IN
Indiana Senate Bill SB0003

Indiana 2023 Regular Session

Indiana Senate Bill SB0003 Compare Versions

OldNewDifferences
1+*ES0003.2*
2+Reprinted
3+April 14, 2023
4+ENGROSSED
5+SENATE BILL No. 3
6+_____
7+DIGEST OF SB 3 (Updated April 13, 2023 4:07 pm - DI 119)
8+Citations Affected: Noncode.
9+Synopsis: State and local tax review task force. Establishes the state
10+and local tax review task force (task force). Specifies the membership
11+of the task force and provides for the selection of the chairperson and
12+vice chairperson of the task force. Specifies the topics the task force is
13+required to review and requires the task force to submit the task force's
14+findings and recommendations to the legislative council not later than
15+December 1, 2023.
16+Effective: Upon passage.
17+Holdman, Baldwin, Garten,
18+Randolph Lonnie M
19+(HOUSE SPONSORS — THOMPSON, HEINE, LEHMAN, PRESCOTT)
20+January 9, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
21+February 14, 2023, amended, reported favorably — Do Pass.
22+February 23, 2023, read second time, amended, ordered engrossed.
23+February 24, 2023, engrossed.
24+February 27, 2023, read third time, passed. Yeas 49, nays 0.
25+HOUSE ACTION
26+March 6, 2023, read first time and referred to Committee on Ways and Means.
27+April 6, 2023, amended, reported — Do Pass.
28+April 13, 2023, read second time, amended, ordered engrossed.
29+ES 3—LS 7167/DI 120 Reprinted
30+April 14, 2023
131 First Regular Session of the 123rd General Assembly (2023)
232 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
333 Constitution) is being amended, the text of the existing provision will appear in this style type,
434 additions will appear in this style type, and deletions will appear in this style type.
535 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
636 provision adopted), the text of the new provision will appear in this style type. Also, the
737 word NEW will appear in that style type in the introductory clause of each SECTION that adds
838 a new provision to the Indiana Code or the Indiana Constitution.
939 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1040 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 3
12-AN ACT concerning taxation.
41+ENGROSSED
42+SENATE BILL No. 3
43+A BILL FOR AN ACT concerning taxation and to make an
44+appropriation.
1345 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. [EFFECTIVE UPON PASSAGE] (a) As used in this
15-SECTION, "task force" refers to the state and local tax review task
16-force established by subsection (b).
17-(b) The state and local tax review task force is established.
18-(c) The task force consists of the following members:
19-(1) The chairperson of the senate tax and fiscal policy
20-committee.
21-(2) The ranking minority member of the senate tax and fiscal
22-policy committee.
23-(3) The chairperson of the senate appropriations committee.
24-(4) The ranking minority member of the senate
25-appropriations committee.
26-(5) The chairperson of the house ways and means committee.
27-(6) One (1) member of the house ways and means committee
28-who is a member of the majority party of the house, appointed
29-by the speaker of the house of representatives.
30-(7) The ranking minority member of the house ways and
31-means committee.
32-(8) One (1) member of the house ways and means committee
33-who is a member of the minority party of the house, appointed
34-by the minority leader of the house of representatives.
35-(9) The director of the office of management and budget.
36-SEA 3 — CC 1 2
37-(10) The director of the budget agency.
38-(11) The public finance director of the Indiana finance
39-authority.
40-(12) One (1) member who is an economist employed at a state
41-educational institution (as defined in IC 21-7-13-32),
42-appointed jointly by the president pro tempore of the senate
43-and the speaker of the house of representatives.
44-(d) If a vacancy occurs, the appointing authority that appointed
46+1 SECTION 1. [EFFECTIVE UPON PASSAGE] (a) As used in this
47+2 SECTION, "task force" refers to the state and local tax review task
48+3 force established by subsection (b).
49+4 (b) The state and local tax review task force is established.
