State and local tax issues.

Authors: Senator Brandt Hershman, Senator Travis Holdman

Co-authors: Senator John Broden

Sponsors: Representative Timothy Brown

Advisors: Senator Travis Holdman, Senator Frank Mrvan, Senator Randall Head, Senator Liz Brown


Provides that the fiscal body of a municipality may adopt a resolution renewing an enterprise zone for an additional five years and that all enterprise zones expire and must be phased out by December 31, 2030. Provides that the cutting of steel bars into billets is to be treated as processing of tangible personal property for purposes of the sales tax exemption for certain manufacturing activities. Modifies the sales tax exemption for receiving recycling materials. Adds recycling carts to the sales tax exemption for some recycling equipment. Adds changes concerning the withholding of income taxes for nonresident partners and shareholders. 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. 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. 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. 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. Amends the definition of "captive insurer" for insurance regulation and taxation purposes. Requires the department 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. Makes changes regarding sales or use tax collection and manufacturers that have meters exempt or partially exempt from sales and use tax. Provides that the department of state revenue may disclose to a power subsidiary or a public utility information regarding sales tax exemption certificates of a customer of the power subsidiary or public utility for the purpose of enforcing and collecting the sales or use tax. Permits Rush County to impose an income tax to provide for a county jail, related buildings, and parking facilities and for their operation. Provides that a tax increment financing area established by a redevelopment authority does not expire before July 1, 2016. Proposes that an interim study committee 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.