2016 Indiana Legislative Update

indiana legislative update

2017 Edition
 

In This Issue:

Welcome Message
My colleagues often criticize me for what they call my “Dad humor,” or my weakness for a well (or badly) timed pun. I will plead guilty as charged, especially as I think about some of the challenges that faced the Indiana General Assembly this past legislative session. The road was a long and bumpy one as legislators finally found a way to drive more funding to highway improvements and infrastructure. By Tim C. Cook, JD

Sales and Use Tax
Ind. Code § 6-3-1-3.5 (amendment), effective July 1, 2017, enacted by House Bill 1350 § 40, provides that for purposes of the add back of any deduction allowed on the taxpayer’s federal income tax return for wagering taxes, there is an eight (8) year phase out of the state income tax addback beginning with 87.5% of any deduction allowed on the federal income tax return for tax years after Dec. 31, 2018, and ending with a deduction equal to the deduction allowed on the federal income tax return for tax years after Dec. 31, 2025. By Donna L. Niesen, CPA, and April Meade, JD

Income Tax
Ind. Code § 6-3-1-3.5 (amendment), effective July 1, 2017, enacted by House Bill 1350 § 40, provides that for purposes of the add back of any deduction allowed on the taxpayer’s federal income tax return for wagering taxes, there is an eight (8) year phase out of the state income tax addback beginning with 87.5% of any deduction allowed on the federal income tax return for tax years after Dec. 31, 2018, and ending with a deduction equal to the deduction allowed on the federal income tax return for tax years after Dec. 31, 2025. By Donna L. Niesen, CPA, and Amy Zimmer

Economic Development and Tax Credits
Ind. Code Chapter 4-4-5.2 (deletion), effective July 1, 2017, enacted by Senate Bill 507 § 2, repeals the Emerging Technology Grant Fund. By Tim C. Cook, JD, and Katie Culp 

Property Tax
Ind. Code § 6-1.1-1-3 (amendment), effective July 1, 2018, enacted by House Bill 1009 § 9, adds reference to new section Ind. Code Chapter 20-46-8 (school corporations operations fund property tax levy) to be used after Dec. 31, 2018 in the definition of “assessed value” or “assessed valuation.” By Chad Miller 

Tax Sales
Ind. Code § 6-1.1-23-0.1 (addition), effective July 1, 2017, enacted by Senate Bill 455 § 8, provides that after Dec. 31, 2017, a county treasurer may collect delinquent property taxes, penalties, and collection expenses that are attributable to a mobile home assessed as personal property by using the procedures specified under Ind. Code Chapter 6-1.1-23.5. By Donna L. Niesen, CPA,

Other Taxes
Ind. Code Chapter 4-12-16.5 (addition), effective July 1, 2017, enacted by House Bill 1002 § 1, establishes the special transportation flexibility fund. Provides that the budget agency shall administer the fund. Provides that if the governor determines that a transfer of money to the state highway fund should not occur, the governor must notify the budget committee of this determination at least thirty (30) days before that transfer is to be made. By Tim C. Cook, JD

Local Taxation
Ind. Code § 4-4-11-0.4 (amendment), effective upon passage, enacted by Senate Bill 128 § 2, provides that the powers, duties, agreements and liabilities of the treasurer of state, auditor of state, budget agency and any other agency involved with respect to the local infrastructure revolving fund are transferred to the Indiana Finance Authority on July 1, 2017. By Donna L. Niesen, CPA, and Amy Zimmer

Tax Administration
Ind. Code § 6-1.1-20.3-15 (amendment), effective July 1, 2017, enacted by House Bill 1450 § 16, provides that both the executive of a political subdivision and a majority of the members of the fiscal body of a political subdivision may independently request technical assistance from the distressed unit appeal board in helping prevent the political subdivision from becoming a distressed political subdivision. By Donna L. Niesen, CPA

Insider Insights
Indiana’s magnetism for tech talent and investment has strengthened exponentially as of late. This increased magnetism is due in no small part to Mike Langellier, president and CEO of TechPoint, Indiana’s initiative for a growing tech ecosystem. We sat down with Mike to get his take on Indiana’s future in this very important industry. 

 

Katz, Sapper & Miller’s 2017 Indiana Legislative Update summarizes the tax and economic development legislative changes that occurred in the Indiana General Assembly.