Indiana 2023 Regular Session

Indiana House Bill HB1618 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1618
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-3-7.2; IC 6-1.1-37-7.
7	7	Synopsis: Exemption for new business personal property. Provides
8	8	that for business personal property purchased after December 31, 2023,
9	9	the total acquisition cost of a taxpayer's total business personal property
10	10	in a county for an assessment date is exempt from taxation.
11	11	Effective: January 1, 2024.
12	12	Payne, Morrison, Sweet, Hostettler
13	13	January 19, 2023, read first time and referred to Committee on Ways and Means.
14	14	2023 IN 1618—LS 6890/DI 134 Introduced
15	15	First Regular Session of the 123rd General Assembly (2023)
16	16	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
17	17	Constitution) is being amended, the text of the existing provision will appear in this style type,
18	18	additions will appear in this style type, and deletions will appear in this style type.
19	19	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
20	20	provision adopted), the text of the new provision will appear in this style type. Also, the
21	21	word NEW will appear in that style type in the introductory clause of each SECTION that adds
22	22	a new provision to the Indiana Code or the Indiana Constitution.
23	23	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
24	24	between statutes enacted by the 2022 Regular Session of the General Assembly.
25	25	HOUSE BILL No. 1618
26	26	A BILL FOR AN ACT to amend the Indiana Code concerning
27	27	taxation.
28	28	Be it enacted by the General Assembly of the State of Indiana:
29	29	1 SECTION 1. IC 6-1.1-3-7.2, AS AMENDED BY P.L.137-2022,
30	30	2 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31	31	3 JANUARY 1, 2024]: Sec. 7.2. (a) This section applies to assessment
32	32	4 dates occurring after December 31, 2015.
33	33	5 (b) As used in this section, "affiliate" means an entity that
34	34	6 effectively controls or is controlled by a taxpayer or is associated with
35	35	7 a taxpayer under common ownership or control, whether by
36	36	8 shareholdings or other means.
37	37	9 (c) As used in this section, "business personal property" means
38	38	10 personal property that:
39	39	11 (1) is otherwise subject to assessment and taxation under this
40	40	12 article;
41	41	13 (2) is used in a trade or business or otherwise held, used, or
42	42	14 consumed in connection with the production of income; and
43	43	15 (3) was:
44	44	16 (A) acquired by the taxpayer in an arms length transaction
45	45	17 from an entity that is not an affiliate of the taxpayer, if the
46	46	2023 IN 1618—LS 6890/DI 134 2
47	47	1 personal property has been previously used in Indiana before
48	48	2 being placed in service in the county; or
49	49	3 (B) acquired in any manner, if the personal property has never
50	50	4 been previously used in Indiana before being placed in service
51	51	5 in the county.
52	52	6 The term does not include mobile homes assessed under IC 6-1.1-7,
53	53	7 personal property held as an investment, or personal property that is
54	54	8 assessed under IC 6-1.1-8 and is owned by a public utility subject to
55	55	9 regulation by the Indiana utility regulatory commission. However, the
56	56	10 term does include the personal property of a telephone company or a
57	57	11 communications service provider if that personal property meets the
58	58	12 requirements of subdivisions (1) through (3), regardless of whether that
59	59	13 personal property is assessed under IC 6-1.1-8 and regardless of
60	60	14 whether the telephone company or communications service provider is
61	61	15 subject to regulation by the Indiana utility regulatory commission.
62	62	16 (d) This subsection applies to business personal property
63	63	17 purchased before January 1, 2024. Notwithstanding section 7 of this
64	64	18 chapter, if the acquisition cost of a taxpayer's total business personal
65	65	19 property in a county is less than eighty thousand dollars ($80,000) for
66	66	20 that assessment date, the taxpayer's business personal property in the
67	67	21 county for that assessment date is exempt from taxation.
68	68	22 (e) This subsection applies to business personal property
69	69	23 purchased after December 31, 2023. Notwithstanding section 7 of
70	70	24 this chapter, the total acquisition cost of a taxpayer's total business
71	71	25 personal property in a county for an assessment date is exempt
72	72	26 from taxation.
73	73	27 (e) (f) Subject to subsection (f), (g), a taxpayer that is eligible for the
74	74	28 exemption under this section for an assessment date shall include the
75	75	29 following information on the taxpayer's personal property tax return:
76	76	30 (1) A declaration that the taxpayer's business personal property in
77	77	31 the county is exempt from property taxation.
78	78	32 (2) Whether the taxpayer's business personal property within the
79	79	33 county is in one (1) location or multiple locations.
80	80	34 (3) An address for the location of the property.
81	81	35 If the business personal property is in multiple locations within a
82	82	36 county, the taxpayer shall provide an address for the location where the
83	83	37 sum of acquisition costs for business personal property is greatest. If
84	84	38 two (2) or more addresses contain the greatest equivalent sum of
85	85	39 acquisition costs for business personal property within a given county,
86	86	40 the taxpayer shall choose only one (1) address to list on the return.
