Bill Text: IN HB1541 | 2013 | Regular Session | Introduced
Bill Title: Various tax matters.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-02-11 - Representative Huston added as coauthor [HB1541 Detail]
Download: Indiana-2013-HB1541-Introduced.html
Citations Affected: IC 4-10-22; IC 6-3-2-1; IC 6-4.1.
Synopsis: Various tax matters. Repeals the automatic taxpayer refund.
Reduces the individual income tax rate from 3.4% to 3.06% over three
years. Provides that the inheritance tax does not apply to property
interests transferred by decedents whose deaths occur after December
31, 2017. Specifies that certain definitions apply after the elimination
of the inheritance tax for purposes of the Indiana estate tax and the
Indiana generation-skipping transfer tax. Provides that the inheritance
tax replacement amount is calculated in the same manner that it was
calculated between 1997 and 2012. (Current law provides that a county
is not eligible for a replacement amount unless it receives a
replacement amount for inheritance tax collections in state fiscal year
2011-2012.) Phases out inheritance tax replacement amount
distributions from 2013 to 2017.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
the
budget committee described in section 2 of this chapter, the governor
office of management and budget shall do the following:
(1) If the amount of excess reserves on June 30 of any year is less
than fifty million dollars ($50,000,000), the governor office of
management and budget shall carry over the excess reserves to
each subsequent year until the total excess reserves, including any
carryover amount, equal at least fifty million dollars
($50,000,000). In the year that the total excess reserves equal at
least fifty million dollars ($50,000,000), the excess reserves shall
be used as provided in subdivision (2).
(2) If in any year the amount of the excess reserves is fifty million
dollars ($50,000,000) or more, the governor office of
management and budget shall do the following:
(A) If the year is calendar year 2012, transfer fifty percent
(50%) of the excess reserves as follows:
(i) To the pension plans for the state police, conservation
officers, judges, and prosecuting attorneys to increase the
funded amount of each of these plans to eighty percent
(80%). The funded amount for each plan described in this
item is to be determined as of June 30 of the immediately
preceding year, and, if the amount of money available for
transfer is less than the amount needed to increase all these
plans' funded amount to eighty percent (80%), the transfers
shall be made in the priority of each plan's unfunded liability
so that the funded amount of the plan with the least
unfunded liability is raised to eighty percent (80%) first.
(ii) To the pension stabilization fund established by
IC 5-10.4-2-5 for the purposes of the pension stabilization
fund, if money remains after satisfying item (i).
If the year begins after December 31, 2012, transfer fifty
percent (50%) of any excess reserves to the pension
stabilization fund established by IC 5-10.4-2-5 for the
purposes of the pension stabilization fund.
(B) Use fifty percent (50%) of any excess reserves for the
purposes of providing an automatic taxpayer refund under
section 4 of this chapter.
gross income tax return for the taxpayer's taxable year ending
in the calendar year immediately preceding the calendar year
in which a determination is made under section 1 of this
chapter that the state has excess reserves; and
(B) must have adjusted gross income tax liability for the
taxpayer's taxable year ending in the calendar year in which a
determination is made under section 1 of this chapter that the
state has excess reserves.
(2) The amount of the refund is determined for each qualifying
taxpayer as follows:
STEP ONE: Determine the total amount of excess state
reserves that under section 3 of this chapter are available to
provide automatic taxpayer refunds.
STEP TWO: Determine the total number of taxpayers that
qualify for a refund under subdivision (1).
STEP THREE: Determine the result of:
(A) the STEP ONE result; divided by
(B) the STEP TWO result;
as rounded to the nearest dollar.
(3) The refund is a refundable credit that shall first be applied as
a credit against adjusted gross income tax liability in the
taxpayer's taxable year in which a refund is provided. Any
remaining unused credit shall be refunded to the taxpayer. The
credit may not be carried forward.
(4) If an individual and the individual's spouse are both qualifying
taxpayers for purposes of this section for a taxable year and file
a joint Indiana resident individual adjusted gross income tax
return for the taxable year:
(A) the individual and the individual's spouse are considered
two (2) taxpayers for purposes of determining the amount of
the refund under subdivision (2) for a qualifying taxpayer; and
(B) the amount of the refund that the individual and the
individual's spouse are entitled to claim is equal to the amount
of any refund determined under subdivision (2) for a
qualifying taxpayer, multiplied by two (2).
(1) For taxable years beginning before January 1, 2014, three and four-tenths percent (3.4%).
(2) For taxable years beginning after December 31, 2013, and before January 1, 2015, three and twenty-five hundredths percent (3.25%).
(3) For taxable years beginning after December 31, 2014, and before January 1, 2016, three and fifteen hundredths percent (3.15%).
(4) For taxable years beginning after December 31, 2015, three and six hundredths percent (3.06%).
