CNHI News Service, Evening News
IN THE SENATE: The Indiana Senate has 11 proposed bills and three proposed amendments to the Indiana Constitution for property tax reform. Senate Democrats are following House Bill 1001. Several Republican bills contain individual parts of House Bill 1001. Here is a list of Senate bills and amendments:
• Joint Resolution 1: Proposed constitutional amendment to require the General Assembly to establish a 1 percent circuit breaker for homesteads; allow the General Assembly to enact credits and deductions to limit the tax liability for other property; and permit the General Assembly to exempt a mobile home used as a homestead to the same extent as real property used as a homestead.
AUTHOR: Sen. Luke Kenley, R-Noblesville
COMMITTEE: Tax and Fiscal Policy
• Joint Resolution 2: Proposed constitutional amendment to provide that buildings and personal property predominantly used for religious worship are exempt from property taxes.
AUTHOR: Sen. Patricia Miller, R-Indianapolis
COMMITTEE: Judiciary
• Joint Resolution 3: Proposed constitutional amendment to prohibit the use of property taxes for common school purposes other than for transportation, capital projects and debt related to capital projects and employee retirement and severance liability.
AUTHOR: Sen. Teresa Lubbers, R-Indianapolis
COMMITTEE: Appropriations
• Senate Bill 1: Repeals the property tax levies for the county child welfare and the school general fund beginning 2010.
AUTHOR: Sen. Teresa Lubbers, R-Indianapolis
COMMITTEE: Appropriations
• Senate Bill 12: Establishes statutory circuit breakers as follows: 1 percent - homesteads (dwelling and the land up to 1 acre); 2 percent - other residential property (buildings of two or more dwelling units, common areas shared by the dwelling units and the land on which the building is located; and 3 percent - non-residential real and personal property.
AUTHOR: Sen. Luke Kenley, R-Noblesville
COMMITTEE: Tax and Fiscal Policy
• Senate Bill 13: Standardized public school building plans: Requires that a contract for professional services for design of school facilities must provide that any completed plans and specifications developed under the contract become the joint property of the person providing the services, the school corporation and the State of Indiana; Requires the Department of Education with the assistance of the State Building Law Compliance Officer to develop and update standard plans and specifications for the construction of school buildings and athletic facilities; and requires state Department of Local Government Finance (DLGF) approval (in addition to County Review Board approval) for schools that elect to use a non-standard design for a school facility.
Author: Sen. Brandt Hershman, R-Monticello
COMMITTEE: Tax and Fiscal Policy
• Senate Bill 14: Repeals state property tax levies for the Indiana State Fair, State Forestry Fund and DLGF (for management of the Local Government Finance data base).
AUTHOR: Sen. Phil Boots, R-Indianapolis
COMMITTEE: Appropriations
• Senate Bill 15: Extends the filing date from June 11 to Oct. 1 for the following credits/deductions (begin pay 2009 taxes): homestead credit and homeowner's deduction; mortgage deduction; elderly (aged 65 or older and surviving spouse); blind and disabled; and disabled veteran (and surviving spouse) and WWI veterans.
AUTHOR: Sen. Robert Meeks, R-LaGrange
COMMITTEE: Appropriations
• Senate Bill 16: Property Tax Assessing Duties: Eliminates the office of elected township assessor on Dec. 31, 2008, in townships where the assessor would otherwise be subject to election Nov. 4, 2008; provides that an individual holding the position of township assessor prior to Nov. 4, 2008, may remain in office and serve as township assessor until the expiration of the individual's term; transfers assessing duties to county assessors when a township assessor vacancy occurs; and provides that DLGF may approve contracts for professional appraisers in counties only if it determines the firm has a sufficient number of qualified employees and adequate training and experience.
