Bill Text: IN HB1337 | 2012 | Regular Session | Introduced
Bill Title: Tax administration.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Ways and Means [HB1337 Detail]
Download: Indiana-2012-HB1337-Introduced.html
Citations Affected: IC 5-11; IC 5-14-3.8-7; IC 5-22-15-20.9; IC 6-1.1;
IC 6-2.5-8-10.1; IC 6-4.1; IC 34-24-1-1; IC 35-43-5-4.4; IC 36-1-12.
Synopsis: Tax administration. Requires for the electronic transmission
of certain governmental information instead of transmitting paper
documents. Provides that the local Indiana business preference applies
to a contract for a purchase made by a political subdivision only if the
political subdivision provides that the preference is applicable to the
purchase. Repeals the local Indiana business preference for public
works projects. Permits a county, city, or town to authorize a 100%
property tax deduction for all personal property or, alternatively, to
grant a tax credit for all property taxes imposed on all personal property
in the county, city, or town. Specifies that personal swimming pools
associated with a homestead qualify for a standard deduction. Defines
the term "common areas" for purposes of the circuit breaker credit law.
Requires out-of-state businesses that have an affiliate or a closely
related business located in Indiana to collect gross retail use taxes on
Indiana sales. Provides for a phase-out of the inheritance tax. Imposes
a Class C felony for sale, purchase, installation, transfer, or possession
of an automated sales suppression device ("zapper") or phantom-ware.
Makes technical changes.
Effective: Upon passage; March 1, 2011 (retroactive); July 1, 2012.
January 10, 2012, 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 state
and local administration.
(b) The department of local government finance may not approve the budget of a political subdivision or a supplemental appropriation for a political subdivision until the political subdivision files an annual report under subsection (a) for the preceding calendar year.
township, or school official, elective or appointive, who is the head of
or in charge of any office, department, board, or commission of the
state or of any county, city, town, or township, and every state, county,
city, town, or township employee or agent who is the head of, or in
charge of, or the executive officer of any department, bureau, board, or
commission of the state, county, city, town, or township, and every
executive officer by whatever title designated, who is in charge of any
state educational institution or of any other state, county, or city
institution, shall during the month of January of each year prepare,
make, and sign a written or printed certified report, correctly and
completely showing the names and business addresses of each and all
officers, employees, and agents in their respective offices, departments,
boards, commissions, and institutions, and the respective duties and
compensation of each, and shall forthwith file said report in the office
of the state examiner of the state board of accounts. The report must
also indicate whether the political subdivision offers a health plan,
a pension, and other benefits to full-time and part-time employees.
However, no more than one (1) report covering the same officers,
employees, and agents need be made from the state or any county, city,
town, township, or school unit in any one year. The certification must
be filed electronically, in the manner prescribed under
IC 5-14-3.8-7.
(b) The department of local government finance may not approve
the budget of a county, city, town, or township or a supplemental
appropriation for a county, city, town, or township until the county,
city, town, or township files an annual report under subsection (a) for
the preceding calendar year.
(1) in which the political subdivision awarding a contract under this article is located; or
(2) that is adjacent to the county described in subdivision (1).
(1) A business whose principal place of business is located in an affected county.
(2) A business that pays a majority of its payroll (in dollar volume) to residents of affected counties.
(3) A business that employs residents of affected counties as a majority of its employees.
(4) A business that makes significant capital investments in the affected counties as defined in rules adopted by the political subdivision.
(5) A business that has a substantial positive economic impact on the affected counties as defined by criteria in rules adopted by the political subdivision.
(1) Five percent (5%) for a purchase expected by the purchasing agency to be less than fifty thousand dollars ($50,000).
(2) Three percent (3%) for a purchase expected by the purchasing agency to be at least fifty thousand dollars ($50,000) but less than one hundred thousand dollars ($100,000).
(3) One percent (1%) for a purchase expected by the purchasing agency to be at least one hundred thousand dollars ($100,000).
However, to apply a price preference authorized by this subsection to a purchase of supplies, the political subdivision must state in the solicitation for supplies that the political subdivision will apply this section.
(1) State in the business's bid that the business claims the preference provided by this section.
(2) Provide the following information to the purchasing agency:
(A) The location of the business's principal place of business. If the business claims the preference as a local Indiana business described in subsection
explaining the reasons the business considers the location
named as the business's principal place of business.
(B) The amount of the business's total payroll and the amount
of the business's payroll paid to residents of affected counties.
(C) The number of the business's employees and the number
of the business's employees who are residents of affected
counties.
(D) If the business claims the preference as a local Indiana
business described in subsection (c)(4), (b)(4), a description
of the capital investments made in the affected counties and a
statement of the amount of those capital investments.
(E) If the business claims the preference as a local Indiana
business described in subsection (c)(5), (b)(5), a description
of the substantial positive economic impact the business has
on the affected counties.
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract; recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence;
(iii) the individual is entitled to occupy as a tenant-stockholder (as defined in 26 U.S.C. 216) of a cooperative housing corporation (as defined in 26 U.S.C. 216); or
(iv) is a residence described in section 17.9 of this chapter that is owned by a trust if the individual is an individual described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not
exceeding one (1) acre, that immediately surrounds that
dwelling.