(b) Except as provided in section 1.5 of this chapter, each taxable year, a tax at the following rate of adjusted gross income is imposed on that part of the adjusted gross income derived from sources within Indiana of every corporation:
(1) Before July 1, 2012, eight and five-tenths percent (8.5%).
(2) After June 30, 2012, and before July 1, 2013, eight percent (8.0%).
(3) After June 30, 2013, and before July 1, 2014, seven and five-tenths percent (7.5%).
(4) After June 30, 2014, and before July 1, 2015, seven percent (7.0%).
(5) After June 30, 2015, six and five-tenths percent (6.5%).
(c) If for any taxable year a taxpayer is subject to different tax rates under subsection (b), the taxpayer's tax rate for that taxable year is the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's taxable year that precede the month the rate changed by the rate in effect before the rate change.
STEP TWO: Multiply the number of months in the taxpayer's taxable year that follow the month before the rate changed by the rate in effect after the rate change.
STEP THREE: Divide the sum of the amounts determined under STEPS ONE and TWO by twelve (12).
However, the rate determined under this subsection shall be rounded to the nearest one-hundredth of one percent (0.01%).
(b) For purposes of IC 6-4.1-11 and IC 6-4.1-11.5, the following statutes apply with respect to a property interest transferred by a
decedent whose death occurs after December 31, 2017:
(1) Section 4 of this chapter.
(2) Section 5 of this chapter.
(3) Section 8 of this chapter.
(4) Section 11 of this chapter.
(5) Section 13 of this chapter.
(b) For purposes of determining the amount of inheritance tax imposed under this article, a credit is allowed against the tax imposed under section 1 of this chapter on a decedent's transfer of property interests. The amount of the credit equals the inheritance tax imposed under section 1 of this chapter multiplied by the percentage prescribed in the following table:
YEAR OF PERCENTAGE
INDIVIDUAL'S DEATH OF CREDIT
2013 10%
2014
2015
2016
2017
(c) A person who is liable for inheritance tax imposed under this article may claim the credit allowed under this section at the time the person pays the tax. When the payment is made, the person collecting the tax shall reduce the inheritance tax due by the amount of the credit specified in subsection (b).
deposit the money in the state general fund.
(b) Except as provided in subsection (e), (d), the treasurer of state
shall annually distribute to each county the amount determined under
subsection (c) or (d) for the county. The distribution for with respect
to inheritance tax collections in a particular state fiscal year must be
made before August 15 of the following state fiscal year. There is
appropriated from the state general fund the amount necessary to make
the distributions under this subsection.
(c) For a state fiscal year ending before July 1, 2012, The
department of state revenue shall determine the inheritance tax
replacement amount for each county using the following formula:
STEP ONE: Determine the amount of inheritance tax revenue
retained by each county in each state fiscal year beginning with
the state fiscal year that began July 1, 1990, and ending with the
state fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance
tax revenue retained by each county using five (5) of the seven (7)
state fiscal years described in STEP ONE after excluding the two
(2) years in which each county retained its highest and lowest
totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO
amount minus the amount of inheritance taxes retained by the
county during the immediately preceding state fiscal year.
(d) For a state fiscal year beginning after June 30, 2012, and ending
before July 1, 2022, the department of state revenue shall determine the
inheritance tax replacement amount for each county using the
following formula:
STEP ONE: Determine the inheritance tax replacement amount
distributed to the county for the state fiscal year that began on
July 1, 2011.
STEP TWO: FOUR: Multiply the amount determined under
STEP ONE THREE by the appropriate percentage as follows:
(A) Ninety-one percent (91%) for the state fiscal year
beginning July 1, 2012. Ninety percent (90%) for
distributions made in 2013.
(B) Eighty-two percent (82%) for the state fiscal year
beginning July 1, 2013. Seventy percent (70%) for
distributions made in 2014.
(C) Seventy-three percent (73%) for the state fiscal year
beginning July 1, 2014. Fifty percent (50%) for
distributions made in 2015.
(D) Sixty-four percent (64%) for the state fiscal year beginning
July 1, 2015. Thirty percent (30%) for distributions made
in 2016.
(E) Fifty-five percent (55%) for the state fiscal year beginning
July 1, 2016. Ten percent (10%) for distributions made in
2017.
(F) Forty-five percent (45%) for the state fiscal year beginning
July 1, 2017.
(G) Thirty-six percent (36%) for the state fiscal year beginning
July 1, 2018.
(H) Twenty-seven percent (27%) for the state fiscal year
beginning July 1, 2019.
(I) Eighteen percent (18%) for the state fiscal year beginning
July 1, 2020.
(J) Nine percent (9%) for the state fiscal year beginning July
1, 2021.
(e) (d) A county is not entitled to a distribution under subsection (b)
for a state fiscal year beginning after June 30, 2022. after December
31, 2017.
(b) Sections 1 through 12 of this chapter do not apply to a property interest transferred by a decedent whose death occurs after December 31,