50+5 (c) The task force consists of the following members:
51+6 (1) The chairperson of the senate tax and fiscal policy
52+7 committee.
53+8 (2) The ranking minority member of the senate tax and fiscal
54+9 policy committee.
55+10 (3) The chairperson of the senate appropriations committee.
56+11 (4) The ranking minority member of the senate
57+12 appropriations committee.
58+13 (5) The chairperson of the house ways and means committee.
59+14 (6) One (1) member of the house ways and means committee
60+15 who is a member of the majority party of the house, appointed
61+16 by the speaker of the house of representatives.
62+17 (7) The ranking minority member of the house ways and
63+ES 3—LS 7167/DI 120 2
64+1 means committee.
65+2 (8) One (1) member of the house ways and means committee
66+3 who is a member of the minority party of the house, appointed
67+4 by the minority leader of the house of representatives.
68+5 (9) The director of the office of management and budget.
69+6 (10) The director of the budget agency.
70+7 (11) The public finance director of the Indiana finance
71+8 authority.
72+9 (12) One (1) member who is an economist employed at a state
73+10 educational institution (as defined in IC 21-7-13-32),
74+11 appointed jointly by the president pro tempore of the senate
75+12 and the speaker of the house of representatives.
76+13 (d) If a vacancy occurs, the appointing authority that appointed
77+14 the member whose position is vacant shall appoint an individual to
78+15 fill the vacancy.
79+16 (e) Not later than July 1, 2023, the:
80+17 (1) speaker of the house of representatives shall select a
81+18 member of the task force to serve as the chairperson of the
82+19 task force; and
83+20 (2) president pro tempore of the senate shall select a member
84+21 of the task force to serve as the vice chairperson of the task
85+22 force.
86+23 (f) The following apply to the mileage, per diem, and travel
87+24 expenses for members of the task force:
88+25 (1) Each member of the task force who is a state employee is
89+26 entitled to reimbursement for traveling expenses as provided
90+27 under IC 4-13-1-4 and other expenses actually incurred in
91+28 connection with the member's duties as provided in the state
92+29 policies and procedures established by the Indiana
93+30 department of administration and approved by the budget
94+31 agency.
95+32 (2) Each member of the task force who is a member of the
96+33 general assembly or who is not a state employee is entitled to
97+34 receive the same per diem, mileage, and travel allowances
98+35 paid to individuals who serve as legislative and lay members,
99+36 respectively, of interim study committees established by the
100+37 legislative council.
101+38 (g) The task force shall review the following:
102+39 (1) The state's near term and long term financial outlook and
103+40 overall fiscal position.
104+41 (2) The state's appropriation backed debt obligations.
105+42 (3) The funded status of pension funds managed by the state,
106+ES 3—LS 7167/DI 120 3
107+1 including methods to reduce the unfunded actuarial accrued
108+2 liability of the pre-1996 account within the Indiana state
109+3 teachers' retirement fund.
110+4 (4) The individual income tax, including methods to reduce or
111+5 eliminate the individual income tax.
112+6 (5) The corporate income tax.
113+7 (6) The state gross retail and use tax, including a review of the
114+8 state gross retail tax base.
115+9 (7) The property tax, including methods to reduce or
116+10 eliminate the tax on homestead properties and reduce or
117+11 eliminate the tax on business personal property.
118+12 (8) Local option taxes, including the local income tax, food
119+13 and beverage taxes, and innkeeper's taxes.
120+14 (h) The legislative services agency shall provide staff support to
121+15 the task force.
122+16 (i) The meetings of the task force must be held in public as
123+17 provided under IC 5-14-1.5.
124+18 (j) The task force shall meet at least four (4) times in calendar
125+19 year 2023.
126+20 (k) On or before December 1, 2023, the task force shall prepare
127+21 and submit a report to the legislative council, in an electronic
128+22 format under IC 5-14-6, that sets forth the topics reviewed by the
129+23 task force and the task force's findings and recommendations.