Except as provided in subsection (k), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. The
deduction provided by this section applies to property taxes first due
and payable for an assessment date only if an individual has an interest
in the homestead described in subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the individual or entity qualifying for the
deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) forty-five thousand dollars ($45,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the homestead is
located. The statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States Social Security Administration for the purposes of the issuance of a Social Security card and Social Security number; or
(ii) that they use as their legal names when they sign their names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States Social Security Administration for the purposes of the issuance of a Social Security card and Social Security number; or
(ii) that they use as their legal names when they sign their names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security number and the last five (5) digits of the Social Security number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) do not have a Social Security number, any of the following for that individual:
(i) The last five (5) digits of the individual's driver's license number.
(ii) The last five (5) digits of the individual's state identification card number.
(iii) If the individual does not have a driver's license or a state identification card, the last five (5) digits of a control number that is on a document issued to the individual by the federal government and determined by the department of local government finance to be acceptable.
If a form or statement provided to the county auditor under this section, IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or part or all of the Social Security number of a party or other number described in subdivision (4)(B) of a party, the telephone number and the Social Security number or other number described in subdivision (4)(B) included are confidential. The statement may be filed in person or by mail. If the statement is mailed, the mailing must be postmarked on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed. With
respect to real property, the statement must be completed and dated in
the calendar year for which the person desires to obtain the deduction
and filed with the county auditor on or before January 5 of the
immediately succeeding calendar year. With respect to a mobile home
that is not assessed as real property, the person must file the statement
during the twelve (12) months before March 31 of the year for which
the person desires to obtain the deduction.
(f) If an individual who is receiving the deduction provided by this
section or who otherwise qualifies property for a deduction under this
section:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is no longer eligible for a deduction under this section on
another parcel of property because:
(A) the individual would otherwise receive the benefit of more
than one (1) deduction under this chapter; or
(B) the individual maintains the individual's principal place of
residence with another individual who receives a deduction
under this section;
the individual must file a certified statement with the auditor of the
county, notifying the auditor of the change of use, not more than sixty
(60) days after the date of that change. An individual who fails to file
the statement required by this subsection is liable for any additional
taxes that would have been due on the property if the individual had
filed the statement as required by this subsection plus a civil penalty
equal to ten percent (10%) of the additional taxes due. The civil penalty
imposed under this subsection is in addition to any interest and
penalties for a delinquent payment that might otherwise be due. One
percent (1%) of the total civil penalty collected under this subsection
shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under subsection (i) and,
to the extent there is money remaining, for any other purposes of the
department. This amount becomes part of the property tax liability for
purposes of this article.
(g) The department of local government finance shall adopt rules or
guidelines concerning the application for a deduction under this
section.
(h) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on March 1 in the same year in which an application for a deduction is
filed under this section or, if the application is for a homestead that is
assessed as personal property, on March 1 in the immediately
preceding year and the individual or married couple is moving the
individual's or married couple's principal residence to the property that
is the subject of the application. Except as provided in subsection (n),
the county auditor may not grant an individual or a married couple a
deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.5.
(j) The department of local government finance shall work with
county auditors to develop procedures to determine whether a property
owner that is claiming a standard deduction or homestead credit is not
eligible for the standard deduction or homestead credit because the
property owner's principal place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in subsection (a)(2)(B), the county auditor shall reinstate the deduction if the taxpayer provides proof that the property is eligible for the deduction in accordance with subsection (k) and that the individual residing on the property is not claiming the deduction for any other property.
(m) For assessments dates after 2009, the term "homestead" includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted by the department of local government finance;
that is assessed as real property and attached to the dwelling.
(n) A county auditor shall grant an individual a deduction under this section regardless of whether the individual and the individual's spouse claim a deduction on two (2) different applications and each application claims a deduction for different property if the property owned by the individual's spouse is located outside Indiana and the individual files an affidavit with the county auditor containing the following information:
(1) The names of the county and state in which the individual's spouse claims a deduction substantially similar to the deduction allowed by this section.
(2) A statement made under penalty of perjury that the following are true:
(A) That the individual and the individual's spouse maintain separate principal places of residence.
(B) That neither the individual nor the individual's spouse has an ownership interest in the other's principal place of residence.
(C) That neither the individual nor the individual's spouse has, for that same year, claimed a standard or substantially similar deduction for any property other than the property maintained as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to provide evidence of the accuracy of the information contained in an affidavit submitted under this subsection. The evidence required of the individual or the individual's spouse may include state income tax returns, excise tax payment information, property tax payment information, driver license information, and voter registration
information.
(o) If:
(1) a property owner files a statement under subsection (e) to
claim the deduction provided by this section for a particular
property; and
(2) the county auditor receiving the filed statement determines
that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county
auditor's determination in writing.
(b) As used in this section, "assessed value of personal property" means the assessed value determined after the application of any deductions or adjustments that apply by statute or rule to the assessment of personal property, other than the deduction allowed under subsection (d).
(c) As used in this section, "designating body" refers to the fiscal body (as defined in IC 36-1-2-6) for a county, city, or town.
(d) After conducting a public hearing on the proposed ordinance, a designating body may adopt an ordinance to grant a deduction against the assessed value of personal property located in:
(1) the county (if the ordinance is adopted by the county designating body); and
(2) the city or town (if the ordinance is adopted by a city or town designating body).
The deduction is equal to one hundred percent (100%) of the assessed value of personal property for the appropriate year of assessment.
