Enrolled House Bill (H)

Authored by

Co-Authored by

DIGEST

Local income tax and state sales tax matters. Provides that a retail merchant that does not have a physical presence in Indiana shall, as an agent for the state, collect sales tax on a retail transaction made in Indiana, remit the sales tax, and comply with all applicable procedures and requirements of the sales tax laws as if the retail merchant has a physical presence in Indiana, if: (1) the retail merchant's gross revenue from sales into Indiana in a calendar year exceeds $100,000; or (2) the retail merchant makes sales into Indiana in more than 200 separate transactions. Authorizes Local income tax and state sales tax matters. Provides that a retail merchant that does not have a physical presence in Indiana shall, as an agent for the state, collect sales tax on a retail transaction made in Indiana, remit the sales tax, and comply with all applicable procedures and requirements of the sales tax laws as if the retail merchant has a physical presence in Indiana, if: (1) the retail merchant's gross revenue from sales into Indiana in a calendar year exceeds $100,000; or (2) the retail merchant makes sales into Indiana in more than 200 separate transactions. Authorizes the department of state revenue (department) to bring a declaratory judgment action against such a remote seller to establish that the remote seller has an obligation to collect sales tax and that the remote seller's obligation to collect sales tax is valid under state and federal law. Provides that the department and other state agencies and state entities may not, during the pendency of the declaratory judgment action (including any appeals from a judgment in the declaratory judgment action), enforce the obligation to collect sales tax against any person that does not affirmatively consent or otherwise remit the sales tax on a voluntary basis. Specifies certain findings of the general assembly. Adds law enforcement training to the permitted uses of the local income tax. Removes the requirement that the department of local government finance (DLGF) prescribe the form for notices, ordinances, and resolutions that may be adopted under the local income tax law. Removes the DLGF's duty to prescribe the hearing requirements and procedures to be used for submitting a notice and vote results on ordinances and adopting and submitting an ordinance or a resolution and replaces it with the general requirements for hearings and procedures. Requires the DLGF to prescribe the procedures to be used by the adopting body or governmental entity for submissions to the DLGF. Requires the DLGF to notify the submitting entity within thirty (30) days of submission as to whether the DLGF has received the necessary information. Provides that imposing a new tax or changing an existing tax is not effective until the DLGF notifies the adopting body or governmental entity that the DLGF has received the required information. Specifies that, for a county that adopted a levy freeze under the former county adjusted gross income tax (CAGIT) or county option income tax (COIT), the levy freeze must be funded using a minimum levy freeze rate that may not be decreased or rescinded unless the levy freeze dollar amount can be funded by a lower levy freeze rate for a year. Specifies that the maximum levy freeze tax rate is one percent (1%). Requires the adopting body to adopt an ordinance to lower the levy freeze tax rate to a rate approved by the DLGF. Requires that the allocation of property tax credits must be on the basis of the percentage of property tax replacement revenue within a property category. Removes real property, a mobile home, and industrialized housing that would qualify as a homestead if the taxpayer had filed for a homestead credit or the standard deduction and real property consisting of units that are regularly used to rent or otherwise furnish residential accommodations for periods of at least thirty (30) days from the list of real property that may be provided a homestead credit. Specifies that an adopting body must include in its allocation ordinance whether it is allocating additional revenue to funding for a public safety answering point (PSAP). Provides that unit level allocations must be based on total property taxes being imposed by the unit for the year preceding the distribution year. Authorizes the fiscal body of Guilford Township in Hendricks County to pass a resolution to place on the ballot a local public question on a public transportation project in the township. Requires Guilford Township to fund and carry out a public transportation project in the township if the voters approve the local public question. Specifies the conditions under which Guilford Township may impose an additional local income tax rate on county taxpayers who reside in the township. Makes technical changes to the local income tax laws. Corrects conflicts that involve references to the local income tax. ... View more