Indiana 2024 Regular Session

Indiana House Bill HB1296 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. 1296
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-51.7; IC 6-3-3-15.5; IC 28-8-4.1-707.
7	7	Synopsis: Remittance fee for international money wiring. Establishes
8	8	the Indiana foreign electronic transfer fees property tax relief fund
9	9	(fund) for the purpose of issuing property tax relief rebates to
10	10	individuals who qualify for the over 65 property tax credit. Provides
11	11	that the department of state revenue administers the fund. Requires the
12	12	sender of a money transmission transaction to pay a fee if the recipient
13	13	of the money is located outside of the United States. Provides a tax
14	14	credit for an individual who: (1) is a citizen or national of the United
15	15	States, or is an alien who has lawful permanent resident status or
16	16	conditional permanent resident status; and (2) paid any fees for a
17	17	money transmission transaction during the taxable year. Makes an
18	18	appropriation.
19	19	Effective: July 1, 2024; January 1, 2025.
20	20	Speedy, Haggard
21	21	January 10, 2024, read first time and referred to Committee on Ways and Means.
22	22	2024 IN 1296—LS 6899/DI 125 Introduced
23	23	Second Regular Session of the 123rd General Assembly (2024)
24	24	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
25	25	Constitution) is being amended, the text of the existing provision will appear in this style type,
26	26	additions will appear in this style type, and deletions will appear in this style type.
27	27	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
28	28	provision adopted), the text of the new provision will appear in this style type. Also, the
29	29	word NEW will appear in that style type in the introductory clause of each SECTION that adds
30	30	a new provision to the Indiana Code or the Indiana Constitution.
31	31	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
32	32	between statutes enacted by the 2023 Regular Session of the General Assembly.
33	33	HOUSE BILL No. 1296
34	34	A BILL FOR AN ACT to amend the Indiana Code concerning
35	35	taxation and to make an appropriation.
36	36	Be it enacted by the General Assembly of the State of Indiana:
37	37	1 SECTION 1. IC 6-1.1-51.7 IS ADDED TO THE INDIANA CODE
38	38	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
39	39	3 JANUARY 1, 2025]:
40	40	4 Chapter 51.7. Foreign Electronic Transfer Fees Property Tax
41	41	5 Relief Fund
42	42	6 Sec. 1. As used in this chapter, "eligible individual" means an
43	43	7 individual who qualifies for a credit under IC 6-1.1-20.6-8.5 for
44	44	8 property taxes first due and payable for the calendar year.
45	45	9 Sec. 2. As used in this chapter, "fund" means the Indiana
46	46	10 foreign electronic transfer fees property tax relief fund established
47	47	11 by section 4 of this chapter.
48	48	12 Sec. 3. As used in this chapter, "rebate" refers to a property tax
49	49	13 relief rebate issued from the fund.
50	50	14 Sec. 4. (a) The Indiana foreign electronic transfer fees property
51	51	15 tax relief fund is established for the purpose of issuing property tax
52	52	16 relief rebates to eligible individuals.
53	53	17 (b) The department of state revenue shall administer the fund.
54	54	2024 IN 1296—LS 6899/DI 125 2
55	55	1 (c) The fund consists of fees transferred to the fund under
56	56	2 IC 28-8-4.1-707(c).
57	57	3 (d) The costs of administering the fund and issuing rebates from
58	58	4 the fund may be paid using money in the fund.
59	59	5 (e) Money in the fund does not revert to the state general fund
60	60	6 at the end of a state fiscal year.
61	61	7 (f) Money in the fund is continuously appropriated for the
62	62	8 purposes of the fund.
63	63	9 Sec. 5. (a) Each calendar year, an eligible individual is entitled
64	64	10 to a property tax relief rebate to be paid from the money
65	65	11 transferred to the fund in the immediately preceding calendar
66	66	12 year.
67	67	13 (b) Subject to subsection (c), the amount of a rebate to which an
68	68	14 eligible individual is entitled is equal to the:
69	69	15 (1) total amount of fees transferred to the fund during the
70	70	16 immediately preceding calendar year; divided by
71	71	17 (2) number of eligible individuals for the current year.
72	72	18 (c) The amount of an eligible individual's rebate under this
73	73	19 chapter in a particular year may not exceed the amount of the
74	74	20 eligible individual's net property tax liability for property taxes for
75	75	21 the eligible individual's homestead first due and payable in the
76	76	22 year. If the amount of an eligible individual's rebate in a particular
77	77	23 year exceeds the amount of the eligible individual's net property
78	78	24 tax liability for property taxes for the eligible individual's
79	79	25 homestead first due and payable in that year, the excess must be
80	80	26 returned to the fund and shall be considered to be a fee transferred
81	81	27 to the fund for rebates in the subsequent year.
82	82	28 Sec. 6. (a) Not later than May 1 each year, the county auditor of
83	83	29 each county shall notify the department of local government
84	84	30 finance and the department of state revenue of each eligible
85	85	31 individual who owns a homestead located in the county, including
86	86	32 the amount of the eligible individual's net property tax liability for
87	87	33 property taxes for the eligible individual's homestead first due and
88	88	34 payable in that year, in a form and manner prescribed by the
89	89	35 department.