(e) After a public hearing on the proposed ordinance, a designating body may rescind an ordinance adopted under subsection (d). A designating body may rescind an ordinance under this section in the same year an ordinance granting a credit for personal property is adopted under IC 6-1.1-46.
(f) Before adopting an ordinance under this section, a designating body shall conduct a public hearing on the proposed ordinance. The designating body shall:
(1) publish notice of the public hearing in accordance with IC 5-3-1; and
(2) not later than ten (10) days before the public hearing, file the notice with each taxing unit in the geographic area served by the designating body.
(g) An ordinance adopted under this section in a particular year applies:
(1) if adopted before October 1 in a year, to each subsequent assessment year; and
(2) if adopted after September 30 in a year, to the assessment year that follows the year of adoption by two (2) and each subsequent assessment year.
(h) The designating body shall provide a certified copy of an adopted ordinance to the department of local government finance and the county auditor.
(i) A taxpayer is not required to file an application to qualify for the deduction permitted under this section.
(j) The department of local government finance shall incorporate the deduction established in this section in the personal property return form to be used each year for filing under this article to permit the taxpayer to enter the deduction on the form. If a taxpayer fails to enter the deduction on the form, the township assessor, the county assessor, if there is no township assessor for the township, or the department of local government finance, if the department of local government finance assesses the personal property, shall:
(1) determine the amount of the deduction; and
(2) within the period established in IC 6-1.1-16-1, issue a notice of assessment to the taxpayer that reflects the application of the deduction to the personal property.
(k) The deduction established in this section must be applied to any personal property assessment made by:
(1) an assessing official;
(2) a county property tax board of appeals; or
(3) the department of local government finance.
(1) Residential property improvements on real property on which a building that includes two (2) or more dwelling units, a mobile home, or a manufactured home is located, including all roads, swimming pools, tennis courts, basketball courts, playgrounds, carports, garages, other parking areas, gazebos,
decks, and patios.
(2) The land and all appurtenances to the land used in
connection with a building or structure described in
subdivision (1), including land that is outside the footprint of
the building, mobile home, manufactured home, or
improvement.
Chapter 46. Personal Property Credit
Sec. 1. As used in this chapter, "credit" refers to a credit granted under this chapter.
Sec. 2. As used in this chapter, "debt service obligations of a political subdivision" refers to:
(1) the principal and interest payable during a calendar year on bonds; and
(2) lease rental payments payable during a calendar year on leases;
of a political subdivision payable from ad valorem property taxes.
Sec. 3. As used in this chapter, "designating body" refers to the fiscal body (as defined in IC 36-1-2-6) for a county, city, or town.
Sec. 4. As used in this chapter, "ordinance" refers to an ordinance under this chapter.
Sec. 5. As used in this chapter, "property tax liability" means the ad valorem property tax imposed on personal property under this article determined after application of all credits and deductions under this article or IC 6-3.5, except the credit under this chapter. The term does not include any interest or penalty imposed under this article.
Sec. 6. After conducting a public hearing under section 10 of this chapter, a designating body may adopt an ordinance to establish a credit against the property tax liability that a taxpayer would otherwise be obligated to pay for personal property.
Sec. 7. An ordinance adopted by the fiscal body of a county applies to all property tax liability imposed on personal property located in the county, including personal property located in a city or town.
Sec. 8. An ordinance adopted by the fiscal body of a city or town applies to all property tax liability imposed on personal property located in the city or town.
Sec. 9. After conducting a public hearing under section 10 of this chapter, a designating body may adopt an ordinance to rescind an
ordinance adopted under section 6 of this chapter.
Sec. 10. Before adopting an ordinance, a designating body shall
conduct a public hearing on the proposed ordinance. The
designating body shall:
(1) publish notice of the public hearing in accordance with
IC 5-3-1; and
(2) not later than ten (10) days before the public hearing, file
the notice with each taxing unit in the geographic area served
by the designating body.
Sec. 11. An ordinance adopted before October 1 in a year
initially applies to property taxes first due and payable in the
immediately following year.
Sec. 12. An ordinance adopted after September 30 in a year
initially applies to property taxes first due and payable in the year
that follows the year of adoption by two (2).
Sec. 13. A designating body shall certify an ordinance adopted
under this chapter to the county auditor and the department of
local government finance.
Sec. 14. A taxpayer is not required to file an application for the
credit under this chapter. The county auditor shall:
(1) identify the property in the county eligible for the credit
under this chapter; and
(2) apply the credit under this chapter to property tax liability
on the identified property.
Sec. 15. The county auditor of each county shall certify to the
department of local government finance:
(1) the total amount of credits that are allowed under this
chapter in the county for the calendar year; and
(2) the amount that each taxing unit's distribution of property
taxes will be reduced as a result of the granting of the credits.
If the amount of credits granted changes after the date the
certification is made, the county auditor shall submit an amended
certification to the department of local government finance. The
initial certification and the amended certifications shall be
submitted to the department of local government finance on the
schedule prescribed by the department of local government
finance.
Sec. 16. For purposes of computing and distributing any excise
taxes or local option income taxes for which the distribution is
based on the amount of a taxing unit's property tax levy, the
computation and distribution of the excise tax or local option
income tax shall be based on the taxing unit's property tax levy as
calculated before any reduction due to credits provided to
taxpayers under this chapter.