130+24 (l) This SECTION expires June 30, 2024.
131+25 SECTION 2. An emergency is declared for this act.
132+ES 3—LS 7167/DI 120 4
133+COMMITTEE REPORT
134+Madam President: The Senate Committee on Tax and Fiscal Policy,
135+to which was referred Senate Bill No. 3, has had the same under
136+consideration and begs leave to report the same back to the Senate with
137+the recommendation that said bill be AMENDED as follows:
138+Delete the title and insert the following:
139+A BILL FOR AN ACT concerning taxation and to make an
140+appropriation.
141+Page 1, line 2, delete ""commission"" and insert ""task force"".
142+Page 1, line 3, delete "commission" and insert "task force".
143+Page 1, line 4, delete "commission" and insert "task force".
144+Page 1, line 5, delete "commission" and insert "task force".
145+Page 2, delete lines 8 through 13.
146+Page 2, line 14, delete "(14)" and insert "(12)".
147+Page 2, delete lines 17 through 18, begin a new paragraph and
148+insert:
149+"(d) If a vacancy occurs, the appointing authority that appointed
45150 the member whose position is vacant shall appoint an individual to
46151 fill the vacancy.
47-(e) Not later than July 1, 2023, the:
48-(1) chairperson of the legislative council shall select a member
49-of the task force to serve as the chairperson of the task force;
50-and
51-(2) vice chairperson of the legislative council shall select a
52-member of the task force to serve as the vice chairperson of
53-the task force.
54-The members selected under subdivisions (1) and (2) shall serve as
55-chairperson and vice chairperson until May 1, 2024. Beginning
56-May 1, 2024, the member initially appointed under subdivision (2)
57-shall instead serve as the chairperson of the task force, and the
58-member initially appointed under subdivision (1) shall instead
59-serve as the vice chairperson of the task force.
60-(f) The following apply to the mileage, per diem, and travel
152+(e) The chairperson of the legislative council shall select the
153+chairperson of the task force before July 1, 2023. The individual
154+selected to serve as the chairperson of the task force under this
155+subsection shall serve as the task force's chairperson for the
156+duration of the task force.
157+(f) Each member of the task force who is not a state employee is
158+entitled to receive the same per diem, mileage, and travel
159+allowances paid to individuals who serve as legislative and lay
160+members, respectively, of interim study committees established by
161+the legislative council. The expenses described in this subsection
162+must be paid from money appropriated to the legislative council
163+for the use of the task force.".
164+Page 2, line 19, delete "(e)" and insert "(g)".
165+Page 2, line 19, delete "commission" and insert "task force".
166+Page 2, between lines 26 and 27, begin a new line block indented
167+and insert:
168+"(5) Elimination of property taxes on homestead properties.".
169+Page 2, line 27, delete "(5)" and insert "(6)".
170+Page 2, line 28, delete "(6)" and insert "(7)".
171+Page 2, line 29, delete "(f)" and insert "(h)".
172+Page 2, line 30, delete "commission." and insert "task force.".
173+Page 2, line 31, delete "(g)" and insert "(i)".
174+ES 3—LS 7167/DI 120 5
175+Page 2, line 31, delete "commission" and insert "task force".
176+Page 2, line 32, delete "commission" and insert "task force".
177+Page 2, line 34, delete "commission." and insert "task force.".
178+Page 2, delete lines 35 through 36, begin a new paragraph and
179+insert:
180+"(j) The task force shall meet at least four (4) times in calendar
181+year 2023, and at least four (4) times in calendar year 2024 at the
182+call of the chairperson.".
183+Page 2, line 37, delete "(i)" and insert "(k)".
184+Page 2, line 37, delete "commission" and insert "task force".
185+Page 2, line 40, delete "commission." and insert "task force.".
186+Page 3, line 1, delete "commission" and insert "task force".
187+Page 3, line 2, delete "(j)" and insert "(l)".
