Citations Affected: IC 6-3-2-1.
Synopsis: State income tax rate adjustment. Provides for a biennial
reduction of 0.1% in the state adjusted gross income tax rate on
residents, nonresidents, and corporations if the budget agency
determines that year-over-year revenue from the adjusted gross income
tax exceeds 3.1%. Provides that the minimum rate is 2.9% for persons
and 6% for corporations. Requires the budget agency to make the
determination before September 1of each even-numbered year and for
the rate reduction to take effect for taxable years beginning in the
immediately following odd-numbered year. Requires the department of
state revenue to publish a statement of the rates in the Indiana Register
and on the department's web site and make the statement available for
public inspection and copying.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
the rate for the preceding taxable year minus one-tenth
percent (0.1%).
(f) The rate used under:
(1) subsection (a) for a taxable year beginning before January
1, 2013, is three and four-tenths percent (3.4%), and may not
be less than two and nine-tenths percent (2.9%) for a taxable
year beginning after December 31, 2012; and
(2) subsection (b) may not be less than six percent (6%) for a
taxable year beginning after December 31, 2015.
(g) Before September 1 of each even-numbered year, the budget
agency, using a two (2) year average, shall determine whether an
increase in net adjusted gross income tax revenue has occurred. In
making this determination, the following apply:
(1) Returns processed during the three (3) calendar years that
immediately precede the determination year shall be used.
(2) Net adjusted gross income tax revenue collected from all
taxpayers under this article on these returns shall be
considered.
(3) Overpayments refunded to taxpayers during these
calendar years shall be subtracted.
(4) Automatic taxpayer refunds provided to individuals as
credits under IC 4-10-22-4 during these calendar years shall
not be subtracted.
(5) The best information available to the budget agency at the
time the determination is made shall be considered.
Beginning in 2012, the budget agency shall compute and determine
whether an increase in net adjusted gross income tax revenue has
occurred and, if so, the amount of the two (2) year average
percentage increase in net adjusted gross income tax revenue. The
budget agency shall certify the results of the computation to the
department of state revenue.
(h) Before October 1 each year, the department shall submit for
publication in the Indiana Register, under IC 4-22-7-7, a statement
of the tax rate to be used under subsection (a) and the tax rate to
be used under subsection (b) for a taxable year beginning on or
after January 1 of the following year. The department shall also
publish the statement on the department's web site and make the
statement available for public inspection and copying under
IC 5-14-3.