indiana legislative update

2014 Edition  |  Table of Contents
 

Other Taxes and Unclaimed Property
By Tim C. Cook, JD

Affected Code Section: Ind. Code § 5-14-3-4 (amendment)
Effective Date: Upon passage
Enacted By: Senate Bill 208
Explanation: Prohibits certain information included in a report of unclaimed property from being disclosed under Indiana’s access to public records law. Excluded information includes date of birth, driver’s license number, taxpayer identification number, employer identification number and account numbers.


Affected Code Section: Ind. Code § 6-6-2.5-1 (amendment)
Effective Date: Jan. 1, 2014 (retroactive)
Enacted By: House Bill 1180
Explanation: Modifies the definition of “alternative fuel” to exclude liquid or compressed natural gas or a combination of liquefied petroleum gas and compressed natural gas.


Affected Code Section: Ind. Code § 6-6-2.5-16-5 (addition)
Effective Date: Jan.1, 2014 (retroactive)
Enacted By: House Bill 1180
Explanation: Creates a separate definition for “natural gas product” which includes liquid or compressed natural gas or a combination of liquefied petroleum gas and compressed natural gas used in an engine or motor to propel any form of vehicle, machine or mechanical contrivance.


Affected Code Section: Ind. Code § 6-6-2.5-22 (amendment)
Effective Date: Jan. 1, 2014 (retroactive)
Enacted By: House Bill 1180
Explanation: Modifies the definition of “special fuel” to include natural gas products but not alternative fuel, gasoline, kerosene and jet fuel.


Affected Code Section: Ind. Code § 6-6-2.5-28 (amendment)
Effective Date: July 1, 2014
Enacted By: House Bill 1380
Explanation: Removes a reference to butane and propane from the special fuel tax.


Affected Code Section: Ind. Code § 6-6-12-5 & 6-6-12-6 (amendment)
Effective Date: Jan. 1, 2014 (retroactive)
Enacted By: House Bill 1180
Explanation: Changes the filing period for the road tax credit from the state fiscal year to a quarterly filing system.


Affected Code Section: Ind. Code § 6-6-14-1 to 6-6-14-9 (addition)
Effective Date: Jan. 1, 2014 (retroactive)
Enacted By: House Bill 1180
Explanation: Requires vehicles registered in Indiana and propelled by an alternative fuel to obtain an alternative fuel decal and pay an annual fee ranging from $100 to $500. Provides procedures for applying for, granting, and displaying the decal. Permits a prorated fee on a quarterly basis for vehicles converted, purchased, or registered after June 30. Requires alternative fuel vehicles registered outside of Indiana to obtain a 72-hour temporary trip permit for $5.50 in order to operate on a public highway in Indiana. Requires seller of alternative fuels to register as a propane dealer and pay a license fee of $50.


Affected Code Section: Ind. Code § 6-7-1-37 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 367
Explanation: Requires all reports required to be filed for the cigarette tax to be filed electronically and all payments of tax to be paid electronically.


Affected Code Section: Ind. Code § 6-7-2-12 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 367
Explanation: Requires all reports required to be filed for the tobacco products tax to be filed electronically and all payments of tax to be paid electronically.


Affected Code Section: Ind. Code § 6-9-17-5 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 367
Explanation: Modifies the composition of the Madison County visitor and convention commission to include a member engaged in the tourism and hospitality industry rather than in the travel business.


Affected Code Section: Ind. Code § 27-1-2-2.3 (addition)
Effective Date: Jan. 1, 2013 (retroactive)
Enacted By: House Bill 1206
Explanation: Requires a captive insurer doing business in Indiana to register with the Commissioner of Insurance and pay a tax of $2,500 for each calendar year beginning in 2013. Defines a “captive insurer” for purposes of this section to include a foreign or alien insurance company that is supervised in another jurisdiction, owned by a person conducting business in Indiana, established with the purpose of insuring property and casualty risks of certain related entities, and having not written more than $2,000,000 of annual premiums. Provides that the tax is due July 1, 2014, for the 2013 calendar year and by April 15 for following years. Directs that a captive insurer subject to tax under this section shall not be subject to any license fee, privilege tax or other tax by the state or a political subdivision of the state except for the $2,500 tax and property taxes.


Affected Code Section: Ind. Code § 32-34-1-9.1 & 32-34-1-30.1 (addition)
Effective Date: July 1, 2014
Enacted By: Senate Bill 208
Explanation: Adds a definition of “interest bearing property,” including interest bearing checking accounts, savings accounts, certificates of deposit, and money market accounts. Provides that owners of “interest bearing property” submitted to the attorney general as unclaimed property are entitled to receive interest accruing after the day of payment or delivery. Provides a mechanism to calculate interest based on an average commercial interest rate as determined by the Weekly National Rates and Rate Caps index published by the FDIC or any other index selected by the attorney general. Requires the attorney general to disclose the interest rate used. Permits the owner to receive additional interest if the owner establishes that the property could have earned a higher rate under the owner’s custody.


Affected Code Section: Ind. Code § 32-34-1-27 (amendment)
Effective Date: July 1, 2014
Enacted By: Senate Bill 208
Explanation: Reduces the timing in which property in a safe deposit box must be delivered to the attorney general after filing an unclaimed property report from no less than 120 days to no more than 30 days.


Affected Code Section: Ind. Code § 7.1-4-6-3.5 (amendment)
Effective Date:  July 1, 2014
Enacted By: Senate Bill 367
Explanation: Requires returns for alcohol excise taxes to be filed in an electronic format and all payments of tax to be paid electronically.

 

Connect with Tim 
Tim C. Cook is the partner-in-charge of Katz, Sapper & Miller's State and Local Tax Practice as well as KSM Economic Development, part of the Katz, Sapper & Miller Network. Tim supervises and coordinates all state and local tax consulting services, including business incentives and site selection services, multi-state taxes, unclaimed property, and controversy services.