Indiana 2024 Regular Session

Indiana House Bill HB1411 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. 1411
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-2-1; IC 6-3.6-2-2.
7	7	Synopsis: Elimination of state individual income tax. Eliminates the
8	8	state individual adjusted gross income tax by reducing the rate to 0%.
9	9	Provides that in calculating the local income tax (LIT), which is
10	10	imposed based on a local taxpayer's state adjusted gross income, the
11	11	calculation of a taxpayer's state adjusted gross income for LIT purposes
12	12	shall be calculated under the adjusted gross income tax provisions as
13	13	if those provisions, and the most recent adjusted gross income tax rate
14	14	before its elimination, were still in effect.
15	15	Effective: July 1, 2024.
16	16	Payne, Hostettler, Sweet, Cash
17	17	January 11, 2024, read first time and referred to Committee on Ways and Means.
18	18	2024 IN 1411—LS 6551/DI 125 Introduced
19	19	Second Regular Session of the 123rd General Assembly (2024)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2023 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1411
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	taxation.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 6-3-2-1, AS AMENDED BY P.L.201-2023,
34	34	2 SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2024]: Sec. 1. (a) Each taxable year, a tax at the following rate
36	36	4 of adjusted gross income is imposed upon the adjusted gross income of
37	37	5 every resident person, and on that part of the adjusted gross income
38	38	6 derived from sources within Indiana of every nonresident person:
39	39	7 (1) For taxable years beginning before January 1, 2015, three and
40	40	8 four-tenths percent (3.4%).
41	41	9 (2) For taxable years beginning after December 31, 2014, and
42	42	10 before January 1, 2017, three and three-tenths percent (3.3%).
43	43	11 (3) For taxable years beginning after December 31, 2016, and
44	44	12 before January 1, 2023, three and twenty-three hundredths percent
45	45	13 (3.23%).
46	46	14 (4) For taxable years beginning after December 31, 2022, and
47	47	15 before January 1, 2024, three and fifteen hundredths percent
48	48	16 (3.15%).
49	49	17 (5) For taxable years beginning after December 31, 2023, and
50	50	2024 IN 1411—LS 6551/DI 125 2
51	51	1 before January 1, 2025, three and five-hundredths percent
52	52	2 (3.05%).
53	53	3 (6) For taxable years beginning after December 31, 2024, and
54	54	4 before January 1, 2026, three percent (3%). zero percent (0%).
55	55	5 (7) For taxable years beginning after December 31, 2025, and
56	56	6 before January 1, 2027, two and ninety-five hundredths percent
57	57	7 (2.95%).
58	58	8 (8) For taxable years beginning after December 31, 2026, two and
59	59	9 nine-tenths percent (2.9%).
60	60	10 (b) Except as provided in section 1.5 of this chapter (before its
61	61	11 expiration), each taxable year, a tax at the following rate of adjusted
62	62	12 gross income is imposed on that part of the adjusted gross income
63	63	13 derived from sources within Indiana of every corporation:
64	64	14 (1) Before July 1, 2012, eight and five-tenths percent (8.5%).
65	65	15 (2) After June 30, 2012, and before July 1, 2013, eight percent
66	66	16 (8.0%).
67	67	17 (3) After June 30, 2013, and before July 1, 2014, seven and
68	68	18 five-tenths percent (7.5%).
69	69	19 (4) After June 30, 2014, and before July 1, 2015, seven percent
70	70	20 (7.0%).
71	71	21 (5) After June 30, 2015, and before July 1, 2016, six and
72	72	22 five-tenths percent (6.5%).
73	73	23 (6) After June 30, 2016, and before July 1, 2017, six and
74	74	24 twenty-five hundredths percent (6.25%).
75	75	25 (7) After June 30, 2017, and before July 1, 2018, six percent
76	76	26 (6.0%).
77	77	27 (8) After June 30, 2018, and before July 1, 2019, five and
78	78	28 seventy-five hundredths percent (5.75%).
79	79	29 (9) After June 30, 2019, and before July 1, 2020, five and
80	80	30 five-tenths percent (5.5%).
81	81	31 (10) After June 30, 2020, and before July 1, 2021, five and
82	82	32 twenty-five hundredths percent (5.25%).
83	83	33 (11) After June 30, 2021, four and nine-tenths percent (4.9%).
84	84	34 (c) If for any taxable year a taxpayer is subject to different tax rates
85	85	35 under subsection (b), the taxpayer's tax rate for that taxable year is the
86	86	36 rate determined in the last STEP of the following STEPS:
87	87	37 STEP ONE: Multiply the number of days in the taxpayer's taxable
88	88	38 year that precede the day the rate changed by the rate in effect
89	89	39 before the rate change.
90	90	40 STEP TWO: Multiply the number of days in the taxpayer's
91	91	41 taxable year that follow the day before the rate changed by the
92	92	42 rate in effect after the rate change.
93	93	2024 IN 1411—LS 6551/DI 125 3
94	94	1 STEP THREE: Divide the sum of the amounts determined under
95	95	2 STEPS ONE and TWO by the number of days in the taxpayer's
96	96	3 tax period.
97	97	4 However, the rate determined under this subsection shall be rounded
98	98	5 to the nearest one-hundredth of one percent (0.01%).
99	99	6 SECTION 2. IC 6-3.6-2-2, AS AMENDED BY P.L.239-2017,
100	100	7 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
101	101	8 JULY 1, 2024]: Sec. 2. "Adjusted gross income" has the meaning set
102	102	9 forth in IC 6-3-1-3.5 and shall be calculated under IC 6-3 as if the
103	103	10 rate under IC 6-3-2-1(a)(5) were still in effect. However:
104	104	11 (1) except as provided in subdivision (3), in the case of a local
105	105	12 taxpayer who is not treated as a resident local taxpayer of a
106	106	13 county, the term includes only adjusted gross income derived
107	107	14 from the taxpayer's principal place of business or employment;
108	108	15 (2) in the case of a resident local taxpayer of Perry County, the
109	109	16 term does not include adjusted gross income described in
110	110	17 IC 6-3.6-8-7; and
111	111	18 (3) in the case of a local taxpayer described in section 13(3) of
112	112	19 this chapter, the term includes only that part of the individual's
113	113	20 total income that:
114	114	21 (A) is apportioned to Indiana under IC 6-3-2-2.7 or
115	115	22 IC 6-3-2-3.2; and
116	116	23 (B) is paid to the individual as compensation for services
117	117	24 rendered in the county as a team member or race team
118	118	25 member.
119	119	2024 IN 1411—LS 6551/DI 125