188+Page 3, line 2, delete "commission" and insert "task force".
189+Page 3, line 5, delete "by the commission and the commission's" and
190+insert "by the task force and the task force's".
191+Page 3, line 7, delete "(k)" and insert "(m)".
192+Page 3, between lines 7 and 8, begin a new paragraph and insert:
193+"SECTION 2. [EFFECTIVE JULY 1, 2023] (a) There is
194+appropriated to the legislative council created by IC 2-5-1.1-1 from
195+the state general fund two hundred thousand dollars ($200,000) for
196+the biennium beginning July 1, 2023, and ending June 30, 2025, for
197+the use of the state and local tax review task force, as added by this
198+act. The amount appropriated by this SECTION is allocated as
199+follows:
200+(1) One hundred thousand dollars ($100,000) for the state
201+fiscal year beginning July 1, 2023, and ending June 30, 2024.
202+(2) One hundred thousand dollars ($100,000) for the state
203+fiscal year beginning July 1, 2024, and ending June 30, 2025.
204+Amounts appropriated by this SECTION must be used to pay the
205+state and local tax review task force's expenses.
206+(b) This SECTION expires July 1, 2025.".
207+Renumber all SECTIONS consecutively.
208+and when so amended that said bill do pass.
209+(Reference is to SB 3 as introduced.)
210+HOLDMAN, Chairperson
211+Committee Vote: Yeas 13, Nays 0.
212+ES 3—LS 7167/DI 120 6
213+SENATE MOTION
214+Madam President: I move that Senate Bill 3 be amended to read as
215+follows:
216+Page 2, delete lines 20 through 26, begin a new paragraph and
217+insert:
218+"(f) The following apply to the mileage, per diem, and travel
61219 expenses for members of the task force:
62220 (1) Each member of the task force who is a state employee is
63221 entitled to reimbursement for traveling expenses as provided
64222 under IC 4-13-1-4 and other expenses actually incurred in
65223 connection with the member's duties as provided in the state
66224 policies and procedures established by the Indiana
67225 department of administration and approved by the budget
68226 agency.
69227 (2) Each member of the task force who is a member of the
70228 general assembly or who is not a state employee is entitled to
71229 receive the same per diem, mileage, and travel allowances
72230 paid to individuals who serve as legislative and lay members,
73231 respectively, of interim study committees established by the
74-legislative council.
75-(g) The task force shall review the following:
76-(1) The state's near term and long term financial outlook and
232+legislative council.".
233+(Reference is to SB 3 as printed February 15, 2023.)
234+HOLDMAN
235+_____
236+SENATE MOTION
237+Madam President: I move that Senate Bill 3 be amended to read as
238+follows:
239+Page 2, delete line 34.
240+Page 2, delete line 35, begin a new line block indented and insert:
241+"(4) Application of the sales tax, corporate tax, and property
242+tax, including the elimination of property taxes on all
243+homestead properties.".
244+Page 2, line 36, delete "(6)" and insert "(5)".
245+Page 2, line 37, delete "(7)" and insert "(6)".
246+(Reference is to SB 3 as printed February 15, 2023.)
247+HOLDMAN
248+ES 3—LS 7167/DI 120 7
249+COMMITTEE REPORT
250+Mr. Speaker: Your Committee on Ways and Means, to which was
251+referred Senate Bill 3, has had the same under consideration and begs
252+leave to report the same back to the House with the recommendation
253+that said bill be amended as follows:
254+Page 2, line 11, after "appointed" insert "jointly".
255+Page 2, line 11, delete "senate." and insert "senate and the speaker
256+of the house of representatives.".
257+Page 2, delete lines 15 through 19, begin a new paragraph and
258+insert:
259+"(e) Not later than July 1, 2023, the:
260+(1) chairperson of the legislative council shall select a member
261+of the task force to serve as the chairperson of the task force;
262+and
263+(2) vice chairperson of the legislative council shall select a
264+member of the task force to serve as the vice chairperson of
265+the task force.
