2016 Indiana Legislative Update

indiana legislative update

2018 Edition  |  Table of Contents
 

Other Taxes 
By Donna L. NiesenCPA and Stephen Royster, CPA

Affected Code Section: Ind. Code § 5-14-3-8 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 392 § 3
Explanation: Prohibits, with certain exceptions, a state or local government agency from charging a fee for providing a public record by electronic mail. Provides, however, that a public agency may charge a fee for a public record transmitted by electronic mail if the fee for the public record is authorized by subsection (f) or (j); section 6(c) of this chapter; or Ind. Code § 36-2-7-10 or Ind. Code § 39-2-7-10.1 concerning records of the county recorder.

Affected Code Section: Ind. Code Article 6-3.5 (amendments)
Effective Date: July 1, 2017 (retroactive)
Enacted By: Senate Bill 6 §§ 74, 75
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code Article 6-3.5 (amendments); Ind. Code Article 6-3.6 (amendments)
Effective Date: Upon Passage
Enacted By: Senate Bill 6 §§ 76, 77
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code § 6-3.5-4-7.3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1311 § 1
Explanation: Changes the schedule used to determine the amount of surtax imposed based on the age of a vehicle as opposed to the year of manufacture.

Affected Code Section: Ind. Code Article 6-6 (amendment)
Effective Date: Upon Passage
Enacted By: Senate Bill 6 § 79
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code § 6-6-1.6-2 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 2
Explanation: Clarifies in each place it is mentioned that the motor carrier surcharge tax applies only before its repeal.

Affected Code Section: Ind. Code § 6-6-1.6-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 3
Explanation: Makes technical corrections to remove the motor carrier surcharge tax index factor from the annual gasoline tax index factor and special fuel index factor calculation.

Affected Code Section: Ind. Code § 6-6-2.5-28 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 4
Explanation: Provides that the special fuel tax rate for July 1, 2018, through June 30, 2019, is the sum of the rate in effect on June 30 and twenty-one cents (.21) multiplied by the factor determined under Ind. Code § 6-6-1.6-3. Provides that after June 30, 2018, and before July 1, 2019, the new applicable rate may not exceed the rate in effect on June 30 plus twenty-three cents (.23). Provides that after June 30, 2019, the new applicable rate may not exceed the rate in effect on June 30 plus two cents (.02).

Affected Code Section: Ind. Code § 6-6-2.5-68 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 5
Explanation: Distributes one and five tenths percent (1.5%) of the special fuel tax revenue to the motor carrier regulation fund.

Affected Code Section: Ind. Code § 6-6-4.1-1 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 6
Explanation: Removes the definition of “surcharge gallon.”

Affected Code Section: Ind. Code § 6-6-4.1-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 7
Explanation: Removes a reference to the surcharge tax rate. Clarifies that Ind. Code § 6-6-4.1-4.5 applies only before its repeal.

Affected Code Section: Ind. Code § 6-6-4.1-4.3 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 8
Explanation: Repeals the motor carrier fuel inventory tax.

Affected Code Section: Ind. Code § 6-6-4.1-4.5 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 9
Explanation: Repeals the motor carrier fuel surcharge tax.

Affected Code Section: Ind. Code § 6-6-4.1-4.7 (amendment); Ind. Code § 6-6-4.1-4.8 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 §§ 10, 11
Explanation: Clarifies that section 4.5(e) applies only before its repeal.

Affected Code Section: Ind. Code § 6-6-4.1-5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 12
Explanation: Clarifies that sections 4.3 and 4.5 apply only before their repeal.

Affected Code Section: Ind. Code § 6-6-4.1-6 (amendment); Ind. Code § 6-6-4.1-7 (amendment); Ind. Code § 6-6-4.1-17 (amendment); Ind. Code § 6-6-4.1-20 (amendment); Ind. Code § 6-6-4.1-21 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 §§ 13, 14, 16, 17, 18
Explanation: Clarifies that section 4.5 applies only before its repeal.