(1) makes retail transactions from outside Indiana to a destination in Indiana;
(2) does not maintain a place of business in Indiana; and
(3) either:
(A) engages in the regular or systematic soliciting of retail transactions from potential customers in Indiana; or
(B) is closely related to another person that maintains a place of business in Indiana or is described in clause (A);
shall file an application for a retail merchant's certificate under this chapter and collect and remit tax as provided in this article.
(b) A person is rebuttably presumed to be engaging in the regular or systematic soliciting of retail transactions from potential customers in Indiana if the person does any of the following:
(1) Distributes catalogs, periodicals, advertising flyers, or other written solicitations of business to potential customers in Indiana, regardless of whether the distribution is by mail or otherwise and without regard to the place from which the distribution originated or in which the materials were prepared.
(2) Displays advertisements on billboards or displays other outdoor advertisements in Indiana.
(3) Advertises in newspapers published in Indiana.
(4) Advertises in trade journals or other periodicals that circulate primarily in Indiana.
(5) Advertises in Indiana editions of a national or regional publication or a limited regional edition in which Indiana is included as part of a broader regional or national publication if the advertisements are not placed in other geographically defined editions of the same issue of the same publication.
(6) Advertises in editions of regional or national publications that are not by the contents of the editions geographically targeted to Indiana but that are sold over the counter in Indiana or by subscription to Indiana residents.
(7) Broadcasts on a radio or television station located in Indiana.
(8) Makes any other solicitation by telegraphy, telephone, computer data base, cable, optic, microwave, or other
communication system.
(c) A person not maintaining a place of business in Indiana is
considered to be engaged in the regular or systematic soliciting of
retail transactions from potential customers in Indiana if the
person engages in any of the activities described in subsection (b)
and:
(1) makes at least one hundred (100) retail transactions from
outside Indiana to destinations in Indiana during a period of
twelve (12) consecutive months; or
(2) makes at least ten (10) retail transactions totaling more
than one hundred thousand dollars ($100,000) from outside
Indiana to destinations in Indiana during a period of twelve
(12) consecutive months.
(d) Subject to subsection (e), the location in or outside Indiana of
vendors that:
(1) are independent of a person that is soliciting customers in
Indiana; and
(2) provide products or services to the person in connection
with the person's solicitation of customers in Indiana:
(A) including products and services such as creation of
copy, printing, distribution, and recording; but
(B) excluding:
(i) delivery of goods;
(ii) billing or invoicing for the sale of goods;
(iii) providing repairs of goods;
(iv) assembling or setting up goods for use by the
purchaser; or
(v) accepting returns of unwanted or damaged goods;
is not to be taken into account in the determination of whether the
person is required to collect use tax under this section.
(e) Subsection (d) does not apply if the person soliciting orders
is closely related to the vendor.
(f) For purposes of subsections (a) and (e), a person is closely
related to another person if:
(1) the two (2) persons:
(A) use an identical or a substantially similar name,
trademark, or good will to develop, promote, or maintain
sales;
(B) pay for each other's services in whole or in part
contingent on the volume or value of sales; or
(C) share a common business plan or substantially
coordinate their business plans; and
(2) either:
(A) one (1) or both of the persons are corporations and:
(i) one (1) person; and
(ii) any other person related to the person in a manner that would require an attribution of stock from the corporation to the person or from the person to the corporation under the attribution rules of Section 318 of the Internal Revenue Code;
own directly, indirectly, beneficially, or constructively at least fifty percent (50%) of the value of the corporation's outstanding stock;
(B) both entities are corporations and an individual stockholder and the members of the stockholder's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively a total of at least fifty percent (50%) of the value of both entities' outstanding stock; or
(C) one (1) or both persons are limited liability companies, partnerships, limited liability partnerships, estates, or trusts, and their members, partners, or beneficiaries own directly, indirectly, beneficially, or constructively a total of at least fifty percent (50%) of the profits, capital, stock, or value of one (1) or both persons.
(1) the property transferred is described in:
by a nonresident decedent;
(2) the transfer is described in section 4 of this chapter; and
(3) neither the transfer nor the property is exempt from the
inheritance tax under IC 6-4.1-3.
(b) For purposes of this article, a transfer described in section 4 of
this chapter is considered a transfer made by the deceased transferor
regardless of when the transferee acquires the property interest.
(b) For purposes of determining the amount of inheritance tax imposed under this article, a credit is allowed against the tax imposed under section 1 of this chapter on a decedent's transfer of property interests. The amount of the credit equals the inheritance tax imposed under section 1 of this chapter multiplied by the percentage prescribed in the following table:
DATE OF PERCENTAGE
INDIVIDUAL'S DEATH OF CREDIT
After June 30, 2013, and
before July 1, 2014 9%
After June 30, 2014, and
before July 1, 2015 18%
After June 30, 2015, and
before July 1, 2016 27%
After June 30, 2016, and
before July 1, 2017 36%
After June 30, 2017, and
before July 1, 2018 45%
After June 30, 2018, and
before July 1, 2019 55%
After June 30, 2019, and
before July 1, 2020 64%
After June 30, 2020, and
before July 1, 2021 73%
After June 30, 2021, and
before July 1, 2022 82%
After June 30, 2022, and
before July 1, 2023 91%
(c) A person who is liable for inheritance tax imposed under this article may claim the credit allowed under this section at the time the person pays the tax. When the payment is made, the person collecting the tax shall reduce the inheritance tax due by the amount of the credit specified in subsection (b).