266+The members selected under subdivisions (1) and (2) shall serve as
267+chairperson and vice chairperson until January 1, 2024. Beginning
268+January 1, 2024, the member initially appointed under subdivision
269+(2) shall instead serve as the chairperson of the task force, and the
270+member initially appointed under subdivision (1) shall instead
271+serve as the vice chairperson of the task force.".
272+Page 2, delete lines 36 through 42, begin a new line block indented
273+and insert:
274+"(1) The state's near term and long term financial outlook and
77275 overall fiscal position.
78276 (2) The state's appropriation backed debt obligations.
79-SEA 3 — CC 1 3
80277 (3) The funded status of pension funds managed by the state,
81278 including methods to reduce the unfunded actuarial accrued
82279 liability of the pre-1996 account within the Indiana state
83280 teachers' retirement fund.
84281 (4) The individual income tax, including methods to reduce or
85282 eliminate the individual income tax.
86283 (5) The corporate income tax.
87284 (6) The state gross retail and use tax, including a review of the
88285 state gross retail tax base.
89286 (7) The property tax, including methods to reduce or
90287 eliminate the tax on homestead properties and reduce or
91288 eliminate the tax on business personal property.
92289 (8) Local option taxes, including the local income tax, food
93-and beverage taxes, and innkeeper's taxes.
94-(h) The legislative services agency shall provide staff support to
95-the task force.
96-(i) The meetings of the task force must be held in public as
97-provided under IC 5-14-1.5. However, the task force is permitted
98-to meet in executive session as determined necessary by the
99-chairperson of the task force.
100-(j) The task force shall meet at least four (4) times in calendar
101-year 2023, and at least four (4) times in calendar year 2024 at the
102-call of the chairperson.
103-(k) On or before December 1, 2024, the task force shall prepare
104-and submit a report to the legislative council, in an electronic
105-format under IC 5-14-6, that sets forth the topics reviewed by the
106-task force and the task force's findings and recommendations.
107-(l) This SECTION expires June 30, 2025.
108-SECTION 2. An emergency is declared for this act.
109-SEA 3 — CC 1 President of the Senate
110-President Pro Tempore
111-Speaker of the House of Representatives
112-Governor of the State of Indiana
113-Date: Time:
114-SEA 3 — CC 1
290+and beverage taxes, and innkeeper's taxes.".
291+ES 3—LS 7167/DI 120 8
292+Page 3, delete lines 1 through 4.
293+Page 3, delete lines 14 through 20.
294+Page 3, line 21, delete "(l)" and insert "(k)".
295+Page 3, line 25, delete "(m)" and insert "(l)".
296+Page 3, delete lines 26 through 39.
297+Renumber all SECTIONS consecutively.
298+and when so amended that said bill do pass.
299+(Reference is to SB 3 as reprinted February 24, 2023.)
300+THOMPSON
301+Committee Vote: yeas 20, nays 0.
302+_____
303+HOUSE MOTION
304+Mr. Speaker: I move that Engrossed Senate Bill 3 be amended to
305+read as follows:
306+Page 2, line 17, delete "chairperson of the legislative council" and
307+insert "speaker of the house of representatives".
308+Page 2, line 20, delete "vice chairperson of the legislative council"
309+and insert "president pro tempore of the senate".
310+Page 2, delete lines 23 through 28.
311+Page 3, line 23, delete "However, the task force is permitted".
312+Page 3, delete lines 24 through 25.
313+Page 3, line 27, delete ", and at least four (4) times in calendar year
314+2024 at the" and insert ".".
315+Page 3, delete line 28.
316+Page 3, line 29, delete "2024," and insert "2023,".
317+Page 3, line 33, delete "2025." and insert "2024.".
318+(Reference is to ESB 3 as printed April 6, 2023.)
319+THOMPSON
320+ES 3—LS 7167/DI 120