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Senate Bill 0500


Senate Bill 0500

ARCHIVE (2007)

Latest Information

 

DIGEST OF SB 500 (Updated April 29, 2007 11:45 pm - DI 73)


Various economic matters. Authorizes county fiscal bodies to adopt an ordinance authorizing a recording fee of $2.50 for the first page and $1 for each additional page. Specifies that 60% of the fee shall be deposited in affordable housing funds in the county (or the housing trust fund in Marion County) and that 40% of the fee shall be distributed to the treasurer of state for deposit in the affordable housing and community development fund. Provides that money in the state affordable housing and community development fund may not be used for rent supplements. Restricts a sales tax exemption available under current law for an electric utility that purchases distribution equipment or transmission equipment. Restricts a sales tax exemption available under current law for a hotel or restaurant that purchases electricity, water, gas, or steam. Restricts a sales tax exemption available under current law for an aircraft lessor that purchases an aircraft for rental or leasing. Provides for a graduated three-tier sales and use tax collection allowance for retail merchants. Provides that a taxpayer is not entitled to a venture capital investment tax credit for providing investment capital after December 31, 2012. (Current law provides that a taxpayer is not entitled to a credit for providing investment capital after December 31, 2008.) Provides that an energy savings tax credit may not be awarded for taxable years beginning after December 31, 2010. Specifies conditions under which a professional tax return preparer must file client returns electronically. Decreases various periodic tax liability thresholds at which taxpayers are required to make tax payments by electronic funds transfer from $10,000 to $5,000. Provides that a tax payment made by electronic funds transfer is considered made on the date the taxpayer issues the payment order for the electronic funds transfer. Provides for the accrual of interest at the rate of 6% per annum on inheritance tax refunds that are not processed within 90 days by the department of state revenue. Provides that the cigarette stamp discount to distributors is one and two-tenths cents per individual package of cigarettes. Provides that when a taxpayer claiming a refund requests a hearing on the claim, the department of state revenue must hold the requested hearing. Repeals a provision of the sales tax statute that requires certain out- of-state merchants making sales to customers in Indiana to register as retail merchants and remit sales and use tax. Provides a cigarette tax credit to a cigarette distributor for an uncollectible debt to the extent that the uncollectible debt: (1) is included in the cost of cigarette tax stamps purchased by the distributor; and (2) resulted from a transfer of cigarettes to a retailer. Provides a tobacco tax deduction to a tobacco products distributor from the tobacco products tax for uncollectible debts resulting from wholesale sales of tobacco products. Provides a tax exemption for the National Football League Super Bowl and related activities. Provides that for county wheel taxes adopted after June 30, 2007, an owner of a commercial motor vehicle paying an apportioned registration to the state under the International Registration Plan shall pay an apportioned wheel tax calculated by dividing in-state actual miles by total fleet miles generated during the preceding year. Requires a partnership to file a composite adjusted gross income tax return on behalf of all nonresident individual partners. Requires an S corporation to file a composite adjusted gross income tax return on behalf of all nonresident individual shareholders. Makes changes concerning enterprise zones. Requires corporations to add back dividends paid to shareholders of a captive real estate investment trust. Increases the thresholds for mandatory estimated income tax payments. Provides that an account owner of a college choice 529 education savings plan must repay a portion of a tax credit if any nonqualified withdrawal is made from the plan. Includes as nonqualified withdrawals any withdrawals made from an account that is terminated within 12 months after the account is opened, rollovers to another qualified tuition program under Section 529 of the Internal Revenue Code that is not a college choice 529 education savings plan account, and other withdrawals that do not meet the requirements of a qualified withdrawal. Provides a limited use tax exemption for an aircraft that is titled or registered in another state or country and is temporarily brought to Indiana to be repaired, refurbished, remanufactured, or subjected to a prepurchase evaluation. Expands the limited sales tax exemption under current law for a transaction involving an aircraft to include transactions in which an aircraft that is purchased by a nonresident remains in Indiana for up to 30 days after the aircraft is repaired, refurbished, or remanufactured. Expands the exemption from the aircraft registration requirements under the aircraft license excise tax statute for a nonresident who bases an aircraft with a dealer while the aircraft is being repaired, remodeled, or refurbished to include aircraft that are based with a person that has been issued a repair station certificate by the Federal Aviation Administration. Provides that a retail merchant may verify that the sale of property used or consumed in providing public transportation is exempt from sales tax by obtaining certain information from the purchaser. Allows a retail merchant that sold property to a person that used or consumed the property in providing public transportation to verify that the sale was exempt from sales tax by using the information contained in form ST-135 for the transaction. Allows a corporation to use its annualized income to calculate the amount of its estimated adjusted gross income tax payments. Allows the state board of education to loan money to an eligible school corporation that has experienced a shortfall of at least 5% in the collection of property tax levies for the eligible school corporation's general fund because of certain actions. Specifies that the rate of interest paid by the department of state revenue on excess tax payments must be the same as the rate of interest paid by a taxpayer for failing to pay the full amount of tax by the due date for a tax return. Reallocates Lake County innkeeper's tax revenue.
    Current Status:
     Law Enacted
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