2023.
(b)
(c) For a state fiscal year ending before July 1, 2013, the department of state revenue shall determine the inheritance tax replacement amount for each county using the following formula:
STEP ONE: Determine the amount of inheritance tax revenue retained by each county in each state fiscal year beginning with the state fiscal year that began July 1, 1990, and ending with the state fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance tax revenue retained by each county using five (5) of the seven (7) state fiscal years described in STEP ONE after excluding the two (2) years in which each county retained its highest and lowest totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO amount minus the amount of inheritance taxes retained by the county during the immediately preceding state fiscal year.
(d) For a state fiscal year beginning after June 30, 2013, and ending before July 1, 2023, the department of state revenue shall determine the inheritance tax replacement amount for each county using the following formula:
STEP ONE: Determine the inheritance tax replacement amount distributed to the county for the state fiscal year beginning after June 30, 2012, and ending before July 1, 2013.
STEP TWO: Multiply the amount determined under STEP ONE by the appropriate percentage as follows:
(A) Ninety-one percent (91%) for a state fiscal year beginning after June 30, 2013, and ending before July 1, 2014.
(B) Eighty-two percent (82%) for a state fiscal year
beginning after June 30, 2014, and ending before July 1,
2015.
(C) Seventy-three percent (73%) for a state fiscal year
beginning after June 30, 2015, and ending before July 1,
2016.
(D) Sixty-four percent (64%) for a state fiscal year
beginning after June 30, 2016, and ending before July 1,
2017.
(E) Fifty-five percent (55%) for a state fiscal year
beginning after June 30, 2017, and ending before July 1,
2018.
(F) Forty-five percent (45%) for a state fiscal year
beginning after June 30, 2018, and ending before July 1,
2019.
(G) Thirty-six percent (36%) for a state fiscal year
beginning after June 30, 2019, and ending before July 1,
2020.
(H) Twenty-seven percent (27%) for a state fiscal year
beginning after June 30, 2020, and ending before July 1,
2021.
(I) Eighteen percent (18%) for a state fiscal year beginning
after June 30, 2021, and ending before July 1, 2022.
(J) Nine percent (9%) for a state fiscal year beginning after
June 30, 2022, and ending before July 1, 2023.
(e) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2023.
(b) Sections 1 through 12 of this chapter do not apply to a property interest transferred by a decedent whose death occurs after June 30, 2023.
(1) All vehicles (as defined by IC 35-41-1), if they are used or are intended for use by the person or persons in possession of them to transport or in any manner to facilitate the transportation of the following:
(A) A controlled substance for the purpose of committing, attempting to commit, or conspiring to commit any of the following:
(i) Dealing in or manufacturing cocaine or a narcotic drug (IC 35-48-4-1).
(ii) Dealing in methamphetamine (IC 35-48-4-1.1).
(iii) Dealing in a schedule I, II, or III controlled substance (IC 35-48-4-2).
(iv) Dealing in a schedule IV controlled substance (IC 35-48-4-3).
(v) Dealing in a schedule V controlled substance (IC 35-48-4-4).
(vi) Dealing in a counterfeit substance (IC 35-48-4-5).
(vii) Possession of cocaine or a narcotic drug (IC 35-48-4-6).
(viii) Possession of methamphetamine (IC 35-48-4-6.1).
(ix) Dealing in paraphernalia (IC 35-48-4-8.5).
(x) Dealing in marijuana, hash oil, hashish, salvia, or a synthetic cannabinoid (IC 35-48-4-10).
(B) Any stolen (IC 35-43-4-2) or converted property (IC 35-43-4-3) if the retail or repurchase value of that property is one hundred dollars ($100) or more.
(C) Any hazardous waste in violation of IC 13-30-10-1.5.
(D) A bomb (as defined in IC 35-41-1-4.3) or weapon of mass destruction (as defined in IC 35-41-1-29.4) used to commit, used in an attempt to commit, or used in a conspiracy to commit an offense under IC 35-47 as part of or in furtherance of an act of terrorism (as defined by IC 35-41-1-26.5).
(2) All money, negotiable instruments, securities, weapons, communications devices, or any property used to commit, used in an attempt to commit, or used in a conspiracy to commit an offense under IC 35-47 as part of or in furtherance of an act of terrorism or commonly used as consideration for a violation of IC 35-48-4 (other than items subject to forfeiture under IC 16-42-20-5 or IC 16-6-8.5-5.1 before its repeal):
(A) furnished or intended to be furnished by any person in exchange for an act that is in violation of a criminal statute;
(B) used to facilitate any violation of a criminal statute; or
(C) traceable as proceeds of the violation of a criminal statute.
(3) Any portion of real or personal property purchased with money that is traceable as a proceed of a violation of a criminal statute.
(4) A vehicle that is used by a person to:
(A) commit, attempt to commit, or conspire to commit;
(B) facilitate the commission of; or
(C) escape from the commission of;
murder (IC 35-42-1-1), kidnapping (IC 35-42-3-2), criminal confinement (IC 35-42-3-3), rape (IC 35-42-4-1), child molesting (IC 35-42-4-3), or child exploitation (IC 35-42-4-4), or an offense under IC 35-47 as part of or in furtherance of an act of terrorism.
