Skip to main content
House Bill 1001

House Bill 1001

ARCHIVE (2006)

Latest Information

DIGEST OF HB 1001 (Updated March 15, 2006 12:00 am - DI 51)

Various tax matters. Increases the homestead credit for one year in 2006 to 28% and the homestead standard deduction for one year in 2007 to $45,000. Provides an additional distribution in 2006 to reimburse counties that send out revised tax bills to implement the additional homestead credit. Permits homestead credits to be certified using the best information available at the time the certification is made. Beginning in 2008, requires counties to use a uniform format for property tax statements that includes additional taxpayer information. Beginning in August 2009, requires a county to mail a notice concerning budget proceedings and proposed tax rates, tax levies, and budgets to each taxpayer and permits a taxpayer to appeal the taxpayer's assessment within 45 days after getting the notice. Limits use of students and teachers in promoting a bond issue; prohibits attorneys, architects, construction managers, and financial advisors from contributing money to promote a bond issue; and provides standards for accepting signatures on a remonstrance petition. Extends the time in 2006 in which a county fiscal body may adopt an ordinance to provide taxpayers with a cap on residential property taxes equal to 2% of the assessed value of the residential property. Beginning in 2007 for Lake County and 2008 for all other counties, establishes a 2% cap without a county fiscal body ordinance. Extends the 2% cap to all property in 2010. Imposes a utility use tax in transactions on which a utility receipts tax has not been imposed. Indicates that property constructed outside Indiana for Indiana use is subject to use tax. Exempts home energy assistance from gross receipts tax (sales tax) for one year. Prohibits the assignment of sales tax remittance deductions to nonaffiliated companies. Requires certain intangibles expenses and directly related intangible interest expense deducted for federal income tax purposes to be added back to a corporation's taxable income for state adjusted gross income tax purposes. Provides after a phase-in period that corporate business income is apportioned to Indiana for adjusted gross income tax purposes using a single sales factor. Indicates how the freight on board location of a sale affects the apportionment formula. Requires a corporation that files combined income tax returns to petition the department of state revenue for permission to discontinue filing combined returns. Permits an additional county adjusted gross income tax rate in Jasper County and an additional county option income tax rate in Scott county to construct and maintain criminal justice facilities. Extends the time in 2006 during which an additional economic development income tax rate may be imposed to provide property tax relief to mitigate the effects of the elimination of the property tax on inventory. Permits a county to provide tax relief to other residential property in addition to homesteads. Replaces the requirement that a dog tax be imposed in each county with a county option dog tax. Makes a technical correction. Increases the calendar year cap on tuition support distributions for the calendar year ending December 31, 2006, by $48.2 million or the amount needed to avoid reducing distributions in the second six months of the calendar year. Changes the school funding formula to eliminate the effects of annual property tax assessed value adjustments. Provides that a farm mutual insurance company may elect taxation under the gross premium tax instead of the adjusted gross income tax. Directs the office of management and budget to develop a proposal for presentation to the state budget committee by November 1, 2006, concerning an actuarially funded retirement health program for state employees. Makes an appropriation for the additional homestead credit amount. Appropriates $20.1 million dollars or the amount needed for state tuition support distributions in the state fiscal year ending June 30, 2006. Makes other related changes.
Current Status:
Law Enacted
Latest Printing (PDF)