AUTHOR: Sen. Connie Lawson, R-South Danville
COMMITTEE: Local Government
• Senate Bill 17: Reforms the Tax Increment Financing program: Limits bonds issued by redevelopment commissions to a maximum term of 30 years and capitalized interest to 2 years; requires elected body approval of certain redevelopment commission activities (use of eminent domain and consent to grant tax deductions, credits and abatements); includes tax increments from a TIF area in the definition of "property taxes" for purposes of the petition and remonstrance process; requires appointment of a school board member to a redevelopment commission to serve as a non-voting adviser; requires a finding that a TIF allocation area does not generate sufficient revenue to fund the original project in order to enlarge or expand the area; requires a redevelopment commission to annually notify the county auditor of the amount of (excess) assessed value that could be reallocated to the other taxing units; prohibits enlargement of an Economic Development Area unless it does not generate sufficient revenue to fund the original project; and provides that an Economic Development Area must meet the criteria for an area in need of development.
AUTHOR: Sen. Luke Kenley, R-Noblesville
Committee: Tax and Fiscal Policy
• Senate Bill 18: Establishes controls and requirements for the issuance and management of local debt: Prohibits refunding bonds from final maturities that extend beyond the final maturity of the original bonds; requires saving realized as a result of a refinancing to be used to repay debt or reduce debt levies; requires annual level retirement of principle throughout the financing; lowers the threshold that triggers county project review to the lesser of $7 million or .5 percent of taxable assessed valuation; and limits local bond issues to a maximum term of 30 years and capitalized interest to 2 years.
AUTHOR: Sen. Gary Dillon, R-Pierceton
COMMITTEE: Tax and Fiscal Policy
• Senate Bill 19: Requires employers and individuals that remit individual income taxes to the Indiana Department of Revenue to separate (between the state and counties) amounts withheld or paid. Tax revenues are properly allocated to each county; and requires that income tax withholdings for non-resident aliens must be based on no more than one exclusion regardless of the number of exclusions reflected in the taxpayer's final tax return.
AUTHOR: Sen. Luke Kenley, R-Noblesville
COMMITTEE: Tax and Fiscal Policy
• Senate Bill 20: Technical changes in local levy controls (for additional work in committee).
AUTHOR: Sen. Luke Kenley, R-Noblesville
COMMITTEE: Tax and Fiscal Policy
• Senate Bill 21: Allows tax credits rather than tax rebates in counties where state-ordered reassessments occurred in 2007 and delayed distribution of immediate relief to those property taxpayers.
AUTHOR: Sen. R. Michael Young, R-Indianapolis
COMMITTEE: Tax and Fiscal Policy
IN THE HOUSE: One large property tax reform bill has been introduced into the state's House of Representatives. It is:
House Bill 1001: Property tax relief.
• Replaces elected county assessors with county assessors appointed by the county fiscal body. Eliminates township assessors.
• Increases the circuit breaker credit for homesteads and certain rental property. Provides an additional 35 percent supplemental standard deduction for homesteads. Provides an additional homestead credit for 2008. Eliminates state-reimbursed homestead credits and property tax replacement credits in 2009.
• Eliminates: (1) school tuition support levies; (2) school transportation fund levies; (3) county medical assistance to wards fund levies; (4) family and children's fund levies; (5) children's psychiatric residential treatment services fund levies; (6) children with special health-care needs county fund levies; (7) the state forestry fund levy; (8) the state fair fund levy; and (9) the Department of Local Government Finance data base management levy.
• Changes the formula for determining the maximum permissible growth in certain levies and eliminates the authority of a county to restrict review of levies, tax rates and budgets by a county board of tax and capital projects review.
• Requires a referendum on bond issues and lease agreements payable from property taxes or local income taxes and that cost at least 1 percent of a political subdivision's total net assessed value or $10 million.
• Permits a referendum to increase a levy in excess of the amount approved by the county board of tax and capital projects review.
• Replaces the authority of a county to impose an annual levy growth tax rate, a public safety tax rate and a property tax replacement tax rate with a single rate not to exceed 1 percent.
• Increases the gross retail and use tax to 7 percent.
• Establishes the transportation study committee.
AUTHORS: Rep. William Crawford, D-Indianapolis, and Rep. Jeff Espich, R-Uniondale
COMMITTEE: Ways and Means