary services provider
is liable to the state for the amount of:
(1) the product of:
(A) the number of companion animals the veterinary
services provider vaccinates for rabies during the
reporting period; multiplied by
(B) the amount of the companion animal rabies vaccination
fee specified in section 5 of this chapter; minus
(2) any collection allowance the veterinary services provider
may retain under section 10 of this chapter.
Sec. 9. (a) A veterinary services provider liable for collecting
companion animal rabies vaccination fees shall file a return for
each calendar month and pay the companion animal rabies
vaccination fees the veterinary services provider collects during
that month. A veterinary services provider shall file the veterinary
services provider's return with the department of state revenue
and make the veterinary services provider's payment of fees
collected for that month to the department of state revenue not
more than thirty (30) days after the end of that month. The
veterinary services provider shall file returns for and remit the
companion animal rabies vaccination fee through the department's
online tax filing system.
(b) Instead of the twelve (12) monthly reporting periods
required by subsection (a), the department of state revenue may
permit a veterinary services provider to divide a year into a
different number of reporting periods, including a single reporting
period of one (1) calendar year. The return and payment for each
reporting period are due not more than thirty (30) days after the
end of the period.
Sec. 10. (a) In order to compensate a veterinary services
provider for collecting and timely remitting the companion animal
rabies vaccination fee, every veterinary services provider that
timely remits companion animal rabies vaccination fees as
required under section 9 of this chapter is entitled to deduct and
retain a collection allowance from the amount of those fees
otherwise required to be remitted under this chapter.
(b) The allowance equals:
(1) the veterinary services provider's liability for companion
animal rabies vaccination fees determined under section 8(1)
of this chapter; multiplied by
(2) the percentage specified in IC 6-2.5-6-10(b)(1).
Sec. 11. The companion animal rabies vaccination fee is a listed
tax for purposes of IC 6-8.1. The department of state revenue shall
administer the fee in accordance with IC 6-8.1.
Sec. 12. The department of state revenue shall deposit
companion animal rabies vaccination fee revenue that the
department receives in the Indiana companion animal sterilization
fund.