Affected Code Section: Ind. Code § 6-6-4.1-14.5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 15
Explanation: Specifies how netted International Fuel Tax Agreement Clearinghouse refunds and receipts are deposited or credited by the department of state revenue with reference to other members of the International Fuel Tax Agreement.

Affected Code Section: Ind. Code § 6-6-5-3 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1311 § 2
Explanation: Provides that this section applies to vehicles that are registered as specific vehicles or that are model years 1981 and later.

Affected Code Section: Ind. Code § 6-6-5-3.5 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1311 § 3
Explanation: Provides that vehicles that are model years 1980 or earlier shall be assessed a vehicle excise tax in an amount of twelve dollars ($12) per year.

Affected Code Section: Ind. Code § 6-6-5.5-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1290 § 19
Explanation: Specifies that the commercial vehicle excise tax rate calculation that must be done on or before October 1 of each year is effective on January 1 of the following year. Excludes the transportation infrastructure improvement fee and the supplemental fees to register electric and hybrid vehicles from the calculation of the commercial vehicle excise tax factor.

Affected Code Section: Ind. Code § 6-8.1-9.5-12 (amendment)
Effective Date: July 1, 2018
Enacted By: Senate Bill 238 § 16
Explanation: Makes technical corrections.

Affected Code Section: Ind. Code § 6-8.1-14-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1003 § 31
Explanation: Provides that, among other things, the report prepared under Ind. Code § 6-8.1-14-3 must include the number of taxpayers, the amount of gross collections, the amount of net collections, the amount of refunds, the amount of collection allowances, the amount of administrative costs, and the amount of delinquencies by type of tax collected by the department of state revenue.

Affected Code Section: Ind. Code Chapter 6-8.1-16.3 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1311 § 4
Explanation: Establishes the department of state revenue pilot program. Specifies that the purpose of the pilot program is to assist the state, other states, and other government agencies with: (1) the administration and processing of commercial vehicle registrations as required under the International Registration Plan; (2) the licensing and reporting of fuel tax use for motor carriers under the International Fuel Tax Agreement; (3) audit and record keeping for the International Registration Plan and the International Fuel Tax Agreement; and (4) any other essential or necessary functions related to the motor carrier services. Establishes the pilot program fund to assist with the implementation and administration of the pilot program, and provides for the contents of the fund. Provides that the pilot program may be staffed by persons who are not public employees, and the department of state revenue will determine the compensation, duties, qualifications, and terms of service for persons employed by the pilot program. Provides that the department of state revenue may, subject to approval by the budget agency, enter into or execute agreements or contracts necessary to carry out the pilot program. Provides that the department of state revenue must submit a report to the interim study committee on roads and transportation on the pilot program activity during the preceding state fiscal year.

Affected Code Section: Ind. Code § 6-9-7-7 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1374 § 62
Explanation: Provides that the Indiana finance authority may issue bonds for the development of Prophetstown State Park under Ind. Code Chapter 5-1.2-6.

Affected Code Section: Ind. Code § 6-9-36-8 (amendment)
Effective Date: Upon Passage
Enacted By: House Bill 1374 § 63
Explanation: Adds the word “revenue” to clearly reference the development authority revenue fund as opposed to the development authority fund.

Affected Code Section: Ind. Code § 20-46-8-1 (amendment)
Effective Date: January 1, 2019
Enacted By: House Bill 1167 § 22
Explanation: Provides that a school corporation may impose an annual property tax levy for its operations fund. Provides a formula to determine the maximum permissible property tax levy a school corporation may impose for property taxes first due and payable in 2019. Provides a formula to determine the maximum permissible property tax levy a school corporation may impose for property taxes first due and payable after 2019.