90	90	36 (b) The department of state revenue shall issue a rebate to each
91	91	37 eligible individual according to the information received under
92	92	38 subsection (a).
93	93	39 Sec. 7. The department of local government finance and the
94	94	40 state comptroller shall provide any information to the department
95	95	41 of state revenue that the department of state revenue determines
96	96	42 is necessary to carry out this chapter.
97	97	2024 IN 1296—LS 6899/DI 125 3
98	98	1 Sec. 8. The department of state revenue may adopt rules under
99	99	2 IC 4-22-2 to implement and administer this chapter.
100	100	3 SECTION 2. IC 6-3-3-15.5 IS ADDED TO THE INDIANA CODE
101	101	4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
102	102	5 JANUARY 1, 2025]: Sec. 15.5. (a) Each taxable year, an individual
103	103	6 who:
104	104	7 (1) is:
105	105	8 (A) a citizen or national of the United States; or
106	106	9 (B) an alien who has lawful permanent resident status or
107	107	10 conditional permanent resident status; and
108	108	11 (2) paid any fees under IC 28-8-4.1-707 for a money
109	109	12 transmission transaction during the taxable year;
110	110	13 is entitled to a foreign electronic transfers fee credit against the
111	111	14 individual's adjusted gross income tax liability for the taxable year.
112	112	15 (b) The amount of the credit is equal to the total amount of
113	113	16 foreign electronic transfers fees the individual paid during the
114	114	17 taxable year.
115	115	18 (c) To receive the credit provided by this section, an individual
116	116	19 must claim the credit on the individual's state tax return or returns
117	117	20 in the manner prescribed by the department. The individual shall
118	118	21 submit to the department all information that the department
119	119	22 determines is necessary for the calculation of the credit provided
120	120	23 by this chapter.
121	121	24 (d) The credit provided by this section may not exceed the
122	122	25 amount of the individual's adjusted gross income tax liability for
123	123	26 the taxable year, reduced by the sum of all credits for the taxable
124	124	27 year that are applied before the application of the credit provided
125	125	28 by this section. The amount of any unused credit under this section
126	126	29 for a taxable year may not be carried forward to a succeeding
127	127	30 taxable year, carried back to a preceding taxable year, or
128	128	31 refunded.
129	129	32 SECTION 3. IC 28-8-4.1-707 IS ADDED TO THE INDIANA
130	130	33 CODE AS A NEW SECTION TO READ AS FOLLOWS
131	131	34 [EFFECTIVE JULY 1, 2024]: Sec. 707. (a) A licensee shall collect a
132	132	35 fee from the sender of a money transmission transaction if the
133	133	36 recipient of the money is located outside of the United States. The
134	134	37 amount of the fee is:
135	135	38 (1) in the case of a transaction in which the transmission is in
136	136	39 an amount of not more than five hundred dollars ($500), five
137	137	40 dollars ($5); and
138	138	41 (2) in the case of a transaction in which the transmission is in
139	139	42 an amount greater than five hundred dollars ($500), the sum
140	140	2024 IN 1296—LS 6899/DI 125 4
141	141	1 of:
142	142	2 (A) five dollars ($5); plus
143	143	3 (B) an amount equal to two percent (2%) of the amount of
144	144	4 the transmission that exceeds five hundred dollars ($500).
145	145	5 (b) A licensee shall remit the fee collections under subsection (a)
146	146	6 to the department quarterly. The licensee shall remit the fees
147	147	7 collected during a particular quarter before the fifteenth day of the
148	148	8 month immediately following the last month of the quarter. At the
149	149	9 time the fees are remitted, the licensee shall file a return on a form
150	150	10 prescribed by the department.
151	151	11 (c) The department shall transfer fees remitted under this
152	152	12 section to the Indiana foreign electronic transfer fees property tax
153	153	13 relief fund established by IC 6-1.1-51.7-4.
154	154	14 (d) The department shall prescribe a notice with a statement
155	155	15 including information that an individual who:
156	156	16 (1) is:
157	157	17 (A) a citizen or national of the United States; or
158	158	18 (B) an alien who has lawful permanent resident status or
159	159	19 conditional permanent resident status;
160	160	20 (2) has a valid Social Security number; and
161	161	21 (3) files an Indiana individual adjusted gross income tax
162	162	22 return;
163	163	23 may be eligible for the foreign electronic transfers fee tax credit
164	164	24 provided under IC 6-3-3-15.5. Each licensee and each of the
165	165	25 licensee's delegates shall post the notice prescribed by the
166	166	26 department.
167	167	27 SECTION 4. [EFFECTIVE JULY 1, 2024] (a) IC 6-3-3-15.5, as
168	168	28 added by this act, applies to taxable years beginning after
169	169	29 December 31, 2024.
170	170	30 (b) This SECTION expires June 30, 2027.
171	171	2024 IN 1296—LS 6899/DI 125