87	87	41 (f) (g) Beginning after December 31, 2022, a taxpayer that has
88	88	42 included the information required under subsection (e) (f) on the
89	89	2023 IN 1618—LS 6890/DI 134 3
90	90	1 taxpayer's personal property tax return to claim the exemption under
91	91	2 this section is not required to file a personal property return for the
92	92	3 taxpayer's business personal property for an assessment date that
93	93	4 occurs after the assessment date for which the information is first
94	94	5 provided under subsection (e), (f), unless or until the taxpayer no
95	95	6 longer qualifies for the exemption under subsection (d) for a
96	96	7 subsequent assessment date.
97	97	8 SECTION 2. IC 6-1.1-37-7, AS AMENDED BY P.L.153-2021,
98	98	9 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
99	99	10 JANUARY 1, 2024]: Sec. 7. (a) If a person fails to file a required
100	100	11 personal property return on or before the due date, the county auditor
101	101	12 shall add a penalty of twenty-five dollars ($25) to the person's next
102	102	13 property tax installment. The county auditor shall also add an
103	103	14 additional penalty to the taxes payable by the person if the person fails
104	104	15 to file the personal property return within thirty (30) days after the due
105	105	16 date. The amount of the additional penalty is twenty percent (20%) of
106	106	17 the taxes finally determined to be due with respect to the personal
107	107	18 property which should have been reported on the return.
108	108	19 (b) For purposes of this section, a personal property return is not due
109	109	20 until the expiration of any extension period granted by the township or
110	110	21 county assessor under IC 6-1.1-3-7(b).
111	111	22 (c) The penalties prescribed under this section do not apply to an
112	112	23 individual or the individual's dependents if the individual:
113	113	24 (1) is in the military or naval forces of the United States on the
114	114	25 assessment date; and
115	115	26 (2) is covered by the federal Servicemembers Civil Relief Act (50
116	116	27 U.S.C. App. 501 et seq.) or IC 10-16-20.
117	117	28 (d) If a person subject to IC 6-1.1-3-7(c) fails to include on a
118	118	29 personal property return the information, if any, that the department of
119	119	30 local government finance requires under IC 6-1.1-3-9 or IC 6-1.1-5-13,
120	120	31 the county auditor shall add a penalty to the property tax installment
121	121	32 next due for the return. The amount of the penalty is twenty-five dollars
122	122	33 ($25).
123	123	34 (e) If the total assessed value that a person reports on a personal
124	124	35 property return is less than the total assessed value that the person is
125	125	36 required by law to report and if the amount of the undervaluation
126	126	37 exceeds five percent (5%) of the value that should have been reported
127	127	38 on the return, then the county auditor shall add a penalty of twenty
128	128	39 percent (20%) of the additional taxes finally determined to be due as
129	129	40 a result of the undervaluation. The penalty shall be added to the
130	130	41 property tax installment next due for the return on which the property
131	131	42 was undervalued. If a person has complied with all of the requirements
132	132	2023 IN 1618—LS 6890/DI 134 4
133	133	1 for claiming a deduction, an exemption, or an adjustment for abnormal
134	134	2 obsolescence, then the increase in assessed value that results from a
135	135	3 denial of the deduction, exemption, or adjustment for abnormal
136	136	4 obsolescence is not considered to result from an undervaluation for
137	137	5 purposes of this subsection.
138	138	6 (f) If a person required by IC 6-1.1-3-7.2(e) IC 6-1.1-3-7.2(f) to
139	139	7 declare on the taxpayer's personal property tax return that the taxpayer's
140	140	8 business personal property is exempt fails to timely file the taxpayer's
141	141	9 personal property tax return with the declaration, the county auditor
142	142	10 shall impose a penalty of twenty-five dollars ($25) that must be paid by
143	143	11 the person with the next property tax installment that is collected. A
144	144	12 county shall include the penalty on a property tax bill associated with
145	145	13 the tax district in which the majority value of the taxpayer's business
146	146	14 personal property within the county is located, as determined by the
147	147	15 county assessor.
148	148	16 (g) A penalty is due with an installment under subsection (a), (d),
149	149	17 (e), or (f) whether or not an appeal is filed under IC 6-1.1-15-5 with
150	150	18 respect to the tax due on that installment.
151	151	19 SECTION 3. [EFFECTIVE JANUARY 1, 2024] (a) IC 6-1.1-3-7.2
152	152	20 and IC 6-1.1-37-7, both as amended by this act, apply to taxable
153	153	21 years beginning after December 31, 2023.
154	154	22 (b) This SECTION expires July 1, 2026.
155	155	2023 IN 1618—LS 6890/DI 134