Affected Code Section: Ind. Code § 27-1-15.8-1 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1301 § 6
Explanation: Adds definitions with regard to surplus lines insurance producers. Adds definitions for “affiliate” and “affiliated group.” Adds the definition of “control” to mean (1) ownership or power to vote at least twenty-five percent (25%) of any class of voting securities; or (2) power to determine the election of a majority of the directors or trustees; of an entity. Adds the definition of “home state” to mean the following: (1) With respect to an insured: (A) the state in which the insured maintains: (i) the insured’s principal place of business; or (ii) if the insured is an individual, the insured’s principal residence; or (B) if one hundred percent (100%) of the insured risk is located outside the state described in clause (A), the state to which the greatest percentage of the insured’s taxable premium for the insurance contract is allocated. (2) With respect to an affiliated group, if more than one (1) insured from the affiliated group is a named insured on a single nonadmitted insurance policy or contract, the home state determined under subdivision (1) of the member of the affiliated group that has the largest percentage of premium attributed to the member under the nonadmitted insurance policy or contract. Adds a definition of “nonadmitted insurance policy or contract” to mean an insurance policy or contract that is issued by an insurer that is not authorized to transact the business of insurance under the law of the home state. Adds a definition of “principal place of business” with respect to determining the home state of an insured, the state where the (1) insured maintains the insured’s headquarters; and (2) insured’s officers direct, control, and coordinate the business activities of the insured.

Affected Code Section: Ind. Code § 27-1-15.8-4 (amendment)
Effective Date: July 1, 2018
Enacted By: House Bill 1301 § 7
Explanation: Provides that a surplus lines producer licensed under Ind. Code Chapter 27-1-15.8 shall, on or before February 1 (as opposed to on or before February 1 and August 1) of each year, collect from the insured and remit to the department of insurance an amount equal to two and five tenths percent (2.5%) of all gross premiums upon all policies and contracts procured in a listed manner for the preceding twelve (12) month period ending December 31. Adds to the list of taxable policies and contracts acquired for insureds whose home state is Indiana.

Affected Code Section: Ind. Code Article 27-18 (deletion)
Effective Date: July 1, 2018
Enacted By: House Bill 1301 § 34
Explanation: Repeals the Surplus Lines Insurance Compact.

Affected Code Section: Ind. Code § 34-30-2-16.4 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1311 § 25
Explanation: Cites to Ind. Code § 6-8.1-16.3-3 (concerning actions taken by an employee of the department of state revenue pilot program).

Affected Code Section: Ind. Code Chapter 36-1-24 (addition)
Effective Date: July 1, 2018
Enacted By: House Bill 1035 § 1
Explanation: Governs short term rentals which now include in its definition the rental of: (1) a single family home; (2) a dwelling unit in a single family home; (3) a dwelling unit in a two-family or multifamily dwelling; or (4) a dwelling unit in a condominium, cooperative, or time share; for terms of less than thirty (30) days at a time through a short term rental platform. Requires those meeting the definition to acquire a permit and follow applicable rules regarding short term rentals.
Application Note: One potential consequence of the permitting process is the unit now has data on those renting property. This data could be used to influence real property tax caps applied to the property or the application of sales or innkeeper’s tax to the permit holders in the future.

Affected Code Section: Ind. Code Chapter 36-7-15.6 (addition)
Effective Date: May 1, 2018
Enacted By: Senate Bill 386 § 1
Explanation: Establishes the flood control improvement districts. Provides that this chapter applies only to a consolidated city. Authorizes the Indianapolis metropolitan development commission, following a written recommendation from the board of public works and approval of the legislative body that established the commission, to adopt an ordinance designating an area as a flood control improvement district for purposes of the allocation and distribution of property tax revenue to be used for the construction, replacement, repair, maintenance, or improvement of flood control works.

Affected Code Section: Non-Code Section
Effective Date: Upon Passage
Enacted By: House Bill 1374 § 181
Explanation: Urges the legislative council to assign to a study committee the subject of requiring performance and payment bonds for future public-private projects.

 

Connect with Donna 
Donna L. Niesen is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Donna helps keep clients up-to-date on the multitude of tax rules and requirements in all 50 states. She guides them in the right direction as they address complex issues that emerge on the state and local levels.

Connect with Stephen 
Stephen Royster is a director in Katz, Sapper & Miller’s State and Local Tax Group. Stephen provides services in tax consulting and preparation in the areas of multistate income and sales taxes, business incentives, controversy services and other state taxes.