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House Bill 1365

House Bill 1365

ARCHIVE (2004)

Latest Information

DIGEST OF HB 1365 (Updated March 4, 2004 9:21 pm - DI 92)

State and local administration. Increases the cap on the total prizes awarded for one pull tab, punchboard, or tip board game from $2,000 to $5,000. Increases the maximum single prize for one winning ticket in a pull tab, punchboard, or tip board game from $300 to $599. Makes the following changes to the sales and use tax: (1) Grants a credit against Indiana use tax for sales tax paid in another state for a vehicle, a watercraft, or an aircraft. (2) Makes the furnishing of satellite television service, cable radio service, and satellite radio service a retail transaction. (3) Indicates that a deduction for sales tax paid on a purchase price that becomes uncollectible is assignable only if the retail merchant that paid the tax assigned the right to the deduction in writing. (4) Requires certain out-of-state entities to collect sales tax in Indiana. (5) Provides that gross retail income does not include receipts attributable to installation charges if those charges are separately stated on the invoice. Revises the manner in which net operating losses are computed. Makes the research expense credit permanent (instead of expiring at the end of 2013). Allows certain pass through entities owned wholly or in part by an electric cooperative to claim a refundable EDGE credit. Extends the Hoosier business investment tax credit by two years. Provides that an adopted child is not considered a Class A transferee unless the child was adopted before the child was totally emancipated. Provides the following tax incentives to a business that locates new operations in certain qualified areas containing a completely or partially inactive or closed military base: (1) A sales tax exemption for sales of utility services or commodities made to the business within five years after the new operations commence. (2) An adjusted gross income tax rate of 5% for the year of relocation and the next succeeding four taxable years. Provides a military base investment cost credit against state tax liability for a taxpayer who purchases an ownership interest in or otherwise invests in a business located in a qualified area. Provides that the tax incentives are not available to a business that does not have operations in a qualified area and that substantially reduces or ceases its operations at another location in Indiana in order to relocate them within the qualified area. Indicates that a certified technology park can be created to enhance research and development or testing being done at an active military base. Provides that, in an eminent domain proceeding, when the person seeking to acquire property does not agree with the owner of an interest in the property and files a complaint and a lis pendens notice, the filing of the complaint and lis pendens notice constitutes notice of the proceedings to all subsequent purchasers and persons taking encumbrances of the property. Provides that, under the law concerning unclaimed property, the attorney general is not required to pay the prescribed rate for publishing a notice in a newspaper concerning property reported as a result of a demutualization of an insurance company. Provides that a taxpayer that is otherwise entitled to a community revitalization enhancement district ("district") tax credit may claim the credit regardless of whether any incremental income or sales taxes have been deposited in the incremental tax financing fund established for the district or have been allocated to the district. Provides that a district must terminate not later than 15 years after incremental income or sales taxes are first allocated to the district. Provides that if the budget agency fails to act on an ordinance or a resolution designating a district within 120 days, the ordinance or resolution is considered approved. Permits an advisory commission on industrial development or the executive of a municipality or county to petition the budget agency for permission to modify the boundaries of a district. Establishes a procedure and criteria for appealing a decision by the department of state revenue that a taxpayer is not eligible for the community revitalization enhancement district tax credit (CRED) because the taxpayer's business relocated operations into the district from another location in Indiana. Changes the square footage requirement that must be met before a district may be established in a certain area in Delaware County. Authorizes the department of revenue to publish on the Internet a list of taxpayers that are subject to tax warrants issued at least 24 months before the date of the publication of the list. Sunsets the authority to publish the list after June 30, 2006. Requires the twenty-first century research and technology fund board to establish and administer a grant office to work with federal agencies, state agencies, units of local government, colleges and universities, and private sector entities to develop and receive research and development grants. Creates the emerging technology grant fund to be administered by the twenty-first century research and technology fund board. Reconciles two different versions of the statute allowing political subdivisions to establish rainy day funds. Defines a second class city a city having a population of 35,000 to 499,999 and first class city as a city having a population of 500,000 or more. (Current law defines a second class city as a city having a population of 35,000 to 249,999 and a first class city as a city having a population of 250,000 or more.) Allows a political subdivision to borrow money to finance a public work project costing not more than $2,000,000 by issuing a note to a financial institution. Authorizes certain counties and municipalities to provide property tax abatements for logistical distribution equipment and information technology equipment installed after June 30, 2004. Authorizes local governments to impose an optional property tax abatement fee. Provides that the value of federal income tax credits awarded under Section 42 of the Internal Revenue Code may not be considered in determining the assessed value of low income housing tax credit property. Repeals the sales tax credit for sales of motor vehicles, trailers, watercraft, and aircraft that are sold in Indiana and titled or registered in another state. Repeals the registration fee for a converter dolly. Repeals the sales tax on complimentary hotel rooms. Provides for state employee group health insurance program eligibility for certain individuals who retired from Muscatatuck State Developmental Center under the state's retirement incentive program. Establishes the interim study committee on corporate taxation to study the utilization of passive investment corporations by companies doing business in Indiana.
Current Status:
Law Enacted
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