(5) Real property owned by a person who uses it to commit any of the following as a Class A felony, a Class B felony, or a Class C felony:
(A) Dealing in or manufacturing cocaine or a narcotic drug (IC 35-48-4-1).
(B) Dealing in methamphetamine (IC 35-48-4-1.1).
(C) Dealing in a schedule I, II, or III controlled substance (IC 35-48-4-2).
(D) Dealing in a schedule IV controlled substance (IC 35-48-4-3).
(E) Dealing in marijuana, hash oil, hashish, salvia, or a synthetic cannabinoid (IC 35-48-4-10).
(6) Equipment and recordings used by a person to commit fraud under IC 35-43-5-4(10).
(7) Recordings sold, rented, transported, or possessed by a person in violation of IC 24-4-10.
(8) Property (as defined by IC 35-41-1-23) or an enterprise (as defined by IC 35-45-6-1) that is the object of a corrupt business influence violation (IC 35-45-6-2).
(9) Unlawful telecommunications devices (as defined in IC 35-45-13-6) and plans, instructions, or publications used to commit an offense under IC 35-45-13.
(10) Any equipment, including computer equipment and cellular telephones, used for or intended for use in preparing, photographing, recording, videotaping, digitizing, printing, copying, or disseminating matter in violation of IC 35-42-4.
(11) Destructive devices used, possessed, transported, or sold in violation of IC 35-47.5.
(12) Tobacco products that are sold in violation of IC 24-3-5, tobacco products that a person attempts to sell in violation of IC 24-3-5, and other personal property owned and used by a
person to facilitate a violation of IC 24-3-5.
(13) Property used by a person to commit counterfeiting or
forgery in violation of IC 35-43-5-2.
(14) After December 31, 2005, if a person is convicted of an
offense specified in IC 25-26-14-26(b) or IC 35-43-10, the
following real or personal property:
(A) Property used or intended to be used to commit, facilitate,
or promote the commission of the offense.
(B) Property constituting, derived from, or traceable to the
gross proceeds that the person obtained directly or indirectly
as a result of the offense.
(15) Except as provided in subsection (e), a motor vehicle used by
a person who operates the motor vehicle:
(A) while intoxicated, in violation of IC 9-30-5-1 through
IC 9-30-5-5, if in the previous five (5) years the person has two
(2) or more prior unrelated convictions:
(i) for operating a motor vehicle while intoxicated in
violation of IC 9-30-5-1 through IC 9-30-5-5; or
(ii) for an offense that is substantially similar to IC 9-30-5-1
through IC 9-30-5-5 in another jurisdiction; or
(B) on a highway while the person's driver's license is
suspended in violation of IC 9-24-19-2 through IC 9-24-19-4,
if in the previous five (5) years the person has two (2) or more
prior unrelated convictions:
(i) for operating a motor vehicle while intoxicated in
violation of IC 9-30-5-1 through IC 9-30-5-5; or
(ii) for an offense that is substantially similar to IC 9-30-5-1
through IC 9-30-5-5 in another jurisdiction.
If a court orders the seizure of a motor vehicle under this
subdivision, the court shall transmit an order to the bureau of
motor vehicles recommending that the bureau not permit a motor
vehicle to be registered in the name of the person whose motor
vehicle was seized until the person possesses a current driving
license (as defined in IC 9-13-2-41).
(16) The following real or personal property:
(A) Property used or intended to be used to commit, facilitate,
or promote the commission of an offense specified in
IC 23-14-48-9, IC 30-2-9-7(b), IC 30-2-10-9(b), or
IC 30-2-13-38(f).
(B) Property constituting, derived from, or traceable to the
gross proceeds that a person obtains directly or indirectly as a
result of an offense specified in IC 23-14-48-9, IC 30-2-9-7(b),
IC 30-2-10-9(b), or IC 30-2-13-38(f).
(17) An automated sales suppression device or phantom-ware.
(b) A vehicle used by any person as a common or contract carrier in
the transaction of business as a common or contract carrier is not
subject to seizure under this section, unless it can be proven by a
preponderance of the evidence that the owner of the vehicle knowingly
permitted the vehicle to be used to engage in conduct that subjects it to
seizure under subsection (a).
(c) Equipment under subsection (a)(10) may not be seized unless it
can be proven by a preponderance of the evidence that the owner of the
equipment knowingly permitted the equipment to be used to engage in
conduct that subjects it to seizure under subsection (a)(10).
(d) Money, negotiable instruments, securities, weapons,
communications devices, or any property commonly used as
consideration for a violation of IC 35-48-4 found near or on a person
who is committing, attempting to commit, or conspiring to commit any
of the following offenses shall be admitted into evidence in an action
under this chapter as prima facie evidence that the money, negotiable
instrument, security, or other thing of value is property that has been
used or was to have been used to facilitate the violation of a criminal
statute or is the proceeds of the violation of a criminal statute:
(1) IC 35-48-4-1 (dealing in or manufacturing cocaine or a
narcotic drug).
(2) IC 35-48-4-1.1 (dealing in methamphetamine).
(3) IC 35-48-4-2 (dealing in a schedule I, II, or III controlled
substance).
(4) IC 35-48-4-3 (dealing in a schedule IV controlled substance).
(5) IC 35-48-4-4 (dealing in a schedule V controlled substance)
as a Class B felony.
