Authors: Representative Sharon Negele
Sponsors: Senator Brandt Hershman, Senator Pete Miller
Advisors: Representative Timothy Brown, Representative Ben Smaltz, Representative Sheila Klinker
Permits a county council to impose a local service fee on each person that has business personal property exempt from taxation because the person's business personal property in the county has an acquisition cost of less than $20,000. Authorizes the department of local government finance (DLGF) to increase the maximum property tax levy of Brown Township, Jackson Township, and Blue River Township in Hancock County if the township submits a petition to the DLGF requesting the increase. Specifies the maximum increase that may be granted. Allows Brown County to impose an additional property tax levy of $478,115 each year in 2016 and 2017. Defines "licensed practitioner" for purposes of the sales and use tax law. Specifies that the definition of "storage" for purposes of the use tax does not include temporary storage of property for not more than 180 days for the purpose of the subsequent use of the property solely outside Indiana. Removes the 36 month rolling time limit on filing refund claims for utility purchases exempt from sales and use tax. Amends the sales tax exemption for medical equipment, supplies, and devices to: (1) restate the application of the sales tax exemption for medical equipment, supplies, and devices; and (2) provide a sales tax exemption for food, food ingredients, and dietary supplements that are sold by a licensed practitioner or pharmacist. Amends the sales tax exemption for drugs, insulin, oxygen, blood, or blood plasma to restate the application of the sales tax exemption. Repeals the sales tax exemption for food and food ingredients prescribed as medically necessary by a physician. Amends the definition of "research and development activities" for purposes of the sales tax exemption for research and development equipment and property. Modifies the sales tax exemption for receiving recycling materials. Adds recycling carts to the sales tax exemption for certain recycling equipment. Makes changes regarding sales or use tax collection and manufacturers that have meters exempt or partially exempt from sales and use tax. Provides guidance on when a retail merchant's certificate may be revoked. Updates references to the Internal Revenue Code. Provides that "base amount" and "qualified research expense" for purposes of the state research expense income tax credit have the same meaning as those terms are defined under the Internal Revenue Code and that the federal research and development credit used for purposes of calculating the Indiana research expense income tax credit is the same as the federal research and development credit allowed under the Internal Revenue Code. Removes outdated references to earned income tax advance payments. Provides that, when construction of jail facilities are complete and bonds and leases are fully paid, the county adjusted gross income tax rate in Marshall County shall be established at a rate such that the revenue from the tax does not exceed the costs of operating and maintaining the jail facilities. Authorizes Tipton County to impose an additional county adjusted gross income tax rate of not more than 0.4% for constructing and equipping a jail and related facilities and renovating the county courthouse. Authorizes Rush County to impose an additional county adjusted gross income tax rate of not more than 0.6% for constructing, equipping, operating, and maintaining a jail and related facilities. Provides that the maximum combined county economic development income tax (CEDIT) and county option income tax (COIT) rates in Greene County may not exceed 1.25% (rather than 1%, under current law). Reduces the maximum public safety local option income tax (LOIT) rate otherwise applicable (0.25%) in Greene County by the amount that the combined CEDIT and COIT tax rates exceed 1%. Requires an employer to file annual withholding tax reports (Form WH-3) not later than 31 days after the end of the calendar year. Amends the definition of "captive insurer" for insurance regulation and taxation purposes. Permits the department to deny an application for a motor carrier in certain situations. Requires the department to enter into an agreement with the fiscal officer of a capital improvement board of managers to provide the fiscal officer with certain information. Establishes standards governing the date by which a taxpayer must notify the department of state revenue (department) of a modification of a taxpayer's federal income tax return or tax liability for a taxable year. Makes changes concerning the withholding of income taxes for nonresident partners, shareholders, and trust beneficiaries. Provides that the time limit to appeal: (1) letters of findings; and (2) a denial of a refund claim; may be extended according to terms of a written agreement. Aligns the administrative procedures for protesting refund denials and proposed assessments. Provides that the interest required to be paid on an overpayment of tax begins to accrue: (1) on the date the tax was due; or (2) the date the tax was paid; whichever is later. Provides that a tax judgment may be released and a tax warrant expunged if the commissioner of the department determines that the release of the tax judgment and the expungement of the tax warrant are in the best interest of the state. Requires the department to adopt rules to define the circumstances under which a release and expungement may be granted based on a finding that the release and expungement would be in the best interest of the state. Authorizes the DLGF to increase the maximum school corporation transportation fund levy for the New Durham Township School Corporation and the North Vermillion Community School Corporation, if the school corporation submits a petition to the DLGF requesting the increase. Specifies the maximum increase that may be granted. Provides that a tax increment financing area established by a redevelopment authority that has a United States government military base that is scheduled for closing or is completely or partially inactive or closed does not expire before July 1, 2016. Requires the legislative services agency to conduct a study to determine the amount of statutory tax relief that C corporations have realized in the calendar years from 2011 through 2014 and are anticipated to realize from 2015 through 2021. Requires the legislative services agency to submit a report of the study by December 31, 2016. Requires the department of state revenue to: (1) study the department's current information systems; (2) develop a plan for modernizing the department's information systems; and (3) submit a report of the study and plan to the budget committee and the legislative council.