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House Bill 1003


House Bill 1003

ARCHIVE (2001)

Latest Information

 

DIGEST OF HB1003 (Updated February 21, 2001 5:19 PM - DI 84)


State and local finance. Establishes the family and children's property tax relief fund. Specifies that the fund will be used to provide a credit in 2003 against property taxes imposed for a county's family and children's fund. Provides that in 2003, $1,000,000 shall be transferred from the build Indiana fund lottery and gaming surplus account to the family and children's property tax relief fund. Provides that in 2003 a taxpayer is entitled to a credit against the taxpayer's net family and children's fund property tax liability in an amount equal to the taxpayer's net family and children's fund property tax liability for the year multiplied by a percentage determined for the taxpayer's county for the year by the budget agency, after review by the state budget committee. Establishes a local match account for each county. Provides that a county may transfer any local revenue, other than property tax revenue, to the county's local match account. Provides that in 2003 the amounts in a county's local match account are used to match distributions of state money for the credit against family and children's fund property taxes. Provides that the match must be on a one to one basis. Provides counties with the option of imposing an additional 0.25% percent county adjusted gross income tax (CAGIT) rate or county option income tax (COIT) rate for purposes of funding the county matching portion of the credit against family and children's fund property taxes. Provides that such an additional rate may not be imposed after June 30, 2003. Provides that if such an additional rate is imposed, it applies to individuals and to the apportioned net income of corporate taxpayers. Provides counties with the option of using county adjusted gross income tax and county option income tax revenue for three types of property tax relief: (1) property tax replacement credits; (2) homestead credits; and (3) property tax reductions for low income homeowners. Provides counties with the option of imposing an additional 0.25% percent CAGIT rate or COIT rate for purposes of funding these property tax relief options. Adjusts the maximum combined CAGIT and CEDIT rates and the maximum combined COIT and CEDIT rates to account for the additional CAGIT and COIT rates that may be imposed for property tax relief purposes. Provides that the provisions in the bill lowering the maximum property tax levy increase from 10% to 8% and the minimum property tax levy increase from 5% to 4% apply only to 2002 and 2003. For tax years beginning after 2001, provides a credit against state tax liability for property taxes paid on personal property. Specifies that the credit is equal to the amount of property taxes paid on personal property that has an assessed valuation of not more than $37,500. Repeals the existing personal property tax reduction credit. Extends the earned income tax credit through 2003. (Under current law, the credit will expire December 31, 2001.) Allows local units to use riverboat revenue for property tax relief.
Current Status:
 In Committee - 2nd House
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