(6) IC 35-48-4-6 (possession of cocaine or a narcotic drug) as a
Class A felony, Class B felony, or Class C felony.
(7) IC 35-48-4-6.1 (possession of methamphetamine) as a Class
A felony, Class B felony, or Class C felony.
(8) IC 35-48-4-10 (dealing in marijuana, hash oil, hashish, salvia,
or a synthetic cannabinoid) as a Class C felony.
(e) A motor vehicle operated by a person who is not:
(1) an owner of the motor vehicle; or
(2) the spouse of the person who owns the motor vehicle;
is not subject to seizure under subsection (a)(15) unless it can be
proven by a preponderance of the evidence that the owner of the
vehicle knowingly permitted the vehicle to be used to engage in
conduct that subjects it to seizure under subsection (a)(15).
(1) "Automated sales suppression device" means a software program:
(A) carried on a memory stick or removable compact disc;
(B) accessed through an Internet link; or
(C) accessed through any other means;
that falsifies the electronic records of electronic cash registers and other point-of-sale systems, including transaction data and transaction reports.
(2) "Electronic cash register" means a device that keeps a register or supporting documents through the means of an electronic device or a computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
(3) "Phantom-ware" means a hidden, a pre-installed, or an installed at a later time programming option embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that:
(A) can be used to create a virtual second till; or
(B) may eliminate or manipulate transaction records that may or may not be preserved in digital formats to represent the true or manipulated record of transactions in the electronic cash register.
(4) "Transaction data" includes information regarding:
(A) items purchased by a customer;
(B) the price for each item;
(C) a taxability determination for each item;
(D) a segregated tax amount for each of the taxed items;
(E) the amount of cash or credit tendered;
(F) the net amount returned to the customer in change;
(G) the date and time of the purchase;
(H) the name, address, and identification number of the vendor; and
(I) the receipt or invoice number of the transaction.
(5) "Transaction report" means:
(A) a report that includes:
(i) the sales;
(ii) taxes collected;
(iii) media totals; and
(iv) discount voids;
at an electronic cash register that is printed on cash register tape at the end of a day or shift; or
(B) a report documenting every action at an electronic cash register that is stored electronically.
(6) "Zapper" refers to an automated sales suppression device.
(b) A person who knowingly or intentionally sells, purchases, installs, transfers, or possesses:
(1) an automated sales suppression device or a zapper; or
(2) phantom-ware;
after June 30, 2012, commits unlawful sale or possession of a transaction manipulation device, a Class C felony.
(2) in the case of a board of aviation commissioners or an airport authority board, at least one hundred thousand dollars ($100,000).
(b) The board must comply with the following procedure:
(1) The board shall prepare general plans and specifications describing the kind of public work required, but shall avoid specifications which might unduly limit competition. If the project involves the resurfacing (as defined by IC 8-14-2-1) of a road, street, or bridge, the specifications must show how the weight or volume of the materials will be accurately measured and verified.
(2) The board shall file the plans and specifications in a place reasonably accessible to the public, which shall be specified in the notice required by subdivision (3).
(3) Upon the filing of the plans and specifications, the board shall
publish notice in accordance with IC 5-3-1 calling for sealed
proposals for the public work needed.
(4) The notice must specify the place where the plans and
specifications are on file and the date fixed for receiving bids.
(5) The period of time between the date of the first publication
and the date of receiving bids shall be governed by the size of the
contemplated project in the discretion of the board. The period of
time between the date of the first publication and receiving bids
may not be more than:
(A) six (6) weeks if the estimated cost of the public works
project is less than twenty-five million dollars ($25,000,000);
and
(B) ten (10) weeks if the estimated cost of the public works
project is at least twenty-five million dollars ($25,000,000).
(6) If the cost of a project is one hundred thousand dollars
($100,000) or more, The board shall require the bidder to submit
a financial statement, a statement of experience, a proposed plan
or plans for performing the public work, and the equipment that
the bidder has available for the performance of the public work.
The statement shall be submitted on forms prescribed by the state
board of accounts.
(7) The board may not require a bidder to submit a bid before the
meeting at which bids are to be received. The meeting for
receiving bids must be open to the public. All bids received shall
be opened publicly and read aloud at the time and place
designated and not before. Notwithstanding any other law, bids
may be opened after the time designated if both of the following
apply:
(A) The board makes a written determination that it is in the
best interest of the board to delay the opening.
(B) The day, time, and place of the rescheduled opening are
announced at the day, time, and place of the originally
scheduled opening.
(8) Except as provided in subsection (c), or (after June 30, 2011)
section 22 of this chapter, the board shall:
(A) award the contract for public work or improvements to the
lowest responsible and responsive bidder; or
(B) reject all bids submitted.
(9) If the board awards the contract to a bidder other than the
lowest bidder, the board must state in the minutes or memoranda,
at the time the award is made, the factors used to determine which
bidder is the lowest responsible and responsive bidder and to
justify the award. The board shall keep a copy of the minutes or
memoranda available for public inspection.
(10) In determining whether a bidder is responsive, the board may
consider the following factors:
(A) Whether the bidder has submitted a bid or quote that
conforms in all material respects to the specifications.
(B) Whether the bidder has submitted a bid that complies
specifically with the invitation to bid and the instructions to
bidders.
(C) Whether the bidder has complied with all applicable
statutes, ordinances, resolutions, or rules pertaining to the
award of a public contract.
