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HOUSE BILL No. 1349

Citations Affected: IC 6-1.1-3-25.

Synopsis: Personal property tax deduction. Provides an assessed value deduction to offset the effects of the 30% minimum personal property tax depreciation floor for depreciable personal property or utility distributable property for property newly acquired or installed after the 2013 assessment date.

Effective: July 1, 2013.

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Cherry, Messmer

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    January 15, 2013, read first time and referred to Committee on Ways and Means.

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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 this style type.
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 this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

SOURCE: IC 6-1.1-3-25; (13)IN1349.1.1. -->     SECTION 1. IC 6-1.1-3-25 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 25. (a) As used in this section, "qualified property" means a taxpayer's property that:
        (1) is:
            (A) depreciable personal property located in a single taxing district; or
            (B) definite-situs distributable property or indefinite-situs distributable property as both are referred to in IC 6-1.1-8-5;
        (2) the taxpayer:
            (A) acquires or installs after March 1, 2013;
            (B) acquires:
                (i) in an arms length transaction from an entity that is not an affiliate of the taxpayer, if the property has been previously used in Indiana before the acquisition or installation; or

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                (ii) in any manner, if the property has never been previously used in Indiana before the acquisition or installation; and
            (C) has never been used for any purpose in Indiana before the acquisition or installation; and
        (3) is property included in determining the thirty percent (30%) minimum valuation specified by the department of local government finance in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9.
    (b) If the true tax value of a taxpayer's qualified property applying the prescribed true tax value adjustment percentages would be less than the thirty percent (30%) minimum valuation specified in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9, the taxpayer is entitled to a deduction based on the taxpayer's qualified property in that taxing district.
    (c) The amount of the deduction under subsection (b) is equal to:
        (1) the sum of the true tax values of all the taxpayer's qualified property if a thirty percent (30%) true tax value adjustment percentage is applied to the qualified property; minus
        (2) the sum of the true tax values of all the taxpayer's qualified property applying the prescribed true tax value adjustment percentage to the qualified property.
    (d) The deduction under subsection (b) shall be applied before any special adjustment for abnormal obsolescence as provided in 50 IAC 4.2-4-8 or 50 IAC 5.1-6-11.