(11) In determining whether a bidder is a responsible bidder, the
board may consider the following factors:
(A) The ability and capacity of the bidder to perform the work.
(B) The integrity, character, and reputation of the bidder.
(C) The competence and experience of the bidder.
(12) The board shall require the bidder to submit an affidavit:
(A) that the bidder has not entered into a combination or
agreement:
(i) relative to the price to be bid by a person;
(ii) to prevent a person from bidding; or
(iii) to induce a person to refrain from bidding; and
(B) that the bidder's bid is made without reference to any other
bid.
(c) Notwithstanding subsection (b)(8), a county may award sand,
gravel, asphalt paving materials, or crushed stone contracts to more
than one (1) responsible and responsive bidder if the specifications
allow for bids to be based upon service to specific geographic areas and
the contracts are awarded by geographic area. The geographic areas do
not need to be described in the specifications.
(1) except as provided in subdivision (2), at least fifty thousand dollars ($50,000) and less than one hundred fifty thousand dollars ($150,000); or
(2) in the case of a board of aviation commissioners or an airport authority board, at least fifty thousand dollars ($50,000) and less than one hundred thousand dollars ($100,000).
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons known to deal in the class of work proposed to be done by mailing them a notice stating that plans and specifications are on file in a specified office. The notice must be mailed not less than seven (7) days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before the meeting at which quotes are to be received. The meeting for receiving quotes must be open to the public. All quotes received shall be opened publicly and read aloud at the time and place designated and not before.
(3)
(4) The board may reject all quotes submitted.
(b) The board must proceed under the following provisions:
(1) The board shall invite quotes from at least three (3) persons known to deal in the class of work proposed to be done by mailing them a notice stating that plans and specifications are on file in a specified office. The notice must be mailed not less than seven (7) days before the time fixed for receiving quotes.
(2) The board may not require a person to submit a quote before the meeting at which quotes are to be received. The meeting for receiving quotes must be open to the public. All quotes received shall be opened publicly and read aloud at the time and place designated and not before.
(3)
(4) The board may reject all quotes submitted.
(5) If the board rejects all quotes under subdivision (4), the board may negotiate and enter into agreements for the work in the open market without inviting or receiving quotes if the board establishes in writing the reasons for rejecting the quotes.
(c) The board may not proceed under subsection (b) for the
resurfacing (as defined in IC 8-14-2-1) of a road, street, or bridge,
unless:
(1) the weight or volume of the materials in the project is capable
of accurate measurement and verification; and
(2) the specifications define the geographic points at which the
project begins and ends.
(d) For the purposes of this section, if contiguous sections of a road,
street, or bridge are to be resurfaced in a calendar year, all of the work
shall be considered to comprise a single public work project.
(e) The board may purchase or lease supplies in the manner
provided in IC 5-22 and perform the public work by means of its own
workforce without awarding a public work contract.
(f) Before the board may perform any work under this section by
means of its own workforce, the political subdivision or agency must
have a group of employees on its staff who are capable of performing
the construction, maintenance, and repair applicable to that work.
(g) This subsection applies to local boards of aviation
commissioners operating under IC 8-22-2 and local airport authorities
operating under IC 8-22-3. If the contract is to be awarded by a board
to which this subsection applies, or to a designee of the board under
subsection (h), the board or its designee may proceed under section 4
of this chapter or under the following provisions. The board or its
designee may invite quotes from at least three (3) persons known to
deal in the class of work proposed to be done by mailing the persons a
copy of the plans and specifications for the work not less than seven (7)
days before the time fixed for receiving quotes. If the board or its
designee receives a satisfactory quote, the board or its designee shall
award the contract to the lowest responsible and responsive quoter for
the class of work required. except as permitted in section 22 of this
chapter. The board or its designee may reject all quotes submitted and,
if no valid quotes are received for the class of work, contract for the
work without further invitations for quotes.
(h) The board may delegate its authority to award a contract for a
public works project that is estimated to cost less than fifty thousand
dollars ($50,000) to the airport personnel in charge of airport public
works projects.
(i) Quotes for public works projects costing less than twenty-five
thousand dollars ($25,000) may be obtained by soliciting at least three
(3) quotes by telephone or facsimile transmission. The seven (7) day
waiting period required by subsection (b)(1) does not apply to quotes
solicited under this subsection.
1, 2012]. Sec. 22. (a) The definitions in IC 5-22-15, including the
definitions in IC 5-22-15-20.9, apply in this section.
(b) The procedures described in IC 5-22-15 for determining adjusted
offers, price preference percentage, and total adjusted offers apply in
this section.
(c) The price preferences stated in IC 5-22-15-20.9 apply in this
section.
(d) Notwithstanding provisions of this chapter that require the award
of a contract to the lowest responsive and responsible bidder or the
lowest responsive and responsible quoter, but subject to subsection (e),
a contract shall be awarded to the lowest responsive and responsible
local Indiana business that claims the preference provided by this
section.
(e) Notwithstanding subsection (d), a contract shall be awarded to
the lowest responsive and responsible bidder or quoter, regardless of
the preference provided in this section, if the lowest responsive and
responsible bidder or quoter is a local Indiana business.
(f) A bidder or quoter that wants to claim the preference under this
section must claim the preference in the same manner that a business
claims the preference under IC 5-22-15-20.9(f).
